0001017303 2016-09-30 0001017303 2015-12-31 0001017303 2016-07-01 2016-09-30 0001017303 2015-07-01 2015-09-30 0001017303 2016-01-01 2016-09-30 0001017303 2015-01-01 2015-09-30 0001017303 2014-12-31 0001017303 2015-09-30 0001017303 2015-10-01 2016-06-30 0001017303 2016-10-31 0001017303 2016-06-30 0001017303 2015-01-01 2015-03-31 0001017303 2015-03-31 0001017303 2015-04-01 2015-06-30 iso4217:USD iso4217:USD xbrli:shares xbrli:shares xbrli:pure 2199000 4473000 10478000 7174000 9439000 11296000 690000 1672000 1932000 431000 437000 24909000 25312000 2420000 2507000 2621000 2621000 1311000 1213000 643000 888000 38000 28000 7033000 7257000 31942000 32569000 5614000 2642000 2129000 2838000 5000 245000 132000 604000 7880000 6329000 76000 77000 188000 189000 240000 246000 504000 512000 8384000 6841000 112000 112000 29580000 28921000 23390000 22956000 -101000 -80000 29423000 26181000 23558000 25728000 31942000 32569000 18991000 18336000 3024000 2779000 0.01 0.01 20000000 20000000 11185331 11170881 7383364 7782292 3801967 3388589 14474000 14172000 43632000 47560000 8559000 7881000 25849000 27616000 5915000 6291000 17783000 19944000 1133000 766000 3458000 2494000 1808000 2137000 5460000 6060000 1737000 1823000 5589000 5665000 1738000 4678000 4726000 14507000 15957000 1237000 1565000 3276000 3987000 -7000 -7000 -18000 -23000 -3000 11000 13000 -1000 -10000 4000 -5000 -24000 1227000 1569000 3271000 3963000 883000 1028000 2261000 2560000 0.12 0.13 0.29 0.33 0.12 0.13 0.29 0.33 7498000 7800000 7673000 7818000 7549000 7848000 7724000 7844000 0.08 0.08 0.24 0.24 3000 8000 21000 4000 880000 1020000 2240000 2556000 473000 377000 -1000 -2000 962000 1077000 238000 1202000 -5000 -4000 -12000 4000 -3313000 -845000 1852000 -644000 -695000 409000 -6000 -2000 2899000 2957000 -1419000 -4434000 3234000 2655000 454000 491000 8000 4000 -446000 -487000 2500000 -2500000 3242000 1020000 23000 42000 1000 2000 -5045000 -2839000 -17000 -10000 -2274000 -681000 3131000 2450000 175000 137000 Transact Technologies Incorporated 10-Q --12-31 7383364 57100000 false 0001017303 Yes No Smaller Reporting Company No 2016 Q3 2016-06-30 <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold; DISPLAY: inline">1. Basis of presentation</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The accompanying unaudited financial statements of TransAct Technologies Incorporated have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information.&#160;&#160;Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America to be included in full year financial statements.&#160;&#160;In the opinion of management, all adjustments considered necessary for a fair statement of the results for the periods presented have been included and are of a normal recurring nature.&#160;&#160;The December 31, 2015 Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.&#160;&#160;These interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2015 included in our Annual Report on Form 10-K.</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The financial position and results of operations of our U.K. subsidiary are measured using local currency as the functional currency.&#160;&#160;Assets and liabilities of such subsidiary have been translated at the end of period exchange rates, and related revenues and expenses have been translated at the weighted average exchange rates with the resulting translation gain or loss recorded in accumulated other comprehensive income (loss) in the Condensed Consolidated Balance Sheets.&#160;&#160;Transaction gains and losses are included in other income (expenses) in the Condensed Consolidated Statements of Income.</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year.</font></div><br/> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold; DISPLAY: inline">2. Inventories</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The components of inventories are:</font></div><br/><table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> <tr> <td valign="bottom" style="width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">September 30,</font></div> </td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">December 31,</font></div> </td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid; width: 16%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">2016</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid; width: 16%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2015</font></div> </td> </tr><tr> <td valign="bottom" style="width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-STYLE: italic; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom" style="width: 34%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-STYLE: italic; DISPLAY: inline">(In thousands)</font></div> </td> </tr><tr> <td valign="bottom" style="width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="text-align: left; width: 64%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Raw materials and purchased component parts</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">5,547</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">6,627</font></td> </tr><tr> <td valign="bottom" style="text-align: left; width: 64%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Work-in-process</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">-</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: left; width: 64%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Finished goods</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">3,892</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">4,668</font></td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 4px; width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">9,439</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">11,296</font></td> </tr></table><br/> The components of inventories are:<br /><br /><table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> <tr> <td valign="bottom" style="width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">September 30,</font></div> </td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">December 31,</font></div> </td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid; width: 16%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">2016</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid; width: 16%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2015</font></div> </td> </tr><tr> <td valign="bottom" style="width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-STYLE: italic; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom" style="width: 34%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-STYLE: italic; DISPLAY: inline">(In thousands)</font></div> </td> </tr><tr> <td valign="bottom" style="width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="text-align: left; width: 64%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Raw materials and purchased component parts</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">5,547</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">6,627</font></td> </tr><tr> <td valign="bottom" style="text-align: left; width: 64%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Work-in-process</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">-</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: left; width: 64%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Finished goods</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">3,892</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">4,668</font></td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 4px; width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">9,439</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">11,296</font></td> </tr></table> 5547000 6627000 1000 3892000 4668000 <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold; DISPLAY: inline">3. Accrued product warranty liability</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">We generally warrant our products for up to&#160;24 months and record the estimated cost of such product warranties at the time the sale is recorded. Estimated warranty costs are based upon actual past experience of product repairs and the related estimated cost of labor and material to make the necessary repairs. </font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The following table summarizes the activity recorded in the accrued product warranty liability during the nine months ended September 30, 2016 and 2015:</font></div><br/><table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> <tr> <td valign="bottom" style="width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom" style="width: 34%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">Nine months ended</font></div> </td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom" style="BORDER-BOTTOM: black 2px solid; width: 34%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">September 30,</font></div> </td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid; width: 16%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">2016</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid; width: 16%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2015</font></div> </td> </tr><tr> <td valign="bottom" style="width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-STYLE: italic; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom" style="width: 34%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-STYLE: italic; DISPLAY: inline">(In thousands)</font></div> </td> </tr><tr> <td valign="bottom" style="width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr> <td valign="bottom" style="width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="text-align: left; width: 64%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Balance, beginning of period</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">277</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">287</font></td> </tr><tr> <td valign="bottom" style="text-align: left; width: 64%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Warranties issued</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">206</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">155</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: left; width: 64%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Warranty settlements</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">(200)</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;">&#160;</td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(201)</font></td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: left; width: 64%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Balance, end of period</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">283</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">241</font></td> </tr></table><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">$180,000 of the accrued product warranty liability is classified as current in Accrued liabilities at September 30, 2016 in the Condensed Consolidated Balance Sheets.&#160;&#160;The remaining $103,000 of the accrued product warranty liability is classified as long-term in Other liabilities.</font></div><br/> 180000 103000 We generally warrant our products for up to 24 months<br /><br /><table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> <tr> <td valign="bottom" style="width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom" style="width: 34%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">Nine months ended</font></div> </td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom" style="BORDER-BOTTOM: black 2px solid; width: 34%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">September 30,</font></div> </td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid; width: 16%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">2016</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid; width: 16%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2015</font></div> </td> </tr><tr> <td valign="bottom" style="width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-STYLE: italic; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom" style="width: 34%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-STYLE: italic; DISPLAY: inline">(In thousands)</font></div> </td> </tr><tr> <td valign="bottom" style="width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr> <td valign="bottom" style="width: 64%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="width: 16%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="text-align: left; width: 64%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Balance, beginning of period</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">277</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">287</font></td> </tr><tr> <td valign="bottom" style="text-align: left; width: 64%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Warranties issued</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">206</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">155</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: left; width: 64%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Warranty settlements</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">(200)</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;">&#160;</td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(201)</font></td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: left; width: 64%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Balance, end of period</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">283</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 15%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">241</font></td> </tr></table> 277000 287000 206000 155000 -200000 -201000 283000 241000 <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold; DISPLAY: inline">4. Earnings per share</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding:</font></div><br/><table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> <tr> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">Three Months Ended</font></div> </td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">Nine Months Ended</font></div> </td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">September 30,</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">September 30,</font></div> </td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">2016</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2015</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">2016</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2015</font></div> </td> </tr><tr> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-STYLE: italic; DISPLAY: inline">&#160;</font></td> <td colspan="14" valign="bottom"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 5.7pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-STYLE: italic; DISPLAY: inline">(In thousands, except per share data)</font></div> </td> </tr><tr> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Net income</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">883</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1,028</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">2,261</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2,560</font></td> </tr><tr> <td valign="bottom" style="width: 52%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Shares:</font></div> </td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr> <td valign="bottom" style="text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Basic:&#160;&#160;Weighted average common shares outstanding</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">7,498</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">7,800</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">7,673</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">7,818</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 27pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -27pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Add:&#160;&#160;Dilutive effect of outstanding options as determined by the</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;treasury stock method</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">51</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">48</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">51</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">26</font></td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 27pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -27pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Diluted:&#160;&#160;Weighted average common and common equivalent shares </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">outstanding</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">7,549</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">7,848</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">7,724</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">7,844</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="width: 52%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr> <td valign="bottom" style="text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Net income per common share:</font></div> </td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 9pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 18pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Basic </font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">0.12</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">0.13</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">0.29</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">0.33</font></td> </tr><tr> <td valign="bottom" style="text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 9pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 18pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Diluted</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">0.12</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">0.13</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">0.29</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">0.33</font></td> </tr></table><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options, restricted stock units and performance stock awards, when the average market price of the common stock is lower than the exercise price of the related stock award during the period.&#160;&#160;These outstanding stock awards are not included in the computation of diluted earnings per share because the effect would be anti-dilutive.&#160;&#160;For the three months ended September 30, 2016 and 2015, there were 833,000 and 700,000, respectively, potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share.&#160;&#160;For the nine months ended September 30, 2016 and 2015, there were 833,000 and 844,000, respectively, potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share.</font></div><br/> 833000 700000 833000 844000 The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding:<br /><br /><table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> <tr> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">Three Months Ended</font></div> </td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">Nine Months Ended</font></div> </td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">September 30,</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="6" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">September 30,</font></div> </td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">2016</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2015</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">2016</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2015</font></div> </td> </tr><tr> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-STYLE: italic; DISPLAY: inline">&#160;</font></td> <td colspan="14" valign="bottom"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 5.7pt; TEXT-INDENT: 0pt; text-align: center;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-STYLE: italic; DISPLAY: inline">(In thousands, except per share data)</font></div> </td> </tr><tr> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td colspan="2" valign="bottom"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Net income</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">883</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">1,028</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">2,261</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2,560</font></td> </tr><tr> <td valign="bottom" style="width: 52%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Shares:</font></div> </td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr> <td valign="bottom" style="text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Basic:&#160;&#160;Weighted average common shares outstanding</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">7,498</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">7,800</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">7,673</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">7,818</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 27pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -27pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Add:&#160;&#160;Dilutive effect of outstanding options as determined by the</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;treasury stock method</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">51</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">48</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">51</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">26</font></td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 27pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: -27pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Diluted:&#160;&#160;Weighted average common and common equivalent shares </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">outstanding</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">7,549</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">7,848</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">7,724</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">7,844</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="width: 52%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160; </font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr> <td valign="bottom" style="text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Net income per common share:</font></div> </td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 9pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 18pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Basic </font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">0.12</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">0.13</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">0.29</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">0.33</font></td> </tr><tr> <td valign="bottom" style="text-align: left; width: 52%;"> <div style="MARGIN-LEFT: 9pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 18pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Diluted</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">0.12</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">0.13</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">0.29</font></td> <td valign="bottom" style="TEXT-ALIGN: left; white-space: nowrap; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-WEIGHT: bold; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">0.33</font></td> </tr></table> 51000 48000 51000 26000 <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold; DISPLAY: inline">5. Shareholders&#x2019; equity</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">Changes in shareholders&#x2019; equity for the nine months ended September 30, 2016 were as follows (in thousands):</font></div><br/><table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> <tr style="background-color: #cceeff;"> <td valign="bottom" style="text-align: left; width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Balance at December 31, 2015</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">25,728</font></td> </tr><tr> <td valign="bottom" style="width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Net income</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2,261</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="text-align: left; width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Share-based compensation expense</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">473</font></td> </tr><tr> <td valign="bottom" style="text-align: left; width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Issuance of deferred stock units, net of relinquishments</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">151</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="text-align: left; width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Issuance of shares from exercise of stock options, net of tax benefit</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">24</font></td> </tr><tr> <td valign="bottom" style="width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Reversal of deferred tax asset in connection with stock options forfeited</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">11</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Foreign currency translation adjustment</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(21)</font></td> </tr><tr> <td valign="bottom" style="width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Dividends declared and paid on common stock</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(1,827)</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Purchase of common stock for treasury</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(3,242)</font></td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: left; width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Balance at September 30, 2016</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">23,558</font></td> </tr></table><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">We paid a portion of the 2015 incentive bonus for the chief executive officer and chief financial officer in the form of 28,231 deferred stock units.&#160;&#160;Such deferred stock units were granted in February 2016 and were fully vested at the time of grant. </font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">For the three months ended September 30, 2016, our Board of Directors declared a quarterly cash dividend of $0.08 per share, totaling $595,000, which was paid in September 2016 to common shareholders of record at the close of business on August 19, 2016.&#160;&#160;For the three months ended September 30, 2015, dividends declared and paid totaled $620,000, or $0.08 per share.&#160;&#160;For the nine months ended September 30, 2016 and 2015, dividends declared and paid totaled $1,827,000, or $0.24 per share, and $1,863,000, or $0.24 per share, respectively. </font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold; DISPLAY: inline">5. Shareholders&#x2019; equity (continued)</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">During the nine months ended September 30, 2016, we purchased 413,378 shares of our common stock for $3,242,000 at an average price per share of $7.84, under a stock repurchase program (the &#x201c;Stock Repurchase Program&#x201d;) approved by our Board of Directors on February 25, 2016. Under the Stock Repurchase Program, we are authorized to repurchase up to $5,000,000 of our outstanding shares of common stock from time to time in the open market through December 31, 2017 at prevailing market prices based on market conditions, share price and other factors.&#160;&#160;We use the cost method to account for treasury stock purchases, under which the price paid for the stock is charged to the treasury stock account.&#160;&#160;Repurchases of our common stock are accounted for as of the settlement date.</font></div><br/> 28231 0.08 595000 620000 0.08 1827000 0.24 1863000 0.24 413378 3242000 7.84 5000000 Changes in shareholders&#x2019; equity for the nine months ended September 30, 2016 were as follows (in thousands):<br /><br /><table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> <tr style="background-color: #cceeff;"> <td valign="bottom" style="text-align: left; width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Balance at December 31, 2015</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">25,728</font></td> </tr><tr> <td valign="bottom" style="width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Net income</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">2,261</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="text-align: left; width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Share-based compensation expense</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">473</font></td> </tr><tr> <td valign="bottom" style="text-align: left; width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Issuance of deferred stock units, net of relinquishments</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">151</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="text-align: left; width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Issuance of shares from exercise of stock options, net of tax benefit</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">24</font></td> </tr><tr> <td valign="bottom" style="width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Reversal of deferred tax asset in connection with stock options forfeited</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">11</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Foreign currency translation adjustment</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(21)</font></td> </tr><tr> <td valign="bottom" style="width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Dividends declared and paid on common stock</font></div> </td> <td valign="bottom" style="text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(1,827)</font></td> </tr><tr style="background-color: #cceeff;"> <td valign="bottom" style="PADDING-BOTTOM: 2px; width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Purchase of common stock for treasury</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">(3,242)</font></td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: left; width: 88%;"> <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">Balance at September 30, 2016</font></div> </td> <td valign="bottom" style="PADDING-BOTTOM: 4px; text-align: right; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">&#160;</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left; width: 1%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">$</font></td> <td valign="bottom" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right; width: 9%;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; DISPLAY: inline">23,558</font></td> </tr></table> 25728000 151000 24000 11000 -21000 -1827000 23558000 <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold; DISPLAY: inline">6. Income taxes</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">We recorded an income tax provision for the third quarter of 2016 of $344,000 at an effective tax rate of 28.0%, compared to an income tax provision during the third quarter of 2015 of $541,000 at an effective tax rate of 34.5%.&#160;&#160;<font style="FONT-FAMILY: Times New Roman; DISPLAY: inline">For the nine months ended September 30, 2016, we recorded an income tax provision of $1,010,000 at an effective tax rate of 30.9%, compared to an income tax provision during the nine months ended September 30, 2015 of $1,403,000 at an effective tax rate of 35.4%.&#160;&#160;</font>Our effective tax rate for the third quarter of 2016 was lower than the third quarter of 2015 because it includes the benefit from the 2016 federal research and development credit (&#x201c;R&amp;D credit&#x201d;).&#160;&#160;In 2015, the R&amp;D credit was not renewed until December 2015, and as such, the benefit was not recorded until the fourth quarter of 2015.</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">We are subject to U.S. federal income tax as well as income tax in certain state and foreign jurisdictions.&#160;&#160;We have substantially concluded all U.S. federal income tax, state and local, and foreign tax regulatory examination matters through 2012.&#160;&#160;During 2013, an examination of our 2010 federal tax return was completed.&#160;&#160;However, our federal tax returns for the years 2013 through 2015 remain open to examination. Various state and foreign tax jurisdiction tax years remain open to examination as well, though we believe that any additional assessment would be immaterial to the Condensed Consolidated Financial Statements.&#160;&#160;No state or foreign tax jurisdiction income tax returns are currently under examination. As of September 30, 2016, we had $99,000 of total gross unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods.&#160;&#160;During the third quarter of 2016, we recognized $42,000 of previously unrecognized tax benefits as the statute of limitations on the use of the 2012 R&amp;D credits expired during the third quarter of 2016.</font></div><br/> 344000 0.280 541000 0.345 1010000 0.309 1403000 0.354 99000 42000 <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold; DISPLAY: inline">7. Commitments and contingencies</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">On June 8, 2012, Avery Dennison Corporation (&#x201c;AD&#x201d;) filed a civil complaint against us and a former employee of ours and of AD, in the Court of Common Pleas (the &#x201c;Court&#x201d;) in Lake County, Ohio.&#160; The complaint alleged that we and this former employee misappropriated unspecified trade secrets and confidential information from AD related to the design of our food safety terminals.&#160; The complaint requested a preliminary and permanent injunction against us from manufacturing and selling our Ithaca&#xae; 9700 and 9800 food safety terminals.&#160; On July 16, 2012, we filed our answer, affirmative defenses and counterclaims, seeking all available damages including legal fees.&#160; A hearing on the plaintiff's motion for preliminary injunction took place in August 2012, and in November 2012, the Court denied this request. AD filed an appeal of the Court&#x2019;s ruling to the Eleventh Appellate District, which heard oral arguments on the appeal on July 16, 2013.&#160; On July 23, 2013, AD requested that the Eleventh Appellate District enjoin our further sale and marketing of the food safety terminals, pending the Court of Appeals&#x2019; decision. On July 29, 2013, we opposed this request. On October 15, 2013, the Eleventh District Court of Appeals affirmed the lower court&#x2019;s decision in our favor and denied AD&#x2019;s further request of an injunction pending the Court of Appeals&#x2019; decision.&#160; On October 24, 2013, AD filed a motion seeking that the Court of Appeals reconsider its decision.&#160; On April 16, 2014, the Court of Appeals denied AD&#x2019;s motion to reconsider its decision.&#160; On July 28, 2014, AD filed a motion requesting leave from the Court to file an amended complaint and indicating that it has elected to pursue only its claim for damages, dropping its claim for injunctive relief.&#160; On September 4, 2014, the Court granted AD&#x2019;s motion to file an amended complaint. &#160;On September 25, 2014, we filed our answer, affirmative defenses and counterclaims with respect to the amended complaint, seeking all available damages including legal fees.&#160; On January 30, 2015, we filed a motion for summary judgment seeking judgment in our favor on all counts as to the Company.&#160; On the same day, AD filed two motions for partial summary judgment.&#160; On February 17, 2015, we opposed both of AD&#x2019;s motions, and AD opposed our motion.&#160; On February 23, 2015, the Company filed a reply brief in support of its motion for summary judgment.&#160; A trial was scheduled to begin on April 21, 2015; however, on March 25, 2015 the parties executed a confidential settlement agreement and release (the &#x201c;Settlement Agreement&#x201d;) in which the parties mutually agreed to resolve the dispute that was the subject of the lawsuit filed by AD against the Company to the parties&#x2019; mutual satisfaction.&#160;&#160;Under the terms of the Settlement Agreement, we agreed to pay AD $3,600,000 payable on or before April 8, 2015 and also to qualify certain AD labels for use on our food safety terminals at an estimated cost of $25,000.&#160;&#160;We made the $3,600,000 payment to AD on April 8, 2015 and borrowed $2,500,000 under our revolving credit facility with TD Bank to fund the payment.&#160;&#160;We recorded the total expense of $3,625,000 in the fourth quarter 2014 as an operating expense included in the line item &#x201c;Legal fees and settlement expense associated with lawsuit&#x201d; on the Consolidated Statement of Operations and as a current liability included in the line item &#x201c;Accrued lawsuit settlement expenses&#x201d; on the Consolidated Balance Sheet.&#160;&#160;In the second quarter of 2015, we reversed $25,000 of this expense because AD did not provide the label testing information by the due date required per the settlement agreement.</font></div><br/> 3600000 $25,000 3625000 25000 <div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: left;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; FONT-WEIGHT: bold; DISPLAY: inline">8. Accounting pronouncements</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, &#x201c;Revenue from Contracts with Customers.&#x201d; This ASU is intended to clarify the principles for recognizing revenue by removing inconsistencies in revenue requirements; providing a more robust framework for addressing revenue issues; improving comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; and providing more useful information to users of financial statements through improved revenue disclosure requirements. In April 2015, the FASB voted to defer the effective date of the new revenue recognition standard by one year. As a result, the provisions of this ASU are now effective for interim and annual periods beginning after December 15, 2017. We are currently evaluating the impact this ASU may have on our consolidated financial position, results of operations or cash flows.</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">In August 2014, the FASB issued ASU No. 2014-15, &#x201c;Disclosure of Uncertainties about an Entity&#x2019;s Ability to Continue as a Going Concern&#x201d;.&#160;&#160;This ASU established specific guidance to an organizations&#x2019; management on their responsibility to evaluate whether there is substantial doubt about the organization&#x2019;s ability to continue as a going concern.&#160;&#160;The provisions of ASU 2014-15 are effective for interim and annual periods beginning after December 15, 2016.&#160;&#160;This ASU is not expected to have an impact on the Company&#x2019;s financial position, results of operation or cash flows.</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">In July 2015, FASB issued ASU 2015-11, &#x201c;Simplifying the Measurement of Inventory.&#x201d; This ASU changes the measurement principle for inventory from the lower of cost or market to lower of cost or net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. The provisions of this ASU are effective for years beginning after December 15, 2016. This ASU is not expected to have a significant impact on our financial statements or disclosures.</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">In November 2015, the FASB issued ASU 2015-17, &#x201c;Balance Sheet Classification of Deferred Taxes.&#x201d;&#160;&#160;This ASU eliminates the requirement to present deferred tax assets and liabilities as current and noncurrent on the balance sheet. Instead, all deferred tax assets and liabilities are now classified as noncurrent. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016 with early adoption permitted. We will prospectively adopt ASU 2015-17 as required in the first reporting period for the year ending December 31, 2017.</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">In February 2016, the FASB issued ASU 2016-02, &#x201c;Leases.&#x201d; The core principle of this ASU requires that a lessee should recognize the assets and liabilities on the balance sheet and disclose key information about leasing arrangements. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods.&#160;&#160;We are currently evaluating the impact this ASU may have on our consolidated financial position, results of operation or cash flows.</font></div><br/><div style="MARGIN-LEFT: 0pt; DISPLAY: block; MARGIN-RIGHT: 0pt; TEXT-INDENT: 0pt; text-align: justify;"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; DISPLAY: inline">In March 2016, the FASB issued ASU 2016-09, &#x201c;Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting.&#x201d;&#160;&#160;This ASU is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and accounting for forfeitures.&#160;&#160;The provisions of this ASU are effective for years beginning after December 15, 2016.&#160;&#160;We are currently evaluating the impact this ASU may have on our consolidated financial position, results of operation or cash flows.</font></div><br/>