Basic and Diluted Income Per Share

6 Months Ended

Jul. 01, 2011

Basic and Diluted Income Per Share

Note 10 — Basic and Diluted Income Per Share

The following table sets forth the computation of basic and diluted net income per share (in thousands except per share amounts):

	Three Months Ended						Six Months Ended
	July 1, 2011			July 2, 2010			July 1, 2011			July 2, 2010 (Note A)
Numerator:
Net Income	$	861		$	(1,628	)	$	1,161		$	1,902
Denominator:
Weighted average common shares and denominator       for basic calculation:
Weighted average common shares outstanding		35,599			34,905			35,449			34,827
Less: Unvested restricted stock		(156	)		(115	)		(133	)		(57	)
Denominator for basic calculation		35,443			34,790			35,316			34,770
Weighted average effects of dilutive equity-based        compensation awards:
Employee stock options		644			—			688			—
Warrants		352			—			385			—
Denominator for diluted calculation		36,439			34,790			36,389			34,770
Net income (loss) per share – basic	$	0.02		$	(0.05	)	$	0.03		$	0.05
Net income (loss) per share - diluted	$	0.02		$	(0.05	)	$	0.03		$	0.05

Note A:  For 2010, although the Company reported net income as a result of the gain on sale of Domilens, it used the net loss from continuing operations as the control number in determining whether including potential common shares in the diluted income per share calculation would be dilutive or anti-dilutive.

The following table sets forth (in thousands) the weighted average number of options and warrants to purchase shares of common stock, restricted stock and preferred stock which were not included in the calculation of diluted per share amounts because the effects would be anti-dilutive.

	Three Months Ended				Six Months Ended
	July 1, 2011		July 2, 2010		July 1, 2011		July 2, 2010
Options and restricted stock		1,831		3,886		1,382		3,866
Warrants		70		1,470		70		1,470
Preferred Stock		0		990		0		1,345
Total		1,901		6,346		1,452		6,681