Earnings (Loss) Per Share

6 Months Ended

Oct. 09, 2011

8.	Earnings (Loss) Per Share

Basic earnings (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding during each period. The diluted earnings (loss) per common share computation includes dilutive common share equivalents issued under our various stock option plans and takes into account the conversion rights of our Series B preferred stock.

The components used in the computation of basic earnings (loss) per common share and diluted earnings (loss) per common share for the seven periods ended October 9, 2011 and October 10, 2010 are shown below (in thousands):

	Three Periods Ended					Seven Periods Ended
	October 9,		October 10,			October 9,		October 10,
	2011		2010			2011		2010

Net income (loss), as reported	$	928	$	(3,002	)	$	2,877	$	(1,393	)
Less: Accretion of preferred stock issuance costs and preferred stock dividends		151		250			440		583
Income (Loss) for computation of basic earnings (loss) per common share		777		(3,252	)		2,437		(1,976	)
Add: Accretion of preferred stock issuance costs and preferred stock dividends		-		-			-		-
Income (Loss) for computation of diluted earnings (loss) per common share	$	777	$	(3,252	)	$	2,437	$	(1,976	)

Weighted average number of common shares used in basic earnings (loss) per share		16,852		15,422			16,550		15,451
Effect of dilutive securities:
Stock options		30		-			42		-
Series B preferred stock		-		-					-
Weighted average number of common shares and dilutive potential common stock used in diluted earnings (loss) per share		16,882		15,422			16,592		15,451

In computing diluted earnings per share, the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued, and in computing the dilutive effect of convertible securities, the numerator is adjusted to add back any preferred stock dividends and any other changes in income or loss that would result from the conversion of those securities. In applying the if-converted method, conversion shall not be assumed for purposes of computing diluted earnings per share if the effect would be anti-dilutive.

For the three and seven periods ended October 9, 2011, stock options to purchase approximately 0.5 million shares of common stock were excluded from the calculation of diluted earnings per share due to their anti-dilutive effect and conversion of the convertible preferred stock was not assumed for purposes of computing diluted earnings per share since the effect would have been anti-dilutive. Due to the net loss attributable to common shareholders for the three and seven periods ended October 10, 2010, all potentially dilutive shares were excluded from the denominator of the loss per share calculation as including such shares would have been anti-dilutive. Similarly, the numerator was not adjusted to add back any preferred stock issuance costs or preferred stock dividends as including such amounts would have been anti-dilutive.