Computation of Basic and Diluted Net Income Per Common Share

9 Months Ended

Sep. 27, 2014

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income Per Common Share

8. Computation of Basic and Diluted Net Income Per Common Share

Basic net income per share is computed by dividing net income for the period by the weighted average number of shares outstanding during the period.

Diluted net income per share is computed by dividing net income for the period by the weighted average number of shares, plus the weighted average common stock equivalents outstanding during the period. The Company excludes options from the computation of diluted weighted average shares outstanding if the exercise price of the options is greater than the average market price of the shares because the inclusion of these options would be anti-dilutive to earnings per share. Accordingly, for the three months ended September 27, 2014 and September 28, 2013, stock options to purchase 106,527 and 147,111 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding. For the nine months ended September 27, 2014 and September 28, 2013, stock options to purchase 228,241 and 543,142 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding.

A reconciliation of the numerator and denominator of basic and diluted net income per common share is provided as follows:

	Three Months Ended				Nine Months Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Numerator:
Net income	$	490	$	530	$	1,274	$	1,819
Denominator:
Weighted average shares of common stock (basic)		9,869		9,796		9,918		9,044
Effect of dilutive preferred shares		—		—		—		597
Effect of dilutive stock options		256		276		313		270
Effect of dilutive contingent shares		130		105		166		84
Weighted average shares of common stock (diluted)		10,255		10,177		10,397		9,995
Per share data:
Basic income per share	$	0.05	$	0.05	$	0.13	$	0.20
Diluted income per share	$	0.05	$	0.05	$	0.12	$	0.18