EXHIBIT 11 CNS, INC. COMPUTATION OF NET INCOME (LOSS) PER SHARE OF COMMON STOCK (unaudited) THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, 1995 1994 1995 1994 Income (loss) from continuing operations before income taxes $ 7,697,959 $ (474,045) $ 9,951,125 $ (907,987) Income tax provision 910,000 0 910,000 0 Income (loss) from continuing operations 6,787,959 (474,045) 9,041,125 (907,987) Income (loss) from operations of discontinued sleep division (less applicable income tax benefit of $259,000 and $0 at June 30, 1995 and 1994, respectively). (9,497) 41,168 (459,901) 7,068 Gain on disposal of sleep division (less applicable income taxes of $690,000 and $0 at June 30, 1995 and 1994 respectively). 1,225,890 0 1,225,890 0 Income from discontinued operations 1,216,393 41,168 765,989 7,068 Net income (loss) $ 8,004,352 $ (432,877) $ 9,807,114 $ (900,919) Income (loss) per common and common equivalent share From continuing operations before income tax .42 (.03) .54 (.06) From income tax on continuing operations (.05) 0 (.04) 0 From continuing operations .37 (.03) .50 (.06) From discontinued operations (sleep div.) 0 0 (.03) 0 From gain on disposal of sleep division .06 0 .07 0 From discontinued operations, net .06 0 .04 0 Net income (loss) per common and common equivalent share $ .43 $ (.03) $ .54 $ (.06) Weighted average number of common and common equivalent shares outstanding 18,443,734 16,099,258 18,312,233 14,651,180