EARNINGS PER SHARE

3 Months Ended

Sep. 30, 2011

NOTE 8 - EARNINGS PER SHARE

Earnings per share are measured at two levels: basic per share and diluted per share. Basic per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted per share is computed by dividing net income by the weighted average number of common shares after considering the additional dilution related to common stock options and restricted stock. In computing diluted earnings per share, the outstanding common stock options are considered dilutive using the treasury stock method. Vested restricted shares are included in basic common shares outstanding, and unvested restricted shares are included in the diluted common shares outstanding, if the effect is dilutive.

The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per-share data):

	Three-Months Ended
	September 30,
	2011			2010
	(Unaudited)

Net loss, as reported	$	(325	)	$	(797	)

Weighted average common shares outstanding		15,065			14,907
Effect of dilutive stock options		-			-
Weighted average diluted common shares outstanding		15,065			14,907

Net loss per common share
Basic	$	(0.02	)	$	(0.05	)
Diluted	$	(0.02	)	$	(0.05	)

Employee stock options excluded from computation
of dilutive income per share amounts because their
effect would be anti-dilutive		520			389