EXHIBIT 11.01 INTEGRATED SYSTEMS, INC. COMPUTATION OF NET INCOME PER SHARE (1) (Amounts in thousands, except per share amounts) Year Ended February 28, ----------------------- 1995 1996 1997 ---- ---- ---- Primary: Net income $ 6,490 $ 5,283 $ 7,254 ======= ======= ======= Reconciliation of weighted number of shares outstanding to amount used in net income per share computation: Weighted average number of common shares outstanding 19,318 20,962 22,437 Dilutive effect of options 646 1,126 1,071 ------- ------- ------- 19,964 22,088 23,508 ======= ======= ======= Net income per share $ 0.33 $ 0.24 $ 0.31 ======= ======= ======= Fully Diluted: Net income $ 6,490 $ 5,283 $ 7,254 ======= ======= ======= Reconciliation of weighted number of shares outstanding to amount used in net income per share computation: Weighted average number of common shares outstanding 19,318 20,962 22,437 Dilutive effect of options 936 1,130 1,105 ------- ------- ------- 20,254 22,092 23,542 ======= ======= ======= Net income per share $ 0.32 $ 0.24 $ 0.31 ======= ======= ======= (1) See Note 1 of Notes to Consolidated Financial Statements. 49