3. Earnings (Loss) Per Share

The Company has granted stock compensation awards with nonforfeitable dividend rights which are considered participating securities. Earnings (loss) per share is calculated using the two-class method, as such awards are more dilutive under this method than the treasury stock method. Basic earnings (loss) per share is calculated by dividing net income (loss) allocated to common shareholders by the weighted average number of common shares outstanding during the period, which excludes the participating securities. Diluted earnings (loss) per share includes the dilutive effect of additional potential common shares from stock compensation awards. Earnings (loss) per share have been computed based on the following weighted average number of common shares outstanding:


	Three months ended December 31, (In thousands, except per share amounts)						Nine months ended December 31, (In thousands, except per share amounts)
	2017			2016			2017			2016
Numerator:
Net income (loss)	$	(2,898	)	$	1,606		$	(1,741	)	$	6,479
Less: Allocation of earnings (loss) to participating securities		40			(22	)		23			(76	)

Net income (loss) allocated to common stock		(2,858	)		1,584			(1,718	)		6,403

Basic earnings (loss) per share computation:
Net income (loss) allocated to common stock	$	(2,858	)	$	1,584		$	(1,718	)	$	6,403

Weighted average common shares outstanding, including shares considered participating securities		7,910			7,697			7,876			7,763
Less: Weighted average participating securities outstanding		(110	)		(107	)		(102	)		(91	)

Weighted average shares of common stock		7,800			7,590			7,774			7,672

Basic earnings (loss) per share	$	(0.37	)	$	0.21		$	(0.22	)	$	0.83

Diluted earnings (loss) per share computation:
Net income (loss) allocated to common stock	$	(2,858	)	$	1,584		$	(1,718	)	$	6,403
Undistributed earnings re-allocated to participating securities		—			—			—			—

Numerator for diluted earnings (loss) per share	$	(2,858	)	$	1,584		$	(1,718	)	$	6,403

Weighted average common shares outstanding for basic earnings (loss) per share		7,800			7,590			7,774			7,672
Incremental shares from stock options		—			60			—			60

Weighted average shares and dilutive potential common shares		7,800			7,650			7,774			7,732

Diluted earnings (loss) per share	$	(0.37	)	$	0.21		$	(0.22	)	$	0.83

Diluted earnings (loss) per share do not include the effect of certain stock options as their impact would be anti-dilutive. The potential shares of common stock from stock options totaling 189,690 were excluded from the diluted earnings (loss) per share calculation for December 31, 2017 because the Company experienced a net loss for the period. The potential shares of common stock from stock options totaling 160,000 were excluded from the diluted earnings (loss) per share calculation for December 31, 2016 because their effect is anti-dilutive.