Computation of Basic and Diluted Net Income Per Common Share

3 Months Ended

Apr. 02, 2016

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 based upon the weighted average number of common shares outstanding during the period. Diluted net income per share is based upon the weighted average number of common shares outstanding and dilutive common stock equivalents outstanding during the period. Common stock equivalents consist of incremental common shares issuable upon the exercise of stock options, and the release (vesting) of restricted stock units and awards and are calculated under the treasury stock method. Common stock equivalent shares from unexercised stock options, and unvested restricted stock units and awards are excluded from the computation for periods in which we incur a net loss or if the exercise price of such options is greater than the average market price of our common stock for the period as their effect would be anti-dilutive.

For the three months ended April 2, 2016 and April 4, 2015, stock options to purchase 205,012 and 191,221 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
	April 2, 2016		April 4, 2015
Numerator:
Net income	$	101	$	246
Denominator:
Weighted average shares of common stock (basic)		10,034		9,868
Effect of dilutive stock options		86		221
Effect of dilutive contingent shares		20		19
Weighted average shares of common stock (diluted)		10,140		10,108
Per share data:
Basic income per share	$	0.01	$	0.02
Diluted income per share	$	0.01	$	0.02