EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2012

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

NOTE 7.  EARNINGS PER SHARE (in thousands, except EPS)

We compute basic earnings per share ("basic EPS") by dividing net income by the weighted average number of common shares outstanding for the reporting period.  Diluted earnings per share ("diluted EPS") gives effect to all dilutive potential shares outstanding (primarily stock options).  The following table provides the computation of basic and diluted earnings per share for the three month and nine month periods ending September 30, 2012 and 2011.

		Three Months Ended September 30,					Nine Months Ended September 30,
(in thousands, except EPS)		2012			2011		2012		2011
Net income (loss)	$	(7	)	$	63	$	331	$	984
Basic weighted average shares  outstanding		17,634			17,601		17,628		17,592
Effect of potential dilutive    securities		--			173		103		215
Diluted weighted average   shares outstanding		17,634			17,774		17,731		17,807
Basic EPS	$	--		$	--	$	0.02	$	0.06
Diluted EPS	$	--		$	--	$	0.02	$	0.06

For the nine months ended September 30, 2012 and 2011, options and warrants to purchase approximately 778,000 and 1,000,000 million shares of common stock respectively, were excluded from the computation of diluted earnings per share because their effects were anti-dilutive.