Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share

Earnings Per Share

7. Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during the reported periods. Diluted EPS reflects the potential dilution that could occur under the treasury stock method if stock options and other commitments to issue common stock were exercised, except in loss periods where the effect would be antidilutive. For the three months ended March 31, 2013 and 2012, approximately 1,189,000 and 1,789,000 shares of common stock underlying stock options have been excluded from the calculation of diluted EPS because the effect of their inclusion would be antidilutive.

The reconciliation of the amounts used in the basic and diluted EPS computation was as follows (in thousands, except per share amounts):

	Net Income			Shares	Per Share Amounts
Three Months Ended March 31, 2013:
Basic EPS
Net income	$	1,236		11,479	$	0.11
Effect of dilutive securities
Dilutive effect of stock options	—			219
Diluted EPS
Adjusted net income	$	1,236		11,698	$	0.11
Three Months Ended March 31, 2012:
Basic EPS
Net loss	$	(470	)	12,001	$	(0.04	)
Effect of dilutive securities
Dilutive effect of stock options	—			—
Diluted EPS
Adjusted net loss	$	(470	)	12,001	$	(0.04	)