(2) Earnings (Loss) Per Share

The Company calculates basic earnings per share by dividing (loss) earnings available to common stockholders by the weighted average common shares outstanding during the period, excluding common stock subject to vesting provisions. Diluted earnings per share is computed by dividing loss earnings available to common stockholders by the weighted average number of common shares outstanding during the period increased to include, if dilutive, the number of additional common shares that would have been outstanding if the potential common shares had been issued. The Company's potentially dilutive shares include redeemable convertible preferred stock and convertible notes payable outstanding prior to the Merger and options and warrants.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted loss per share follows:


(In thousands, except shares and per share data)	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Net income (loss) available to common shareholders	$	294		$	(2,270	)	$	(1,912	)	$	(4,719	)

Weighted average shares of common stock outstanding		10,146,026			8,749,535			9,493,904			8,206,361
Less: Weighted-average shares of unvested common stock		(16,698	)		(16,698	)		(16,698	)		(16,698	)

Total weighted-average shares used in computing net income (loss) per share attributed to common stockholders		10,129,328			8,732,837			9,477,206			8,189,663

Basic earnings (loss) per share	$	0.03		$	(0.26	)	$	(0.20	)	$	(0.58	)


DILUTED
Net income (loss)	$	294		$	(2,270	)	$	(1,912	)	$	(4,719	)

Net income (loss) available to common shareholders	$	294		$	(2,270	)	$	(1,912	)	$	(4,719	)


Weighted average shares outstanding		10,129,328			8,732,837			9,477,206			8,189,663
Dilutive impact of stock plans		120,850			—			—			—

Dilutive shares outstanding		10,250,178			8,732,837			9,477,206			8,189,663


Diluted earnings (loss) per share	$	0.03		$	(0.26	)	$	(0.20	)	$	(0.58	)

Potentially dilutive securities representing 1.9 million and 1.3 million weighted average shares of common stock were excluded for the three months ended June 30, 2011 and 2010, respectively, and 1.7 million and 1.3 million for the six months ended June 30, 2011 and 2010, respectively, because including them would have an anti-dilutive effect on net earnings (loss) per share.