EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2011

NOTE 4 – EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share (“EPS”) are computed by dividing the Company’s net income (loss) by the weighted average number of shares outstanding during the period. When the effects are not anti-dilutive, diluted earnings (loss) per share are computed by dividing the Company’s net income (loss) by the weighted average number of shares outstanding and the impact of all dilutive potential common shares, primarily stock options “in-the-money” and unvested restricted stock. The dilutive impact of stock options and unvested restricted stock is determined by applying the “treasury stock” method. Performance-based restricted stock awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions: (a) are satisfied prior to the end of the reporting period, or (b) would be satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. For the periods in which losses are presented, dilutive loss per share calculations do not differ from basic loss per share because the effects of any potential common stock were anti-dilutive and therefore not included in the calculation of dilutive earnings per share.

A reconciliation of the numerators and dominators of the basic and diluted earnings (loss) per share calculations follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2011		2010			2011		2010
EPS numerator - basic and diluted (in thousands):
Income (loss) from continuing operations	$	3,382	$	(1,884	)	$	7,600	$	(5,845	)
Income (loss) from discontinued operations, net of income taxes		-		(14	)		-		(31	)
Net income (loss)		3,382		(1,898	)		7,600		(5,876	)
EPS denominator (in thousands):
Weighted-average common stock outstanding - basic		31,620		31,225			31,541		29,493
Common stock equivalents: stock options and other stock-based awards (a)		465		-			447		-
Weighted-average number of common stock outstanding - diluted		32,085		31,225			31,988		29,493

(a)

For the periods in which net losses are presented, the diluted weighted-average number of shares of common stock outstanding did not differ from the basic weighted-average number of shares of common stock outstanding because the effects of any potential common stock equivalents (see Note 5 below for further details on outstanding stock options, non-vested restricted stock units and non-vested restricted stock) were anti-dilutive and therefore not included in the calculation of the denominator of dilutive earnings per share.

The weighted average number of shares outstanding used in the computation of basic and diluted net income (loss) per share for the three and nine months ended September 30, 2011 and 2010 does not include the effect of the following potentially outstanding shares of common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted net income (loss) per share because the effect would have been anti-dilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
(in thousands)
Unvested restricted stock		317		1,081		317		1,081
Stock options		1,400		1,565		1,400		1,565
Total		1,717		2,646		1,717		2,646

For the three and nine months ended September 30, 2011, 316,000 shares of performance-based restricted stock awards were excluded from the calculation of the computation of diluted earnings per share because the underlying performance conditions had not been satisfied prior to the end of the reporting period.