EXHIBIT 11 JENNA LANE, INC. COMPUTATION OF EARNINGS PER COMMON SHARE Three Months Ended Six Months Ended September 30, September 30, ------------------------------------ ------------------------------------ 1997 1996 1997 1996 --------------- ---------------- --------------- ---------------- Primary Earnings Per Share: Net income $ 322,268 $ 5,621 $ 535,761 $ 190,068 Adjustment of net income: Interest income, net of tax effect resulting from excess proceeds in applying 20% rule on treasury stock method ( a) 33,072 - 68,130 - -------------- --------------- -------------- --------------- Adjusted net income 355,340 5,621 603,891 190,068 Deduct dividends on preferred shares - 25,000 - 50,000 -------------- --------------- -------------- --------------- Net income (loss) applicable to common stock $ 355,340 $ (19,379) $ 603,891 $ 140,068 ============== =============== ============== =============== Weighted average number of shares outstanding 5,419,492 2,087,619 5,419,492 2,072,175 ============== =============== ============== =============== Primary earnings (loss) per share $ 0.07 $ (0.01) $ 0.11 $ 0.07 ============== =============== ============== =============== Fully Diluted Earnings Per Share: Adjusted net income $ 351,377 (b) $ 5,621 $ 593,979 (b) $ 190,068 ============== =============== ============== =============== Weighted average number of shares outstanding $ 5,419,492 $ 3,040,000 $ 5,419,492 $ 3,024,556 ============== =============== ============== =============== Fully diluted earnings per share $ 0.06 $ - (c) $ 0.11 $ 0.06 ============== =============== ============== =============== (a) Adjustments to income have been shown net of tax effects which were calculated at 41.6% (the Company's effective tax rate) of the gross amounts of the adjustments. (b) Adjustment of net income in applying 20% rule on treasury stock method based upon closing market price. (c) This calculation is submitted in accordance with Regulation S-K Item 601(b)(ii) although it is contrary to paragraph 40 of APB Opinion No. 15 because it produces an anti-dilutive result.