Earnings Per Common Share

6 Months Ended

Jun. 30, 2012

Earnings Per Common Share [Abstract]

Earnings Per Common Share

Note H: Earnings per Common Share

Basic earnings per share are computed by dividing net earnings by the daily weighted average number of common shares outstanding during the applicable periods. Diluted earnings per share include the potentially dilutive effect of commons shares issued in connection with outstanding stock-based compensation options and grants, using the treasury stock method. Under the treasury stock method, shares associated with certain stock options have been excluded from the diluted weighted average shares outstanding calculation because the exercise of those options would lead to a net reduction in common shares outstanding. As a result, stock options to acquire 450,000 and 184,000 weighted common shares have been excluded from the diluted weighted shares outstanding for the three-month periods ended June 30, 2012 and 2011, respectively, and 524,000 and 144,000 weighted common shares have been excluded from the diluted weighted shares outstanding for the six-month periods ended June 30, 2012 and 2011, respectively. The potentially dilutive effect of common shares issued in connection with outstanding stock options is determined based on net income. A reconciliation of these amounts is as follows (In thousands, except basic and diluted net income (loss) per common share):

	Three-Month Periods Ended June 30,					Six-Month Periods Ended June 30,
	2012			2011		2012			2011
Numerator:
Net income (loss)	$	(3,658	)	$	210	$	(4,326	)	$	(598	)
Denominator:
Weighted average common shares outstanding (net of 57,000 contingent shares in escrow)		4,877			4,828		4,865			4,826
Dilutive potential common shares		—			88		—			—
Shares used in diluted net income (loss) per common share calculations		4,877			4,916		4,865			4,826
Basic net income (loss) per common share	$	(0.75	)	$	0.04	$	(0.89	)	$	(0.12	)
Diluted net income (loss) per common share	$	(0.75	)	$	0.04	$	(0.89	)	$	(0.12	)