CROSS MEDICAL PRODUCTS, INC. AND SUBSIDIARY EXHIBIT 11 COMPUTATION OF NET INCOME PER SHARE FOR THE THREE MONTH PERIODS ENDING MARCH 31, 1997 AND 1996 Three months Three months ended ended March 31, March 31, 1997 1996 ------------ ------------ Weighted average number of common shares outstanding 4,945,265 4,708,426 Shares issuable pursuant to stock option plans and stock warrants 226,798 278,329 ------------ ------------ Weighted average shares outstanding used in primary earnings per share calculation 5,172,063 4,986,755 Shares issuable under the Convertible Subordinated Debentures 646,154 ------------ ------------ Weighted average shares outstanding used in fully diluted earnings per share calculation 5,818,217 4,986,755 ============ ============ Net loss from continuing operations $ (177,000) $ (161,000) ============ ============ Net income from discontinued operations $2,691,000 $ 298,000 ============ ============ Net income used in calculation of primary earnings per share $2,514,000 $ 137,000 Interest on Convertible Subordinated Debentures $ 67,000 ------------ ------------ Net income used in calculation of fully diluted earnings per share $2,581,000 $ 137,000 ============ ============ Primary earnings per share: Net income (loss) per share from continuing operations $(.03) $(.03) ============ ============ Net income per share from discontinued operations $.52 $.06 ============ ============ Net income per share $.49 $.03 ============ ============ Fully diluted earnings per share: Net income (loss) per share from continuing operations $(.02) $(.03) ============ ============ Net income per share from discontinued operations $.46 $.06 ============ ============ Net income per share $.44 $.03 ============ ============ Note:	The application of the higher of quarter-end or year end market prices in calculating fully-diluted earnings per share does not result in a change to the calculation of primary earnings per share.