EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2011

EARNINGS PER SHARE

NOTE J – EARNINGS PER SHARE

Basic earnings per share represents net earnings divided by the weighted average shares outstanding. Diluted earnings per share represents net earnings divided by weighted average shares outstanding adjusted for the incremental dilution of outstanding stock options and non-vested restricted stock awards.  A reconciliation of weighted average common shares outstanding to weighted average common shares outstanding assuming dilution for the periods presented follows (in thousands, except per share data):

	Three Months Ended June 30,				Six Months ended June 30,
	2011		2010		2011		2010
Net earnings	$	1,185	$	782	$	1,643	$	926
Weighted average common shares outstanding		33,418		33,266		33,378		33,240
Incremental common shares issuable under stock options and awards		335		108		329		145
Weighted average common shares outstanding assuming dilution		33,753		33,374		33,707		33,385
Earnings per share
Basic	$	0.04	$	0.02	$	0.05	$	0.03
Diluted	$	0.04	$	0.02	$	0.05	$	0.03

Potential common stock issuable upon the exercise of approximately 1,400,000 and 1,079,000 stock options for the three and six months ended June 30, 2011, respectively, were not included in the diluted earnings per share calculation because their effect is antidilutive.  For both the three and six months ended June 30, 2010, potential common stock from approximately 1,081,000 stock options were not included in the diluted earnings per share calculation because their effect is antidilutive.