NOTE 15.

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 computations for basic and diluted net income from continuing and discontinued operations per share are as follows (in thousands, except share and per share data):

	Three Months Ended September 30,						Six Months Ended September 30,
	2015			2014			2015			2014
Income from continuing operations	$	7,823		$	5,712		$	14,818		$	10,786
Loss from discontinued operations, net of tax		(7	)		(312	)		(7	)		(671	)
Net income	$	7,816		$	5,400		$	14,811		$	10,115

Weighted average common shares outstanding:
Basic		22,701,000			22,507,000			22,663,000			22,458,000
Effect of dilutive securities:
Stock options		-			2,000			-			2,000
Restricted stock units		162,000			172,000			212,000			201,000
Warrants		-			9,000			1,000			17,000
Diluted		22,863,000			22,690,000			22,876,000			22,678,000

Net income (loss) per share:
Basic
Continuing operations	$	0.34		$	0.25		$	0.65		$	0.48
Discontinued operations		-			(0.01	)		-			(0.03	)
Basic net income per share	$	0.34		$	0.24		$	0.65		$	0.45

Diluted
Continuing operations	$	0.34		$	0.25		$	0.65		$	0.48
Discontinued operations		-			(0.01	)		-			(0.03	)
Diluted net income per share	$	0.34		$	0.24		$	0.65		$	0.45

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. The performance criteria for our restricted stock unit awards (performance vesting) related to FY2015 Performance RSUs were achieved during the fiscal 2015 performance period, and accordingly, the dilutive effect of the shares were included in the computation of diluted weighted average shares outstanding. Because the performance criteria for restricted stock unit awards (performance vesting) related to FY2016 Performance RSUs were not achieved during the three and six months ended September 30, 2015, these awards were not included in the diluted net income per share calculation.

Restricted stock units for 95,000 and 50,000 shares during the three months ended September 30, 2015 and 2014, respectively, and 78,000 and 0 shares during the six months ended September 30, 2015 and 2014, respectively, were outstanding but not included in the computation of diluted net income per share because the effect would be antidilutive.

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, 2015 and 2014.