2. NET INCOME (LOSS) PER COMMON SHARE

9 Months Ended

Dec. 31, 2016

NET INCOME (LOSS) PER COMMON SHARE

NOTE 2 - NET INCOME (LOSS) PER COMMON SHARE

NOTE 2—NET INCOME (LOSS) PER COMMON SHARE

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

	Three Months Ended December 31,				Nine Months Ended December 31,
	2016		2015		2016		2015
	(In thousands, except per share amounts)
Net income (loss)	$	348	$	(819)	$	1,234	$	(2,083)
Denominators:
Weighted average shares—Basic		20,300		22,612		20,707		22,743
Dilutive effect of employee stock options		795		—		530		—
Dilutive effect of employee stock purchase plan options		2		—		2		—
Weighted average shares—Dilutive		21,097		22,612		21,239		22,743
Net income (loss) per common share—Basic	$	0.02	$	(0.04)	$	0.06	$	(0.09)
Net income (loss) per common share—Diluted	$	0.02	$	(0.04)	$	0.06	$	(0.09)

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

	Three Months Ended December 31,		Nine Months Ended December 31,
	2016	2015	2016	2015
	(In thousands)
Shares underlying options	4,621	5,887	5,247	5,282