Exhibit No. 11 CNS, INC. Computation of Net Income per Share of Common Stock Three months ended June 30, Six months ended June 30, ------------------------- ------------------------- 1996 1995 1996 1995 ----------- ----------- ----------- ----------- NET INCOME Income from continuing operations $ 3,047,471 $ 6,787,959 $ 6,148,408 $ 9,041,125 Income from discontinued operations 0 1,216,393 0 765,989 ----------- ----------- ----------- ----------- Net income $ 3,047,471 $ 8,004,352 $ 6,148,408 $ 9,807,114 =========== =========== =========== =========== PRIMARY EARNINGS PER SHARE: Average number of common and common equivalent shares outstanding: Average common shares outstanding 19,106,000 17,129,000 18,258,000 17,087,000 Incentive stock options 667,000 703,000 651,000 610,000 Non qualified stock options 426,000 467,000 407,000 425,000 Warrants 77,000 81,000 76,000 78,000 ----------- ----------- ----------- ----------- 20,276,000 18,380,000 19,392,000 18,200,000 =========== =========== =========== =========== Earnings per share from continuing operations $ .15 $ .37 $ .32 $ .50 Earnings per share from discontinued operations .00 .07 .00 .04 ----------- ----------- ----------- ----------- Primary earnings per share $ .15 $ .44 $ .32 $ .54 =========== =========== =========== =========== FULLY DILUTED EARNINGS PER SHARE Average number of common and common equivalent shares outstanding: Average common shares outstanding 19,106,000 17,129,000 18,258,000 17,087,000 Incentive stock options 676,000 739,000 674,000 670,000 Non qualified stock options 435,000 493,000 430,000 471,000 Warrants 78,000 83,000 78,000 84,000 ----------- ----------- ----------- ----------- 20,295,000 18,444,000 19,440,000 18,312,000 =========== =========== =========== =========== Earnings per share from continuing operations $ .15 $ .37 $ .32 $ .50 Earnings per share from discontinued operations .00 .06 .00 .04 ----------- ----------- ----------- ----------- Fully diluted earnings per share $ .15 $ .43 $ .32 $ .54 =========== =========== =========== ===========