Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earning Loss Per Share [Abstract]

Earnings Per Share [Text Block]

Note 5 – Earnings Per Share

The Company is required, in periods in which it has net income, to calculate basic earnings per share (“EPS”) using the two-class method. The two-class method is required because the Company’s Class N preferred shares, each of which is convertible to 40 common shares, have the right to receive dividends or dividend equivalents should the Company declare dividends on its common stock. Under the two-class method, earnings for the period are allocated on a pro-rata basis to the common and preferred stockholders. The weighted-average number of common and preferred shares outstanding during the period is then used to calculate basic EPS for each class of shares.

In periods in which the Company has a net loss, basic loss per share is calculated by dividing the loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. The two-class method is not used, because the preferred stock does not participate in losses.

Options are included in the calculation of diluted earnings per share, since they are assumed to be exercised, except when their effect would be anti-dilutive. For the six months ended June 30, 2012, the Company had a net loss and therefore diluted EPS was not calculated. For the six months ending June 30, 2011, 2,727,031 of 3,142,031 options outstanding were excluded.

Basic and diluted EPS were calculated using the following:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands, except per share amounts)	2012			2011			2012			2011
Net income (loss)	$	(421	)	$	3,540		$	(31	)	$	3,729
Less:  income allocated to preferred stockholders		—			(3	)		—			(3	)
Net income (loss) allocated to common stockholders	$	(421	)	$	3,537		$	(31	)	$	3,726
Weighted average shares for basic EPS		28,135			26,997			27,809			26,562
Add:  incremental shares from assumed conversions of stock options		—			232			—			121
Weighted average shares for diluted EPS		28,135			27,229			27,809			26,683
Basic and diluted earnings (loss) per share attributable to common stockholders	$	(0.01	)	$	0.13		$	(0.00	)	$	0.14