EXHIBIT 11

                            CSP INC. AND SUBSIDIARIES
                BASIC AND DILUTED EARNINGS PER SHARE COMPUTATION
           (Dollars and shares in thousands, except per share amounts)




                                                   Fiscal Years Ended August
                                                   1999       1998      1997
                                                             

Net income (loss) per common share - basic:
Net income (loss)                                 $1,259     $1,362    ($721)
Weighted average common shares outstanding         3,597      3,592    3,571
Net income (loss) per common share - basic        $ 0.35     $ 0.38   ($0.20)

Net income (loss) per common share - diluted:
Net income (loss)                                 $1,259     $1,362    ($721)
Weighted average common shares outstanding         3,597      3,592    3,571
Add: net additional common shares upon
     Exercise of stock options                        44         82      --
Weighted average common shares
     outstanding - dilutive                        3,641      3,674    3,571
Net income (loss) per common share - diluted      $ 0.35     $ 0.37   ($0.20)