Earnings Per Share

9 Months Ended

Oct. 02, 2011

Note B – Earnings Per Share

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

	Quarter Ended					Nine Months Ended
	October 2			October 3		October 2		October 3
(In thousands, except per share amounts)	2011			2010		2011		2010
Numerator:
Net income (loss) (numerator for basic and diluted earnings (loss) per share)	$	(606	)	$	1,478	$	513	$	2,301
Denominator:
Weighted average shares (denominator for basic earnings (loss) per share)		5,993			5,960		5,987		5,953
Effect of dilutive securities		0			31		97		37
Adjusted weighted average shares (denominator for diluted earnings (loss) per share)		5,993			5,991		6,084		5,990

Basic earnings (loss) per share	$	(.10	)	$	.25	$	.09	$	.39
Diluted earnings (loss) per share	$	(.10	)	$	.25	$	.08	$	.38

Due to the net loss incurred in the third quarter of 2011, the calculation of diluted loss per share excludes all outstanding options to purchase 1,018,625 shares of the Company's common stock because the effect of their inclusion would be anti-dilutive. The calculations of diluted earnings per share exclude options for the purchase of 386,000 shares of the Company's common stock for the nine-month period ended October 2, 2011, and 718,000 and 714,000 shares of the Company's common stock for the quarter and nine-month period ended October 3, 2010, respectively, because the effect of their inclusion would be anti-dilutive.