Earnings (Loss) Per Share

3 Months Ended

Jul. 31, 2011

Earnings (Loss) Per Share

Earnings (Loss) Per Share

13. Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net earnings (loss) less dividends payable on preferred stock by the weighted average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock. For the three months ended July 31, 2011 and 2010, because of our reported net loss, potentially dilutive securities were excluded from the per share computations due to their anti-dilutive effect.

(in thousands, except per share amounts)	Three Months Ended          July 31,
	2011	2010
Net loss	$     (1,778)	$        (475)
Dividends payable on preferred stock	$          (34)	-
Net loss available to commons stockholders	(1,812)	(475)
Weighted average shares of common stock outstanding, basic	14,601	11,240
Effect of dilutive securities	-	-
Weighted average shares of common stock outstanding, diluted	14,601	11,240
Loss per share of common stock:
Basic	$       (0.12)	$       (0.04)
Diluted	$       (0.12)	$       (0.04)

The dilutive securities above represent only those stock options, warrants and convertible debt whose exercise prices were less than the average market price of the stock during the respective periods and therefore were dilutive. Potentially dilutive securities that are not included in the diluted net loss calculation because they would be antidilutive are employee stock options of 2,787,768 and common stock warrants of 1,344,986 for the three months ended July 31, 2011.  Potentially dilutive securities that are not included in the diluted net loss calculation because they would be antidilutive are employee stock options of 2,063,988 and common stock warrants of 1,344,986 for the three months ended July 31, 2010.  Potentially dilutive securities that are not included in the diluted net loss calculation because they would be antidilutive are preferred stock shares of 1,666,667 and zero for the three months ended July 31, 2011 and 2010, respectively.