EXHIBIT 11 EXECUTONE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS Three Months Ended Nine Months Ended 9/30/94 9/30/93 9/30/94 9/30/93 (Restated) (Restated) INCOME FROM CONTINUING OPERATIONS $ 1,986,000 $ 966,000 $ 4,486,000 $ 2,937,000 DISCONTINUED OPERATIONS: INCOME FROM OPERATIONS, NET OF INCOME TAXES --- 242,000 153,000 196,000 GAIN ON DISPOSAL, NET OF INCOME TAXES --- --- 604,000 --- NET INCOME $ 1,986,000 $ 1,208,000 $ 5,243,000 $ 3,133,000 INTEREST EXPENSE ADJUSTMENT 7,000 44,000 20,000 132,000 ADJUSTED NET INCOME $ 1,993,000 $ 1,252,000 $ 5,263,000 $3,265,000 WEIGHTED AVERAGE NUMBER OF COMMON SHARES 43,317,000 32,536,000 43,253,000 31,965,000 OUTSTANDING COMMON STOCK EQUIVALENTS: Add - Net shares assumed to be issued for dilutive stock option and warrants 3,376,000 4,411,000 3,404,000 4,280,000 Add - Shares assumed to be issued on conversion of preferred stock (converted entirely in 1993) and exercise of related warrants 489,000 11,593,000 838,000 11,742,000 TOTAL WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 47,182,000 48,540,000 47,495,000 47,987,000 EARNINGS PER COMMON SHARE: Income From Continuing Operations $ 0.04 $ 0.03 $ 0.09 $ 0.07 Discontinued Operations --- --- 0.02 --- Net Income $ 0.04 $ 0.03 $ 0.11 $ 0.07 15