EARNINGS PER SHARE

9 Months Ended

Mar. 31, 2013

EARNINGS PER SHARE

NOTE 10. 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:

	Nine Months Ended March 31,
	2013		2012
Net income	$	255,952	$	1,646,038
Weighted average number of outstanding shares
Basic		15,484,371		15,436,601
Effect of dilutive securities
Employee stock options		-		358
Diluted		15,484,371		15,436,959
Earnings per share
Basic	$	0.02	$	0.11
Diluted	$	0.02	$	0.11

	Three Months Ended March 31,
	2013		2012
Net income	$	41,167	$	487,138
Weighted average number of outstanding shares
Basic		15,490,020		15,448,100
Effect of dilutive securities
Employee stock options		-		418
Diluted		15,490,020		15,448,518
Earnings per share
Basic	$	0.00	$	0.03
Diluted	$	0.00	$	0.03

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 and nine months ended March 31, 2013, 29,000 options were excluded from diluted EPS and 24,300 were excluded in the corresponding periods in fiscal 2012.

The Company may repurchase stock pursuant to a share repurchase plan. The Company repurchased 22,203 shares of its class A, no shares of class B, and no shares of class C common stock during the nine months ended March 31, 2013. Upon repurchase, these shares are classified as treasury shares and are deducted from outstanding shares in the earnings per share calculation. See Note 4 for additional information regarding the share repurchase plan.