1 EXHIBIT 11 - COMPUTATION OF PER SHARE INCOME (LOSS) (IN THOUSANDS, EXCEPT PER SHARE DATA) QUARTER QUARTER 6 MONTHS 6 MONTHS ENDED ENDED ENDED ENDED JUNE 30, JUNE 30, JUNE 30, JUNE 30, 1997 1996 1997 1996 ------- ------- ------- ------- PRO FORMA NET LOSS PER SHARE: Net loss ......................................... $ (93) $(1,021) $ (481) $(1,988) Weighted average common shares outstanding (exluding options and common share equivalents) .................... 5,192 5,203 5,192 5,211 Assumed conversion of series A preferred stock into common stock on date of issuance .......................... 1,538 51 1,538 25 Application of SAB 83 for preferred stock, common stock, stock options and warrants issued subsequent to June 30, 1996 ................................ -- 776 -- 776 ------- ------- ------- ------- Pro forma weighted average number of common shares and common share equivalents outstanding ...................... 6,730 6,030 6,730 6,012 ======= ======= ======= ======= Pro forma net loss per common share .............. $ (0.01) $ (0.17) $ (0.07) $ (0.33) ======= ======= ======= ======= SUPPLEMENTAL PRO FORMA NET INCOME (LOSS) PER SHARE Net loss ......................................... $ (93) $(1,021) $ (481) $(1,988) Pro forma interest expense adjustment reflecting repurchase of debt with proceeds from offering ....................... $ 128 $ 128 $ 252 $ 252 ------- ------- ------- ------- Supplemental pro forma net income (loss) ......... $ 35 $ (893) $ (229) $(1,736) ======= ======= ======= ======= Weighted average common shares outstanding (exluding options and common share equivalents) .................... 5,192 5,203 5,192 5,211 Assumed conversion of series A preferred stock into common stock on date of issuance .......................... 1,538 51 1,538 25 Application of SAB 83 for preferred stock, common stock, stock options and warrants issued subsequent to June 30, 1996 ................................ -- 776 -- 776 Additional weighted average shares from assumed exercise of dilutive stock options and warrants, net of shares assumed to be repurchased with exercise proceeds ........... 775 -- -- -- Assumed issuance of shares needed to repurchase debt of $5.1 million .............. 396 396 396 396 ------- ------- ------- ------- Supplemental pro forma weighted average number of common shares and common share equivalents outstanding ...................... 7,901 6,426 7,126 6,408 ======= ======= ======= ======= Supplemental pro forma net income (loss) per common share ................................. $ 0.00 $ (0.14) $ (0.03) $ (0.27) ======= ======= ======= =======