Note

Net Income Per

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 compu

tation of net income per share - basic and diluted (in thousands, except per share data):

	Three M onths E nded September 3 0 ,				Six M onths E nded September 3 0 ,
	201 7		201 6		201 7		201 6
Net income available for share holders	$	2,353	$	2,358	$	3,870	$	4,288
Weighted average outstanding shares of common stock		3,764		3,669		3,754		3,657
Dilutive effect of stock options		171		162		180		159
Common stock and equivalents		3,935		3,831		3,934		3,816

Net income per share:
Basic	$	0.63	$	0.64	$	1.03	$	1.17
Diluted		0.60		0.62		0.98		1.12

For

both the

three

and

six

months ended

September 30, 2017,

111,000

outstanding stock options were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive.

For the

three

and

six

months ended

September 30, 2016,

112,000

and

120,000

outstanding stock options, respectively, were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive.