Note 6 - Earnings per share

6 Months Ended

Jun. 30, 2011

Per share data:

Earnings Per Share [Text Block]

Note 6 – Earnings per share

Basic earnings per share (“basic EPS”) is computed 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 resulting from employee stock options, restricted stock units and stock appreciation rights (“SARs”) during the period. The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2010 and 2011.

	Three months ended				Six months ended
	June 30,				June 30,
	2010		2011		2010		2011
Net income	$	7,306	$	8,680	$	14,625	$	17,675
Basic – weighted average shares
outstanding		29,100		28,448		29,125		28,356
Effect of dilutive potential
securities		195		435		217		464
Diluted – weighted average
shares outstanding		29,295		28,883		29,342		28,820
Net Income
Basic	$	.25	$	.31	$	.50	$	.62
Diluted		.25		.30		.50		.61

The shares used in the calculation of diluted EPS exclude options and SARs to purchase shares where the exercise price was greater than the average market price of common shares for the period.  Shares excluded from the calculation of diluted EPS aggregated 1.5 million and 1.4 million for the three and six months ended June 30, 2010, respectively. Shares excluded from the calculation of diluted EPS aggregated 0.6 million and 0.7 million for the three and six months ended June 30, 2011, respectively.  The shares used in the calculation of diluted EPS also exclude potential shares issuable under the Notes.  Upon conversion of the Notes, the holder of each Note will receive the conversion value of the Note payable in cash up to the principal amount of the Note and CONMED common stock for the Note's conversion value in excess of such principal amount.  As of June 30, 2011, our share price has not exceeded the conversion price of the Notes, therefore the conversion value was less than the principal amount of the Notes.  Accordingly, under the net share settlement method, there were no potential shares issuable under the Notes to be used in the calculation of diluted EPS.  The maximum number of shares we may issue with respect to the Notes is 5,750,000.