NOTE 9 - EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2014

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
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
(in thousands except per share data)
Numerator for basic and diluted
earnings (loss) per share:
Net income (loss)	$447	($624)	$104	($1,083)
Denominator for basic
earnings (loss) per share:
weighted-average shares	7,814	7,762	7,801	7,756
Employee stock options and awards	85	-	91	-
Denominator for diluted
earnings (loss) per share:
adjusted weighted-average shares &
assumed conversions of stock options	7,899	7,762	7,892	7,756
Basic and diluted
earnings (loss) per share:
Total basic earnings (loss) per share	$0.06	($0.08)	$0.01	($0.14)
Total diluted earnings (loss) per share	$0.06	($0.08)	$0.01	($0.14)

Options to purchase 557,435 and 863,843 shares were outstanding as of June 30, 2014 and 2013, respectively, but were excluded from the computation of diluted earnings per share for the periods then ended because the options were anti-dilutive.