Income Per Share

6 Months Ended

Jun. 30, 2012

Income Per Share

Income Per Share

(8)Income Per Share

Basic income per share is based on the weighted average number of shares of common stock outstanding.  Diluted income per share is based upon the weighted average of common shares and dilutive common stock equivalent shares outstanding during each period.

The weighted average number of shares used to compute basic and diluted net income per share consisted of the following:

	Three Months Ended		Six Months Ended
	30-Jun-2012	30-Jun-2011	30-Jun-2012	30-Jun-2011
Weighted average common shares outstanding, basic	6,693,981	6,465,968	6,641,174	6,429,945
Weighted average common equivalent shares due to stock options and RSUs	361,036	515,870	405,125	544,161
Weighted average common shares outstanding, diluted	7,055,017	6,981,838	7,046,299	6,974,106

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options, when the average market price of the common stock is lower than the exercise price of the related options during the period. These outstanding stock awards are not included in the computation of diluted income per share because the effect would have been antidilutive.  For both the three- and six-month periods ended June 30, 2012, the number of stock awards excluded from the computation was 17,770.  For the same three- and six-month periods in 2011, the number of stock awards excluded from the computation was 3,338 and 1,678, respectively.