The following table sets forth the computation of Basic and Diluted earnings per share:

	Three Months Ended June 30,

	2012						2011
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Loss from continuing operations	$	(1,754	)	$	(1,754	)	$	(25,116	)	$	(25116	)
Income (loss) from discontinued operations, net of tax		27,528			27,528			(9,389	)		(9,389	)

Net income (loss) attributable to common shareholders	$	25,774		$	25,774		$	(34,505	)	$	(34,505	)

Denominator:
Weighted average common shares		11,303			11,303			11,014			11,014

Income (loss) per share:
Loss from continuing operations	$	(0.16	)	$	(0.16	)	$	(2.28	)	$	(2.28	)
Income (loss) from discontinued operations, net of tax		2.44			2.44			(0.85	)		(0.85	)

Net income (loss) per common share	$	2.28		$	2.28		$	(3.13	)	$	(3.13	)

	Six Months Ended June 30,

	2012						2011
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Loss from continuing operations	$	(5,022	)	$	(5,022	)		(41,203	)		(41,203	)
Income (loss) from discontinued operations, net of tax		44,946			44,946			(32,797	)		(32,797	)

Net loss available to common shareholders	$	39,924		$	39,924		$	(74,000	)	$	(74,000	)

Denominator:
Weighted average common shares		11,238			11,238			10,948			10,948

Income (loss) per share:
Loss from continuing operations	$	(0.45	)	$	(0.45	)	$	(3.76	)	$	(3.76	)
Income (loss) from discontinued operations, net of tax		4.00			4.00			(3.00	)		(3.00	)

Net income (loss) per common share	$	3.55		$	3.55		$	(6.76	)	$	(6.76	)

The sum of the first and second quarter 2012 diluted earnings per share from discontinued operations does not equal the year-to-date total due to a revision of approximately $0.03 per share to the first quarter amount. The impact of this correction is considered immaterial to the previously reported financial statements.

For the three and six months ended June 30, 2012 and 2011, we had losses from continuing operations and, as a result, no potentially dilutive securities were included in the denominator for computing diluted earnings per share because the impact would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding were used to compute all earnings per share amounts. For the three months ended June 30, 2012 and 2011, approximately 0.5 million and 0.1 million shares, respectively, related to potentially dilutive securities were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For the six months ended June 30, 2012 and 2011, approximately 0.3 million and 0.1 million shares, respectively, related to potentially dilutive securities were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

Non-cash compensation expense related to equity awards is included in the following line items in the accompanying consolidated statements of operations for the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,

	2012		2011		2012		2011
Cost of revenue	$	1	$	1	$	4	$	3
Selling and marketing expense		202		105		359		265
General and administrative expense		761		624		1,636		1,485
Product development		108		58		257		155

Non-cash compensation expense	$	1,072	$	788	$	2,256	$	1,908

The forms of stock-based awards granted to our employees are principally restricted stock units ("RSUs"), restricted stock and stock options. RSUs are awards in the form of units, denominated in a hypothetical equivalent number of shares of our common stock and with the value of each award equal to the fair value of our common stock at the date of grant. RSUs may be settled in cash, stock or both, as determined by the compensation committee of our board of directors at the time of grant. Each stock-based award is subject to service-based vesting, where a specific period of continued employment must pass before an award vests. Certain restricted stock awards also include performance-based vesting, where certain performance targets set at the time of grant must be achieved before an award vests. We recognize expense for all stock-based awards for which vesting is considered probable. For stock-based awards, the accounting charge is measured at the grant date as the fair value of the shares of our common stock subject to the award and expensed ratably as non-cash compensation over the vesting term. For performance-based awards, the expense is measured at the grant date as the fair value of the shares of our common stock subject to the award and expensed as non-cash compensation over the vesting period if the performance targets are considered probable of being achieved.

The amount of stock-based compensation expense recognized in the consolidated statement of operations is reduced by estimated forfeitures, as the amount recorded is based on awards ultimately expected to vest. The forfeiture rate is estimated at the grant date based on historical experience and revised, if necessary, in subsequent periods if the actual forfeiture rate differs from the estimated rate.

A summary of changes in outstanding stock options for the six months ended June 30, 2012 is as follows:

			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value

					(In years)		(In thousands)
Outstanding at January 1, 2012	1,046,746		$	9.09
Granted	150,000			7.43
Exercised	(63,063	)		7.30
Forfeited	—			—
Expired	(19,740	)		11.39

Outstanding at June 30, 2012	1,113,943		$	8.93		6.1	$	3,515

Options exercisable at June 30, 2012	271,513		$	11.89		4.5	$	597

The following table summarizes the information about stock options outstanding and exercisable as of June 30, 2012:

	Options Outstanding						Options Exercisable

Range of Exercise Prices	Outstanding at June 30, 2012		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price		Exercisable at June 30, 2012		Weighted Average Exercise Price
$.01 to $4.99		4,892		1.3	$	3.27		4,892	$	3.27
$5.00 to $7.45		308,556		9.1		6.64		55,976		5.95
$7.46 to $9.99		653,033		5.5		8.39		63,183		7.58
$10.00 to $14.99		19,909		2.3		12.21		19,909		12.21
$15.00 to $19.99		80,890		2.9		15.02		80,890		15.02
$20.00 to $24.99		46,663		2.9		20.19		46,663		20.19

		1,113,943		6.1	$	8.93		271,513	$	11.89

Included in the table above, on March 1, 2012 our Chairman and CEO was granted an option to purchase up to 150,000 shares of our common stock that vests in three equal installments beginning on March 1, 2013. The weighted average exercise price and the weighted average fair value related to this stock option were $7.43 and $3.63, respectively.

Nonvested RSUs and restricted stock outstanding as of June 30, 2012 and changes during the six months ended June 30, 2012 were as follows:

	RSUs					Restricted Stock

	Number of Shares			Weighted Average Grant Date Fair Value		Number of Shares			Weighted Average Grant Date Fair Value
Nonvested at January 1, 2012		933,051		$	6.48		299,642		$	6.70
Granted		92,972			6.75		—			—
Vested		(284,594	)		6.97		(112,142	)		5.45
Forfeited		(38,139	)		6.31		—			—

Nonvested at June 30, 2012		703,290		$	6.38		187,500		$	7.44