Computation Of Basic And Diluted Net Income Per Common Share

12 Months Ended

Dec. 31, 2011

Computation Of Basic And Diluted Net Income Per Common Share [Abstract]

Computation Of Basic And Diluted Net Income Per Common Share

16. Computation of Basic and Diluted Net Income Per Common Share

A reconciliation of the numerator and denominator of basic and diluted net income per common share is provided as follows (in thousands, except per share amounts):

	FY 2011 Year Ended December 31, 2011		FY 2010 Year Ended January 1, 2011		FY 2009 Year Ended January 2, 2010
Numerator:
Income from continuing operations	$	2,141	$	1,653	$	1,682
Income from discontinued operations		469		1,393		903
Net income	$	2,610	$	3,046	$	2,585
Denominator:
Weighted average shares of common stock (basic)		8,958		8,943		8,840
Effect of dilutive preferred shares		1,000		1,000		1,000
Effect of dilutive stock options		245		183		100
Effect of dilutive contingent shares		22		8		0
Weighted average shares of common stock (diluted)		10,225		10,134		9,940
Per share data:
Basic net income per share:
Net income before discontinued operations	$	0.24	$	0.18	$	0.19
Discontinued operations		0.05		0.16		0.10
Net income	$	0.29	$	0.34	$	0.29
Diluted net income per share:
Net income before discontinued operations	$	0.21	$	0.16	$	0.17
Discontinued operations		0.05		0.14		0.09
Net income	$	0.26	$	0.30	$	0.26

The Company issued 500,000 shares of Series A Preferred Stock, convertible into 1 million shares of Common Stock in 2007. The effect of the conversion of the preferred shares into 1 million common shares is included in the computation of the diluted weighted average shares outstanding.

The Company excludes options from the computation of diluted weighted average shares outstanding if the exercise price of the options is greater than the average market price of the shares because the inclusion of these options would be anti-dilutive to earnings per share. Accordingly, at December 31, 2011 and January 1, 2011, respectively, stock options to purchase 713,462 and 809,997 shares were excluded from the computation of diluted weighted average shares outstanding.

On March 2, 2011, the Company purchased 75,698 shares of IRIDEX Common Stock from American Medical Systems Holdings, Inc. (AMS). These shares were the remaining holdings of IRIDEX Common Stock that were issued to AMS as part of the consideration for a 2007 transaction in which laser technologies and assets were purchased by IRIDEX from AMS.