EARNINGS PERSHARE

3 Months Ended

Sep. 30, 2012

EARNINGS PERSHARE

NOTE 8. EARNINGS PER SHARE

The basic earnings per share (“EPS”) calculation excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution of EPS that could occur if options to issue common stock were exercised.

The following table sets forth the computation for basic and diluted EPS:

	Three Months Ended September 30,
	2012		2011
Net income	$	48,800	$	749,518
Weighted average number of outstanding shares
Basic		15,475,887		15,425,705
Effect of dilutive securities
Employee stock options		-		516
Diluted		15,475,887		15,426,221
Earnings per share
Basic	$	0.00	$	0.05
Diluted	$	0.00	$	0.05

The diluted EPS calculation excludes the effect of stock options when their exercise prices exceed the average market price for the period. For the three months ended September 30, 2012, 29,000 options were excluded from diluted EPS, and 25,300 were excluded in the corresponding period in fiscal 2012.

The Company may repurchase stock from employees. The Company made no repurchases of shares of its class A, class B, or class C common stock during the three months ended September 30, 2012. Upon repurchase, these shares are classified as treasury shares and are deducted from outstanding shares in the earnings per share calculation.