Earnings per share

9 Months Ended

Jul. 31, 2014

Earnings Per Share [Abstract]

Earnings per share

Note 4 - Earnings per share

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding increased by the effects of assuming that other potentially dilutive securities (such as stock options) outstanding during the period had been exercised and the treasury stock method had been applied. Potentially dilutive securities totaling 252,182 and 21,177 for the three months ended July 31, 2014 and 2013, and 228,069 and 23,279 for the nine months ended July 31, 2014 and 2013, respectively, were excluded from the calculation of diluted per share amounts because of their anti-dilutive effect.

The following table summarizes the computation of basic and diluted weighted average shares outstanding:

	Three Months Ended July 31,		Nine Months Ended July 31,
	2014	2013	2014	2013
Weighted average shares outstanding for basic earnings per share	8,250,042	7,798,608	8,200,476	7,492,137
Add effects of potentially dilutive securities-assumed exercise of stock options	468,614	761,027	563,117	870,841
Weighted average shares outstanding for diluted earnings per share	8,718,656	8,559,635	8,763,593	8,362,978