Note 5 - Stock-based Compensation

9 Months Ended

Dec. 31, 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 December 31 ,				Nine Months E nded December 31 ,
	2015		2014		2015		2014
Total cost of stock-based compensation charged against income before income taxes	$	344	$	260	$	1,001	$	776
Amount of income tax benefit recognized in earnings		109		92		343		274
Amount charged against net income	$	235	$	168	$	658	$	502
Impact on net income per common share:
Basic	$	0.07	$	0.05	$	0.18	$	0.14
Diluted		0.06		0.05	$	0.18		0.14

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 nine months ended December 31, 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		183,550			72.87		6.9
Stock options forfeited		(12,384	)		76.89		7.2
Stock options expired		--			--
Stock options exercised		(72,803	)		39.98
Outstanding at December 31, 2015		535,611			63.32		5.3		19,412

Exercisable at December 31, 2015		173,949			41.4		3.6		10,107

The total intrinsic value of stock options exercised was $4,263,767 and $2,003,000 for the nine months ended December 31, 2015 and 2014, respectively.

A summary of the status of our unvested stock option shares as of December 31, 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		183,550			18.77
Stock options forfeited		(12,384	)		19.53
Stock options vested		(83,542	)		14.56
Unvested at December 31, 2015		361,662			19.43

As of December 31, 2015, there was $4,966,245 of total unrecognized compensation expense related to unvested stock options. As of December 31, 2015, we have 914,110 shares available for future stock option grants.