Earnings (Loss) Per Share

9 Months Ended

Jan. 01, 2012

Earnings (Loss) Per Share

9.   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, during the periods in which shares of such preferred stock were outstanding.

The components used in the computation of basic earnings (loss) per common share and diluted earnings (loss) per common share for the three and ten periods ended January 1, 2012 and January 2, 2011 are shown below (in thousands):

	Three Periods Ended				Ten Periods Ended
	January 1,		January 2,		January 1,		January 2,
	2012		2011		2012		2011
Net income, as reported	$	1,039	$	2,179	$	3,916	$	786
Less:  Accretion of preferred stock issuance costs and preferred
stock dividends		-		250		440		833
Income (Loss) for computation of basic earnings (loss) per common share		1,039		1,929		3,476		(47	)
Add:  Accretion of preferred stock issuance costs and preferred
stock dividends		-		250		-		-
Income (Loss) for computation of diluted earnings (loss) per common share	$	1,039	$	2,179	$	3,476	$	(47	)
Weighted average number of common shares for comutation of basic
earnings (loss) per share		17,882		15,471		16,950		15,457
Effect of dilutive securities:
Stock options		46		32		43		-
Series B preferred stock		-		2,754		-		-
Weighted average number of common shares and dilutive potential
common stock for computation of diluted earnings (loss) per share		17,928		18,257		16,993		15,457

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 ten periods ended January 1, 2012, stock options to purchase approximately 0.4 million shares of common stock were excluded from the calculation of diluted earnings per share due to their anti-dilutive effect. For the ten periods ended January 1, 2012, 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. The impact of the actual conversion of the convertible preferred stock is fully included as shares outstanding in the calculation of basic and diluted earnings per share for the three periods ended January 1, 2012, and included as shares outstanding in the calculation of basic and diluted earnings per share for the ten periods ended January 1, 2012, on a weighted average basis. For the three periods ended January 2, 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. Due to the net loss attributable to common shareholders for the ten periods ended January 2, 2011, 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.