Exhibit 11
----------
COMPUTER NETWORK TECHNOLOGY CORPORATION
Statement Re: Computation of Net Income (Loss) Per Common and Common Equivalent
Share
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
----------- ----------- ----------- -----------
Net Income (loss) $ 2,433,775 $ 471,933 $ 4,181,277 $(8,218,412)
=========== =========== =========== ===========
Primary Earnings (Loss) Per Share
Weighted average number of common
shares outstanding 22,536,615 22,101,017 22,476,474 21,679,529
Dilutive effect of outstanding common
equivalent shares (1) 1,207,079 1,060,941 1,055,721 --
----------- ----------- ----------- -----------
Weighted average number of common and
common equivalent shares outstanding 23,743,694 23,161,958 23,532,195 21,679,529
=========== =========== =========== ===========
Net income (loss) per common and common
equivalent share $ .10 $ .02 $ .18 $ (.38)
=========== =========== =========== ===========
Fully Diluted Earnings (Loss) Per Share:
Weighted average number of common 22,536,615 22,101,017 22,476,474 21,679,529
shares outstanding
Dilutive effect of outstanding common
equivalent shares (2) 1,302,874 1,060,941 1,312,079 --
----------- ----------- ----------- -----------
Weighted average number of common and
common equivalent shares outstanding 23,839,489 23,161,958 23,788,553 21,679,529
=========== =========== =========== ===========
Net income (loss) per common and common
equivalent share $ .10 $ .02 $ .18 $ (.38)
=========== =========== =========== ===========
(1) For the three month periods ended June 30, 1995 and 1994, and the six month
period ended June 30, 1995, outstanding stock options and warrants issuable
under various stock option plans, warrant agreements, and the employee stock
purchase plan (as disclosed in the notes to the consolidated financial
statements incorporated by reference in the Companys annual report on Form
10-K for the fiscal year ended December 31, 1994) are converted to common
equivalent shares by the treasury stock method using the average market
price during the period for the Company's shares. For the six month period
ended June 30, 1994, such stock options, warrants, and shares issuable under
the employee stock purchase plan are not included in the computation due to
their anti-dilutive nature.
(2) Outstanding stock options and warrants issuable under various stock option
plans, warrant agreements, and the employee stock purchase plan are
converted to common equivalent shares by the treasury stock method using the
higher of the average market price during the period or the market price at
the end of the period for the Companys shares. For the six months ended
June 30 1994, such stock options, warrants, and shares issuable under the
employee stock purchase plan are not included in the computation due to
their anti-dilutive nature.
23