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EXHIBIT 11
NEMATRON CORPORATION
CALCULATION OF EARNINGS (LOSS) PER SHARE
THREE AND SIX MONTH PERIODS ENDED MARCH 31, 1997 AND 1996
THREE MONTHS ENDED SIX MONTHS ENDED
MARCH 31 MARCH 31
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1997 1996 1997 1996
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ASSUMPTIONS:
Shares outstanding at the end of the period 5,216,322 3,037,710 5,216,322 3,037,710
Weighted average common shares outstanding 4,607,802 2,915,070 4,586,941 2,892,217
Weighted average options and warrants outstanding A 851,508 1,161,517 851,508 1,119,507
Number of options and warrants outstanding at end of period B 946,238 1,054,525 946,238 1,054,525
20% of weighted average common shares outstanding 1,043,264 607,542 1,043,264 607,542
Number of common shares obtainable upon exercise of outstanding
options and warrants as a percentage of outstanding common
shares 18.14% 34.71% 18.14% 34.71%
Average exercise price of options and warrants C $5.41 $3.41 $4.97 $3.30
Average market price of common stock during the period D $6.30 $7.18 $6.76 $6.02
Number of common shares obtainable upon exercise of outstanding
options and warrants, limited to 20% of outstanding shares E 571,481 500,940 531,941 607,542
COMPUTATIONS:
APPLICATION OF ASSUMED PROCEEDS:
Toward repurchase of outstanding common stock at average
market price and using weighted average options and warrants
outstanding, limited to 20% of outstanding shares A*C $4,603,679 3,597,522 $4,603,679 3,660,057
Toward reduction of debt for shares in excess of 20% 62,536
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Total proceeds from exercise of options and warrants $4,603,679 $3,597,522 $4,603,679 $3,722,593
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ADJUSTMENT OF NET INCOME (LOSS):
Actual net income (loss) F ($2,656,641) $69,664 ($2,646,125) $130,719
Interest reduction at 9.50% in FY 1997 - -
Interest reduction of 10.75% in FY 1996 - 1,602
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Adjusted net income (loss) G ($2,656,641) $69,664 ($2,646,125) $132,321
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ADJUSTMENT OF SHARES OUTSTANDING:
Weighted average common shares outstanding H 4,607,802 2,915,070 4,586,941 2,892,217
Net additional shares outstanding A-E 280,028 660,577 319,567 511,965
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Adjusted shares outstanding I 4,887,830 3,575,647 4,906,508 3,404,182
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EARNINGS (LOSS) PER SHARE:
Before adjustment F/H ($0.577) $0.024 ($0.577) $0.045
After adjustment G/I ($0.544) $0.019 ($0.539) $0.039
USE FOR PRIMARY EARNINGS(LOSS) PER SHARE FOR FINANCIAL STATEMENTS ($0.58) $0.02 ($0.58) $0.04
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