NOTE 10 - EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

NOTE 10 - 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					Nine Months Ended
	September 30, 2012			September 30, 2011		September 30, 2012			September 30, 2011
(in thousands except per share data)
Numerator for basic and diluted earnings (loss) per share:
Net income (loss)	$	(1,329	)	$	130	$	(3,063	)	$	1,061
Denominator for basic earnings (loss) per share- weighted-average shares		7,740			9,270		8,080			9,159
Employee stock options and awards		-			121		-			164
Denominator for diluted earnings (loss) per share-adjusted weighted-average shares and
assumed conversions of stock options		7,740			9,391		8,080			9,323
Basic and diluted earnings (loss) per share:
Total basic earnings (loss) per share	$	(0.17	)	$	0.01	$	(0.38	)	$	0.12
Total diluted earnings (loss) per share	$	(0.17	)	$	0.01	$	(0.38	)	$	0.11

The earnings per share computation for the three and nine months ended September 30, 2012 and 2011 excludes the following options to purchase common stock, as their effect is anti-dilutive:

	Three Months Ended				Nine Months Ended
	September 30, 2012		September 30, 2011		September 30, 2012		September 30, 2011
Anti-dilutive options to purchase shares		1,099,728		471,989		919,970		311,251