Stock Options and Stock-Based Compensation (Tables)

12 Months Ended

Mar. 31, 2017

The following weighted average assumptions were used for the fiscal years ended March 31, 2015, 2016 and 2017:

	Fiscal 2015			Fiscal 2016			Fiscal 2017
Expected volatility		45	%		43	%		41	%
Risk free interest rate	1.3% to 1.7%			1.25% to 1.65%			1.03% to 1.92%
Dividend yield		0.0	%		0.0	%		0.0	%
Weighted average option life	4.4 to 4.5 years			4.4 to 4.5 years			4.4 to 4.5 years

The table below shows the amounts recognized in the financial statements for the fiscal years ended March 31, 2015, 2016 and 2017.

	Fiscal 2015		Fiscal 2016		Fiscal 2017
Cost of revenue	$	1,021,000	$	1,288,000	$	1,507,000
General and administrative		1,188,000		904,000		925,000
Total cost of stock-based compensation included in income before income tax		2,209,000		2,192,000		2,432,000
Amount of income tax benefit recognized		862,000		852,000		946,000
Amount charged to net income	$	1,347,000	$	1,340,000	$	1,486,000
Effect on basic earnings per share	$	0.07	$	0.07	$	0.08
Effect on diluted earnings per share	$	0.06	$	0.07	$	0.08

The following table summarizes information for all stock options for the fiscal years March 31, 2015, 2016 and 2017:

	Fiscal 2015			Fiscal 2016			Fiscal 2017
Options outstanding – beginning of the year		1,115,984			1,163,179			1,115,465
Options granted		241,625			276,275			267,950
Options exercised		(111,758	)		(200,753	)		(115,592	)
Options cancelled/forfeited		(82,672	)		(123,236	)		(123,895	)
Options outstanding – end of year		1,163,179			1,115,465			1,143,928
During the year, weighted average exercise price of:
Options granted	$	37.64		$	35.51		$	37.13
Options exercised	$	17.27		$	19.75		$	22.74
Options cancelled/forfeited	$	32.31		$	33.44		$	36.90
At the end of the year:
Price range of outstanding options	$7.78-$45.55			$9.05-$45.55			$12.71-$45.73
Weighted average exercise price per share	$	27.65		$	30.36		$	32.02
Options available for future grants		800,342			650,345			505,493
Exercisable options		559,168			529,691			585,424

The following table summarizes the status of stock options outstanding and exercisable at March 31, 2017:

Range of Exercise Prices	Number of Outstanding Options		Weighted Average Remaining Contractual Life		Outstanding Options – Weighted Average Exercise Price		Exercisable Options – Number of Exercisable Options		Exercisable Options – Weighted Average Exercise Price
$12.71 to $23.10		324,027		2.06	$	20.39		317,225	$	20.33
$23.11 to $34.77		320,585		3.67		31.47		120,078		29.62
$34.78 to $40.57		293,728		3.39		36.64		75,579		38.39
$40.58 to $45.73		205,588		3.58		44.61		72,542		45.04
Total		1,143,928		3.12	$	32.02		585,424	$	27.63

The following table summarizes the status of all outstanding options at March 31, 2017, and changes during the fiscal year then ended:

	Number of Options			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value as of March 31, 2017
Options outstanding, March 31, 2016		1,115,465		$	30.36
Granted		267,950			37.13
Exercised		(115,592	)		22.74
Cancelled – forfeited		(119,711	)		36.89
Cancelled – expired		(4,184	)		36.97
Options outstanding, March 31, 2017		1,143,928		$	32.02		3.12	$	13,380,609
Options vested and expected to vest		1,007,484		$	31.58		2.98	$	12,235,839
Ending exercisable		585,424		$	27.63		2.23	$	9,405,917