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Earnings Per Share
 6 Months Ended
Mar. 31, 2013
Earnings Per Share [Abstract]  
EARNINGS PER SHARE
EARNINGS PER SHARE
Basic net income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares of our stock result from dilutive common stock options, restricted stock units and shares purchased through our employee stock purchase plan.
The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data):
 
Three months ended March 31,
 
Six months ended March 31,
 
2013
 
2012
 
2013
 
2012
Numerator:
 
 
 
 
 
 
 
Net income
$
1,000

 
$
2,122

 
$
2,230

 
$
2,846

Denominator:
 
 
 
 
 
 
 
Denominator for basic net income per common share — weighted average shares outstanding
26,138

 
25,709

 
26,163

 
25,674

Effect of dilutive securities:
 
 
 
 
 
 
 
Employee stock options, restricted stock units and employee stock purchase plan
338

 
496

 
311

 
498

Denominator for diluted net income per common share — adjusted weighted average shares
26,476

 
26,205

 
26,474

 
26,172

Net income per common share, basic
$
0.04

 
$
0.08

 
$
0.09

 
$
0.11

Net income per common share, diluted
$
0.04

 
$
0.08

 
$
0.08

 
$
0.11


Because their effect would be anti-dilutive, certain potentially dilutive shares related to stock options to purchase common shares were not included in the above computation of diluted earnings per common share. This is because the options’ exercise prices were greater than the average market price of our common shares. For the three and six month periods ended March 31, 2013, there were 3,263,692 and 2,502,985 potentially dilutive shares related to such stock options. For both the three and six month periods ended March 31, 2012, there were 1,798,213 potentially dilutive shares related to such stock options.