Revision of Financial Statements

6 Months Ended

Jul. 31, 2011

2. Revision of Financial Statements

The Company has revised its fiscal year 2009, 2010 and 2011 consolidated financial statements to correct its calculation of the number of shares used in calculating its basic and diluted earnings (loss) per share. The Company completed a stock rights offering in November 2010 in which shares were offered for purchase at a price lower than the quoted market price at the time of the offering. Accounting guidance states that if a stock rights issuance contains a bonus element and is offered to all existing stockholders, basic and diluted earnings (loss) per share shall be adjusted retroactively for the bonus element for all periods presented. The Company has concluded that the impact of the revisions to its share calculations and the related earnings (loss) per share amounts is not material to the Company’s consolidated financial statements. The revision did not effect net income, stockholders's equity, or cash flows for any period. The revisions to the individual financial statement items impacted for the prior periods presented are as follows:

	Three Months Ended July 31,			Six Months Ended July 31,
	2010			2010
	As		As	As		As
(Shares in thousands)	reported	Revision	revised	reported	Revision	revised
Consolidated Statements of Operations:
Average common shares outstanding:
Basic	22,484	2,457	24,941	22,479	2,457	24,936
Diluted	22,486	2,459	24,945	22,483	2,457	24,940

Earnings per share
Basic	$0.07	($0.01)	$0.06	$0.33	($0.03)	$0.30
Diluted	$0.07	($0.01)	$0.06	$0.33	($0.03)	$0.30

Table of Contents

The revisions to other prior periods that will be reported in the Company’s future filings, including its 10-K filed for the year ended January 31, 2012 are as follows: There was no impact to earnings per share for the fidscal year ended January 31, 2011.

	Twelve Months Ended January 31,			Twelve Months Ended January 31,
	2010			2009
	As		As	As		As
(Shares in thousands)	reported	Revision	revised	reported	Revision	revised
Consolidated Statements of Operations:
Average common shares outstanding:
Basic	22,456	2,454	24,910	22,413	2,450	24,863
Diluted	22,610	2,471	25,081	22,577	2,467	25,044

Earnings per share
Basic	$0.16	($0.02)	$0.14	$1.76	($0.18)	$1.58
Diluted	$0.16	($0.02)	$0.14	$1.74	($0.17)	$1.57

	Three Months Ended April 30,			Three Months Ended October 31,
	2010			2010
	As		As	As		As
(Shares in thousands)	reported	Revision	revised	reported	Revision	revised
Consolidated Statements of Operations:
Average common shares outstanding:
Basic	22,475	2,456	24,931	22,484	2,457	24,941
Diluted	22,477	2,457	24,934	22,484	2,457	24,941

Earnings per share
Basic	$0.26	($0.03)	$0.23	($0.22)	$0.02	($0.20)
Diluted	$0.26	($0.03)	$0.23	($0.22)	$0.02	($0.20)

	Three Months Ended January 31,
	2011
	As		As
(Shares in thousands)	reported	Revision	revised
Consolidated Statements of Operations:
Average common shares outstanding:
Basic	28,741	750	29,491
Diluted	28,741	750	29,491

Earnings per share
Basic	($0.12)	$0.00	($0.12)
Diluted	($0.12)	$0.00	($0.12)