EXHIBIT 11 CROSS MEDICAL PRODUCTS, INC. AND SUBSIDIARY COMPUTATION OF NET INCOME PER SHARE FOR THE YEARS ENDED DECEMBER 31, 1997 1996 1995 ---- ---- ---- Weighted average number of common shares outstanding used in basic earnings per share calculation 5,065,294 4,772,082 4,661,332 Shares issuable pursuant to stock option plans and stock warrants 197,762 121,020 Shares issuable under the Convertible Subordinated Debentures 625,232 646,154 ------------ ------------ ------------ Weighted average shares outstanding used in diluted earnings per share calculation 5,888,288 5,539,256 4,661,332 ============ ============ ============ Net income (loss) from continuing operations $ (862,000) $ 50,000 $(1,442,000) ============ ============ ============ Net income from discontinued operations $ 2,470,000 $ 1,231,000 $ 1,083,000 ============ ============ ============ Net income (loss) used in calculation of basic earnings per share $ 1,608,000 $ 1,281,000 $ (359,000) Interest, net of tax, on Convertible Subordinated Debentures $ 263,000 $ 162,000 ------------ ------------ ------------ Net income used in calculation of diluted earnings per share $ 1,871,000 $ 1,443,000 $ (359,000) ============ ============ ============ Basic earnings per share: Net income (loss) per share from continuing operations $ (.17) $ .01 $ (.31) ============ ============ ============ Net income per share from discontinued operations $ .49 $ .26 $ .23 ============ ============ ============ Net income (loss) per share $ .32 $ .27 $ (.08) ============ ============ ============ Diluted earnings per share: Net income (loss) per share from continuing operations $ (.10) $ .04 $ (.31) ============ ============ ============ Net income per share from discontinued operations $ .42 $ .22 $ .23 ============ ============ ============ Net income (loss) per share $ .32 $ .26 $ (.08) ============ ============ ============