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,
	2014		2013		2014		2013

	(unaudited)				(unaudited)
Net income	$	5,747	$	3,383	$	9,322	$	5,362
Weighted average shares - basic		31,499		31,127		31,439		31,037
Weighted average shares - diluted		32,235		31,849		32,142		31,737
Net income per share - basic	$	0.18	$	0.11	$	0.30	$	0.17
Net income per share - diluted	$	0.18	$	0.11	$	0.29	$	0.17

Diluted weighted average shares includes approximately 736,000 and 722,000 common equivalent shares from stock options for the three months ended September 30, 2014 and 2013, and approximately 703,000 and 700,000 common equivalent shares from stock options for the six months ended September 30, 2014 and 2013.

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, 2014, there were outstanding weighted average options to purchase 2,318,679 and 2,507,755 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, 2013, there were outstanding weighted average options to purchase 2,761,044 and 2,663,782 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.