EXHIBIT 11 COMPUTATION OF EARNINGS PER SHARE For the three and six months ended September 30, 1996 and 1995 (Unaudited) Three Months Ended Six Months Ended September 30 September 30, --------------------------- ---------------------------- Primary Earnings per Share 1996 1995 1996 1995 - -------------------------- ------------ -------- ----------- ---------- Net income (loss) applicable to common stock $ (578,831) $440,954 $ (173,112) $ 844,009 ========== ======== ========== ========= Weighted average number of common shares outstanding 819,198 856,658 819,198 858,113 Common shares issuable under employee stock option plan 58,817 51,139 58,817 51,139 Less shares assumed repurchased with proceeds (34,822) (27,861) (34,822) (27,861) ---------- -------- ---------- --------- Weighted average common shares and common share equivalents outstanding 843,193 879,936 843,193 881,391 ========== ======== ========== ========= Primary earnings (loss) per common share $ (0.69) $ 0.50 $ (0.21) $ 0.96 ========== ======== ========== ========= Fully Diluted Earnings Per Share Net income (loss) applicable to common stock $ (578,831) $440,954 $ (173,112) $ 844,009 Interest on convertible subordinated debentures, net of tax 172,991 --- 345,981 --- ---------- -------- ---------- --------- Net income (loss), adjusted $ (405,840) $440,954 $ 172,869 $ 844,009 ========== ======== ========== ========= Weighted average common share and common share equivalents outstanding 843,193 879,936 843,193 881,391 Weighted average common shares issuable with the conversion of debentures to common stock 560,182 --- 560,182 --- ---------- -------- ---------- --------- Weighted average common shares and common share equivalents 1,403,375 879,936 1,403,375 881,391 ========== ======== ========== ========= Fully diluted earnings (loss) per common share $ (0.29) $ 0.50 0.12 0.96 ========== ======== ========== ========= Fully diluted earnings per share are not disclosed on the statement of operations as they are anti-dilutive.