Earnings Per Share

6 Months Ended

Jul. 03, 2011

Earnings Per Share

Earnings Per Share

Note B – Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Quarter Ended				Six Months Ended
	July 3		July 4		July 3		July 4
(In thousands, except per share amounts)	2011		2010		2011		2010
Numerator:
Net income (numerator for basic and diluted earnings per share)	$	57	$	26	$	1,119	$	823
Denominator:
Weighted average shares (denominator for basic earnings per share)		5,991		5,951		5,984		5,949
Effect of dilutive securities		97		62		89		40
Adjusted weighted average shares (denominator for diluted earnings per share)		6,088		6,013		6,073		5,989
Basic earnings per share	$	.01	$	0	$	.19	$	.14
Diluted earnings per share	$	.01	$	0	$	.18	$	.14

The calculations of diluted earnings per share exclude options for the purchase of 483,500 shares of the Company's common stock for the quarter and six-month period ended July 3, 2011, and 727,000 shares of the Company's common stock for the quarter and six-month period ended July 4, 2010, because the effect of their inclusion would be anti-dilutive.Subsequent to July 3, 2011, 223,000 options to purchase common stock at a market price of $5.50 were issued to members of the Board of Directors as well as to selected management employees.