Note 8 - Basic and Diluted Net Income Per Share

3 Months Ended

Jun. 30, 2011

Earnings Per Share [Text Block]

8. Basic and Diluted Net Income Per Share

The following table provides a reconciliation of both net income and the number of shares used in the computation of “basic” earnings per share (“EPS”), which utilizes the weighted average number of shares outstanding without regard to potential shares, and “diluted” EPS, which includes all such dilutive shares for the three and six months ended June 30, 2011 and 2010, respectively:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2011		2010		2011		2010
Net income (Numerator)	$	304,000	$	372,000	$	192,000	$	1,058,000
Shares (Denominator):
Basic weighted average shares outstanding		22,427,403		22,424,285		22,431,009		22,423,788
Add: Dilutive effect of outstanding stock options		-		444,752		-		595,592
Diluted weighted average shares outstanding		22,427,403		22,869,037		22,431,009		23,019,380
Net income per share:
Basic	$	0.01	$	0.02	$	0.01	$	0.05
Diluted	$	0.01	$	0.02	$	0.01	$	0.05