EARNINGS PER SHARE COMPUTATIONS

6 Months Ended

Jul. 31, 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 and non-employee director 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:

		Six Months Ended July 31,		Three Months Ended July 31,
		2012	2011	2012	2011
Numerator:
	Net income	$2,878,697	$2,902,741	$1,619,999	$1,490,234
Denominator:
	Weighted average common shares outstanding during    the period for basic computation	14,681,423	14,659,331	14,679,746	14,659,281
	Dilutive effect of stock-based compensation plans	54,730	165,349	59,802	173,958
	Weighted average common shares outstanding during    the period for diluted computation	14,736,153	14,824,680	14,739,548	14,833,239
Earnings per share, basic		$.20	$.20	$.11	$.10
Earnings per share, diluted		$.20	$.20	$.11	$.10

For the six and three months ended July 31, 2012, employee and non-employee director stock options to purchase 1,098,849 common shares, 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 at July 31, 2012.  For the six and three months ended July 31, 2011, employee and non-employee director 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' exercises were greater than the market price of the Company's common shares at July 31, 2011.