EARNINGS PER SHARE COMPUTATIONS

6 Months Ended

Jul. 31, 2011

Notes to Financial Statements [Abstract]

NOTE 3 - EARNINGS PER SHARE COMPUTATIONS

Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and potentially dilutive shares. The dilutive effect of employee stock options is included in the computation of diluted earnings per share. The dilutive effect of stock options is calculated using the treasury stock method and expected proceeds upon exercise of the stock options. The following table summarizes the shares used in computing basic and diluted net income per common share:

		Six Months Ended July 31,		Three Months Ended July 31,
		2011	2010	2011	2010
Numerator:
	Net income	$2,902,741	$2,963,808	$1,490,234	$1,552,730
Denominator:
	Weighted average common shares outstanding during the period for basic computation	14,659,331	14,619,614	14,659,281	14,619,443
	Dilutive effect of stock-based compensation plans	165,349	90,142	173,958	82,691
	Weighted average common shares outstanding during the period for diluted computation	14,824,680	14,709,756	14,833,239	14,702,134

Earnings per share, basic		$.20	$.20	$.10	$.11
Earnings per share, diluted		$.20	$.20	$.10	$.11

For the six and three months ended July 31, 2011, employee stock options to purchase 616,585 common shares were excluded from the calculations of diluted earnings per share as the calculated proceeds from the options' exercised were greater than the market price of the Company's common shares at July 31, 2011. For the six and three months ended July 31, 2010, employee stock options to purchase 517,137 common shares were excluded from the calculations of diluted earnings per share as the calculated proceeds from the options' exercised were greater than the market price of the Company's common shares at July 31, 2010.