<PAGE>   1
EXHIBIT 11


                          SMITH TECHNOLOGY CORPORATION
             (FORMERLY SMITH ENVIRONMENTAL TECHNOLOGIES CORPORATION)

                    COMPUTATION OF (LOSS) EARNINGS PER SHARE
                    (IN THOUSANDS, EXCEPT COMMON SHARE DATA)
                                    UNAUDITED


<TABLE>
<CAPTION>
                                                               THREE MONTHS ENDED            SIX MONTHS ENDED
                                                                   MARCH 31,                      MARCH 31,
                                                            ----------------------        ----------------------
                                                             1997           1996           1997           1996
                                                            -------        -------        -------        -------
PRIMARY

<S>                                                         <C>            <C>            <C>            <C>
Weighted average shares of common
       stock outstanding                                      6,167          5,862          6,146          5,857
Incremental shares applicable to assumed
       exercise of stock options                               --               15           --               23
                                                            -------        -------        -------        -------

Weighted average number of common and
       common equivalent shares outstanding                   6,167          5,877          6,146          5,880
                                                            =======        =======        =======        =======

Income before extraordinary charge                          $(5,362)       $(2,595)       $(5,913)       $(2,210)
Extraordinary charge                                           --             (113)          --           (1,395)
                                                            -------        -------        -------        -------

Net (loss) income                                           $(5,362)       $(2,708)       $(5,913)       $(3,605)
                                                            =======        =======        =======        =======

Net (loss) income applicable to common stock                $(5,582)       $(2,841)       $(6,355)       $(3,875)
                                                            =======        =======        =======        =======

Income (loss) per common and common equivalent share:

Income before extraordinary charge                          $ (0.87)       $ (0.44)       $ (0.96)       $ (0.38)
Extraordinary charge                                           --            (0.02)          --            (0.24)
                                                            -------        -------        -------        -------

Net (loss) income                                           $ (0.87)       $ (0.46)       $ (0.96)       $ (0.61)
                                                            =======        =======        =======        =======

Net (loss) income applicable to common stock                $ (0.91)       $ (0.48)       $ (1.03)       $ (0.66)
                                                            =======        =======        =======        =======
</TABLE>


The computation of income (loss) per common equivalent share on a fully diluted
basis does not materially differ from the amounts calculated on a primary basis.


                                       57