Net Income (Loss) per Common Share

9 Months Ended

Sep. 30, 2014

Net Income (Loss) per Common Share [Abstract]

Net Income (Loss) per Common Share

Note 2:  Net Income (Loss) per Common Share

The following table sets forth the computation of basic and diluted net income (loss) per common share:

	Three months ended				Nine months ended
	September 30,				September 30,
(dollars in thousands, except per share amounts)	2014		2013		2014		2013
Numerator:
Net income (loss)	$	1,395	$	(1,711)	$	2,345	$	(1,193)
Adjustment for interest expense on convertible notes		132		-		-		-
Net income (loss), as adjusted	$	1,527	$	(1,711)	$	2,345	$	(1,193)
Denominator:
Weighted average number of shares of common stock outstanding		7,039,823		6,960,967		7,028,658		6,943,208
Weighted average effect of dilutive stock options and other stock compensation		72,072		-		85,463		-
Weighted average effect of assumed conversion of convertible notes		427,396		-		-		-
Weighted average number of shares of common stock outstanding, as adjusted		7,539,291		6,960,967		7,114,121		6,943,208
Net income (loss) per common share:
Net income (loss) per common share - Basic	$	0.20	$	(0.25)	$	0.33	$	(0.17)
Net income (loss) per common share - Diluted	$	0.20	$	(0.25)	$	0.33	$	(0.17)

The adjustment for interest expense on convertible notes is net of tax.  An adjustment for interest expense on convertible notes was excluded from the diluted earnings per share calculation for the nine months ended September 30, 2014 and for the three and nine months ended September 30, 2013 as a result of the convertible notes being antidilutive. 

We had granted options to purchase 442,300 and 345,300 shares of common stock at an average price of $35.20 and $35.46 for the three months ended September 30, 2014 and 2013, respectively, which were excluded in the computation of diluted net income (loss) per common share.  We had granted options to purchase 351,800 and 273,800 shares of common stock at an average price of $36.31 and $36.22 for the nine months ended September 30, 2014 and 2013, respectively, which were excluded in the computation of diluted net income (loss) per common share. These outstanding options were not included in the computation of diluted net income (loss) per common share because their respective exercise prices were greater than the average market price of our common stock.  In addition, the calculation of diluted earnings per share for the nine months ended September 30, 2014 excluded 427,914 shares for the assumed conversion of convertible notes as a result of being anti-dilutive.  The calculation of diluted earnings per share for the three and nine months ended September 30, 2013 would have included 99,380 and 124,964 shares, respectively, for the assumed exercise of stock options and other stock compensation under our share incentive plans and 427,396 and 427,914 shares for the three and nine months ended September 30, 2013, respectively, for the assumed conversion of convertible notes, except that we were in a net loss position and no anti-dilution is permitted.