2. NET INCOME (LOSS) PER COMMON SHARE

6 Months Ended

Sep. 30, 2017

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 September 30,				Six Months Ended September 30,
	2017		2016		2017		2016
	(In thousands, except per share amounts)
Net income (loss)	$	(1,740)	$	626	$	(3,252)	$	886
Denominators:
Weighted average shares—Basic		21,037		20,529		20,922		20,912
Dilutive effect of employee stock options		—		550		—		412
Dilutive effect of employee stock purchase plan options		—		25		—		25
Weighted average shares—Dilutive		21,037		21,104		20,922		21,349
Net income (loss) per common share—Basic	$	(0.08)	$	0.03	$	(0.16)	$	0.04
Net income (loss) per common share—Diluted	$	(0.08)	$	0.03	$	(0.16)	$	0.04

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 September 30,		Six Months Ended September 30,
	2017	2016	2017	2016
	(In thousands)
Shares underlying options and ESPP shares	2,565	5,401	2,602	5,734