Note 6 - Net Income Per Share

3 Months Ended

Jun. 30, 2016

Note 6 - Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted net income per share is computed similarly to basic net income per share, except that it includes the potential dilution that could occur if dilutive securities were exercised.

The following table presents a reconciliation of the denominators used in the computation of net income per share - basic and diluted (in thousands, except per share data):

	Three Months Ended
	June 30 ,
	2016		2015
Net income available for stockholders	$	1,930	$	2,755
Weighted average outstanding shares of common stock		3,646		3,575
Dilutive effect of stock options		156		134
Common stock and equivalents		3,802		3,709

Net income per share:
Basic	$	0.53	$	0.77
Diluted		0.51		0.74

For the three months ended June 30, 2016 and 2015, 184,000 and 300,000 outstanding stock options, respectively, were excluded from the calculation of diluted net income per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares and, therefore, their inclusion would have been anti-dilutive.