Note 8 - Basic And Diluted Earnings Per Common Share:

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Text Block]

8. BASIC AND DILUTED EARNINGS PER COMMON SHARE:

Basic earnings per common share has been calculated by dividing net income for the period by the weighted average number of common shares outstanding during each period. Diluted earnings per share has been calculated by dividing net income for the period by the weighted average number of common shares and potentially dilutive common shares outstanding during the period. In computing diluted earnings per share, the treasury stock method is used to determine the number of shares assumed to be purchased from the conversion of common shares equivalents or the proceeds of option exercises.

The following table is a summary of the basic and diluted earnings per common share:

	Three months ended March 31, 2013		Three months ended March 31, 2012
Numerator for basic and diluted earnings per common share:
Net income (loss) for the period	$	76,579	$	1,663,619
Denominator for basic and diluted earnings per common share:
Basic weighted average number of common shares outstanding		40,331,438		46,221,465
Effect of outstanding stock options		3,979,885		2,732,986
Diluted weighted average number of shares outstanding		44,311,323		48,954,451
Basic earnings (loss) per common share	$	0.00	$	0.04
Diluted earnings (loss) per common share	$	0.00	$	0.03

For the three months ended March 31, 2013, outstanding options to purchase 633,000 common shares were not included in the computation of diluted income per common share because all such options had exercise prices greater than the average market price of the common shares.

During the three months ended March 31, 2013, 4,114,121 common shares were repurchased and cancelled under the terms of a modified Dutch auction tender offer announced in December 2012.

During the three months ended March 31, 2013, 143,073 common shares were repurchased and cancelled under the terms of our stock repurchase program announced in March 2013.

During the three months ended March 31, 2012, 7,570,236 common shares were repurchased and cancelled under the terms of a modified Dutch auction tender offer announced in December 2011.

The computation of earnings per share and diluted earnings per share for the three months ended March 31, 2013 and 2012 include reductions in the number of shares outstanding due to these repurchases.