Net income per common share

6 Months Ended

Jun. 30, 2011

Net income per common share

Note 5 - Net income per common share

Basic earnings per share (“EPS”) is computed by dividing income available to common stockholders (which equals our net income) by the weighted average number of common shares outstanding, and dilutive EPS adds the dilutive effect of stock options and other common stock equivalents.  During the three and six months ended June 30, 2011, outstanding options to purchase an aggregate of approximately 728,000 and 442,000 shares of common stock, respectively, were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive.  During the three and six months ended June 30, 2011, there were 103,000 and 52,000 restricted stock awards, respectively, were excluded from the computation of diluted earnings per share.  During the three and six months ended June 30, 2010, outstanding options to purchase an aggregate of approximately 1,843,000, and 1,878,000 shares of common stock, respectively, were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive.  During the three and six months ended June 30, 2010, there were no restricted stock awards excluded from the computation of diluted earnings per share. The following table sets forth the amounts used in the computation of basic and diluted EPS:

	Three months ended June 30,				Six months ended June 30,
	2011		2010		2011		2010
Numerator for diluted EPS calculation:
Net income	$	828,000	$	192,000	$	1,618,000	$	655,000
Denominator for basic EPS calculation:
Weighted average shares outstanding - Basic		13,833,000		13,677,000		13,804,000		13,636,000
Denominator for diluted EPS calculation:
Weighted average shares outstanding - Basic		13,833,000		13,677,000		13,804,000		13,636,000
Effect of dilutive stock options		473,000		204,000		585,000		195,000
Effect of unvested restricted stock awards		494,000		435,000		524,000		318,000
		14,800,000		14,316,000		14,913,000		14,149,000
Basic EPS	$	0.06	$	0.01	$	0.12	$	0.05
Diluted EPS	$	0.06	$	0.01	$	0.11	$	0.05