EARNINGS PER SHARE

6 Months Ended

Mar. 30, 2012

EARNINGS PER SHARE

NOTE 3 – EARNINGS PER SHARE

Weighted average basic and diluted shares outstanding for the three and six months ended March 30, 2012 were 20,031,000 and 19,927,000, respectively. Weighted average basic and diluted shares outstanding for the three and six months ended April 1, 2011 were 19,365,000 and 19,293,000, respectively. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification^TM (“ASC”) Topic 260, “Earnings per Share,” requires that employee equity share options, nonvested shares and similar equity instruments granted by the Company be treated as potential common shares in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money options and nonvested shares, which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits or deficiencies that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. There was no dilutive effect of in-the-money employee stock options or nonvested shares as of March 30, 2012 and April 1, 2011, respectively, due to the Company incurring a net loss for each of the three and six months then ended.