NOTE 5-EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options and restricted stock-based awards using the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
			(in thousands, except per share data)

Net income	$	352	$	614	$	1,265	$	1,969

Comprehensive income	$	391	$	610	$	1,340	$	1,944

Weighted average outstanding shares of common stock		7,336		7,327		7,332		7,327
Dilutive potential common shares from stock options and restricted stock units		89		83		86		79
Common stock and common stock equivalents		7,425		7,410		7,418		7,406

Earnings per share, basic and diluted	$	0.05	$	0.08	$	0.17	$	0.27

Comprehensive income per share: basic and diluted	$	0.05	$	0.08	$	0.18	$	0.26

Shares subject to anti-dilutive stock options and restricted stock-based awards excluded from calculation		80		93		83		98