NOTE 8 - EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

NOTE 8 - 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
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
(in thousands except per share data)
Numerator for basic and diluted
earnings per share:
Net income	$	1,728	$	625	$	3,913	$	901
Denominator for basic
earnings per share:
weighted-average shares		8,201		7,977		8,112		7,955
Employee stock options and awards		266		206		288		128
Denominator for diluted
earnings per share:
adjusted weighted-average shares &
assumed conversions of stock options		8,467		8,183		8,400		8,083
Basic and diluted
earnings per share:
Total basic earnings per share	$	0.21	$	0.08	$	0.48	$	0.11
Total diluted earnings per share	$	0.20	$	0.08	$	0.47	$	0.11

Options to purchase 8,425 and 198,395 shares were outstanding as of September 30, 2017 and 2016, respectively, but were excluded from the computation of diluted earnings per share for the periods then ended because the options were anti-dilutive.