Note 13 - Computation of Earnings Per Share

6 Months Ended

Sep. 30, 2016

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				Six Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
	(unaudited)				(unaudited)
Net income	$	3,935	$	3,273	$	6,954	$	6,258
Weighted average shares - basic		31,490		31,651		31,447		31,769
Weighted average shares - diluted		32,145		32,380		32,074		32,627
Net income per share - basic	$	0.12	$	0.10	$	0.22	$	0.20
Net income per share - diluted	$	0.12	$	0.10	$	0.22	$	0.19

Diluted weighted average shares included approximately

655,000 and 729,000 common equivalent shares from stock options for the three months ended September 30, 2016 and 2015, respectively, and approximately 628,000 and 858,000 common equivalent shares from stock options for the six months ended September 30, 2016

and 2015, 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 six months ended September 30, 2016, there were outstanding options to purchase 3,040,511 and 2,984,213 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 six months ended September 30, 2015, there were outstanding weighted average options to purchase 2,067,109 and 1,436,546 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.