Net Loss Per Share

3 Months Ended

Dec. 31, 2011

Net Loss Per Share [Abstract]

Net Loss Per Share

Note C — Net Loss Per Share

Net loss per common share is computed by dividing net loss 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. For periods of net loss, diluted net loss per common share equals basic net loss per common share because common stock equivalents are not included in periods where there is a loss, as they are antidilutive.

Employee stock options to purchase 1,135,500 shares and 802,000 shares were excluded from the diluted net loss per share calculation for the first quarter of fiscal years 2012 and 2011, respectively, because their exercise prices were greater than the average market price of the Company’s common stock and their effect would have been antidilutive.