Note 13 - Computation of Earnings per Share

3 Months Ended

Jun. 30, 2015

13. Computation of Earnings per Share

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

	Three Months Ended
	June 30,
	2015		2014
	(unaudited)
Net income	$	2,985	$	3,575
Weighted average shares - basic		31,746		31,379
Weighted average shares - diluted		32,733		32,075
Net income per share - basic	$	0.09	$	0.11
Net income per share - diluted	$	0.09	$	0.11

Diluted weighted average shares included approximately 987,000 and 696,000 common equivalent shares from stock options for the three months ended June 30, 2015 and 2014.

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 using the treasury stock method. During the three months ended June 30, 2015 and 2014, there were outstanding options to purchase 868,702 and 2,630,332 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 and thus their inclusion would be anti-dilutive. These options could dilute earnings per share in future periods if the market price of the common stock increases.