Stock Based Compensation and Stock Options (Tables)

6 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Fair Value of Options Granted

The following assumptions were used to estimate the fair value of options granted during the three months ended September 30, 2013 and 2014 using the Black-Scholes option-pricing model:

	Three Months Ended September 30,
	2013			2014
Risk-free interest rate		1.50	%		1.66	%
Expected volatility		47	%		46	%
Expected dividend yield		0.00	%		0.00	%
Expected forfeiture rate		12.73	%		12.46	%
Expected weighted average life of option in years		4.4 years			4.4 years

Stock Compensation Expense for Time Based Options and Performance Based Options

The table below shows the amounts recognized in the financial statements for stock compensation expense for time based options and performance based options during the three and six months ended September 30, 2013 and 2014, respectively.

	Three Months Ended
	September 30, 2013			September 30, 2014
Cost of revenues	$	161,000		$	255,000
General and administrative		304,000			190,000
Total cost of stock-based compensation included in income before income tax provision		465,000			445,000
Amount of income tax benefit recognized		(198,000	)		(169,000	)
Amount charged against net income	$	267,000		$	276,000
Effect on diluted net income per share	$	(0.01	)	$	(0.01	)

	Six Months Ended
	September 30, 2013			September 30, 2014
Cost of revenues	$	297,000		$	494,000
General and administrative		573,000			668,000
Total cost of stock-based compensation included in income before income tax provision		870,000			1,162,000
Amount of income tax benefit recognized		(370,000	)		(442,000	)
Amount charged against net income	$	500,000		$	720,000
Effect on diluted net income per share	$	(0.02	)	$	(0.03	)

Stock Options

Summarized information for all stock options for the three and six months ended September 30, 2013 and 2014 follows:

	Three Months Ended September 30, 2013					Three Months Ended September 30, 2014
	Shares			Average Price		Shares			Average Price
Options outstanding, beginning		1,199,630		$	19.60		1,118,530		$	25.60
Options granted		48,100			34.77		48,650			40.57
Options exercised		(53,279	)		15.62		(30,957	)		18.75
Options cancelled		(3,200	)		19.72		(150	)		24.24
Options outstanding, ending		1,191,251		$	20.39		1,136,073		$	26.42

	Six Months Ended September 30, 2013					Six Months Ended September 30, 2014
	Shares			Average Price		Shares			Average Price
Options outstanding, beginning		1,100,952		$	18.65		1,115,984		$	24.80
Options granted		240,000			25.73		86,050			42.43
Options exercised		(119,051	)		14.45		(56,950	)		18.41
Options cancelled		(30,650	)		23.07		(9,011	)		29.32
Options outstanding, ending		1,191,251		$	20.39		1,136,073		$	26.42

Stock Options Outstanding and Exercisable

The following table summarizes the status of stock options outstanding and exercisable at September 30, 2014:

									Exercisable
			Weighted		Outstanding		Exercisable		Options –
			Average		Options –		Options –		Weighted
			Remaining		Weighted		Number of		Average
	Number of		Contractual		Average		Exercisable		Exercise
Range of Exercise Price	Outstanding Options		Life		Exercise Price		Options		Price
$7.78 to $21.61		285,172		2.62	$	14.75		262,773	$	14.20
$21.62 to $23.10		306,278		3.94	$	22.79		142,551	$	22.69
$23.11 to $34.77		265,323		2.93	$	26.74		96,052	$	26.05
$34.78 to $45.55		279,300		4.62	$	42.02		1,300	$	40.57
Total		1,136,073		3.54	$	26.42		502,676	$	18.94

Outstanding Options

A summary of the status for all outstanding options at September 30, 2014, and changes during the three months then ended, is presented in the table below:

	Number of Options			Weighted Average Exercise Per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value as of September 30, 2014
Options outstanding at July 1, 2014		1,118,530		$	25.60
Granted		48,650			40.57
Exercised		(30,957	)		18.75
Cancelled – forfeited		—			—
Cancelled – expired		(150	)		24.24
Ending outstanding		1,136,073		$	26.42		3.54	$	10,923,390
Ending vested and expected to vest		1,014,786		$	25.34		3.47	$	10,523,652
Ending exercisable at September 30, 2014		502,676		$	18.94		2.97	$	7,611,649