Note 5 - Basic and Diluted Net Income Per Share

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

5. Basic and Diluted Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding during the period. The number of dilutive common equivalent shares outstanding during the period was determined in accordance with the treasury-stock method. Common equivalent shares consisted of common stock issuable upon the exercise of outstanding options and common stock issuable upon the vesting of outstanding, unvested SUAs. Basic and diluted weighted average common shares outstanding for the

three

and

six

months ended

June 30, 2020

and

2019

were as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Weighted average common shares outstanding, basic		5,523		5,514		5,520		5,510
Dilutive common equivalent shares		-		9		-		25
Weighted average common shares outstanding, diluted		5,523		5,523		5,520		5,535

The computation of diluted earnings per share for the

three

and

six

month period ended

June 30, 2020

excludes the effect of the potential exercise of stock awards, including stock options, when the average market price of the common stock is lower than the exercise price of the related options during the period. These stock awards are

not

included in the computation of diluted income per share because the effect would be antidilutive. For the

three

and

six

month periods ended

June 30, 2020,

the number of antidilutive stock awards excluded from diluted earnings per share was

594

thousand.