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

Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Earnings Per Common Share

Note 7 - Earnings Per Common Share

3 Months Ended

Apr. 03, 2016

7 .	Earnings 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
(Number of common shares)	April 3, 2016		March 29, 2015
Basic weighted average shares outstanding		16,485,883		16,417,276
Dilutive stock awards (a) (b)		1,038,669		—
Diluted weighted average shares outstanding		17,524,552		16,417,276

(a)

For the three months ended April 3, 2016, as a result of net income from operations, dilutive options were determined using the treasury stock method with an average stock price of $1.34. No dilutive stock options were calculated as no outstanding options were considered in-the-money. Dilutive stock awards were calculated as 1,038,669 related to outstanding unvested restricted stock units.

(b)

For the three months ended March 29, 2015, as a result of a net loss for the period, dilutive 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 period, dilutive stock awards would have been calculated as 470,803 related to outstanding unvested restricted stock units.