CREE RESEARCH, INC. EXHIBIT 11 STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE For the Three Months Ended December 31, 1996 1995 ____________________________ _________________ Primary Fully Diluted Primary Fully Diluted _________ _____________ ________ _____________ Weighted Average Shares Outstanding: Common Stock 12,292,179 12,292,179 11,896,988 11,896,988 Shares Available Under Options and Warrants 719,778 719,778 121,553 121,553 ---------- ---------- ---------- ---------- Weighted Average Common and Common Equivalent Shares Outstanding 13,011,957 13,011,957 12,018,541 12,018,541 ---------- ---------- ---------- ----------- Net Income 357,848 357,848 822,200 822,200 ---------- ---------- ---------- ----------- Earnings per Share $ 0.03 $ 0.03 $ 0.07 $ 0.07 ---------- ---------- ---------- ----------- For the Six Months Ended December 31, 1996 1995 ____________________________ _________________ Primary Fully Diluted Primary Fully Diluted _________ _____________ ________ _____________ Weighted Average Shares Outstanding: Common Stock 12,286,871 12,286,871 11,269,291 11,269,291 Shares Available Under Options and Warrants 731,553 746,174 111,245 111,245 ---------- ---------- ---------- ---------- Weighted Average Common and Common Equivalent Shares Outstanding 13,018,404 13,033,045 11,380,536 11,380,536 ---------- ---------- ---------- ----------- Net Income 2,263,768 2,263,768 1,015,889 1,015,889 ---------- ---------- ---------- ----------- Earnings per Share $ 0.17 $ 0.17 $ 0.09 $ 0.09 ---------- ---------- ---------- -----------