Basic and Diluted Income Per Common Share

3 Months Ended

Mar. 31, 2012

Basic and Diluted Income Per Common Share

Basic and Diluted Income Per Common Share

3.   Basic and Diluted Income Per Common Share

Basic income per share is based on the weighted average number of outstanding common shares for the period.  Diluted income per share adjusts the weighted average shares outstanding for the potential dilution that could occur if stock options or warrants were exercised into common stock.  The number of common shares and common share equivalents used in the determination of basic and diluted income per share were as follows:

9

(in thousands, except for share amounts)	Three months ended
	March 31,
	2012		2011
Numerator:
Net income	$	530	$	1,013
Denominator:
Weighted-average shares outstanding for basic earnings per share		18,395,585		19,210,954
Effect of dilutive securities:
Employee stock options		73,233		287,399
Adjusted weighted-average shares outstanding and assumed conversion for diluted earnings per share		18,468,818		19,498,353
Shares related to dilutive securities excluded because inclusion would be anti-dilutive		2,696,374		1,543,800