Basic And Diluted Net Income Per Common Share

12 Months Ended

Jul. 31, 2012

Basic And Diluted Net Income Per Common Share [Abstract]

Basic And Diluted Net Income Per Common Share

2.Basic and Diluted Net Income per Common Share 

Basic net income per common share is computed by dividing net income by the basic weighted average number of common shares outstanding during the period.  Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period and reflects the potential dilution that could occur if all of ARI’s outstanding stock options that are in the money were exercised (calculated using the treasury stock method). 

The following table is a reconciliation of basic and diluted net income per common share for fiscal 2012 and fiscal 2011 (in thousands, except per share data):

	2012		2011
Income from continuing operations	$	1,055	$	2,418
Income (loss) from discontinued operations		0		25
Net income	$	1,055	$	2,443
Weighted-average common shares outstanding		7,997		7,855
Effect of dilutive stock options and warrants		174		56
Diluted weighted-average common shares outstanding		8,171		7,911
Earnings per share - basic:
Income from continuing operations	$	0.13	$	0.31
Income (loss) from discontinued operations		-		-
Net income	$	0.13	$	0.31
Earnings per share - diluted:
Income from continuing operations	$	0.13	$	0.31
Income (loss) from discontinued operations		-		-
Net income	$	0.13	$	0.31
Options and warrants that could potentially dilute net income per share in the future that are not included in the computation of diluted net income per share, as their impact is anti-dilutive		877		923