Earnings Per Share

6 Months Ended

Apr. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

(2) EARNINGS PER SHARE

Basic earnings per share ("EPS") is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is calculated by dividing net income (loss) by the weighted average number of common shares outstanding, adjusted to reflect potentially dilutive securities (options) using the treasury stock method, except when the effect would be anti-dilutive.

The number of shares used in calculating basic and diluted earnings per share is as follows:

	For the Three Months Ended April 30,				For the Six Months Ended April 30,
	2012		2011		2012		2011
Weighted average common shares outstanding:
Basic		5,511,489		6,137,654		5,503,078		6,140,046
Effect of dilutive securities:
Options to purchase shares of common stock		45,946		—		37,235		35,745
Diluted		5,557,435		6,137,654		5,540,313		6,175,791

For the three months ended April 30, 2012 and 2011, the Company had 22,000 and 95,180 stock options outstanding, respectively, and for the six months ended April 30, 2012 and 2011, the Company had 42,000 and 117,180 stock options outstanding, respectively, that could potentially dilute earnings per share in future periods and were excluded from the computation of diluted EPS as their exercise price was higher than the Company's average stock price during those respective periods. For the three months ended April 30, 2011, the Company had 39,676 stock options outstanding that, at the time, could potentially dilute earnings per share in future periods that were excluded from the computation of diluted EPS because their effect would have been anti-dilutive.