SMC CORPORATION EXHIBIT 11 STATEMENT OF CALCULATION OF AVERAGE COMMON SHARES OUTSTANDING Three Months Ended March 31, 1998 -------------- Basic Earnings Per Share: Weighted average number of shares 6,439,777 ========= Diluted Earnings Per Share: Weighted average number of shares 6,439,777 Stock option plan shares to be issued at prices ranging from $7.375 to $9.00 per share 965,500 Warrant issues at a price of $9.30 per share 125,000 Less: Assumed purchase of shares by the Company at the average market price during the period using the proceeds received upon the assumed exercise of the outstanding options and warrants (1,022,902) Total Diluted Shares 6,507,375 =========