Earnings per Common Share

6 Months Ended

Jun. 30, 2011

Earnings per Common Share

Earnings per Common Share

(3)           Earnings per Common Share

We compute earnings per share using the weighted-average number of common shares outstanding during each period. Diluted earnings per common share reflects the dilutive impact of shares subscribed under the Employee Stock Purchase Plan (“Purchase Plan”) and effect of our outstanding options and restricted stock using the treasury stock method, except when such items would be antidilutive.

The following table presents the calculation of basic and diluted earnings per share:

	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011			2010
Numerator:
Net (loss) income	$	(1,047	)	$	1,180	$	(542	)	$	2,980
Denominator:
Weighted-average common shares outstanding - basic	12,144,563			12,019,468		12,116,257			11,226,649
Dilutive effect of stock-based compensation plans	—			79,257		—			64,372
Weighted-average common shares outstanding - diluted	12,144,563			12,098,725		12,116,257			11,291,021
Net income per share - basic	$	(0.09	)	$	0.10	$	(0.04	)	$	0.27
Net income per share - diluted	$	(0.09	)	$	0.10	$	(0.04	)	$	0.26

Since we incurred a loss for the three and six month periods ended June 30, 2011, we did not include any of the 964,238 options to purchase shares of common stock or the right to purchase 31,847 shares under our employee stock purchase plan in the computation of diluted earnings per share because their impact would have been antidilutive. We did not include 711,580 and 735,756 of the outstanding options to purchase shares of common stock in the computation of diluted earnings per share for the three and six months ended June 30, 2010, respectively, because generally their exercise prices were more than the average market price of our common shares, and therefore antidilutive.