Note 4 - Earnings per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Text Block]

4.   Earnings per Share

Basic earnings per share are calculated by dividing the net income or loss for the period by the weighted average shares of common stock outstanding for the period.  Diluted earnings per share are calculated by dividing the net income or loss per share by the weighted average common stock outstanding for the period, plus dilutive potential common shares using the treasury stock method.  In periods with a net loss, basic and diluted earnings per share are identical because inclusion of potentially dilutive common shares would be anti-dilutive.

The following table sets forth the computation of basic and diluted net income per share for the three months ended March 31, 2013 and 2012 (in thousands, except per share data):

	Three Months Ended March 31,
	2013			2012
Net (loss) / income	$	(120	)	$	60
Shares used to compute basic net (loss) / income per share		8,554			8,505
Dilutive potential common shares:
Stock options		-			297
Shares used to compute diluted net (loss) / income per share		8,554			8,802
Basic net (loss) / income per share	$	(0.01	)	$	0.01
Diluted net (loss) / income per share	$	(0.01	)	$	0.01

For the three months ended March 31, 2013, approximately 640,000 options to purchase shares of common stock with exercise prices greater than the average fair market value of our stock of $3.64, were not included in the calculation because the effect would have been anti-dilutive.  For the three months ended March 31, 2012, approximately 529,000 options to purchase shares of common stock with exercise prices greater than the average fair market value of our stock of $3.43, were not included in the calculation because the effect would have been anti-dilutive.