(in thousands except per share data)

Three Months ended

September 30,

Nine Months ended

September 30,

2013

2012

2013

2012

Numerator:

Net income

$

1,973

$

1,002

$

1,905

$

4,612

Denominator:

Denominator for basic earnings per share – weighted-average shares

14,864

14,757

14,827

14,737

Effect of dilutive securities:

Equivalent shares issuable upon conversion of unvested restricted stock

179

50

196

36

Equivalent shares issuable upon conversion of unvested employee stock options

-

Denominator for diluted earnings per share – adjusted weighted-average shares and assumed conversions

15,043

14,807

15,023

14,773

Basic income per share:

$

0.13

$

0.07

$

0.13

$

0.31

Diluted income per share:

$

0.13

$

0.07

$

0.13

$

0.31