Earnings Per Share & Diluted Earnings Per Share

12 Months Ended

Sep. 30, 2023

Earnings Per Share & Diluted Earnings Per Share

3. Earnings Per Share & Diluted Earnings Per Share

Basic 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. Dilutive potential common shares include outstanding RSUs and stock options. In the case of a net loss, diluted EPS is calculated in the same manner as basic EPS.

For the years 2023, 2022 and 2021, options for 327,000, 189,000 and 101,000 weighted average shares, respectively, were excluded from the diluted EPS calculations because they were anti-dilutive. These shares could become dilutive in the future.

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


	Years Ended September 30,
	2023			2022		2021
Numerator:
Net (loss) income	$	(12,582	)	$	17,367	$	1,508

Denominator:
Weighted-average shares used to compute basic EPS		14,065			14,014		14,189
Dilutive potential common shares due to stock options (1)		—			170		151
Dilutive potential common shares due to RSUs (1)		—			—		—
Weighted-average shares used to compute diluted EPS		14,065			14,184		14,340

(Loss) Income per share:
Net (loss) income per basic share	$	(0.89	)	$	1.24	$	0.11
Net (loss) income per diluted share	$	(0.89	)	$	1.22	$	0.11

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