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Earnings per share
 6 Months Ended
Apr. 30, 2012
Earnings per share

Note 5 - Earnings per share

 

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding increased by the effects of assuming that other potentially dilutive securities (such as stock options) outstanding during the period had been exercised and the treasury stock method had been applied. At April 30, 2012, the effects of the assumed exercise of options to purchase 699,897 shares of the Company’s common stock, at a price range of $3.16 to $3.91 per share, were not included in the computation of diluted per share amounts because they were anti-dilutive for that purpose. At April 30, 2011, the effects of the assumed exercise of options to purchase 608,320 shares of the Company’s common stock, at a price of $3.14 to $3.78 per share, were not included in the computation of diluted per share amounts because they were anti-dilutive for that purpose.

 

The following table summarizes the computation of basic and diluted weighted average shares outstanding:

 

    Three Months Ended April 30     Six Months Ended April 30  
    2012     2011     2012     2011  
                         
Weighted average shares outstanding for basic net earnings per share     6,872,439       6,009,849       6,938,395       5,954,628  
                                 
Add effects of potentially dilutive securities -assumed exercise of stock options     751,366       1,040,461       734,871       959,402  
                                 
Weighted average shares for diluted net earnings per share     7,623,805       7,050,310       7,673,266       6,914,030