EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

NOTE 7 – EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted income per common share (in thousands, except for per share amounts):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2011			2010		2011		2010
Numerator:
Net (loss) income	$	(2,326	)	$	3,128	$	615	$	(4,041	)

Denominator - Basic:
Weighted average number of common shares outstanding		54,298			53,310		54,216		47,101

Basic (loss) income per common share	$	(0.04	)	$	0.06	$	0.01	$	(0.09	)

Denominator - Diluted:
Weighted average number of common shares outstanding		54,298			53,310		54,216		47,101
Common share equivalents of outstanding stock options and restricted awards		-			1,495		723		-
Total diluted shares outstanding		54,298			54,805		54,939		47,101

Diluted (loss) income per common share	$	(0.04	)	$	0.06	$	0.01	$	(0.09	)

The computation of basic and diluted shares for the three and six months ended June 30, 2011 and 2010 includes the weighted average effect of the approximately 13.1 million shares issued and outstanding in connection with the acquisition of Critical Homecare Solutions, Inc. (“CHS”) on March 25, 2010. The computation of diluted shares for the three and six months ended June 30, 2011 and 2010 excludes the effect of 3.4 million warrants having an exercise price of $10.00 issued in connection with the acquisition of CHS as their inclusion would be anti-dilutive. The computation of diluted shares for the three months ended June 30, 2011 and 2010 excludes the effect of 6.9 million and 2.2 million shares, respectively, of other common stock equivalents as their inclusion would be anti-dilutive. The computation of diluted shares for the six months ended June 30, 2011 and 2010 excludes the effect of 4.7 million and 8.2 million shares, respectively, of other common stock equivalents as their inclusion would be anti-dilutive.