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

	Three Months Ended				Nine Months Ended
		December 31,				December 31,
	2013		2012		2013		2012

	(unaudited)				(unaudited)
Net income	$	552	$	1,189	$	5,914	$	9,553
Weighted average shares - basic		31,192		31,005		31,088		31,222
Weighted average shares - diluted		32,032		31,487		31,838		31,917
Net income per share - basic	$	0.02	$	0.04	$	0.19	$	0.31
Net income per share - diluted	$	0.02	$	0.04	$	0.19	$	0.30

Diluted weighted average shares includes approximately 840,000 and 482,000 common equivalent shares from stock options for the three months ended December 31, 2013 and 2012, and approximately 750,000 and 695,000 common equivalent shares from stock options for the nine months ended December 31, 2013 and 2012.

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 nine months ended December 31, 2013, there were outstanding weighted average options to purchase 3,002,055 and 2,780,263 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 nine months ended December 31, 2012, there were outstanding weighted average options to purchase 3,355,738 and 2,627,911 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.