EARNINGS PER SHARE COMPUTATIONS

9 Months Ended

Oct. 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:

	Nine Months Ended				Three Months Ended
	October 31,				October 31,
	2012		2011		2012		2011
Numerator:
Net income	$	5,669,432	$	4,984,627	$	2,790,735	$	2,081,886
Denominator:
Weighted average common shares outstanding during the period for basic computation		14,683,286		14,659,402		14,682,776		14,659,383
Dilutive effect of stock-based compensation plans		50,178		129,091		51,476		140,431
Weighted average common shares outstanding during the period for diluted computation		14,733,464		14,788,493		14,734,252		14,799,814
Earnings per share, basic	$	.39	$	.34	$	.19	$	.14
Earnings per share, diluted	$	.38	$	.34	$	.19	$	.14

For the nine and three months ended October 31, 2012, employee and non-employee director stock options to purchase 1,092,447 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 October 31, 2012.  For the nine and three months ended October 31, 2011, employee and non-employee director 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' exercises were greater than the market price of the Company's common shares at October 31, 2011.