Earnings (Loss) Per Share

9 Months Ended

Oct. 29, 2011

NOTE 5. Earnings (Loss) Per Share

Basic earnings or loss per share is computed by dividing net income or net loss, respectively, by the weighted average number of common shares outstanding for the period. Diluted earnings per share is applicable only in periods of net income and is computed by dividing net income by the weighted average number of common shares outstanding for the period and potentially dilutive common stock equivalents outstanding for the period. Periods of net loss require the diluted computation to be the same as the basic computation. As of the end of the third quarter of fiscal 2011 and 2010, options to purchase 3,188,782 and 6,596,289 shares, respectively, of potentially anti-dilutive common stock equivalents were outstanding. For fiscal year-to-date 2011 and 2010, options to purchase 4,821,760 and 6,407,514 shares, respectively, of potentially anti-dilutive common stock equivalents were outstanding. The calculation of dilutive shares also excludes the portion of the performance stock awards granted to certain members of our management in March 2009 that are not expected to be earned or vest as the issuance of the underlying shares is contingent upon achieving certain performance goals in fiscal 2011.

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

	Three Months Ended				Nine Months Ended
	October 29, 2011		October 30, 2010		October 29, 2011			October 30, 2010
Basic and diluted earnings (loss) per share computation:
Numerator	$	3,113	$	390	$	(10,767	)	$	(7,657	)
Denominator:
Weighted average common shares outstanding		43,942		44,616		44,492			44,526
Incremental shares from assumed exercise/issuance of options and awards		539		46		-			-
Total shares		44,481		44,662		44,492			44,526

Basic and diluted earnings (loss) per share	$	0.07	$	0.01	$	(0.24	)	$	(0.17	)