Basic and Diluted Net Income (Loss) Per Common Share

6 Months Ended

Jul. 30, 2011

NOTE 7 - BASIC AND DILUTED NET LOSS PER COMMON SHARE [Abstract]

Earnings Per Share [Text Block]

BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE

Basic net income (loss) per common share has been computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period.

Diluted net income (loss) per common share includes, in periods in which they are dilutive, the effect of those common stock equivalents where the average market price of the common stock exceeds the exercise prices for the respective periods. For the thirteen weeks ended July 31, 2010, the twenty-six weeks ended July 30, 2011 and the twenty-six weeks ended July 31, 2010, all common stock equivalents, which include outstanding stock options, the subordinated convertible note payable to affiliate and warrants outstanding were excluded from the diluted net loss per share calculation because the results would be antidilutive. For the thirteen weeks ended July 30, 2011, warrants outstanding were excluded from the diluted net income per share calculation because the result would be antidilutive.

A reconciliation of the numerator and denominator of basic and diluted net income (loss) per share is as follows (in thousands except per share amounts):

	Thirteen Weeks Ended July 30, 2011		Thirteen Weeks Ended July 31, 2010			Twenty-six Weeks Ended July 30, 2011			Twenty-six Weeks Ended July 31, 2010
Numerator:
Net income (loss) - basic	$	521	$	(7,482	)	$	(3,234	)	$	(14,873	)
Add interest expense on convertible note	79		—			—			—
Net income (loss) - diluted	$	600	$	(7,482	)	$	(3,234	)	$	(14,873	)
Denominator:
Weighted average number of common shares - basic	8,967		8,967			8,967			8,966
Incremental shares from assumed exercise of equity based awards	60		—			—			—
Assumed conversion of convertible note	714		—			—			—
Weighted average number of common shares - diluted	9,741		8,967			8,967			8,966
Basic income (loss) per common share	$	0.06	$	(0.83	)	$	(0.36	)	$	(1.66	)
Diluted income (loss) per common share	$	0.06	$	(0.83	)	$	(0.36	)	$	(1.66	)

During the thirteen weeks ended July 30, 2011 and July 31, 2010, there were 1,510,500 and 2,405,578, respectively, potential shares of common stock which were excluded from the diluted loss per share calculation because the effect of including these potential shares was antidilutive. During the twenty-six weeks ended July 31, 2011 and July 30, 2010, there were 2,418,290 and 2,405,578, respectively, potential shares of common stock which were excluded from the diluted loss per share calculation because the effect of including those potential shares was antidilutive.