EARNINGS PER SHARE

6 Months Ended

Dec. 31, 2015

NOTE 8 - EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted per share is computed by dividing net income by the weighted average number of common shares after considering the additional dilution related to common stock options, restricted stock and performance-based stock option awards. In computing diluted earnings per share, the outstanding common stock options and performance-based stock option awards are considered dilutive using the treasury stock method.

The Company’s restricted stock awards are treated as outstanding for earnings 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				Six-Months Ended
	December 31,				December 31,
	2015		2014		2015		2014
	(Unaudited)				(Unaudited)
Net income, as reported	$	615	$	749	$	835	$	675

Weighted average common shares outstanding		15,467		15,281		15,443		15,285
Effect of dilutive stock options		595		142		551		143
Weighted average diluted common shares outstanding		16,062		15,423		15,994		15,428

Net income per common share
Basic	$	0.04	$	0.05	$	0.05	$	0.04
Diluted	$	0.04	$	0.05	$	0.05	$	0.04

Employee stock options excluded from computation of dilutive income per share amounts because their effect would be anti-dilutive		120		392		216		237