NET INCOME PER SHARE

3 Months Ended

Jun. 30, 2014

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,
	2014		2013
Numerator:
Net income	$	4,715	$	3,229
Denominator:
Weighted average common shares outstanding - basic		22,408,000		22,229,000
Weighted average effect of dilutive securities:
Stock options		2,000		26,000
Restricted stock units		202,000		288,000
Warrants		25,000		28,000
Weighted average common shares outstanding - diluted		22,637,000		22,571,000
Net income per share:
Basic net income per share	$	0.21	$	0.15
Diluted net income per share	$	0.21	$	0.14

If the performance criteria for our restricted stock unit awards (performance vesting) are achieved, these awards will be considered outstanding for the purpose of computing diluted net income per share if the effect is dilutive. Because the performance criteria for these restricted stock unit awards (performance vesting) were not achieved during the three months ended June 30, 2014 and 2013, these awards were not included in the diluted net income per share calculation.

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, restricted stock units and warrants excluded from the computation of diluted weighted average shares outstanding during the three months ended June 30, 2014 and 2013.