EARNINGS PER SHARE

3 Months Ended

Sep. 30, 2014

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

NOTE 8 - EARNINGS PER SHARE

Earnings per share are measured at two levels: basic per share and diluted per share. Basic per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted per share is computed by dividing net income (loss) by the weighted average number of common shares after considering the additional dilution related to common stock options and restricted stock. In computing diluted earnings per share, the outstanding common stock options are considered dilutive using the treasury stock method.

In accordance with guidance related to share-based payment arrangements, the Company’s restricted stock awards are treated as outstanding for earning per share calculations since these shares have full voting rights and are entitled to participate in dividends declared on common shares, if any, and undistributed earnings.  As participating securities, the shares of restricted stock are included in the calculation of basic EPS using the two-class method.  For the periods presented, the amount of earnings allocated to the participating securities was not material.

The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per-share data):

	Three-Months Ended
	September 30,
	2014			2013
	(Unaudited)
Net income (loss), as reported	$	(74	)	$	122
Weighted average common shares outstanding		15,288			15,343
Effect of dilutive stock options		-			23
Weighted average diluted common shares outstanding		15,288			15,366
Net income (loss) per common share
Basic	$	(0.00	)	$	0.01
Diluted	$	(0.00	)	$	0.01
Employee stock options excluded from computation of dilutive income (loss) per share amounts because their effect would be anti-dilutive		237			769