NOTE 8 - EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

NOTE 8 - EARNINGS PER SHARE

Basic earnings per share is calculated based on the weighted average number of common shares outstanding during each period.  Diluted earnings per share is calculated based on these same weighted average shares outstanding plus the effect of potential shares issuable upon assumed exercise of stock options based on the treasury stock method.  Potential shares issuable upon the exercise of stock options are excluded from the calculation of diluted earnings per share to the extent their effect would be anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended				Nine Months Ended
	Sep. 30, 2018		Sep. 30, 2017		Sep. 30, 2018		Sep. 30, 2017
(in thousands except per share data)
Numerator for basic and diluted
earnings per share:
Net income	$	342	$	1,728	$	958	$	3,913
Denominator for basic
earnings per share:
Weighted-average shares		8,439		8,201		8,361		8,112
Employee stock options and awards		68		266		155		288
Denominator for diluted
earnings per share:
Adjusted weighted-average shares &
assumed conversions of stock options		8,507		8,467		8,516		8,400
Basic and diluted
earnings per share:
Total basic earnings per share	$	0.04	$	0.21	$	0.11	$	0.48
Total diluted earnings per share	$	0.04	$	0.20	$	0.11	$	0.47

Options to purchase 25,000 and 8,425 shares were outstanding as of September 30, 2018, and 2017, respectively, but were excluded from the computation of diluted earnings per share for the periods then ended because the options were anti-dilutive.