2. Basis of Presentation and Significant Accounting Policies: Net Income Per Share Information (Policies)

6 Months Ended

Apr. 30, 2013

Net Income per Share Information

Basic net income per share is computed based on the weighted average number of shares outstanding. Diluted net income per share is based on the sum of the weighted average number of common shares outstanding and common stock equivalents. The Company’s 2009 Stock Incentive Plan allows for a cashless exercise. Shares used to calculate net income per share are as follows:

	For the three months ended		For the six months ended
	April 30,		April 30,
	2013	2012	2013	2012
Basic weighted average shares outstanding	7,215,632	7,178,140	7,204,200	7,176,624
Effect of dilutive stock options	628,646	828,768	638,011	826,880
Diluted weighted average shares outstanding	7,844,278	8,006,908	7,842,211	8,003,504
Weighted average shares which are not included in the calculation of diluted net income per share because their impact is anti-dilutive
Stock options	588,854	512,732	579,488	514,620

- Definition

Disclosure of accounting policy for computing basic and diluted earnings or loss per share for each class of common stock and participating security. Addresses all significant policy factors, including any antidilutive items that have been excluded from the computation and takes into account stock dividends, splits and reverse splits that occur after the balance sheet date of the latest reporting period but before the issuance of the financial statements.

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