EARNINGS PER SHARE COMPUTATIONS

3 Months Ended

Apr. 30, 2013

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,
	2013		2012
Numerator:
Net income	$	230,255	$	1,258,698
Denominator:
Weighted average common shares outstanding during the period for basic computation		14,697,269		14,678,628
Dilutive effect of stock-based compensation plans		157,637		66,198
Weighted average common shares outstanding during the period for diluted computation		14,854,906		14,744,826
Earnings per share, basic	$	.02	$	.09
Earnings per share, diluted	$	.02	$	.09

For the three-months ended April 30, 2013, there were no employee stock options excluded from the calculation of diluted earnings per share.For the three months ended April 30, 2012, employee stock options to purchase 669,009 common shares were excluded from the calculation 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 this period.