Net Income Per Share

9 Months Ended

Jun. 30, 2013

Net Income Per Share

Net Income Per Share

Note B — Net Income Per Share

Net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period.  Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period, increased to include dilutive potential common shares issuable upon the exercise of stock options that were outstanding during the period.  A reconciliation of the numerator and denominator in the basic and diluted net income per share calculation is as follows:

	Three Months Ended				Nine Months Ended
	June 30,		June 30,		June 30,		June 30,
	2013		2012		2013		2012
Numerator:
Net income	$	1,129,544	$	495,924	$	3,340,940	$	1,023,091
Denominator:
Denominator for basic net income per share- weighted average shares outstanding	12,191,778		12,008,420		12,125,262		12,036,124
Effect of dilutive stock options	595,832		364,920		450,864		303,921
Denominator for diluted net income per share- weighted average shares outstanding	12,787,610		12,373,340		12,576,126		12,340,045
Basic net income per share	$	0.09	$	0.04	$	0.28	$	0.09
Dilute net income per share	$	0.09	$	0.04	$	0.27	$	0.08

For the three months ended June 30, 2013 and 2012, 11,250 and 1,063,500 shares of common stock subject to issuance upon exercise of stock options were excluded from the calculation of diluted net income per share because their effect would have been antidilutive. Additionally, 251,800 of restricted share units outstanding could potentially be dilutive upon achievement of performance goals.