NOTE 10 - EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

NOTE 10 - EARNINGS PER SHARE

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
	March 31, 2013	March 31, 2012
(in thousands except per share data)
Numerator for basic and diluted earnings (loss) per share:
Net income (loss)	($459)	($1,677)
Denominator for basic earnings (loss) per share-
weighted-average shares	7,749	8,765
Employee stock options and awards	-	-
Denominator for diluted earnings (loss) per share-
adjusted weighted-average shares and
assumed conversions of stock options	7,749	8,765
Basic and diluted earnings (loss) per share:
Total basic earnings (loss) per share	($0.06)	($0.19)

The earnings per share computation for the three months ended March 31, 2013 and 2012 excludes the following options to purchase common stock, as their effect is anti-dilutive:

	Three Months Ended
	March 31, 2013	March 31, 2012
Anti-dilutive options to purchase shares	1,072,499	682,981