2. NET LOSS PER COMMON SHARE

3 Months Ended

Jun. 30, 2014

Net loss per share:

NOTE 2 - NET LOSS PER COMMON SHARE

NOTE 2—NET LOSS PER COMMON SHARE

The Company uses the treasury stock method to calculate the weighted average shares used in computing diluted net loss per share. The following table sets forth the computation of basic and diluted net loss per share:

	Three Months Ended June 30,
	2014		2013
	(In thousands, except per share amounts)
Net loss	$	(1,446)	$	(441)
Denominators:
Weighted average shares—Basic		27,495		27,178
Dilutive effect of employee stock options		-		-
Dilutive effect of employee stock purchase plan options		-		-
Weighted average shares—Dilutive		27,495		27,178
Net loss per common share—Basic	$	(0.05)	$	(0.02)
Net loss per common share—Diluted	$	(0.05)	$	(0.02)

The following shares of common stock underlying outstanding stock options, determined on a weighted average basis, were excluded from the computation of diluted net loss per share as they had an anti-dilutive effect:

	Three Months Ended June 30,
	2014	2013
	(In thousands)
Shares underlying options	3,260	3,377