NET INCOME PER SHARE

Basic and diluted net income per share are computed using the two-class method which allocates earnings to both Common Stock and participating securities. Under the two-class method, unvested restricted Common Stock with non-forfeitable rights to dividends are considered participating securities. Dividends from such participating securities are excluded from net income allocated to Common Stock for purposes of the two-class method calculation.

Basic shares are computed on the basis of the weighted-average number of shares of Common Stock outstanding during the periods presented. Diluted shares are computed on the basis of the weighted-average number of shares of Common Stock outstanding plus the effect of outstanding stock options and restricted stock using the treasury stock method. For both the quarter and nine months ended August 28, 2011, 3,802 shares, related to stock options and restricted stock, are excluded from the below calculation, as inclusion would be anti-dilutive. For the quarter and nine months ended August 29, 2010, respectively, 22,886 and 19,286 shares, related to stock options and restricted stock, are excluded from the below calculation, as inclusion would be anti-dilutive.

Following is a reconciliation of net income allocated to Common Stock, using the two-class method, and the weighted-average number of shares used in the computation of basic and diluted net income per share allocated to Common Stock:



	Three Months Ended						Nine Months Ended
(In thousands, except per share data)	August 28, 2011			August 29, 2010			August 28, 2011			August 29, 2010
Numerator for basic income per share:
Net income	$	3,997		$	8,902		$	658		$	19,534
Less: income allocated to participating securities	(13		)	(42		)	(25		)	(93		)
Net income allocated to Common Stock	$	3,984		$	8,860		$	633		$	19,441

Denominator for basic income per share:
Weighted-average shares outstanding, basic	9,025,077			9,218,180			9,093,563			9,200,511

Basic net income per share allocated to Common Stock	$	.44		$	.96		$	.07		$	2.11

Numerator for diluted income per share:
Net income	$	3,997		$	8,902		$	658		$	19,534
Less: income allocated to participating securities	(15		)	(39		)	(25		)	(85		)
Net income allocated to Common Stock	$	3,982		$	8,863		$	633		$	19,449

Denominator for diluted income per share:
Weighted-average shares outstanding, basic	9,025,077			9,218,180			9,093,563			9,200,511
Dilutive effect of stock options and restricted stock	17,244			11,542			13,567			15,482
Weighted-average shares outstanding, diluted	9,042,321			9,229,722			9,107,130			9,215,993

Diluted net income per share allocated to Common Stock	$	.44		$	.96		$	.07		$	2.11