Computation of Basic and Diluted Net Income (Loss) Per Common Share

12 Months Ended

Dec. 28, 2013

Computation of Basic and Diluted Net Income (Loss) Per Common Share

15. Computation of Basic and Diluted Net Income (Loss) Per Common Share

A reconciliation of the numerator and denominator of basic and diluted net income (loss) per common share is provided as follows (in thousands, except per share amounts):

	FY 2013Year EndedDecember 28,2013		FY 2012Year EndedDecember 29,2012			FY 2011Year EndedDecember 31,2011
Numerator:
Income (loss) from continuing operations	$	2,231	$	(170	)	$	2,141
Income from discontinued operations		—		1,608			469
Net income	$	2,231	$	1,438		$	2,610
Denominator:
Weighted average shares of common stock (basic)		9,245		8,935			8,958
Effect of dilutive preferred shares		448		—			1,000
Effect of dilutive stock options		291		—			245
Effect of dilutive contingent shares		120		—			22
Weighted average shares of common stock (diluted)		10,104		8,935			10,225
Per share data:
Basic net income (loss) per share:
Net income (loss) before discontinued operations	$	0.24	$	(0.02	)	$	0.24
Discontinued operations		0.00		0.18			0.05
Net income	$	0.24	$	0.16		$	0.29
Diluted net income (loss) per share:
Net income (loss) before discontinued operations	$	0.22	$	(0.02	)	$	0.21
Discontinued operations		0.00		0.18			0.05
Net income	$	0.22	$	0.16		$	0.26

For periods in which the Company generates income from continuing operations, the conversion of Series A Preferred Stock to common stock and common stock equivalent shares from unexercised stock options (if the exercise price of such options is lower than the average market price of the stock for the period) and vesting of restricted stock units and awards are included in the computation as their effect is dilutive. The Company excludes stock options and other common stock equivalents from the computation if the exercise price of the options is greater than the average market price of the stock for the period because the inclusion of these options would be anti-dilutive. Accordingly, as of December 28, 2013 and December 31, 2011, stock options to purchase 156,564 and 713,462 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding.

For periods in which the Company incurs a loss from continuing operations, the conversion of Series A Preferred Stock to common stock and common stock equivalent shares from unexercised stock options are excluded from the computation as their effect is anti-dilutive. Accordingly, as of December 29, 2012, 1,000,000 shares of common stock equivalents (from the conversion of Series A Preferred Stock), stock options to purchase 1,570,543 shares of common stock and restricted stock units and awards for 66,665 shares of common stock have been excluded.