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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