Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v2.4.0.8
Earnings Per Share
6 Months Ended
Jun. 30, 2013
Earnings Per Share [Abstract]  
Earnings Per Share

NOTE 11.  EARNINGS PER SHARE

 

Basic earnings per share is computed by dividing earnings by the weighted average number of common shares outstanding during each period.  Diluted earnings per share is computed by dividing earnings by the total of the weighted average number of shares of common stock outstanding during each period, plus the effect of outstanding stock options and unvested restricted stock grants.  Potentially dilutive securities are excluded from the computation of diluted earnings per share if their effect is anti-dilutive.

 

The following table is a reconciliation of basic and diluted shares of common stock outstanding used in the calculation of earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2013

 

June 30, 2012

 

June 30, 2013

 

June 30, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

 

31,836 

 

 

30,814 

 

 

31,800 

 

 

28,246 

Effect of dilutive stock awards

 

 

 -

 

 

 -

 

 

 -

 

 

335 

Weighted average shares outstanding - diluted

 

 

31,836 

 

 

30,814 

 

 

31,800 

 

 

28,581 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.07)

 

$

(0.06)

 

$

(0.17)

 

$

0.02 

Diluted

 

 

(0.07)

 

 

(0.06)

 

 

(0.17)

 

 

0.02 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three and six months ended June 30, 2013, basic net loss per share was the same as diluted net loss per share because all potentially dilutive securities were anti-dilutive due to the net loss for the period.  For the three and six months ended June 30, 2013, options to purchase 1,659 and 1,620 shares of common stock, respectively, were outstanding and anti-dilutive due to the net loss for the period.  Additionally, options to purchase 894 and 1,027 shares of common stock were outstanding and anti-dilutive because the exercise prices were higher than the average market price of the Company’s common stock for the three and six months ended June 30, 2013, respectively, and 750 shares of unvested restricted stock were outstanding and excluded as their required performance or market conditions were not met.

 

For the three months ended June 30, 2012, basic net loss per share was the same as diluted net loss per share because all potentially dilutive securities were anti-dilutive due to the net loss for the period.  Options to purchase 2,162 shares of common stock were outstanding and anti-dilutive due to the net loss for the period.  Additionally, options to purchase 410 and 420 shares of common stock were outstanding and anti-dilutive because the exercise prices were higher than the average market price of the Company’s common stock for the three and six months ended June 30, 2012, respectively, and 750 shares of unvested restricted stock as their required performance or market conditions were not met.