Earnings per share

9 Months Ended

Jul. 31, 2015

Note 5 - 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 820,161 and 252,182 for the three months ended July 31, 2015 and 2014, and 820,161 and 228,069 for the nine months ended July 31, 2015 and 2014, 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,
	2015		2014		2015		2014

Weighted average shares outstanding for basic earnings per share		8,545,300		8,250,042		8,446,223		8,200,476

Add effects of potentially dilutive securities-assumed exercise of stock options		371,343		468,614		374,215		563,117

Weighted average shares outstanding for diluted earnings per share		8,916,643		8,718,656		8,820,438		8,763,593