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Computation of Earnings per Share
9 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]  
Computation of Earnings per Share
E) 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

September 30,

   

Nine Months Ended

September 30,

 
    2018     2017     2018     2017  
                   
Net income   $ 1,277     $ 1,145     $ 594     $ 1,560  
                                 
Shares outstanding:                                
Weighted-average common shares outstanding     21,564       21,679       21,548       21,900  
Additional dilutive common stock equivalents     75       79       56       67  
Diluted shares outstanding     21,639       21,758       21,604       21,967  
                                 
Net income per share – basic   $ 0.06     $ 0.05     $ 0.03     $ 0.07  
Net income per share – diluted   $ 0.06     $ 0.05     $ 0.03     $ 0.07