Earnings Per Share

6 Months Ended

Jul. 02, 2013

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

EPS is calculated by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share ("diluted EPS") is calculated using income available to common shareholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include shares of common stock underlying stock options and restricted common stock. Diluted EPS considers the impact of potentially dilutive securities. The following table sets forth the computations of basic and dilutive earnings per share:

	Fiscal Quarter Ended				Two Fiscal Quarters Ended
	July 2, 2013		July 3, 2012		July 2, 2013		July 3, 2012
Net income (in thousands):	$	68	$	2,180	$	992	$	3,471
Shares:
Basic weighted average shares outstanding	23,509,781		23,238,984		23,374,383		23,238,984
Dilutive stock options and warrants	680,033		5,696		604,628		3,847
Diluted weighted average number of shares outstanding	24,189,814		23,244,680		23,979,011		23,242,831
Earnings per share:
Basic EPS	$	—	$	0.09	$	0.04	$	0.15
Diluted EPS	$	—	$	0.09	$	0.04	$	0.15

7. Earnings Per Share (Continued)

In the second quarter of 2013 and 2012 and in the first two quarters of 2013 and 2012, 357,261 and 2,721,215 and 347,227 and 2,671,120 outstanding options, respectively, were excluded from the diluted earnings per share calculation because their inclusion would be antidilutive. All outstanding warrants are dilutive and were included in the calculation of diluted earnings per share.