Earnings Per Share

9 Months Ended

Sep. 30, 2011

(3) Earnings Per Share

Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock plus common stock equivalents. Common stock equivalents consist of employee and director stock options, restricted stock awards, and other share-based payment awards, which have been included in the calculation of weighted average shares outstanding using the treasury stock method. The following table is a reconciliation of the basic and diluted earnings per share calculations for the three and nine months ended September 30, 2011 and 2010:


	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2011		2010		2011		2010
Numerator:
Net income (loss)	$	3,803	$	72	$	10,203	$	(4,142	)


Denominator:
Denominator for basic earnings (loss) per share:

Weighted average common shares outstanding		22,840		22,731		22,816		22,707
Effect of dilutive securities:
Outstanding common stock equivalents		380		405		446		—

Denominator for diluted earnings per share		23,220		23,136		23,262		22,707


Basic earnings (loss) per share	$	0.17	$	—	$	0.45	$	(0.18	)


Diluted earnings (loss) per share	$	0.16	$	—	$	0.44	$	(0.18	)


Excluded outstanding shared-based awards having an anti-dilutive effect		62		70		20		499

For the three and nine months ended September 30, 2011 and 2010, the undistributed earnings (losses) attributed to participating securities, which represent certain non-vested shares granted by the Company, were approximately one percent of total net income (loss).