Earnings Per Share & Diluted Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income (loss) available to common shareholders 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, and the numerator is based on net income. In the case of a net loss, diluted EPS is calculated in the same manner as basic EPS. Options and restricted stock of approximately 434,000, 1,364,000 and 1,840,000 weighted average shares are excluded from the 2018, 2017 and 2016 EPS calculations as they are anti-dilutive. These shares could be dilutive in the future.

A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share amounts):



	Years ended September 30,
	2018		2017		2016
Numerator:
Net income (loss) attributable to Amtech Systems, Inc.	$	5,305	$	9,131	$	(7,008	)

Denominator:
Weighted-average shares used to compute basic EPS	14,833		13,378		13,168
Common stock equivalents ⁽¹⁾	232		123		—
Weighted-average shares used to compute diluted EPS	15,065		13,501		13,168

Basic income (loss) per share attributable to Amtech shareholders	$	0.36	$	0.68	$	(0.53	)
Diluted income (loss) per share attributable to Amtech shareholders	$	0.35	$	0.68	$	(0.53	)

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