Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period plus the dilutive effect of outstanding stock options and restricted stock-based awards using the treasury stock method.

The calculation of the basic and diluted income (loss) per share of common stock is as follows (in thousands, except per share value):

	Three Months Ended					Nine Months Ended
	November 30,					November 30,
	2018			2017		2018		2017
Net income (loss)	$	(522	)	$	11,806	$	7,135	$	21,384
Basic weighted average number of common shares outstanding		34,561			35,347		34,950		35,206
Effect of stock options and restricted stock units computed on treasury stock method		—			900		819		858
Diluted weighted average number of common shares outstanding		34,561			36,247		35,769		36,064
Earnings (loss) per share:
Basic	$	(0.02	)	$	0.33	$	0.20	$	0.61
Diluted	$	(0.02	)	$	0.33	$	0.20	$	0.59

All outstanding options and restricted stock units for the three months ended November 30, 2018 were excluded from the computation of diluted earnings per share because we reported a net loss for this quarter and the effect of inclusion would be antidilutive.

We have the option to pay cash, issue shares of common stock, or any combination thereof for the aggregate amount due upon conversion of the Notes. Our intent is to settle the principal amount of the Notes in cash upon conversion. As a result, only the shares issuable for the conversion value in excess of the principal amount of the Notes would be included in diluted earnings per share. From the time of the issuance of Notes, the average market price of our common stock has been less than the initial conversion price, and consequently no shares have been included in diluted earnings per share for the conversion value of the Notes.