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Earnings per share
 3 Months Ended
Jan. 31, 2013
Earnings Per Share [Abstract]  
Earnings per share

Note 4 - 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. For the three months ended January 31, 2013, the effects of the assumed exercise of options to purchase 138,280 shares of the Company’s common stock, at a price of $4.49 per share, were not included in the computation of diluted per share amounts because they were anti-dilutive for that purpose. For the three months ended January 31, 2012, the effects of the assumed exercise of options to purchase 687,897 shares of the Company’s common stock, at a price range of $3.16 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 January 31,  
    2013     2012  
             
Weighted average shares outstanding for basic earnings per share     7,074,095       7,002,929  
                 
Add effects of potentially dilutive securities-assumed exercise of stock options     930,071       717,605  
                 
Weighted average shares for diluted net earnings per share     8,004,166       7,720,534