CROSS MEDICAL PRODUCTS, INC. AND SUBSIDIARY
EXHIBIT 11
COMPUTATION OF NET INCOME PER SHARE
FOR THE THREE AND SIX MONTH PERIODS ENDING JUNE 30, 1997 AND 1996
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
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Weighted average number of common shares outstanding 5,005,958 4,728,974 4,975,779 4,720,108
Shares issuable pursuant to stock option plans and
stock warrants 180,449 272,885 203,505 261,028
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Weighted average shares outstanding used in primary
earnings per share calculation 5,186,407 5,001,859 5,179,284 4,981,136
Shares issuable under the Convertible Subordinated
Debentures 634,092 646,154 634,092 646,154
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Weighted average shares outstanding used in fully
diluted earnings per share calculation 5,820,499 5,648,013 5,813,376 5,627,290
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Net income (loss) from continuing operations $86,000 $(63,000) $(91,000) $(224,000)
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Net income (loss) from discontinued operations $(93,000) $209,000 $2,598,000 $507,000
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Net income used in calculation of primary earnings
per share $86,000 $146,000 $2,507,000 $283,000
Interest on Convertible Subordinated Debentures $64,000 $22,000 $131,000 $22,000
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Net income used in calculation of fully diluted
earnings per share $150,000 $146,000 $2,638,000 $283,000
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Primary earnings per share:
Net income (loss) per share from continuing operations $.02 $(.01) $(.02) $(.04)
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Net income (loss) per share from discontinued operations $(.02) $.04 $.50 $.10
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Net income (loss) per share $(.00) $.03 $.48 $.06
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Fully diluted earnings per share:
Net income (loss) per share from continuing operations $.03 $(.01) $.00 $(.04)
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Net income (loss) per share from discontinued operations $(.00) $.04 $.45 $.10
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Net income per share $.03 $.03 $.45 $.06
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Note: The application of the higher 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.