Earnings Per Share ("EPS")

6 Months Ended

Jun. 30, 2012

Earnings Per Share ("EPS")

3. Earnings Per Share (“EPS”)

Basic EPS excludes dilution and is computed by dividing net income or loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted to common stock that would then share in our earnings. For the six months ended June 30, 2012 and 2011, 785,543 and 958,843 shares, respectively, of our common stock that were subject to stock options were excluded from the computation of diluted earnings per common share because they were anti-dilutive. Also, 352,444 shares of common stock subject to stock purchase warrants were excluded from the computation of diluted earnings per common share because their exercise rights are conditioned on future events.

The following table shows how we computed basic and diluted EPS for the six month periods ended June 30, 2012 and 2011.

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands, except earnings per share data)	2012			2011			2012			2011
Net income (loss)	$	5,796		$	1,240		$	7,178		$	2,920
Accumulated undeclared dividends on preferred stock		(234	)		(316	)		(468	)		(628	)
Net income allocable to common shareholders(A)	$	5,562		$	924		$	6,710		$	2,292
Weighted average outstanding shares of common stock(B)		15,779			10,435			14,088			10,435
Dilutive effect of employee stock options and warrants		199			1,663			118			1,668
Common stock and common stock equivalents(C)		15,978			12,098			14,206			12,103
Income (Loss) per common share:
Basic (A/B)	$	0.35		$	0.09		$	0.48		$	0.22
Diluted (A/C)	$	0.35		$	0.08		$	0.47		$	0.19