NET INCOME PER SHARE

6 Months Ended

Sep. 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 September 30,				Six Months Ended September 30,
	2014		2013		2014		2013
Numerator:
Net income	$	5,400	$	3,996	$	10,115	$	7,225
Denominator:
Weighted average common shares outstanding - basic		22,507,000		22,306,000		22,458,000		22,268,000
Weighted average effect of dilutive securities:
Stock options		2,000		24,000		2,000		25,000
Restricted stock units		172,000		216,000		201,000		268,000
Warrants		9,000		28,000		17,000		28,000
Weighted average common shares outstanding - diluted		22,690,000		22,574,000		22,678,000		22,589,000
Net income per share:
Basic net income per share	$	0.24	$	0.18	$	0.45	$	0.32
Diluted net income per share	$	0.24	$	0.18	$	0.45	$	0.32

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 and six months ended September 30, 2014 and 2013.

Restricted stock units for 222,000 and 129,000 shares during the three months ended September 30, 2014 and 2013, respectively, and 25,000 and 0 shares during the six months ended September 30, 2014 and 2013, respectively, were outstanding but not included in the computation of diluted net income per share because the effect would be antidilutive. For our restricted stock unit awards (performance vesting), if the performance criteria are achieved during the period, 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 and six months ended September 30, 2014 and 2013, these awards were not included in the diluted net income per share calculation.