NOTE 9 - EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2013

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, 2013	June 30, 2012	June 30, 2013	June 30, 2012
(in thousands except per share data)
Numerator for basic and diluted
earnings (loss) per share:
Net income (loss)	($624)	($57)	($1,083)	($1,735)
Denominator for basic
earnings (loss) per share:
weighted-average shares	7,762	7,734	7,756	8,250
Employee stock options and awards	-	-	-	-
Denominator for diluted
earnings (loss) per share:
adjusted weighted-average shares &
assumed conversions of stock options	7,762	7,734	7,756	8,250
Basic and diluted
earnings (loss) per share:
Total basic earnings (loss) per share	($0.08)	($0.01)	($0.14)	($0.21)
Total diluted earnings (loss) per share	($0.08)	($0.01)	($0.14)	($0.21)

The earnings per share computation for the three months and six months ended June 30, 2013 and 2012 excludes the following options to purchase common stock, as their effect is anti-dilutive:

	Three Months Ended		Six Months Ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Anti-dilutive options to purchase shares	910,392	1,086,892	990,998	905,571