CREE RESEARCH, INC. EXHIBIT 11 STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE For the Three Months Ended September 30, 1996 1995 -------------------------------------------------------------------------- Primary Fully Diluted Primary Fully Diluted ---------------- ------------------ ---------------- -------------------- Weighted average shares outstanding: Common stock 12,281,563 12,281,563 10,644,660 10,644,660 Shares available under options and warrants 753,175 786,230 1,260,598 1,260,598 ------------- --------------- ------------- ------------------- Weighted average common and common equivalent shares outstanding 13,034,738 13,067,793 11,905,258 11,905,258 ============= =============== ============= =================== Net income 1,905,920 1,905,920 193,689 193,689 ============= =============== ============= =================== Earnings per share $ 0.15 $ 0.15 $ 0.02 $ 0.02 ============= =============== ============= ===================