Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2012

Net Income (Loss) Per Share [Abstract]

NET INCOME (LOSS) PER SHARE

NOTE E — NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted net income per share is computed using the weighted average number of common shares outstanding during the applicable period, plus the dilutive effect of potential common stock. Potential common stock consists of shares issuable pursuant to stock options and warrants. Diluted net (loss) per share is computed using the weighted average number of common shares outstanding during the applicable period. Potential common stock is excluded from diluted net (loss) per share as such amounts are anti-dilutive. Calculations of net income (loss) per share are done using the treasury stock method.

The following table provides the computation of basic and diluted net income (loss) per share for the three and six month periods ending June 30, 2012 and 2011: (in thousands, except per share amounts)

	Three Months Ended June 30,					Six Months Ended June 30,
	2012		2011			2012		2011
Net income (loss)	$	551	$	(293	)	$	1,154	$	(1,186	)
Basic weighted average shares outstanding		44,954		42,857			44,827		42,299
Effect of potentially dilutive securities		2,696		—			2,674		—
Diluted weighted average shares outstanding		47,650		42,857			47,501		42,299
Basic net income (loss) per share	$	0.01	$	(0.01	)	$	0.03	$	(0.03	)
Diluted net income (loss) per share	$	0.01	$	(0.01	)	$	0.02	$	(0.03	)

Outstanding stock options to acquire an aggregate 884,499 and 904,499 shares of common stock for the three and six months ended June 30, 2012 were excluded in the calculation of diluted earnings per share because the exercise prices of these stock options were greater than the average market price of the Company’s common stock during the respective periods. As a result, the effect of including these options would be anti-dilutive.