Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly to basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares had been issued. In the case of a net loss, diluted earnings per share is calculated in the same manner as basic EPS.

For the three and nine months ended June 30, 2018, options for 679,000 and 428,000 weighted average shares, respectively, were excluded from the diluted EPS calculations because they were anti-dilutive. For the three and nine months ended June 30, 2017, options for 1,152,000 and 1,649,000 weighted average shares, respectively, were excluded from the diluted EPS calculations because they were anti-dilutive. These shares could become dilutive in the future.

The following table outlines basic and diluted EPS, in thousands, except per share amounts:



	Three Months Ended June 30,				Nine Months Ended June 30,
	2018		2017		2018		2017
Basic Income Per Share Computation
Net income attributable to Amtech Systems, Inc.	$	4,971	$	3,287	$	14,258	$	1,812
Weighted Average Shares Outstanding:
Common stock	14,925		13,242		14,867		13,203
Basic income per share attributable to Amtech shareholders	$	0.33	$	0.25	$	0.96	$	0.14
Diluted Income Per Share Computation
Net income attributable to Amtech Systems, Inc.	$	4,971	$	3,287	$	14,258	$	1,812
Weighted Average Shares Outstanding:
Common stock	14,925		13,242		14,867		13,203
Common stock equivalents (1)	166		156		314		85
Diluted shares	15,091		13,398		15,181		13,288
Diluted income per share attributable to Amtech shareholders	$	0.33	$	0.25	$	0.94	$	0.14

(1) The number of common stock equivalents is calculated using the treasury method and the average market price during the period.