Computation of Earnings per Share

6 Months Ended

Jun. 30, 2016

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,
	2016		2015		2016		2015
Net income	$	1,436	$	319	$	2,070	$	591
Shares outstanding:
Weighted-average common shares outstanding		22,964		22,867		22,978		22,866
Additional dilutive common stock equivalents		160		162		86		92
Diluted shares outstanding		23,124		23,029		23,064		22,958
Net income per share – basic	$	0.06	$	0.01	$	0.09	$	0.03
Net income per share - diluted	$	0.06	$	0.01	$	0.09	$	0.03

For the three month periods ended June 30, 2016 and 2015, options to purchase 54,034 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, 2016 and 2015, options to purchase 54,034 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.