NOTE 9 - EARNINGS PER SHARE

9 Months Ended

Sep. 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		Nine Months Ended
	Sep 30, 2013	Sep 30, 2012	Sep 30, 2013	Sep 30, 2012
(in thousands except per share data)
Numerator for basic and diluted
earnings (loss) per share:
Net income (loss)	$146	($1,329)	($938)	($3,063)
Denominator for basic
earnings (loss) per share:
weighted-average shares	7,773	7,740	7,761	8,080
Employee stock options and awards	46	-	-	-
Denominator for diluted
earnings (loss) per share:
adjusted weighted-average shares &
assumed conversions of stock options	7,819	7,740	7,761	8,080
Basic and diluted
earnings (loss) per share:
Total basic earnings (loss) per share	$0.02	($0.17)	($0.12)	($0.38)
Total diluted earnings (loss) per share	$0.02	($0.17)	($0.12)	($0.38)

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

	Three Months Ended		Nine Months Ended
	Sep 30, 2013	Sep 30, 2012	Sep 30, 2013	Sep 30, 2012
Anti-dilutive options to purchase shares	892,314	1,099,728	968,862	919,970