Earnings per share

6 Months Ended

Apr. 30, 2016

Note 7 - Earnings per share

Basic earnings (loss) per share is computed by dividing net income (loss) 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 1,111,134 and 624,209 for the three months ended April 30, 2016 and 2015, respectively, and 1,120,6653 and 624,609 for the six months ended April 30, 2016 and 2015, 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 April 30,				Six Months Ended April 30,
	2016		2015		2016		2015

Weighted average shares outstanding for basic earnings per share		8,759,570		8,509,970		8,738,012		8,395,952

Add effects of potentially dilutive securities-assumed exercise of stock options		-		373,212		-		377,715

Weighted average shares outstanding for diluted earnings per share		8,759,570		8,883,182		8,738,012		8,773,667