Note 13 - Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2011

13.	Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share gives effect to all potentially dilutive common shares outstanding during the period, which include certain stock–based awards, calculated using the treasury stock method, and convertible notes which are potentially dilutive at certain earnings levels, and are computed using the if-converted method. As disclosed in Note 1, all share information has been adjusted to reflect the Reverse/Forward Split.

A reconciliation of the numerator and denominator of the basic and diluted income (loss) per share computations for continuing operations, discontinued operations and net income (loss) was as follows:


	Three-Month Period Ended					Nine-Month Period Ended
	September 30, 2011		October 1, 2010			September 30, 2011		October 1, 2010
	(in thousands, except per share amounts)

Numerators (basic and diluted):
Income (loss) from continuing operations, net of taxes	$	1,250	$	(1,831	)	$	1,517	$	(5,631	)
Income (loss) from discontinued operations, net of taxes		85		3,048			6,915		(9,255	)
Net income (loss)	$	1,335	$	1,217		$	8,432	$	(14,886	)

Denominators:
Weighted average shares outstanding - basic		10,881		11,842			10,881		11,917
Effect of dilutive securities:
Stock-based awards		21		9			14		-
3/4% Notes		3		3			3		-
Weighted average shares outstanding - diluted		10,905		11,854			10,898		11,917

Income (loss) per share:
Basic
Income (loss) from continuing operations, net of taxes	$	0.11	$	(0.15	)	$	0.14	$	(0.47	)
Income (loss) from discontinued operations, net of taxes	$	0.01	$	0.26		$	0.64	$	(0.78	)
Net income (loss)	$	0.12	$	0.10		$	0.77	$	(1.25	)
Diluted
Income (loss) from continuing operations, net of taxes	$	0.11	$	(0.15	)	$	0.14	$	(0.47	)
Income (loss) from discontinued operations, net of taxes	$	0.01	$	0.26		$	0.63	$	(0.78	)
Net income (loss)	$	0.12	$	0.10		$	0.77	$	(1.25	)

Diluted loss per share for the three-month and nine-month periods ended October 1, 2010 was based only on the weighted-average number of shares outstanding during that period, as the inclusion of any common stock equivalents would have been anti-dilutive. As a result, the same weighted-average number of common shares outstanding during that period was used to calculate both the basic and diluted earnings per share. In addition, certain potential common shares were excluded from the diluted computation for the three-month and nine-month periods ended September 30, 2011 because their inclusion would have been anti-dilutive. The weighted-average number of common shares used to calculate the diluted earnings per share for loss from continuing operations, net of taxes, during each of the periods was also used to compute all other reported diluted earnings per share, even though it could result in anti-dilution. The potential common shares excluded for the three-month and nine-month periods ended September 30, 2011 and October 1, 2010 were as follows:

	Three-Month Period Ended				Nine-Month Period Ended
	September 30, 2011		October 1, 2010		September 30, 2011		October 1, 2010
	(in thousands)

Outstanding stock options		22		2		22		40
Outstanding restricted stock		22		-		22		10
3/4% convertible senior subordinated notes due 2023		3		-		3		2