Earnings Per Share

3 Months Ended

Jul. 01, 2011

Earnings Per Share

Note 8.  Earnings Per Share

The Company’s net earnings per share calculations are in accordance with FASB ASC 260-10.  Accordingly, basic earnings (loss) per share are computed by dividing net earnings (loss) by the weighted average number of shares outstanding for each year.  The calculation of earnings (loss) per share is as follows:

	Three months ended
Basic and Diluted	July 1, 2011		July 2, 2010
Weighted Average Basic Shares Outstanding		30,687,000		24,675,000
Dilutive effect of Stock Options and Warrants		1,072,000		--
Weighted Average Diluted Shares Outstanding		31,759,000		24,675,000
Net income (loss)	$	18,000	$	(273,000	)
Basic income (loss) per share	$	0.00	$	(0.01	)
Diluted income (loss) per share	$	0.00	$	(0.01	)

The dilutive effect of stock options for the three month period ended July 2, 2010 was not included in the calculation of diluted loss per share because to do so would have had an anti-dilutive effect as the Company had a net loss for the period. As of July 1, 2011, the number of anti-dilutive shares excluded from diluted earnings per share totaled approximately 4.6 million shares, which includes 1.1 million anti-dilutive warrants.

On April 1, 2009, the Company adopted the FASB’s guidance on determining whether instruments granted in share-based payment transactions are participating securities which requires that unvested restricted stock with a non-forfeitable right to receive dividends be included in the two-class method of computing earnings per share.  This guidance did not have a material impact on our reported earnings per share amounts.