Quarter Ended April 30, Year Ended April 30,
2008 2007 2008 2007
------------------------------------------------------------------------
Interest income $562 $647 $2,361 $2,760
Interest expense - 88 231 361
------------------------------------------------------------------------
------------------------------------------------------------------------
$562 $559 $2,130 $2,399
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4. Earnings per Share
The following is a reconciliation of the numerator and denominator of the
basic and diluted per share computations:
Quarter Ended April 30, Year Ended April 30,
2008 2007 2008 2007
------------------------------------------------------------------------
Income before discontinued
operations $3,913 $1,271 $10,855 $20,525
Discontinued operations
(net of tax) 1,512 7,772 7,619 4,184
------------------------------------------------------------------------
Net income $5,425 $9,043 $18,474 $24,709
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------------------------------------------------------------------------
Weighted average number of
common shares outstanding 10,721,721 11,023,860 10,962,648 11,103,185
Net effect of stock options 48,694 192,273 95,213 218,113
------------------------------------------------------------------------
Weighted average diluted
number of common shares
outstanding 10,770,415 11,216,133 11,057,861 11,321,298
------------------------------------------------------------------------
------------------------------------------------------------------------
Quarter Ended April 30, Year Ended April 30,
2008 2007 2008 2007
------------------------------------------------------------------------
Earnings per share
Basic - before discontinued
operations $0.36 $0.12 $0.99 $1.85
Diluted - before discontinued
operations $0.36 $0.11 $0.98 $1.81
Basic - net income $0.51 $0.82 $1.69 $2.23
Diluted - net income $0.50 $0.81 $1.67 $2.18
For the quarter ended April 30, 2008 and April 30, 2007, 261,331 and 12,500 options respectively were excluded from the calculation of diluted earnings per share as the exercise price of these options exceeded the average market price of the Company's common stock during this period and were therefore anti-dilutive.
For the year ended April 30, 2008 and April 30, 2007, 258,331 and 12,500 options respectively were excluded from the calculation of diluted earnings per share as the exercise price of these options exceeded the average market price of the Company's common stock during this period and were therefore anti-dilutive.
There were 396,519 and 541,024 options issued and outstanding as at April 30, 2008 and April 30, 2007 respectively.
5. Discontinued operations
Quarter Ended April 30, Year Ended April 30,
2008 2007 2008 2007
------------------------------------------------------------------------
Revenues $163 $8,553 $926 $22,084
Expenses
Labour and materials - 2,073 - 5,736
Research and development (268) 5,849 1,219 16,240
Selling and marketing (4) 2,868 1,026 7,899
Bad debts - - - 88
Restructuring (135) 7,991 31 7,991
------------------------------------------------------------------------
(407) 18,781 2,276 37,954
------------------------------------------------------------------------
Income (loss) from operations 570 (10,228) (1,350) (15,870)
Gain on sale of assets 903 17,806 10,198 17,806
------------------------------------------------------------------------
Gain earnings before tax 1,473 7,578 8,848 1,936
Income tax (recovery) expense (39) (194) 1,229 (2,248)
------------------------------------------------------------------------
------------------------------------------------------------------------
Discontinued operations
(net of tax) $1,512 $7,772 $7,619 $4,184
------------------------------------------------------------------------
------------------------------------------------------------------------
6. Reconciliation of pro forma income with GAAP net income
Quarter Ended April 30, Year Ended April 30,
2008 2007 2008 2007
------------------------------------------------------------------------
GAAP net income $5,425 $9,043 $18,474 $24,709
Add (deduct):
Stock-based compensation 153 653 550 1,140
Patent amortization and
imputed interest 3,254 2,312 13,223 3,363
Restructuring - 2,284 19 2,284
Foreign exchange loss (gain) 276 (1,630) (3,999) (1,630)
Income tax expense - for the
above items (1,508) (1,749) (3,584) (1,064)
Future income tax revaluation - 695 3,169 695
Discontinued operations
(net of tax) (1,512) (7,772) (7,619) (4,184)
------------------------------------------------------------------------
Pro forma income $6,088 $3,836 $20,233 $25,313
------------------------------------------------------------------------
------------------------------------------------------------------------
7. Stock-based Compensation
