NOTE 9 - EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

NOTE 9 - EARNINGS PER SHARE

Basic earnings per share is calculated based on the weighted average number of common shares outstanding during each period.  Diluted earnings per share is calculated based on these same weighted average shares outstanding plus the effect of potential shares issuable upon assumed exercise of stock options based on the treasury stock method.  Potential shares issuable upon the exercise of stock options are excluded from the calculation of diluted earnings per share to the extent their effect would be anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended		Six Months Ended
	June 30, 2012	June 30, 2011	June 30, 2012	June 30, 2011
(in thousands except per share data)
Numerator for basic and diluted earnings per share:
Net income (loss)	($57)	$398	($1,735)	$930
Denominator for basic earnings per share-
weighted-average shares	7,734	9,176	8,250	9,103
Employee stock options and awards	-	167	-	186
Denominator for diluted earnings per share-
adjusted weighted-average shares and      assumed conversions of stock   options	7,734	9,343	8,250	9,289
Basic and diluted earnings per share:
Total basic earnings per share	($0.01)	$0.04	($0.21)	$0.10
Total diluted earnings per share	($0.01)	$0.04	($0.21)	$0.10

The computation for the three and six months ended June 30, 2012 excludes 1,086,892 and 905,571 options, respectively, to purchase common stock as their effect is anti-dilutive.  The computation for the three and six months ended June 30, 2011 excludes 310,209 and 223,362 options, respectively, to purchase common stock as their effect is anti-dilutive.