1 EXHIBIT NO. 11 APPLIED BIOSCIENCE INTERNATIONAL INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) THREE MONTHS ENDED, SIX MONTHS ENDED, JUNE 30, JUNE 30, ------------------- ------------------- 1996 1995 1996 1995 ------- ------- ------- ------- PRIMARY EARNINGS PER COMMON SHARE: Net income....................................... $ 1,217 $ 775 $ 2,444 $ 1,211 ======= ======= ======= ======= Weighted average number of shares of common stock outstanding during the period................. 29,540 28,159 29,405 28,166 Common stock equivalents assuming exercise of stock options(a).............................. 601 266 530 263 ------- ------- ------- ------- Weighted average common and common equivalent shares outstanding............................ 30,141 28,425 29,935 28,429 ======= ======= ======= ======= Primary earnings per share....................... $ 0.04 $ 0.03 $ 0.08 $ 0.04 ======= ======= ======= ======= FULLY DILUTED EARNINGS PER COMMON SHARE: Net income....................................... $ 1,217 $ 775 $ 2,444 $ 1,211 ======= ======= ======= ======= Weighted average number of shares of common stock outstanding during the period................. 29,540 28,159 29,405 28,166 Common stock equivalents assuming exercise of stock options(a).............................. 736 266 781 263 ------- ------- ------- ------- Weighted average common and common equivalent shares outstanding............................ 30,276 28,425 30,186 28,429 ======= ======= ======= ======= Fully diluted earnings per share................. $ 0.04 $ 0.03 $ 0.08 $ 0.04 ======= ======= ======= ======= - --------------- (a) In the calculation of common stock equivalents, stock options are assumed to be exercised at the beginning of the period. The proceeds from the options exercised are assumed to be used to purchase common stock at (i) the average market price during the period for primary earnings per share and (ii) the higher of the average or last market price during the period for fully diluted earnings per share. 14