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2. NET INCOME (LOSS) PER COMMON SHARE | 9 Months Ended
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Dec. 31, 2016
NET INCOME (LOSS) PER COMMON SHARE |
NOTE 2 - NET INCOME (LOSS) PER COMMON SHARE | NOTE 2—NET INCOME (LOSS) PER COMMON SHARE The Company uses the treasury stock method to calculate the weighted average shares used in computing diluted net income (loss) per share. The following table sets forth the computation of basic and diluted net income (loss) per share:
|  | Three Months Ended December 31, |  | Nine Months Ended December 31, |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |
|  | (In thousands, except per share amounts) |
Net income (loss) |  | $ | 348 |  | $ | (819) |  | $ | 1,234 |  | $ | (2,083) |
Denominators: |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted average shares—Basic |  |  | 20,300 |  |  | 22,612 |  |  | 20,707 |  |  | 22,743 |
Dilutive effect of employee stock options |  |  | 795 |  |  | — |  |  | 530 |  |  | — |
Dilutive effect of employee stock purchase plan options |  |  | 2 |  |  | — |  |  | 2 |  |  | — |
Weighted average shares—Dilutive |  |  | 21,097 |  |  | 22,612 |  |  | 21,239 |  |  | 22,743 |
Net income (loss) per common share—Basic |  | $ | 0.02 |  | $ | (0.04) |  | $ | 0.06 |  | $ | (0.09) |
Net income (loss) per common share—Diluted |  | $ | 0.02 |  | $ | (0.04) |  | $ | 0.06 |  | $ | (0.09) |
The following shares of common stock underlying outstanding stock options, determined on a weighted average basis, were excluded from the computation of diluted net income (loss) per share as they had an anti-dilutive effect:
|  | Three Months Ended December 31, |  | Nine Months Ended December 31, |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |
|  | (In thousands) |
Shares underlying options |  | 4,621 |  | 5,887 |  | 5,247 |  | 5,282 |

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