Note 5 - Stock-Based Compensation

6 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 5 -

Stock-B

ased Compensation

Amounts recognized in the condensed consolidated financial statements related to stock-based compensation are as follows (in thousands, except per share data):

	Three Months E nded September 30 ,				Six Months E nded September 30 ,
	2015		2014		2015		2014
Total cost of stock-based compensation charged against income before income taxes	$	330	$	237	$	657	$	516
Amount of income tax benefit recognized in earnings		123		84		235		182
Amount charged against net income	$	207	$	153	$	422	$	334
Impact on net income per common share:
Basic	$	0.06	$	0.04	$	0.12	$	0.10
Diluted		0.06		0.04	$	0.11		0.09

Stock-based compensation expense is included in cost of revenues, selling, and general and administrative expense in the accompanying condensed consolidated statements of income.

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model (“Black-Scholes”). We use historical data to estimate the expected price volatility, the expected stock option life and expected forfeiture rate. The risk-free interest rate is based on the United States Treasury yield curve in effect at the time of grant for the estimated life of the stock option. The dividend yield is calculated based upon the dividend payments made during the prior four quarters as a percent of the average stock price for that period.

The following is a summary of stock option activity for the six months ended September 30, 2015:

	Number of Shares			Weighted- A verage Exercise Price per Share		Weighted- A verage Remaining Contractual Term		Aggregate Intrinsic Value (000s)
Outstanding at March 31, 2015		437,248		$	55.81		4.9	$	9,445
Stock options granted		180,050			72.18		7.3
Stock options forfeited		(11,989	)		77.29		7.6
Stock options expired		--			--
Stock options exercised		(49,822	)		38.56
Outstanding at September 30, 2015		555,487			62.20		5.5		27,330

Exercisable at September 30, 2015		189,816			40.93		3.7		13,376

The total intrinsic value of stock options exercised was $2,759,463 and $1,516,000 for the six months ended September 30, 2015 and 2014, respectively.

A summary of the status of our unvested stock option shares as of September 30, 2015 is as follows:

	Number of Shares			Weighted- A verage Grant-Date Fair Value
Unvested at March 31, 2015		274,038		$	18.42
Stock options granted		180,050			18.5
Stock options forfeited		(11,989	)		19.63
Stock options vested		(76,428	)		14.56
Unvested at September 30, 2015		365,671			19.23

As of September 30, 2015, there was $5,214,386 of total unrecognized compensation expense related to unvested stock options. As of September 30, 2015, we have 917,610 shares available for future stock option grants.