Acquisitions (Tables)

9 Months Ended

Oct. 31, 2012

Acquisitions [Abstract]

Tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition

Under the acquisition method of accounting, the purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date as follows:

	Balance at August 16, 2012
Assets purchased:
Cash	$	1,126,000
Accounts receivable		2,300,000
Fixed assets		133,000
Other assets		513,000
Client relationships		4,464,000
Internally developed software		3,646,000
Trade name		1,588,000
Supplier agreements		1,582,000
Covenants not to compete		720,000
Goodwill(1)		7,978,000
Total assets purchased	$	24,050,000
Liabilities assumed:
Accounts payable and Accrued liabilities		1,164,000
Deferred revenue obligation, net		3,494,000
Deferred tax liability		4,602,000
Net assets acquired	$	14,790,000
Consideration:
Company common stock		1,502,000
Cash paid		13,288,000
Total Consideration	$	14,790,000

(1) Goodwill represents the excess of purchase price over the estimated fair value of net tangible and intangible assets acquired

Subsequent to the acquisition

The unaudited pro forma results are as follows (in thousands):

	Three Months Ended October 31,
	2012		2011
Revenue	$	7,129	$	6,817
Net income (loss)		1,231		(1,393	)
Net income (loss) attributable to common shareholders		1,197		(1,572	)
Income (loss) per share:
Basic	$	0.10	$	(0.22	)
Diluted	$	0.08	$	(0.22	)