NET INCOME PER SHARE

6 Months Ended

Sep. 30, 2011

NOTE 12. NET INCOME PER SHARE

Basic net income per share is computed by dividing the net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income attributable to common shareholders by the weighted average number of common shares that would have been outstanding during the period assuming the issuance of common shares for all potential dilutive common shares outstanding using the treasury stock method. Dilutive potential common shares outstanding include outstanding stock options, restricted stock units and warrants.

The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net income per share (in thousands, except share and per share data):

	Three Months Ended September 30,				Six Months Ended September 30,
	2011		2010		2011		2010
Numerator:
Net income	$	3,321	$	3,749	$	5,535	$	7,329
Denominator:
Weighted average common shares outstanding - basic		22,290,000		22,317,000		22,484,000		22,264,000
Weighted average effect of dilutive securities:
Stock options		123,000		293,000		156,000		318,000
Restricted stock units		142,000		81,000		201,000		154,000
Warrants		9,000		-		9,000		-
Weighted average common shares outstanding - diluted		22,564,000		22,691,000		22,850,000		22,736,000
Net income per share:
Basic net income per share	$	0.15	$	0.17	$	0.25	$	0.33
Diluted net income per share	$	0.15	$	0.17	$	0.24	$	0.32

We excluded the following stock options from the computation of diluted weighted average shares outstanding because the exercise price of the stock options is greater than the average market price of our common stock during the period and, therefore, the inclusion of these stock options would be antidilutive to net income per share:

	Three Months Ended September 30,				Six Months Ended September 30,
	2011		2010		2011		2010
Weighted average number of shares underlying antidilutive stock options		-		159,000		-		-
Weighted average exercise price per share underlying antidilutive stock options		N/A	$	21.65		N/A		N/A

We excluded the following restricted stock units from the computation of diluted weighted average shares outstanding because the inclusion of these awards would be antidilutive to net income per share:

	Three Months Ended September 30,				Six Months Ended September 30,
	2011		2010		2011		2010
Weighted average number of shares underlying antidilutive restricted stock units		264,000		536,000		219,000		275,000