Note 12. Net Income per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Text Block]

12.  Net Loss Per Share

Basic and diluted net loss per share is computed as follows:

(in thousands, except per share data)	Three Months Ended March 31,						Six Months Ended March 31,
	2012			2011			2012			2011
Net loss	$	(166	)	$	(329	)	$	(629	)	$	(485	)
Weighted average common shares outstanding - basic		12,338			12,255			12,329			12,069
Effect of dilutive securities (primarily stock options)		-			-			-			-
Weighted average common shares outstanding - diluted		12,338			12,255			12,329			12,069
Net loss per share - basic and diluted	$	(0.01	)	$	(0.03	)	$	(0.05	)	$	(0.04	)

Basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding. Diluted net income per share is computed by using the weighted average number of common shares outstanding during the period plus the dilutive effect of outstanding stock options and warrants using the “ treasury stock” method.

For the three and six months ended March 31, 2011, options to purchase shares of the Company’s common stock of 467,490 and 433,275 were excluded from the computation of diluted net loss per share as the effect was anti-dilutive to the Company’s net loss.  Also, excluded were 675,000 shares to be issued in connection with the e.Magination acquisition.  Options to purchase shares of the Company’s common stock of 180,126 and 154,654 for the three and six months ended March 31, 2012 were excluded from the computation of diluted net loss per share as the effect was anti-dilutive to the Company’s net loss.  Also excluded for the three and six months ended March 31, 2012 were 138,888 shares to be issued in connection with the Magnetic acquisition.