Exhibit 11 NAI TECHNOLOGIES, INC. AND SUBSIDIARIES (In thousands) - ---------------------------------------------------------------------------------------------------------- Three Months Ended Sept. 27, Sept. 28, 1997 1996 - ---------------------------------------------------------------------------------------------------------- Net Income (loss) ($3,409) $964 Average shares of common stock outstanding during the period 9,133 8,571 Incremental shares from assumed exercise of stock options, stock warrants & employee stock purchase plan (primary) 1,026 429 Total shares used to calculate PEPS * 9,133 9,000 ---------- --------- Primary earnings per share ($0.37) $0.11 ========== ========= Net Income (loss) ($3,409) 964 Interest on Convertible Debt (Net of Taxes) 153 184 Amortization of OID (Net of Taxes) 33 19 Amortization of Deferred Debt Expense (Net of Taxes) 80 120 ---------- --------- Adjusted Net Income (3,143) 1,287 ========== ========= Average shares of common stock outstanding during the period 9,133 8,571 Incremental shares from assumed exercise of stock options, stock warrants & employee stock purchase plan (fully diluted) 1,026 561 Dilution from Convertible Debt 2,561 2,789 Total shares used to calculate FDEPS * 9,133 11,921 ---------- --------- Fully Diluted earnings per share ($0.34) $0.11 ========== ========= * Per APB 15, when a net loss is reported, exercise or conversion is not to be assumed. Exhibit 11 NAI TECHNOLOGIES, INC. AND SUBSIDIARIES (In thousands) - ------------------------------------------------------------------------------------------------------------- Nine Months Ended Sept. 27, Sept. 28, 1997 1996 - ------------------------------------------------------------------------------------------------------------- Net Income (loss) ($2,529) $1,329 Average shares of common stock outstanding during the period 9,079 8,022 Incremental shares from assumed exercise of stock options, stock warrants & employee stock purchase plan (primary) 1,233 304 Total shares used to calculate PEPS * 9,079 8,326 ---------- --------- Primary earnings per share ($0.28) $0.16 ========== ========= Net Income (loss) (2,529) 1,329 Interest on Convertible Debt (Net of Taxes) 461 548 Amortization of OID (Net of Taxes) 109 79 Amortization of Deferred Debt Expense (Net of Taxes) 260 345 ---------- --------- Adjusted Net Income (1,699) 2,301 ========== ========= Average shares of common stock outstanding during the period 9,079 8,022 Incremental shares from assumed exercise of stock options, stock warrants & employee stock purchase plan (primary) 1,233 478 Dilution from Convertible Debt 2,561 2,789 Total shares used to calculate FDEPS * 9,079 11,289 ---------- --------- Fully Diluted earnings per share ($0.19) $0.20 ========== ========= -2-