NET INCOME PER COMMON SHARE

9 Months Ended

Sep. 30, 2013

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE

NOTE 4—NET INCOME PER COMMON SHARE

Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. The 250,000 restricted shares related to the acquisition of STA Consulting were excluded from basic and diluted earnings per share since the contingency has not been met as of the reporting period.  Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would share in the net income of the Company.  For the three and nine months ended September 30, 2013, the effect of 0.1 million stock appreciation rights (“SARs”) have not been considered in the diluted earnings per share, since the market price of the stock was less than the exercise price during the period in the computation.  In addition, 0.03 million and 0.8 million restricted shares have not been considered in the diluted earnings per share calculation for the three and nine months ended September 30, 2013, respectively, as the effect would be anti-dilutive.  For the three and nine months ended September 30, 2012, the effect of 5.0 million warrants and 0.3 million SARs have not been considered in the diluted earnings per share calculation, since the market price of the Company’s common stock was less than the exercise price during the period in the computation.  In addition, 1.2 million restricted shares have not been considered in the diluted earnings per share calculation for the three and nine months ended September 30, 2012, as the effect would be anti-dilutive.

The following tables set forth the computation of basic and diluted earnings per share:

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2013		2012		2013		2012
Basic:
Net income	$	411	$	210	$	3,819	$	454
Weighted average common shares	36,781		36,159		36,723		36,210
Basic income per share	$	0.01	$	0.01	$	0.10	$	0.01
Diluted:
Net income	$	411	$	210	$	3,819	$	454
Interest expense of convertible debt, net of tax	19		8		93		35
Net income, as adjusted	$	430	$	218	$	3,912	$	489
Basic weighted average common shares	36,781		36,159		36,723		36,210
Potential common shares	2,049		1,923		1,989		1,254
Diluted weighted average common shares	38,830		38,082		38,712		37,464
Diluted income per share	$	0.01	$	0.01	$	0.10	$	0.01