Basic and Diluted Net Income per Share

6 Months Ended

Dec. 31, 2014

Basic and Diluted Net Income per Share [Abstract]

Basic and Diluted Net Income per Share

3. Basic and Diluted Net Income per Share

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period.  Diluted net income per share is computed by dividing net income by the weighted average number of shares including dilutive common share equivalents.  Under the treasury stock method, incremental shares representing the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued are included in the computation.  Diluted earnings per common share assumes exercise of outstanding stock options and vesting of restricted stock when the effects of such assumptions are dilutive.  Common share equivalents of 145,000 and 172,000 for the three months ended December 31, 2014 and 2013, respectively, were excluded from the calculation as their effect was antidilutive.  Common share equivalents of 195,000 and 116,000 for the six months ended December 31, 2014 and 2013, respectively, were excluded from the calculation as their effect was antidilutive.

The following table presents a reconciliation of the numerators and denominators of basic and diluted net income per share for the periods indicated (dollars and share data in thousands, except per-share amounts):

	Three Months Ended December 31,					Six Months Ended December 31,
	2014			2013		2014			2013
Basic and diluted earnings per share (EPS) calculation:
Net (loss) income	$	(571	)	$	1,089	$	(184	)	$	1,823
Basic weighted average number of shares outstanding		9,088			8,934		9,039			8,874
Effect of dilutive securities:
Restricted stock		-			97		-			174
Stock options		-			10		-			12
Diluted weighted average number of shares outstanding		9,088			9,041		9,039			9,060
Basic EPS	$	(0.06	)	$	0.12	$	(0.02	)	$	0.21
Diluted EPS	$	(0.06	)	$	0.12	$	(0.02	)	$	0.20