EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2011

NOTE H: EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by adjusting the weighted average number of shares of common stock outstanding by common stock equivalents attributable to dilutive stock options. The computation of diluted earnings (loss) per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect on earnings (loss) per share.

The following table sets forth the computation of basic and diluted earnings (loss) per share:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(in thousands, except per share data)

Net (loss) income	$	(1,704	)	$	(491	)	$	(2,990	)	$	455

Basic weighted average common shares outstanding		8,941			9,415			9,142			9,415
Dilutive effect of common stock equivalents		-			-			-			4
Diluted weighted average common shares outstanding		8,941			9,415			9,142			9,419

Basic (loss) earnings per share	$	(0.19	)	$	(0.05	)	$	(0.33	)	$	0.05
Diluted (loss) earnings per share	$	(0.19	)	$	(0.05	)	$	(0.33	)	$	0.05

Options to purchase 239,656 and 126,500 shares of common stock were outstanding at September 30, 2011 and 2010, respectively, but were not included in the computation of diluted earnings per share because to do so would have an anti-dilutive effect.