Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2011

Net Income (Loss) Per Share

Net Income (Loss) Per Share

NOTE 8—NET INCOME (LOSS) PER SHARE

Basic net income (loss) per common share has been computed using the weighted-average number of shares of common stock outstanding during the period. Diluted income (loss) per share is computed using the weighted average number of common shares and common stock equivalents outstanding. For the three months ended September 30, 2011 and 2010, common stock equivalents totaling 1,253,201 and 870,413 were excluded from the calculation of diluted earnings per share because of a decline in the average market price of the common stock below the exercise price. As a result of the Company's net losses, all common stock equivalents aggregating 1,049,092 and 1,058,792 for the nine months ended September 30, 2011 and 2010, respectively, were excluded from the calculation of diluted loss per share given their anti-dilutive effect.