Income taxes	9 Months Ended
Jul. 31, 2011
Income taxes	Note 10 - Income taxes The income tax provision reflected in the accompanying unaudited condensed statements of income for the three and nine months ended July 31, 2011 is different than the expected tax provision computed based on the pre-tax income and the applicable statutory Federal income tax rate of 34% and the state income tax rate, net of Federal tax effects, of 5%. Interim tax provisions are determined using an estimate of the annual effective tax rate. As of July 31, 2011, the Company estimated that its effective annual tax rate for the year ending October 31, 2011, before non-recurring adjustments described below will be approximately 39%. The provision for income taxes during the nine months ended July 31, 2011 was $350,336 (or a combined estimated Federal and state income tax rate of approximately 30%), compared to $523,299 in the nine months ended July 31, 2010 (or a combined estimated Federal and state income tax rate of approximately 40%). The significant decrease in the tax rate in the nine month period ended July 31, 2011 is primarily due to the Company’s recognition of onetime tax benefits. The Company recognized approximately $34,000 related to a Federal research and development tax credits the Company was not able to recognize in its financial statements in 2010 due to the law not being enacted by October 31, 2010. On December 16, 2010, Congress passed the 2010 Tax Relief Act, which impacted the Company’s tax provision in the first quarter of fiscal 2011. Due to the enactment of the 2010 Tax Relief Act into law, the Company claimed an increased net tax credit related to the year ended October 31, 2010 for research and development related to the year ended October 31, 2010 of approximately $34,000. The credit was recorded in the first quarter of fiscal 2011. The Company recognized approximately $137,000 of a net tax benefit for uncertain tax positions where the statue of limitations expired during the three month period ended July 31, 2011. The Company recognized of a tax benefit of approximately $68,000 related to the disqualifying disposition of incentive stock options exercised during the three month period ended July 31, 2011. Also included in the provision for income taxes during the nine months ended July 31, 2011, and contributing to the decrease in the tax rate is approximately $73,000 of state tax refunds received in the third quarter of fiscal 2011 from amended tax returns which the Company filed to reapportion taxable income between the Company’s activities in both California and Nevada. Without these adjustments, the effective tax rate for the three and nine-month periods ended July 31, 2011 would have been higher.

Income taxes

9 Months Ended

Jul. 31, 2011

Note 10 - Income taxes

The income tax provision reflected in the accompanying unaudited condensed statements of income for the three and nine months ended July 31, 2011 is different than the expected tax provision computed based on the pre-tax income and the applicable statutory Federal income tax rate of 34% and the state income tax rate, net of Federal tax effects, of 5%. Interim tax provisions are determined using an estimate of the annual effective tax rate. As of July 31, 2011, the Company estimated that its effective annual tax rate for the year ending October 31, 2011, before non-recurring adjustments described below will be approximately 39%.

The provision for income taxes during the nine months ended July 31, 2011 was $350,336 (or a combined estimated Federal and state income tax rate of approximately 30%), compared to $523,299 in the nine months ended July 31, 2010 (or a combined estimated Federal and state income tax rate of approximately 40%). The significant decrease in the tax rate in the nine month period ended July 31, 2011 is primarily due to the Company’s recognition of onetime tax benefits. The Company recognized approximately $34,000 related to a Federal research and development tax credits the Company was not able to recognize in its financial statements in 2010 due to the law not being enacted by October 31, 2010. On December 16, 2010, Congress passed the 2010 Tax Relief Act, which impacted the Company’s tax provision in the first quarter of fiscal 2011. Due to the enactment of the 2010 Tax Relief Act into law, the Company claimed an increased net tax credit related to the year ended October 31, 2010 for research and development related to the year ended October 31, 2010 of approximately $34,000. The credit was recorded in the first quarter of fiscal 2011. The Company recognized approximately $137,000 of a net tax benefit for uncertain tax positions where the statue of limitations expired during the three month period ended July 31, 2011. The Company recognized of a tax benefit of approximately $68,000 related to the disqualifying disposition of incentive stock options exercised during the three month period ended July 31, 2011. Also included in the provision for income taxes during the nine months ended July 31, 2011, and contributing to the decrease in the tax rate is approximately $73,000 of state tax refunds received in the third quarter of fiscal 2011 from amended tax returns which the Company filed to reapportion taxable income between the Company’s activities in both California and Nevada. Without these adjustments, the effective tax rate for the three and nine-month periods ended July 31, 2011 would have been higher.