Exhibit No. 11 CNS, INC. Computation of Net Income per Share of Common Stock Three months ended September Nine months ended September 30, ------------------------------- ------------------------------- 1996 1995 1996 1995 ----------- ----------- ----------- ----------- NET INCOME Income from continuing operations $ 3,894,000 $ 1,361,000 $10,043,000 $10,402,000 Income from discontinued operations 0 0 0 766,000 ----------- ----------- ----------- ----------- Net income $ 3,894,000 $ 1,361,000 $10,043,000 $11,168,000 =========== =========== =========== =========== PRIMARY EARNINGS PER SHARE: Average number of common and common equivalent shares outstanding: Average common shares outstanding 19,145,000 17,341,000 18,556,000 17,167,000 Incentive stock options 635,000 748,000 646,000 659,000 Non qualified stock options 391,000 494,000 402,000 447,000 Warrants 75,000 74,000 76,000 70,000 ----------- ----------- ----------- ----------- 20,246,000 18,657,000 19,680,000 18,343,000 =========== =========== =========== =========== Earnings per share from continuing operations $ .19 $ .07 $ .51 $ .57 Earnings per share from discontinued operations .00 .00 .00 .04 ----------- ----------- ----------- ----------- Primary earnings per share $ .19 $ .07 $ .51 $ .61 =========== =========== =========== =========== FULLY DILUTED EARNINGS PER SHARE Average number of common and common equivalent shares outstanding: Average common shares outstanding 19,145,000 17,341,000 18,556,000 17,167,000 Incentive stock options 635,000 748,000 646,000 659,000 Non qualified stock options 391,000 494,000 402,000 447,000 Warrants 75,000 74,000 76,000 70,000 ----------- ----------- ----------- ----------- 20,246,000 18,657,000 19,680,000 18,343,000 =========== =========== =========== =========== Earnings per share from continuing operations $ .19 $ .07 $ .51 $ .57 Earnings per share from discontinued operations .00 .00 .00 .04 ----------- ----------- ----------- ----------- Fully diluted earnings per share $ .19 $ .07 $ .51 $ .61 =========== =========== =========== ===========