Net Income Per Share

9 Months Ended

Dec. 31, 2016

9. Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share includes the effect, if any, from the potential exercise or conversion of securities, such as stock options and warrants, which would result in the issuance of incremental shares of common stock.

The following presents a reconciliation of basic and diluted net income per share:

	Three Months Ended December 31,				Nine Months Ended December 31,
	2016		2015		2016		2015

Net income	$	11,110,000	$	7,748,000	$	27,761,000	$	8,266,000
Basic shares		18,675,125		18,319,531		18,587,946		18,180,039
Effect of potentially dilutive securities		766,140		776,173		811,911		801,382
Diluted shares		19,441,265		19,095,704		19,399,857		18,981,421
Net income per share:
Basic net income per share	$	0.59	$	0.42	$	1.49	$	0.45
Diluted net income per share	$	0.57	$	0.41	$	1.43	$	0.44

The effect of dilutive options excludes (i) 292,415 shares subject to options with exercise prices ranging from $26.47 to $34.17 per share for the three months ended December, 31, 2016, (ii) 291,215 shares subject to options with exercise prices ranging from $28.68 to $34.17 per share for the nine months ended December 31, 2016, and (iii) 1,100 shares subject to options with an exercise price of $34.17 per share for the nine months ended December 31, 2015, which were anti-dilutive. There were no anti-dilutive options or warrants for the three months ended December 31, 2015.