Quarterly report pursuant to Section 13 or 15(d)

Net (Loss) Income Per Share

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Net (Loss) Income Per Share
 6 Months Ended
Jul. 02, 2011
Net (Loss) Income Per Share  
Net (Loss) Income Per Share

Note 11—Net (Loss) Income Per Share

Basic net (loss) income per share is computed by dividing net (loss) income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is applicable only in periods of net income and is computed by dividing net income by the weighted average number of common shares outstanding for the period and potentially dilutive common stock equivalents outstanding for the period. Periods of net loss require the diluted computation to be the same as the basic computation. Due to the loss in the thirteen and twenty-six weeks ended July 2, 2011, 1,566,880 and 1,663,170 shares, respectively, have been excluded from the computation of diluted net (loss) income per share.

Net (loss) income per share has been computed in accordance with ASC Topic 260, Earnings Per Share. The following table sets forth the computation of basic and diluted net (loss) income per share (in thousands, except share and per share data):

 

     Thirteen  Weeks
Ended
July 2, 2011 		    Thirteen  Weeks
Ended
July 3, 2010 		     Twenty-Six  Weeks
Ended
July 2, 2011 		    Twenty-Six  Weeks
Ended
July 3, 2010 		 

Net (Loss) Income Per Share

          

Numerator:

          

Net (loss) income

    $ (2,564 )    $ 462       $ (2,810 )    $ 2,009   

Denominator:

          

Weighted-average common shares outstanding (basic)

      30,543,037        30,314,478         30,496,558        30,158,797   

Common equivalent shares from common stock options and warrants

      —          1,679,969         —          1,564,519   
  

 

 

    

 

 

     

 

 

    

 

 

  

Weighted-average common shares outstanding (diluted)

      30,543,037        31,994,447         30,496,558        31,723,316   
  

 

 

    

 

 

     

 

 

    

 

 

  

Basic net (loss) income per share

    $ (0.08 )    $ 0.02       $ (0.09 )    $ 0.07   

Diluted net (loss) income per share

    $ (0.08 )    $ 0.01       $ (0.09 )    $ 0.06   

Potentially dilutive securities were not included in the calculation of diluted net income per share because these securities would be anti-dilutive due to the Company's stock price. The related securities are as follows (in common equivalent shares):

 

     Thirteen  Weeks
Ended
July 2, 2011 		     Thirteen  Weeks
Ended
July 3, 2010 		     Twenty-Six  Weeks
Ended
July 2, 2011 		     Twenty-Six  Weeks
Ended
July 3, 2010 		 

Warrants to purchase common stock

      20,000         8,132         20,000         4,066   

Options to purchase common stock

      2,246,048         1,409,478         1,801,597         1,369,333   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      2,266,048         1,417,610         1,821,597         1,373,399