Earnings per share

9 Months Ended

Sep. 30, 2011

Earnings per share

11. Earnings per share

For the three and nine months ended September 30, 2011 and 2010, there were no adjustments to net income (loss) for purposes of calculating basic and diluted net income (loss) available to common shareholders. The following is a reconciliation of the weighted average shares used in the basic and diluted net income (loss) per common share computations.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Weighted average common shares-basic		18,384,451		17,626,319		18,146,076		17,565,414
Effect of dilutive securities:
Unexercised stock options net of treasury share repurchase		466,174		210,218		—		258,859
Weighted average common shares-diluted		18,850,625		17,836,537		18,146,076		17,824,273

No adjustment has been made in the nine months ended September 30, 2011 for any common stock equivalents because their effects would be anti-dilutive. For the nine months ended September 30, 2011, potentially dilutive shares totaled 331,775.

Options to purchase shares of common stock with exercise prices in excess of the average market price of common shares are not included in the computation of diluted earnings per share. There were 787,440 and 2,600,874 outstanding options not included in the diluted earnings per share computation for the three and nine months ended September 30, 2011, respectively, because the inclusion of these options was anti-dilutive. There were 1,767,764 and 1,691,289 outstanding options not included, respectively, in the diluted earnings per share computation for the three and nine months ended September 30, 2010, respectively, because the inclusion of these options was anti-dilutive.