4. Earnings Per Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

4. Earnings Per Share

Basic net income (loss) per share has been computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share has been computed using the weighted-average number of shares of common stock and dilutive potential common shares from options and warrants outstanding during the period. In periods with net losses, normally dilutive shares become anti-dilutive, and therefore for those periods basic and dilutive earnings per share are the same.

The following table sets forth the computation of the basic and diluted net loss per share for the periods indicated (in thousands, except per share amounts):

	Three months ended June 30,					Six months ended June 30,
	2014		2013			2014		2013
Numerator:
Net income (loss)	$	1,919	$	(282	)	$	2,004	$	(1,276	)
Denominator:
Weighted average shares used to compute net income (loss) per share
Basic		14,785		271			13,794		268
Effective of dilutive options and warrants		856		–			826		–
Diluted		15,642		271			14,621		268
Net income (loss) per share
Basic	$	0.13	$	(1.04	)	$	0.15	$	(4.77	)
Diluted	$	0.12	$	(1.04	)	$	0.14	$	(4.77	)

The following potentially dilutive securities were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Employee stock options		–		736		–		736
Preferred stock warrants		–		56		–		56
Restricted stock units		–		–		–		–
		–		792		–		792