VALPEY FISHER CORP

CIK:0000085608|SEC Filings

Earnings Per Share

9 Months Ended

Oct. 02, 2011

6. Earnings Per Share:

Basic earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period, plus the net incremental shares that would be issued using the treasury stock method assuming dilutive outstanding stock options were exercised, except when anti-dilutive. The computation of diluted earnings per share excludes stock options with an exercise price in excess of the average market price as they are anti-dilutive. In calculating diluted earnings per share, the dilutive effect of stock options is computed using the average market price for the respective period.

The following table shows a reconciliation of weighted average shares (in thousands):

	Three Months Ended				Nine Months Ended
	10/2/2011		10/3/2010		10/2/2011		10/3/2010
Weighted average shares outstanding		4,350		4,306		4,344		4,302
Dilutive effect of stock options outstanding, using the treasury stock method		229		190		271		148
Diluted weighted average shares outstanding		4,579		4,496		4,615		4,450

During the three and nine months ended October 3, 2010, stock options to purchase 36,125 and 53,415, respectively, common shares were not included in the computation of "Diluted Earnings per Share" because their inclusion would be anti-dilutive.

Consolidated Statements of Cash Flows (USD $) In Thousands	9 Months Ended
Consolidated Statements of Cash Flows (USD $) In Thousands	Oct. 02, 2011	Oct. 03, 2010
Cash flows from operating activities:
Net earnings	$ 430	$ 405
Adjustments to reconcile net earnings to net cash provided (used) by operating activities of continuing operations:
Depreciation	410	328
Provisions for inventory	135	50
Deferred income taxes	174	31
Stock-based compensation	24	34
Changes in operating assets and liabilities:
Receivables, net	(541)	(874)
Inventories	(813)	(306)
Other current assets	(46)	83
Accounts payable and accrued liabilities	118	1,081
Net cash provided (used) by operating activities of continuing operations	(109)	832
Cash flows from operating activities: - Discontinued Operations
Change in accrued liabilities	(29)	(21)
Net cash (used) by operating activities of discontinued operations	(29)	(21)
Net cash provided (used) by operating activities	(138)	811
Cash flows from investing activities:
Capital expenditures	(830)	(348)
Other assets, net	(13)	(11)
Net cash (used) by investing activities	(843)	(359)
Cash flows from financing activities:
Stock options exercised	29	11
Change in restricted cash		(201)
Net cash provided (used) by financing activities	29	(190)
Net increase (decrease) in cash and cash equivalents	(952)	262
Cash and cash equivalents:
Beginning of period	4,451	4,053
End of period	3,499	4,315
Supplemental Cash Flow Information
Cash paid during the period by continuing operations for income taxes		$ 177

Consolidated Condensed Balance Sheets (USD $) In Thousands	Oct. 02, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 3,499	$ 4,451
Receivables, net	2,954	2,413
Inventories, net	2,136	1,458
Deferred income taxes	887	822
Other current assets	90	44
Total current assets	9,566	9,188
Property, plant and equipment, at cost	13,237	12,201
Less accumulated depreciation	10,940	10,530
Property, Plant and Equipment, Net, Total	2,297	1,671
Other assets	229	216
Total assets	12,092	11,075
Current liabilities:
Accounts payable	1,360	1,033
Accrued liabilities	1,493	1,525
Total current liabilities	2,853	2,558
Deferred income taxes	492	253
Stockholders' equity:
Preferred stock, $1.00 par value- Authorized 1,000,000 shares; issued none
Common stock, $.05 par value- Authorized 10,000,000 shares; Issued and outstanding: 4,350,206 and 4,328,527 shares	218	216
Capital surplus	5,794	5,743
Retained earnings	2,735	2,305
Total stockholders' equity	8,747	8,264
Total liabilities and stockholders' equity	$ 12,092	$ 11,075