Earnings Per Share

6 Months Ended

Jul. 02, 2011

Earnings Per Share

Earnings Per Share

6. Earnings Per Share

Following is a reconciliation of the denominators for basic and diluted earnings per share calculations (in thousands):

	Three Months Ended		Six Months Ended
	July 2	July 3	July 2	July 3
	2011	2010	2011	2010
Basic weighted-average number of common shares    outstanding	15,304	15,191	15,267	15,185
Dilutive potential shares using the treasury share method	0	39	0	33
Diluted weighted-average number of common shares    outstanding	15,304	15,230	15,267	15,218
Shares that were not included in computation of diluted earnings
per share that could potentially dilute future basic earnings
per share because their effect on the periods were antidilutive	1,281	1,008	971	1,045

Basic earnings per share is the per-share allocation of income available to common shareholders based only on the weighted-average number of common shares actually outstanding during the period. Diluted earnings per share represents the per-share allocation of income attributable to common shareholders based on the weighted-average number of common shares actually outstanding plus all potential common share equivalents outstanding during the period, if dilutive.  The Company uses the treasury stock method to determine diluted earnings per share.  Potential dilutive shares were excluded from the computation of diluted net loss per share for the three and six months ended July 2, 2011 because the effect of their inclusion would have been anti-dilutive.