Note 8 - Basic and Diluted Net Income Per Common Share

9 Months Ended

Sep. 30, 2011

Earnings Per Share [Text Block]

8.        Basic and Diluted Net Income Per Common Share

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

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2011		2010		2011		2010
Net income (Numerator)	$	386,000	$	194,000	$	578,000	$	1,252,000
Shares (Denominator):
Basic weighted average common shares outstanding		22,052,822		22,424,285		22,303,561		22,423,955
Add: Dilutive effect of outstanding common stock options		-		-		587,748		300,317
Diluted weighted average common shares outstanding		22,052,822		22,424,285		22,891,309		22,724,272
Net income per  common share:
Basic	$	0.02	$	0.01	$	0.03	$	0.06
Diluted	$	0.02	$	0.01	$	0.03	$	0.06