NET INCOME PER SHARE

3 Months Ended

Jun. 30, 2012

NET INCOME PER SHARE [Abstract]

NET INCOME PER SHARE

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 June 30,
	2012		2011
Numerator:
Net income	$	2,864	$	2,214
Denominator:
Weighted average common shares outstanding - basic		21,817,000		22,681,000
Weighted average effect of dilutive securities:
Stock options		107,000		189,000
Restricted stock units		266,000		216,000
Warrants		27,000		9,000
Weighted average common shares outstanding - diluted		22,217,000		23,095,000
Net income per share:
Basic net income per share	$	0.13	$	0.10
Diluted net income per share	$	0.13	$	0.10

Stock options and warrants are excluded from the computation of diluted weighted average shares outstanding if the exercise price of the stock options and warrants is greater than the average market price of our common stock during the period because the inclusion of these stock options and warrants would be antidilutive to net income per share.  There were no stock options and warrants excluded from the computation of diluted weighted average shares outstanding during the three months ended June 30, 2012 and 2011.

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 June 30,
	2012		2011
Weighted average number of shares underlying antidilutive restricted stock units		66,000		-

During the three months ended June 30, 2012, we granted 21,000 restricted stock unit awards (performance vesting), with vesting based on the achievement of certain pre-established corporate annual performance related goals.  The restricted stock unit awards (performance vesting) are not included in the diluted net income per share calculation.  If the performance criteria are achieved, these restricted stock unit awards (performance vesting) will be considered outstanding for the purpose of computing diluted earnings per share if the effect is dilutive.