Earnings per share

9 Months Ended

Jul. 31, 2013

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. Potentially dilutive securities totaling 21,177 and 729,565 for the three months ended July 31, 2013 and 2012, and 23,279 and 749,229 for the nine months ended July 31, 2013 and 2012, respectively, were excluded from the calculation of diluted per share amounts because of their anti-dilutive effect.

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

	Three Months Ended July 31,				Nine Months Ended July 31,
	2013		2012		2013		2012

Weighted average shares outstanding for basic earnings per share		7,798,608		6,867,073		7,492,137		6,914,450

Add effects of potentially dilutive securities-assumed exercise of stock options		761,027		758,012		870,841		743,096

Weighted average shares for diluted net earnings per share		8,559,635		7,625,085		8,362,978		7,657,546

- Definition

The entire disclosure for earnings per share.

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