12. Net Income Per Share

Basic net income per common share is computed by dividing net income by the basic weighted average number of common shares outstanding during the period. Diluted net income per common share, if applicable, is computed by dividing net income by the diluted weighted average number of common shares and common equivalent shares outstanding during the period. The weighted average number of common equivalent shares outstanding has been determined in accordance with the treasury-stock method. Common equivalent shares consist of common stock issuable on the exercise of outstanding options and vesting of restricted stock units and performance based restricted stock units when dilutive.

The following table sets forth the computation of basic and diluted earnings per share (“EPS”):



	Three Months Ended June 30,				Nine Months Ended June 30,
(in thousands, except share and per share amounts)	2017		2016		2017		2016
Numerator
Net income	$	7,361	$	4,816	$	17,019	$	6,527
Denominator
Weighted average shares outstanding, basic	37,323,458		37,108,486		37,278,760		37,101,968
Weighted average common equivalent shares	172,030		143,858		134,504		145,816
Weighted average shares outstanding, diluted	37,495,488		37,252,344		37,413,264		37,247,784
Net income per share, basic	$	0.20	$	0.13	$	0.46	$	0.18
Net income per share, diluted	$	0.20	$	0.13	$	0.45	$	0.18
Equity instruments excluded from diluted net income per share calculation as the effect would have been anti-dilutive:
Stock options	936,459		699,171		891,187		483,620
Restricted stock units	129,440		129,252		99,489		111,435