NOTE 9 - EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

NOTE 9 - EARNINGS (LOSS) 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, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
(in thousands except per share data)
Numerator for basic and diluted
earnings per share:
Net income	$439	$646	$589	$750
Denominator for basic
earnings per share:
weighted-average shares	7,930	7,846	7,896	7,816
Employee stock options and awards	112	134	159	106
Denominator for diluted
earnings per share:
adjusted weighted-average shares &
assumed conversions of stock options	8,042	7,980	8,055	7,922
Basic and diluted
earnings per share:
Total basic earnings per share	$0.06	$0.08	$0.07	$0.10
Total diluted earnings per share	$0.05	$0.08	$0.07	$0.09

Options to purchase 162,526 and 417,362 shares were outstanding as of September 30, 2015 and 2014, respectively, but were excluded from the computation of diluted earnings per share for the periods then ended because the options were anti-dilutive.