(Loss) Earnings Per Share

12 Months Ended

Jan. 28, 2012

(Loss) Earnings Per Share

NOTE 11. (Loss) Earnings 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 fiscal 2011, 2010 and 2009, options to purchase 3.6 million, 6.1 million and 5.2 million 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 (loss) earnings per share is as follows (in thousands except per share amounts):

	Fiscal Year
	2011			2010			2009
Basic (loss) earnings per share computation:
Numerator	$	(1,818	)	$	(8,235	)	$	11,880
Denominator:
Weighted average common shares outstanding		43,892			44,554			44,134
Basic (loss) earnings per share	$	(0.04	)	$	(0.18	)	$	0.27
Diluted (loss) earnings per share computation:
Numerator	$	(1,818	)	$	(8,235	)	$	11,880
Denominator:
Weighted average common shares outstanding		43,892			44,554			44,134
Incremental shares from assumed exercise of options		-			-			275
Total shares		43,892			44,554			44,409
Diluted (loss) earnings per share	$	(0.04	)	$	(0.18	)	$	0.27