Earnings Per Share

6 Months Ended

Mar. 31, 2015

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 shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares result from dilutive common stock options and restricted stock units.

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,
	2015		2014		2015		2014
Numerator:
Net income	$	1,446	$	738	$	1,107	$	1,426
Denominator:
Denominator for basic net income per common share — weighted average shares outstanding	24,492		25,644		24,319		25,680
Effect of dilutive securities:
Stock options and restricted stock units	781		500		497		509
Denominator for diluted net income per common share — adjusted weighted average shares	25,273		26,144		24,816		26,189
Net income per common share, basic	$	0.06	$	0.03	$	0.05	$	0.06
Net income per common share, diluted	$	0.06	$	0.03	$	0.04	$	0.05

For the three months ended March 31, 2015 and 2014, there were 2,366,812 and 3,347,082 potentially dilutive shares, respectively, and for the six months ended March 31, 2015 and 2014, there were 3,496,463 and 2,627,905 potentially dilutive shares, respectively, related to stock options to purchase common shares that 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.

- Definition

The entire disclosure for earnings per share.

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