Exhibit No. 11 CNS, INC. Computation of Net Income per Share of Common Stock Three months ended June 30, Six Months ended June 30, --------------------------- --------------------------- 1997 1996 1997 1996 ----------- ----------- ----------- ----------- NET INCOME Net income $ 2,613,473 $ 3,047,471 $ 3,934,966 $ 6,148,408 =========== =========== =========== =========== PRIMARY EARNINGS PER SHARE: Average number of common and common equivalent shares outstanding: Average common shares outstanding 19,277,000 19,106,000 19,241,000 18,258,000 Incentive stock options 436,000 667,000 485,000 651,000 Non qualified stock options 266,000 426,000 296,000 407,000 Warrants 0 77,000 0 76,000 ----------- ----------- ----------- ----------- 19,979,000 20,276,000 20,022,000 19,392,000 =========== =========== =========== =========== Primary earnings per share $ .13 $ .15 $ .20 $ .32 =========== =========== =========== =========== FULLY DILUTED EARNINGS PER SHARE Average number of common and common equivalent shares outstanding: Average common shares outstanding 19,277,000 19,106,000 19,241,000 18,258,000 Incentive stock options 436,000 676,000 485,000 674,000 Non qualified stock options 266,000 435,000 296,000 430,000 Warrants 0 78,000 0 78,000 ----------- ----------- ----------- ----------- 19,979,000 20,295,000 20,022,000 19,440,000 =========== =========== =========== =========== Fully diluted earnings per share $ .13 $ .15 $ .20 $ .32 =========== =========== =========== ===========