Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

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Earnings Per Share
9 Months Ended
Oct. 31, 2011
Earnings Per Share
14. Earnings Per Share
 
Earnings per share present both “basic” earnings per share and “diluted” earnings per share. Basic earnings per share are computed by dividing earnings available to common shareholders by the weighted-average shares of common stock outstanding during the period. For the purposes of calculating diluted earnings per share, the denominator includes both the weighted average number of shares of common stock outstanding during the period and the weighted average number of shares of potential common stock, such as stock options and restricted stock units and warrants, calculated using the treasury stock method.
 
For the three months ended October 31, 2011 and 2010, there were 1,541,052 and 2,905,000 shares of common stock equivalents, respectively, which were anti-dilutive based on the Company’s stock price being lower than the option exercise price.
 
For the nine months ended October 31, 2011 and 2010, there were 1,549,552 and 2,646,000 shares of common stock equivalents, respectively, which were anti-dilutive based on the Company’s stock price being lower than the option exercise price.
 
Below is a summary of the shares used in calculating basic and diluted income per share for the periods indicated:
 
   
Three Months Ended
   
Nine Months Ended
 
   
October 31,
   
October 31,
 
   
2011
   
2010
   
2011
   
2010
 
   
(in thousands)
   
(in thousands)
 
Weighted average shares used in calculating earnings per share—Basic
    32,132       31,496       32,055       31,409  
Dilutive common stock equivalents
    685       -       651       520  
                                 
Weighted average shares used in calculating earnings per share—Diluted
    32,817       31,496       32,706       31,929