Earnings per share

9 Months Ended

Jul. 31, 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 1,022,970 and 820,161 for the three months ended July 31, 2016 and 2015, respectively, and 1,084,419 and 820,161 for the nine months ended July 31, 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 July 31,				Nine Months Ended July 31,
	2016		2015		2016		2015

Weighted average shares outstanding for basic earnings per share		8,834,747		8,545,300		8,770,375		8,446,223

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

Weighted average shares outstanding for diluted earnings per share		8,834,747		8,916,643		8,770,375		8,820,438