1 EXHIBIT 11 SMITH TECHNOLOGY CORPORATION (FORMERLY SMITH ENVIRONMENTAL TECHNOLOGIES CORPORATION) COMPUTATION OF (LOSS) EARNINGS PER SHARE (IN THOUSANDS, EXCEPT COMMON SHARE DATA) UNAUDITED THREE MONTHS ENDED SIX MONTHS ENDED MARCH 31, MARCH 31, ---------------------- ---------------------- 1997 1996 1997 1996 ------- ------- ------- ------- PRIMARY Weighted average shares of common stock outstanding 6,167 5,862 6,146 5,857 Incremental shares applicable to assumed exercise of stock options -- 15 -- 23 ------- ------- ------- ------- Weighted average number of common and common equivalent shares outstanding 6,167 5,877 6,146 5,880 ======= ======= ======= ======= Income before extraordinary charge $(5,362) $(2,595) $(5,913) $(2,210) Extraordinary charge -- (113) -- (1,395) ------- ------- ------- ------- Net (loss) income $(5,362) $(2,708) $(5,913) $(3,605) ======= ======= ======= ======= Net (loss) income applicable to common stock $(5,582) $(2,841) $(6,355) $(3,875) ======= ======= ======= ======= Income (loss) per common and common equivalent share: Income before extraordinary charge $ (0.87) $ (0.44) $ (0.96) $ (0.38) Extraordinary charge -- (0.02) -- (0.24) ------- ------- ------- ------- Net (loss) income $ (0.87) $ (0.46) $ (0.96) $ (0.61) ======= ======= ======= ======= Net (loss) income applicable to common stock $ (0.91) $ (0.48) $ (1.03) $ (0.66) ======= ======= ======= ======= The computation of income (loss) per common equivalent share on a fully diluted basis does not materially differ from the amounts calculated on a primary basis. 57