EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2012

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

NOTE D—EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing net earnings (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is based on the assumption that stock options and warrants are converted into common shares using the treasury stock method and convertible bonds and preferred stock are converted using the if-converted method. Conversion is not assumed if the results are anti-dilutive.  Potential common shares for the six months ended June 30, 2012 and June 30, 2011 of 52,093 and 52,522 respectively, relating to convertible bonds and preferred stock, were excluded from the computation of diluted earnings (loss) per share because they are anti-dilutive. Potential common shares of 1,705,448 and 1,533,045 respectively, relating to stock options and restricted stock were excluded from the computation of diluted earnings (loss) per share for the six months ended June 30, 2012 and 2011, respectively, because they are anti-dilutive. Stock options have a weighted average exercise price of $2.90 and $4.00 at June 30, 2012 and June 30, 2011, respectively. At June 30, 2012 the convertible bonds may be converted from the date of issuance until maturity at 100% of principal amount into common stock of the Company at a price of $35. On July 1, 2012, the conversion price changes to $50. The preferred stock may be converted at the discretion of the holder or upon meeting certain conditions at the discretion of the Company (see Note C).

Basic and diluted net earnings per share are computed based on the following information:

	Three Months Ended June 30, 2012		Three Months Ended  June 30,  2011		Six Months Ended June 30, 2012		Six Months Ended June 30, 2011
	(in thousands, except for per share data)				(in thousands, except for per share data)
Net earnings applicable to common shareholders	$	5,257	$	9,027	$	9,065	$	8,449
Weighted average shares outstanding - basic	71,062,658		70,815,871		71,043,874		70,779,033
Effect of dilutive securities — stock options	895,656		1,225,817		1,050,449		1,328,023
Weighted average shares outstanding - diluted	71,958,314		72,041,688		72,094,323		72,107,056
Basic net earnings per share	$	0.07	$	0.13	$	0.13	$	0.12
Diluted net earnings per share	$	0.07	$	0.13	$	0.13	$	0.12