Quarterly report pursuant to Section 13 or 15(d)

Earnings (Loss) Per Share

Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2011

Earnings (Loss) Per Share [Abstract]

NOTE 10. EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing earnings (loss) by the weighted average number of common shares outstanding during each period. Diluted earnings (loss) per share is computed by dividing earnings (loss) 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 (loss) 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 (loss) per share:

	THREE MONTHS ENDED		NINE MONTHS ENDED
	September 30, 2011	September 30, 2010	September 30, 2011	September 30, 2010

Weighted average shares outstanding - basic	21,855	21,731	21,841	19,092
Effect of dilutive stock options	246	-	192	36
Effect of dilutive unvested restricted stock	-	-	-	211
Weighted average shares outstanding - diluted	22,101	21,731	22,033	19,339

Earnings (loss) per share:
Basic	$ 0.05	$ (0.15)	$ 0.06	$ 2.71
Diluted	0.05	(0.15)	0.06	2.67

For the three and nine months ended September 30, 2011, diluted earnings per share excludes the anti-dilutive effect of options to purchase 613 and 848, respectively, shares of common stock whose exercise prices were higher than the average market price of the Company's common stock for the three and nine months ended September 30, 2011 and 750 shares of unvested restricted stock as their required performance or market conditions were not met.

For the three months ended September 30, 2010, 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 nine months ended September 30, 2010, diluted earnings per share excludes the anti-dilutive effect of options to purchase 1,563 shares of common stock whose exercise prices were higher than the average market price of the Company's common stock for the nine months ended September 30, 2010 and 500 shares of unvested restricted stock as their required performance or market conditions were not met.