NET INCOME PER COMMON SHARE

9 Months Ended

Sep. 30, 2015

NOTE 5—NET INCOME PER COMMON SHARE

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. The 250,000 contingently issuable shares related to the acquisition of STA Consulting as well as 50,000 contingently issuable shares related to the acquisition of CCI were excluded from basic and diluted earnings per share since the contingency has not been met as of the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would share in the net income of the Company. For the three and nine months ended September 30, 2015 and September 30, 2014, the effect of 0.1 million stock appreciation rights have not been considered in the diluted earnings per share, since the market price of the stock was less than the exercise price during the period in the computation.

The following tables set forth the computation of basic and diluted earnings per share:

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2015		2014		2015		2014

Basic:
Net income attributable to ISG	$	1,778	$	2,353	$	3,565	$	5,521
Weighted average common shares	37,315		37,039		37,182		37,214
Earnings per share attributable to ISG	$	0.05	$	0.06	$	0.10	$	0.15


Diluted:
Net income attributable to ISG	$	1,778	$	2,353	$	3,565	$	5,521
Interest expense of convertible debt, net of tax	21		25		60		71

Net income, attributable to ISG, as adjusted	$	1,799	$	2,378	$	3,625	$	5,592


Basic weighted average common shares	37,315		37,039		37,182		37,214
Potential common shares	1,981		1,701		1,737		1,599

Diluted weighted average common shares	39,296		38,740		38,919		38,813
Diluted earnings per share attributable to ISG	$	0.05	$	0.06	$	0.09	$	0.14