EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2012

EARNINGS PER COMMON SHARE [Abstract]

EARNINGS PER COMMON SHARE

NOTE 11 - EARNINGS PER COMMON SHARE

Basic net income per common share is based upon the weighted average common shares outstanding during the period. Diluted net income per common share is based upon the weighted average number of common shares outstanding, including the dilutive effect, if any, of stock options and warrants using the treasury stock method.

Certain shares that are potentially dilutive in the future have been excluded from the diluted net income per share computation as they would have been anti-dilutive for the period. The number of such shares subject to stock options as of March 31, 2012 and March 31, 2011 was 126,000 and 364,000, respectively. There were no such shares subject to warrants as of March 31, 2012 or March 31, 2011.

The Company's potentially dilutive shares consist of: (i) vested and unvested stock options that are in-the-money, (ii) warrants that are in-the-money, and (iii) unvested restricted stock awards ("RSAs"). A reconciliation of the earnings per share data from a basic to a fully diluted basis is detailed below:

	Three months ended March 31,
	2012		2011
Net income	$	8,492	$	5,810
Net income per share:
Basic	$	0.09	$	0.06
Diluted	$	0.08	$	0.06
Shares used in computing net income per share:
Weighted average basic shares outstanding		95,011		94,197
Dilutive securities:
Stock options and unvested RSA's		4,097		4,091
Stock warrants		6,502		5,697
Shares issuable upon conversion of convertible notes (1)		3,559		-
Total dilutive securities		14,158		9,788
Weighted average diluted shares outstanding		109,169		103,985

(1) Shares issuable upon conversion of convertible notes assumes that that Company would repay the principal of the notes in cash and pay any incremental value in shares of the Company's common stock.