Basic and diluted earnings per share are calculated as follows (in thousands, except per share amounts):

	Three Months Ended				Six Months Ended
		September 30,				September 30,
	2012		2011		2012		2011

	(unaudited)				(unaudited)
Net income	$	2,357	$	10,947	$	8,364	$	20,923
Weighted average shares - basic		31,310		31,383		31,331		31,445
Weighted average shares - diluted		31,975		32,545		32,192		32,669
Net income per share - basic	$	0.08	$	0.35	$	0.27	$	0.67
Net income per share - diluted	$	0.07	$	0.34	$	0.26	$	0.64

Diluted weighted average shares includes approximately 665,000 and 1,162,000 common equivalent shares from stock options for the three months ended September 30, 2012 and 2011, and approximately 861,000 and 1,224,000 common equivalent shares from stock options for the six months ended September 30, 2012 and 2011.

Basic net income available per common share is computed using net income and the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed using net income and the weighted average number of common shares outstanding, assuming dilution, which includes potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of stock options and assumed vesting of restricted stock units using the treasury stock method. During the three and six months ended September 30, 2012, there were outstanding weighted average options to purchase 2,779,738 and 2,018,330 shares, respectively, that were not included in the computation of diluted net income per share since the exercise prices of the options exceeded the market price of the common stock. During the three and six months ended September 30, 2011, there were outstanding weighted average options to purchase 606,173 and 738,137 shares, respectively, that were not included in the computation of diluted net income per share since the exercise prices of the options exceeded the market price of the common stock. These options could dilute earnings per share in future periods if the market price of the common stock increases.