Note 13 - Computation of Earnings per Share

9 Months Ended

Dec. 31, 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				Nine Months Ended
	December 31,				December 31,
	2015		2014		2015		2014
	(unaudited)				(unaudited)
Net income	$	2,286	$	6,622	$	8,544	$	15,944
Weighted average shares - basic		31,487		31,585		31,626		31,488
Weighted average shares - diluted		32,343		32,231		32,483		32,173
Net income per share - basic	$	0.07	$	0.21	$	0.27	$	0.51
Net income per share - diluted	$	0.07	$	0.21	$	0.26	$	0.50

Diluted weighted average shares included approximately 856,000 and 646,000 common equivalent shares from stock options for the three months ended December 31, 2015 and 2014, respectively, and approximately 857,000 and 685,000 common equivalent shares from stock options for the nine months ended December 31, 2015 and 2014, respectively.

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 and nine months ended December 31, 2015, there were outstanding weighted average options to purchase 2,047,000 and 1,620,807 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. During the three and nine months ended December 31, 2014, there were outstanding weighted average options to purchase 2,687,092 and 2,557,883 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.