Note 6 - Stockholders' Equity

6 Months Ended

Jul. 01, 2017

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

6 . Stockholders’ Equity

Basic earnings per common share are based upon the weighted average shares outstanding. Outstanding stock options and restricted stock are treated as potential common stock for purposes of computing diluted earnings per share. Basic and diluted earnings per share are calculated using the following share data (in thousands):

	Three Months				Six Months
	Ended				Ended
	July 1 ,		July 2,		July 1 ,		July 2,
	201 7		2016		201 7		2016
Weighted average shares outstanding for basic calculation		14,203		14,083		14,196		14,164
Add: Effect of dilutive stock awards		-		-		-		-
Weighted average shares outstanding, adjusted for diluted calculation		14,203		14,083		14,196		14,164

In the

three

month period ending

July 1, 2017,

we had

no

dilutive effect from equity awards. In the

six

month period ending

July 1, 2017

and the

three

and

six

month periods ended

July 2, 2016,

the dilutive effect of equity awards was

not

recognized since we had a net loss. Approximately

993,000

shares in the

three

and

six

month periods of

2017

were issuable upon the exercise of stock options. These were

not

included in the diluted per share calculation because they were anti-dilutive. Also,

462,000

shares in

2017

of restricted stock were

not

included because they were anti-dilutive. In the

three

and

six

month periods ended

July 2, 2016,

approximately

1.2

million of stock options were excluded from the diluted per share calculation as they would be anti-dilutive. In addition,

638,000

shares in

2016

of restricted stock were

not

included because they were anti-dilutive.

A reconciliation of the activity in stockholders’ equity accounts for the quarter ended

July 1, 2017

is as follows (in thousands):

									Accumulated
			Capital in						Other
	Common		Excess of			Retained			Comprehensive
	Stock		Par Value			Earnings			Loss
Balance at December 31, 2016	$	275	$	16,840		$	5,129		$	(2,262	)
Net loss		-		-			(402	)		-
Dividend payable adjustment due to restricted share forfeitures		-		-			134			-
Stock-based compensation		-		(66	)		-			-
Adjustment to net periodic benefit cost		-		-			-			50
Balance at July 1, 2017	$	275	$	16,774		$	4,861		$	(2,212	)