Earnings per share

3 Months Ended

Jan. 31, 2015

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 617,310 and 122,069 for the three months ended January 31, 2015 and 2014, 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 January 31,
	2015	2014

Weighted average shares outstanding for basic earnings per share	8,286,831	8,143,640

Add effects of potentially dilutive securities-assumed exercise of stock options	380,940	673,711

Weighted average shares for diluted earnings per share	8,667,771	8,817,351

- Definition

The entire disclosure for earnings per share.

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