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EXHIBIT 11
NEMATRON CORPORATION
CALCULATION OF EARNINGS PER SHARE
THREE AND NINE MONTH PERIODS ENDED JUNE 30, 1996 AND 1995
THREE MONTHS ENDED
JUNE 30
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REF 1996 1995
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ASSUMPTIONS:
Weighted average common shares outstanding 3,372,683 2,563,934
Weighted average options and warrants outstanding 1,054,738 n/a
Number of options and warrants outstanding at end of period 1,062,375 n/a
20% of weighted average common shares outstanding 674,537
Number of common shares obtainable upon exercise of outstanding
options and warrants as a percentage of outstanding common
shares 31.27%
Average exercise price of options and warrants $3.49
Average market price of common stock during the period $8.90
COMPUTATIONS:
APPLICATION OF ASSUMED PROCEEDS:
Toward repurchase of outstanding common stock at average
market price, limited to 20% of outstanding shares,
or 674,537 shares (quarter) or 610,358 (nine months) in 1996 $3,708,397 n/a
Toward reduction of debt, if applicable 0
Computation not applicable in FY 1995; option prices exceed
average market price of common stock
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Total proceeds from exercise of options and warrants $3,708,397 n/a
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ADJUSTMENT OF NET INCOME:
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Actual net income A $103,458 $102,439
Interest reduction at 10.5% in FY 1996 0
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Interest reduction not applicable in FY 1995 n/a
Adjusted net income B $103,458 $102,439
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ADJUSTMENT OF SHARES OUTSTANDING:
Weighted average common shares outstanding C 3,372,683 2,563,934
Net additional shares (1,054,738 - 416,869) - Three months 637,869
Net additional shares (1,094,465 - 531,937) - Nine months
Net additional shares - not applicable in FY 1995 n/a
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Adjusted shares outstanding D 4,010,551 2,563,934
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EARNINGS PER SHARE:
Before adjustment A/C $0.031 $0.040
After adjustment B/D $0.026 n/a
Use for primary earnings per share for financial statements $0.03 $0.04
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NINE MONTHS ENDED
JUNE 30
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1996 1995
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ASSUMPTIONS:
Weighted average common shares outstanding 3,051,788 2,024,028
Weighted average options and warrants outstanding 1,094,465 n/a
Number of options and warrants outstanding at end of period 1,062,375 n/a
20% of weighted average common shares outstanding 610,358
Number of common shares obtainable upon exercise of outstanding
options and warrants as a percentage of outstanding common
shares 35.86%
Average exercise price of options and warrants $3.35
Average market price of common stock during the period $6.97
COMPUTATIONS:
APPLICATION OF ASSUMED PROCEEDS:
Toward repurchase of outstanding common stock at average
market price, limited to 20% of outstanding shares,
or 674,537 shares (quarter) or 610,358 (nine months) in 1996 $3,708,397 n/a
Toward reduction of debt, if applicable 0
Computation not applicable in FY 1995; option prices exceed
average market price of common stock
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Total proceeds from exercise of options and warrants $3,708,397 n/a
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ADJUSTMENT OF NET INCOME:
Actual net income A $234,177 $137,564
Interest reduction at 10.5% in FY 1996 0
Interest reduction not applicable in FY 1995 n/a
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Adjusted net income B $234,177 $137,564
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ADJUSTMENT OF SHARES OUTSTANDING:
Weighted average common shares outstanding C 3,051,788 2,024,028
Net additional shares (1,054,738 - 416,869) - Three months
Net additional shares (1,094,465 - 531,937) - Nine months 562,528
Net additional shares - not applicable in FY 1995 n/a
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Adjusted shares outstanding 3,614,316 2,024,028
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EARNINGS PER SHARE:
Before adjustment A/C $0.077 $0.068
After adjustment B/D $0.065 n/a
Use for primary earnings per share for financial statements $0.06 $0.07
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In fiscal 1995, the exercise price of options and warrants exceeded the average
market price of the Company's stock for all periods presented, so the options
and warrants are not considered in the earnings per share calculations.