NOTE 4:

LOSS PER SHARE

The Company calculates basic Earnings Per Share ("EPS") by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS also reflects the potential dilution that could occur if common stock were issued for awards outstanding under the 2008 Stock Incentive Plan. The Company reported net losses for the three months ended June 30, 2012 and 2011 and approximately 0.1 million and 0.2 million shares, respectively, of the Company's common stock subject to options were excluded from the diluted EPS calculation, as the effect would have been antidilutive. In determining the potential dilution effect of outstanding stock options during the three months ended June 30, 2012 and 2011, the Company used the quarter's average common stock close price of $4.96 and $13.10 per share, respectively. For the six months ended June 30, 2012, approximately 0.1 million shares of the Company's common stock subject to options were excluded from diluted EPS calculations using an average closing price of $4.57 per share, because their effect was antidilutive. For the six months ended June 30, 2011, approximately 0.1 million shares of the Company's common stock subject to options were excluded from diluted EPS calculations using an average close price of $15.70 per share, because their effect was antidilutive.