Basic And Diluted Net Income Per Share

6 Months Ended

Jan. 31, 2014

Basic And Diluted Net Income Per Share [Abstract]

Basic And Diluted Net Income Per Common Share

2. Basic and Diluted Net Income per 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 using the treasury stock method, which calculates the number of common shares that could be purchased at market price with the proceeds that would occur if all of the Company’s outstanding stock options and warrants that have a strike price below the market price were exercised. 

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

	Three months ended January 31				Six months ended January 31
	2014		2013			2014		2013
Net income (loss)	$	(461)	$	4		$	(436)	$	117
Weighted-average common shares outstanding		13,184		8,528			13,154		8,325
Effect of dilutive stock options and warrants		-		231			-		173
Diluted weighted-average common shares outstanding		13,184		8,759			13,154		8,498
Earnings per share
Basic	$	(0.03)	$	0.00		$	(0.03)	$	0.01
Diluted	$	(0.03)	$	0.00		$	(0.03)	$	0.01
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		1,462		280			1,462		735