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## NOTE 7 – SHAREHOLDERS’ EQUITY 

## Preferred Stock 

The Company is authorized to issue 10,000,000 shares of Preferred Stock, $0.01 par value per share. No preferred shares are issued and outstanding at January 29, 2005, January 31, 2004, February 1, 2003 and December 31, 2002. 

## Net Income (Loss) Per Share 

The following table sets forth the calculation of basic and diluted net income (loss) per share: 

<img src='content_image/18742.jpg'>

At January 29, 2005, January 31, 2004, February 1, 2003 and December 31, 2002, respectively, 1,457,329, 203,015, 2,171,350 and 1,704,153 stock options are not included in the calculation of the weighted average number of shares and dilutive potential shares outstanding because their effect would be anti-dilutive. 

