Computation of Per Share Amounts

9 Months Ended

Sep. 30, 2011

Computation of Per Share Amounts

6.  Computation of Per Share Amounts

Basic earnings per common share is computed using the weighted-average number of common shares outstanding (adjusted for treasury stock and common stock subject to repurchase activity) during the period.  Diluted earnings per common share is computed using the weighted-average number of common and dilutive common equivalent shares outstanding during the period.  Common equivalent shares are anti-dilutive when their conversion would reduce the loss per share.  Dilutive common equivalent shares consist primarily of stock options and restricted stock awards.

Employee equity share options, nonvested shares, and similar equity instruments granted by the Company are treated as potential common shares outstanding in computing diluted earnings per share.  Diluted shares outstanding would include the dilutive effect of in-the-money options, calculated based on the average share price for each period using the treasury stock method, had there been any during the period.  Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares.  Additionally, under the treasury stock method the amount the purchaser of the written call options must pay for exercising stock options is assumed to be used to repurchase shares.

The following table presents the calculation of basic and diluted earnings per share (in thousands, except per share data):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Net loss	$	(2,683	)	$	(3,850	)	$	(7,217	)	$	(9,177	)
Net loss per share:
Basic and diluted	$	(0.42	)	$	(0.64	)	$	(1.14	)	$	(1.52	)
Net loss from continuing operations	$	(2,683	)	$	(3,761	)	$	(7,217	)	$	(9,066	)
Net loss per share from continuing operations:
Basic and diluted	$	(0.42	)	$	(0.62	)	$	(1.14	)	$	(1.50	)
Loss from discontinued operations	$	-		$	(89	)	$	-		$	(111	)
Net loss per share  from discontinued operations:
Basic and diluted	$	-		$	(0.02	)	$	-		$	(0.02	)
Weighted average shares - basic and diluted		6,337			6,046			6,306			6,030

The following potential common shares have been excluded from the calculation of diluted earnings per share for all periods presented because they are anti-dilutive (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Anti-dilutive securities:
Options to purchase common stock		212		605		165		567
Restricted stock awards and restricted stock units		228		3		113		-
Total		440		608		278		567