EARNINGS PER SHARE (EPS)

6 Months Ended

Jun. 29, 2012

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

4.                        EARNINGS PER SHARE (EPS)

Basic EPS is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding.  Diluted EPS is computed by dividing net income (loss)by the weighted-average number of common shares outstanding and dilutive potential common shares for the period.  Potential common shares include the weighted-average dilutive effects of outstanding stock options using the treasury stock method.

The following table sets forth the number of weighted-average shares used to compute basic and diluted EPS:

	Three Months Ended					Six Months Ended
	June 29,2012			July 1,2011		June 29,2012			July 1,2011
Net (loss) income	$	(16,976,000	)	$	735,000	$	(18,387,000	)	$	444,000
Weighted-average common shares outstanding-basic	7,297,000			7,257,000		7,294,000			7,254,000
Effect of dilutive stock options	—			214,000		—			222,000
Weighted-average common shares outstanding-diluted	7,297,000			7,471,000		7,294,000			7,476,000
(Loss) earnings per share:
Basic	$	(2.33	)	$	0.10	$	(2.52	)	$	0.06
Diluted	$	(2.33	)	$	0.10	$	(2.52	)	$	0.06

For the three months and six months ended June 29, 2012, 689,000 options were excluded from the calculation of dilutive potential common shares, compared to 302,000 options for the same periods last year. These options were not included in the computation of dilutive potential common shares because of the net loss position for the 2012 periods and because the assumed proceeds per share exceeded the average market price per share for the 2011 periods. Accordingly, the inclusion of these options would have been anti-dilutive. For periods in which the Company incurs net losses, dilutive potential common shares are excluded as they would be anti-dilutive.