1 EXHIBIT 11 Ferrofluidics Corporation Statement Re: Computation of Per Share Earnings For the Years ended June 30, 1996, 1995 and 1994 1996 1995 1994 ---- ---- ---- Primary Average shares outstanding 6,196,934 5,563,160 5,366,350 Net effect of dilutive stock options - based on the treasury stock method using average market price 116,111 NA NA ---------- ---------- ------------ Total 6,313,045 5,563,160 5,366,350 Net income $3,820,000 $ 889,000 $(10,713,000) Per share amount $.61 $.16 $(2.00) ==== ==== ====== Fully Diluted Average shares outstanding 6,196,934 5,563,160 5,366,350 Net effect of dilutive stock options - based on the treasury stock method using year-end market price, if higher than average market price 156,817 NA NA ---------- ---------- ------------ Total 6,353,751 5,563,160 5,366,350 Net income $3,820,000 $ 889,000 $(10,713,000) Per share amount $.60(A) $.16 $(2.00) ==== ==== ====== <FN> (A) Earnings per share assuming full dilution is not presented in the Statement of Operations for 1996 as it is less than 3% more dilutive than the primary computation. 56