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Computation of Earnings per Share
 6 Months Ended
Jun. 30, 2015
Earnings Per Share [Abstract]  
Computation of Earnings per Share
D) Computation of Earnings per Share. Basic earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For the purposes of this calculation, stock options are considered common stock equivalents in periods in which they have a dilutive effect. Stock options that are anti-dilutive are excluded from the calculation.

 

Net income per share is calculated as follows (in thousands, except per share data):

                           
    Three Months Ended
June 30,		   Six Months Ended
June 30,		  
    2015   2014   2015   2014  
                           
Net income   $ 319   $ 865   $ 591   $ 1,746  
                           
Shares outstanding:                          
Weighted-average common shares outstanding     22,867     22,630     22,866     22,628  
Additional dilutive common stock equivalents     162     207     92     141  
Diluted shares outstanding     23,029     22,837     22,958     22,769  
                           
Net income per share – basic   $ 0.01   $ 0.04   $ 0.03   $ 0.08  
Net income per share - diluted   $ 0.01   $ 0.04   $ 0.03   $ 0.08  

 

For the three month periods ended June 30, 2015 and 2014, options to purchase 54,034 and 821,838 shares of common stock were outstanding, but were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock and thus would be anti-dilutive.

 

For the six month periods ended June 30, 2015 and 2014, options to purchase 54,034 and 821,838 shares of common stock, respectively, were outstanding, but were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock and thus would be anti-dilutive.