Earnings Per Share

12 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is calculated by dividing the net income by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share is computed by giving effect to all potentially dilutive securities outstanding during the period. The Company utilizes the treasury stock method to calculate potential common shares that underlie its stock options to purchase common stock and restricted stock units. Performance share units are excluded from potential common shares since no shares were issuable as of March 31, 2014, 2013 and 2012. Additionally, the Company utilized the if-converted method and the treasury stock method to calculate potential common shares that underlay its convertible preferred stock and the warrant to purchase its convertible preferred stock, respectively.

Net income attributable to common stockholders during the fiscal year ended March 31, 2012 was allocated using the two-class method. The two-class method is an earnings allocation method for calculating earnings per share when a company’s capital structure includes two or more classes of common stock or common stock and participating securities. Under this method, the Company reduced income from operations by the dividends paid to convertible preferred stockholders and the rights of the convertible preferred stockholders to participate in any undistributed earnings. The undistributed earnings were allocated based on the relative percentage of weighted average shares of outstanding convertible preferred stock to the total number of weighted average shares of outstanding common and convertible preferred stock.

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted earnings per share of common stock for the periods presented, because including them would have been anti-dilutive:

	Fiscal Year Ended March 31,
	2014	2013	2012
Options to purchase common stock	57,085	91,239	379,304
Restricted stock units	10,651	—	16,700
Convertible preferred stock (on an as-if converted basis)	—	—	15,221,571
Convertible preferred stock warrant	—	—	80,560
Total	67,736	91,239	15,698,135

A reconciliation of the basic and diluted earnings per share attributable to common stockholders is as follows (in thousands except share and per share amounts):

	Fiscal Year Ended March 31,
	2014		2013		2012
Earnings per share:
Net income	$	15,289	$	11,252	$	10,036
Less: Dividends paid to convertible preferred stockholders	—		—		13,141
Undistributed loss attributable to convertible preferred stockholders	—		—		(3,408		)
Net income attributable to common stockholders	$	15,289	$	11,252	$	303
Weighted average shares of common stock outstanding used in computing earnings per share—basic	16,926,827		17,129,334		469,089
Potential dilutive options	467,146		570,210		641,999
Potential dilutive restricted stock units	18,575		8,295		—
Weighted average shares of common stock outstanding used in computing earnings per share—diluted	17,412,548		17,707,839		1,111,088
Earnings per share —Basic	$	0.90	$	0.66	$	0.65
—Diluted	$	0.88	$	0.64	$	0.27