Net Income (Loss) Per Share

9 Months Ended

Jun. 30, 2011

Net Income (Loss) Per Share [Abstract]

Net Income (Loss) Per Share

Note C — Net Income (Loss) Per Share

     The Company’s basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period, increased to include dilutive potential common shares issuable upon the exercise of stock options that were outstanding during the period. For periods of net loss, diluted net loss per common share equals basic net loss per common share because common stock equivalents are not included in periods where there is a loss, as they are antidilutive. A reconciliation of the numerator and denominator in the basic and diluted net income (loss) per share calculation is as follows:

	Three Months Ended					Nine Months Ended
	June 30,			June 30,		June 30,			June 30,
	2011			2010		2011			2010
Numerator:
Net income (loss)	$	(293,964	)	$	95,020	$	(1,722,443	)	$	(425,553	)
Denominator:
Denominator for basic net income (loss) per share-weighted average shares outstanding		12,316,878			12,196,977		12,222,146			12,194,620
Effect of dilutive stock options		—			527,633		—			—
Denominator for diluted net income (loss) per share-weighted average shares outstanding		12,316,878			12,724,610		12,222,146			12,194,620
Basic net income (loss) per share	$	(0.02	)	$	0.01	$	(0.14	)	$	(0.03	)
Dilute net income (loss) per share	$	(0.02	)	$	0.01	$	(0.14	)	$	(0.03	)

Employee stock options to purchase 1,083,500 shares and 842,000 shares were excluded from the diluted net income (loss) per share calculation for the third quarter of fiscal years 2011 and 2010, and options to purchase 981,995 shares and 699,000 shares were excluded for the nine months ended June 30, 2011 and 2010, respectively, because their exercise prices were greater than the average market price of the Company’s common stock and their effect would have been antidilutive. For the quarter ended June 30, 2011 and the nine months ended June 30, 2011 and 2010, diluted net loss per common share equals basic net loss per common share because common stock equivalents are not included in periods where there is a net loss, as they are antidilutive.