Income Per Share

3 Months Ended

Mar. 31, 2016

(7) Income Per Share

Basic income per share is based on the weighted average number of shares of common stock outstanding. Diluted income per share is based upon the weighted average number of common shares outstanding and dilutive common stock equivalent shares outstanding during each period.

The weighted average number of shares used to compute basic and diluted net income per share consisted of the following (in thousands):


	Three Months Ended
	March 31,
	2016	2015
Weighted average common shares outstanding, basic	7,173	7,076
Weighted average common equivalent shares due to stock options and RSUs	82	117
Weighted average common shares outstanding, diluted	7,255	7,193

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options, when the average market price of the common stock is lower than the exercise price of the related options during the period. These outstanding stock awards are not included in the computation of diluted income per share because the effect would be antidilutive. For the three-month periods ended March 31, 2016 and 2015, the number of stock awards excluded from the computation of diluted earnings per share for this reason was 54,969 and 53,651, respectively.