EARNINGS PER SHARE COMPUTATIONS

3 Months Ended

Apr. 30, 2012

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 and awards of restricted stock units are 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:

		Three Months Ended April 30,
			2012	2011
Numerator:
	Net income		$1,258,698	$1,412,507
Denominator:
	Weighted average common shares outstanding during the period for basic     computation		14,678,628	14,659,117
	Dilutive effect of stock-based compensation plans		66,198	182,603
	Weighted average common shares outstanding during the period for diluted     computation		14,744,826	14,841,720
Earnings per share, basic			$.09	$.10
Earnings per share, diluted			$.09	$.10

For the three months ended April 30, 2012 and 2011, employee stock options to purchase 669,009 and 125,448 common shares respectively, were excluded from the calculations of diluted earnings per share as the calculated proceeds from the options' exercises were greater than the market price of the Company's common shares during these periods.