Earnings per Common Share

9 Months Ended

Sep. 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 September 30,					Nine Months Ended September 30,
	2011			2010		2011			2010
Numerator:
Net (loss) income	$	(1,078	)	$	1,565	$	(1,620	)	$	4,545
Denominator:
Weighted-average common shares outstanding - basic	12,334,155			12,055,741		12,188,889			11,503,013
Dilutive effect of stock-based compensation plans	—			43,130		—			56,322
Weighted-average common shares outstanding - diluted	12,334,155			12,098,871		12,188,889			11,559,335
Net (loss) income per share - basic	$	(0.09	)	$	0.13	$	(0.13	)	$	0.40
Net (loss) income per share - diluted	$	(0.09	)	$	0.13	$	(0.13	)	$	0.39

Since we incurred a loss for the three and nine month periods ended September 30, 2011, we did not include any of the 837,926 options to purchase shares of common stock or the right to purchase 3,864 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 745,176 outstanding options to purchase shares of common stock in the computation of diluted earnings per share for the three and nine months ended September 30, 2010 because generally their exercise prices were more than the average market price of our common shares and they are therefore antidilutive.