1 CROSS MEDICAL PRODUCTS, INC. AND SUBSIDIARY EXHIBIT 11 COMPUTATION OF NET INCOME PER SHARE FOR THE THREE MONTH PERIODS ENDING MARCH 31, 1997 AND 1996 - --------------------------------------------------------------------------------------------------------------------- Three months ended Three months ended March 31, March 31, 1997 1996 - --------------------------------------------------------------------------------------------------------------------- Weighted average number of common shares outstanding 4,945,265 4,708,426 Shares issuable pursuant to stock option plans and stock warrants 226,798 278,329 ---------- ---------- Weighted average shares outstanding used in primary earnings per share calculation 5,172,063 4,986,755 Shares issuable under the Convertible Subordinated Debentures 646,154 ---------- ---------- Weighted average shares outstanding used in fully diluted earnings per share calculation 5,818,217 4,986,755 ========== ========== Net income (loss) from continuing operations $2,000 $(161,000) ========== ========== Net income from discontinued operations $2,742,000 $298,000 ========== ========== Net income used in calculation of primary earnings per share $2,744,000 $137,000 Interest on Convertible Subordinated Debentures $67,000 ---------- ---------- Net income used in calculation of fully diluted earnings per share $2,811,000 $137,000 ========== ========== Primary earnings per share: Net income (loss) per share from continuing operations $.00 $(.03) ========== ========== Net income per share from discontinued operations $.53 $.06 ========== ========== Net income per share $.53 $.03 ========== ========== Fully diluted earnings per share: Net income (loss) per share from continuing operations $.01 $(.03) ========== ========== Net income per share from discontinued operations $.47 $.06 ========== ========== Net income per share $.48 $.03 ========== ========== - --------------------------------------------------------------------------------------------------------------------- Note: The application of the higher of quarter-end or year end market prices in calculating fully-diluted earnings per share does not result in a change to the calculation of primary earnings per share. 17