EARNINGS PER SHARE

12 Months Ended

Jun. 30, 2014

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

NOTE 9 - EARNINGS PER SHARE

Earnings per share are measured at two levels: basic per share and diluted per share. Basic per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted per share is computed by dividing net income by the weighted average number of common shares after considering the additional dilution related to common stock options and restricted stock. In computing diluted earnings per share, the outstanding common stock options are considered dilutive using the treasury stock method.

In accordance with guidance related to share-based payment arrangements, the Company’s restricted stock awards are treated as outstanding for earning per share calculations since these shares have full voting rights and are entitled to participate in dividends declared on common shares, if any, and undistributed earnings.  As participating securities, the shares of restricted stock are included in the calculation of basic EPS using the two-class method.  For the periods presented, the amount of earnings allocated to the participating securities was not material.

The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per share amount):

	Year Ended June 30,
	2014		2013			2012
Net income (loss), as reported	$	956	$	(2,712	)	$	(3,621	)
Weighted average common shares outstanding		15,289		15,255			15,109
Effect of dilutive stock options		112		-			-
Weighted average diluted common shares outstanding		15,401		15,255			15,109
Net income (loss) per common share
Basic	$	0.06	$	(0.18	)	$	(0.24	)
Diluted	$	0.06	$	(0.18	)	$	(0.24	)
Employee stock options excluded from computation of diluted income per share amounts because their effect would be anti-dilutive		655		728			831