Note 2 - Income (Loss) Per Share

9 Months Ended

Sep. 30, 2011

Note 2.

Income (Loss) Per Share

Basic income (loss) per share excludes dilution and is computed by dividing earnings available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted income (loss) per share reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in our earnings. The calculation of diluted loss per share for the three and nine months ended September 30, 2011 excludes all unexercised options and 167,311 and 71,289 unvested shares, respectively, since the effect of any assumed exercise of the related awards would be anti-dilutive.

The following table sets forth for the periods indicated the calculation of net loss per share included in the consolidated condensed statements of operations:

(in thousands except per share data)	Three months ended September 30,					Nine months ended September 30,
	2011			2010		2011			2010
Numerator:
Net (loss) income	$	(11,213	)	$	1,884	$	(12,022	)	$	2,597
Denominator:
Denominator for basic earnings per share – weighted-average shares		14,719			14,499		14,678			14,318
Effect of dilutive securities:
Equivalent shares issuable upon conversion of unvested restricted stock		-			97		-			65
Equivalent shares issuable upon conversion of unvested employee stock options		-			13		-			-
Denominator for diluted earnings per share – adjusted weighted-average shares and assumed conversions		14,719			14,609		14,678			14,383

Basic and diluted net (loss) income per share:	$	(0.76	)	$	0.13	$	(0.82	)	$	0.18