Exhibit 11
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COMPUTER NETWORK TECHNOLOGY CORPORATION
STATEMENT RE: COMPUTATION OF NET INCOME (LOSS)
PER COMMON AND COMMON EQUIVALENT SHARE
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1995 1994 1995 1994
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Net Income (loss) $ 466,999 $ 705,022 $ 4,648,276 $(7,513,390)
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Primary Earnings (Loss) Per Share
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Weighted average number of common shares
outstanding 22,839,990 22,226,490 22,599,576 21,861,863
Dilutive effect of outstanding common equivalent
shares (1) 962,276 782,315 1,024,573 --
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Weighted average number of common and
common equivalent shares outstanding 23,802,266 23,008,805 23,624,149 21,861,863
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Net income (loss) per common and common
equivalent share $ .02 $ .03 $ .20 $ (.34)
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Fully Diluted Earnings (Loss) Per Share:
- ----------------------------------------
Weighted average number of common shares 22,839,990 22,226,490 22,599,576 21,861,863
outstanding
Dilutive effect of outstanding common equivalent
shares (2) 962,276 949,055 1,104,877 --
----------- ----------- ----------- -----------
Weighted average number of common and
common equivalent shares outstanding 23,802,266 23,175,545 23,704,453 21,861,863
=========== =========== =========== ===========
Net income (loss) per common and common
equivalent share $ .02 $ .03 $ .20 $ (.34)
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(1) For the three and nine months ended September 30, 1995, and the three
months ended September 30, 1994, 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 Company's 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
nine months ended September 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 Company's shares. For the nine months ended
September 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.