Graham Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Income Per Share

Income Per Share

6 Months Ended

Sep. 30, 2011

NOTE 8 – INCOME PER SHARE:

Basic income per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Common shares outstanding include share equivalent units, which are contingently issuable shares. Diluted income per share is calculated by dividing net income by the weighted average number of common shares outstanding and, when applicable, potential common shares outstanding during the period. A reconciliation of the numerators and denominators of basic and diluted income per share is presented below:


	Three Months Ended September 30,				Six Months Ended September 30,
	2011		2010		2011		2010
Basic income per share
Numerator:
Net income	$	5,468	$	1,557	$	8,484	$	2,435

Denominator:
Weighted common shares outstanding		9,913		9,877		9,896		9,871
Share equivalent units (“SEUs”)		55		60		58		58
Weighted average common shares and SEUs		9,968		9,937		9,954		9,929

Basic income per share	$	.55	$	.16	$	.85	$	.25

Diluted income per share
Numerator:
Net income	$	5,468	$	1,557	$	8,484	$	2,435

Denominator:
Weighted average shares and SEUs outstanding		9,968		9,937		9,954		9,929
Stock options outstanding		31		40		36		41
Contingently issuable SEUs		1		—		1		—
Weighted average common and potential common shares outstanding		10,000		9,977		9,991		9,970

Diluted income per share	$	.55	$	.16	$	.85	$	.24

Options to purchase a total of 24 and 61 shares of common stock were outstanding at September 30, 2011 and 2010, respectively, but were not included in the above computation of diluted income per share as they would be anti-dilutive upon issuance given their exercise prices.