EARNINGS PER SHARE

12 Months Ended

Jun. 30, 2016

NOTE 9 - EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings 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.

The Company’s restricted stock awards are treated as outstanding for earnings 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 amounts):

			Year Ended June 30,
	2016		2015		2014

Net income, as reported	$	13	$	1,160	$	956

Weighted average common shares outstanding		15,448		15,327		15,289
Effect of dilutive stock options		390		237		112
Weighted average diluted common shares outstanding		15,838		15,564		15,401

Net income per common share
Basic	$	0.00	$	0.08	$	0.06
Diluted	$	0.00	$	0.07	$	0.06

Employee stock options excluded from computation of diluted income per share amounts because their effect would be anti-dilutive		137		210		655