EARNINGS PER SHARE COMPUTATIONS

9 Months Ended

Oct. 31, 2011

EARNINGS PER SHARE COMPUTATIONS [Abstract]

EARNINGS PER SHARE COMPUTATIONS

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:

	Nine Months Ended October 31,		Three Months Ended October 31,
	2011	2010	2011	2010
Numerator:
Net income	$4,984,627	$4,383,007	$2,081,886	$1,419,199
Denominator:
Weighted average common shares outstanding during the period for basic computation	14,659,402	14,621,802	14,659,383	14,620,439
Dilutive effect of stock-based compensation plans	129,091	95,282	140,431	90,617
Weighted average common shares outstanding during the period for diluted computation	14,788,493	14,717,084	14,799,814	14,711,056
Earnings per share, basic	$.34	$.30	$.14	$.10
Earnings per share, diluted	$.34	$.30	$.14	$.10

For the nine and three months ended October 31, 2011, employee stock options to purchase 1,086,929 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 October 31, 2011. For the nine and three months ended October 31, 2010, employee stock options to purchase 361,800 common shares were excluded from the calculations of diluted earnings per share as the calculated proceeds from the options exercised were greater than the average market price of the Company's common shares at October 31, 2010.