SMTC Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Earnings (loss) Per Common Share

Note 7 - Earnings (loss) Per Common Share

6 Months Ended

Jul. 03, 2016

7 .	Earnings (loss) per common share

The following table details the weighted average number of common shares outstanding for the purposes of computing basic and diluted earnings per common share for the following periods:

	Three months ended				Six months ended
	July 3, 2016		June 28, 2015		July 3, 2016		June 28, 2015
Basic weighted average shares outstanding		16,510,180		16,417,276		16,498,032		16,417,273
Dilutive stock awards (1) (a) (b)		—		—		1,048,746		—
Diluted weighted average shares outstanding		16,510,180		16,417,276		17,546,778		16,417,273

(1)

Dilutive stock awards include outstanding restricted stock units and in-the money stock options determined using the treasury stock method

(a)

Dilutive options were determined using the treasury stock method, using an average price of $1.54 per share for three months ended July 3, 2016. As a result of the net loss for the three months ended July 3, 2016, diluted earnings per share was calculated using the basic weighted average shares outstanding as the effect of potential common shares would have been anti-dilutive. Had there been net income for the three months ended July 3, 2016, dilutive stock awards would have been calculated as 1,058,824. For the six months ended July 3, 2016, dilutive options were determined using the treasury stock method, using an average price of $1.44 per share. Total dilutive stock awards were calculated as 1,048,746.

(b)

As a result of the net earnings for the three and six months ended June 28, 2015, dilutive options were determined using the treasury stock method, using an average price of $1.62 and 1.61, respectively per share. No diluted stock awards were calculated as there were no outstanding options that were considered in-the-money.