NET INCOME (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2011

NET INCOME (LOSS) PER SHARE

NOTE B – NET INCOME (LOSS) PER SHARE

Basic net income or loss per share is based upon the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is based upon the weighted average number of shares of common stock outstanding and the weighted average number of shares outstanding assuming the issuance of common stock upon exercise of stock options and vesting of stock grants per U.S. generally accepted accounting principles, or GAAP. GAAP also states that a stock rights issue where the exercise price at issuance is less than the fair value of the stock, contains a bonus element and requires that basic and diluted shares be adjusted retroactively for all periods presented in the financial statements. Based on this requirement, and as a result of the stock rights offering conducted in 2010, the number of shares in the table below for June 30, 2010 has been recomputed to reflect the required adjustment factor.

	Three months ended June 30				Six months ended June 30
	2011		2010		2011		2010
Weighted average number of shares outstanding:
Common stock		19,840,116		17,925,205		19,806,034		17,763,277
Commons stock equivalents - stock options, grants		64,628		459,899		48,495		477,630
Diluted shares outstanding		19,904,744		18,385,104		19,854,529		18,240,907

For the three months ended June 30, 2011 and for the three and six months ended June 30, 2010, diluted net loss per share is calculated based on the weighted average number of shares of common stock outstanding and not diluted shares outstanding because of the antidilutive impact of common stock equivalents.