EXHIBIT XI

                            COMPUDYNE CORPORATION AND SUBSIDIARIES
                      COMPUTATION OF EARNINGS PER COMMON AND COMMON
                                          EQUIVALENT SHARE
<TABLE>
(In thousands, except per share amounts)
<CAPTION>
                                                 Year Ended December 31,
                                                    1996    1995     1994
<S>                                                  <C>     <C>     <C>
Primary (loss) earnings per share:
  (Loss) earnings from continuing operations 
    before extraordinary item                     $ 391    $(210)  $2,065
  Discontinued operations                           (60)    (453)    (860)
  Extraordinary item                                  -        -      523
                                                   -----    -----   -----
     Net (loss) earnings                          $ 331     (663)  $1,728
                                                   =====    =====   =====
Weighted average common and common 
  equivalent share                                 2,285    1,657   1,748
Conversion of preferred shares                     1,260      472       -
Adjustment to options                                  9        -       -
                                                   -----    -----   -----
Primary shares                                     3,554    2,129   1,748
                                                   =====    =====   =====
(Loss) earnings per share:
  Continuing operations before 
   extraordinary item                             $  .11   $ (.10)  $  118
  Discontinued operations                           (.02)    (.21)    (.49)
  Extraordinary item                                   -        -      .30
                                                   -----    -----    -----
     Net (loss) earnings                          $  .09   $ (.31)  $  .99
                                                   =====    =====    =====

Fully diluted (loss) earnings per share:
  (Loss) earnings from continuing operations
     before extraordinary item                    $  391     (210)  $2,065
  Adjustment for interest on promissory notes         26       13        -
  Discontinued operations                            (60)    (453)    (860)
  Extraordinary item                                   -        -      523
                                                   -----     -----   -----
     Net (loss) earnings                          $  357   $ (650)  $1,728
                                                   =====    =====    =====
Weighted average common and common 
  equivalent share                                 3,554     2,129   1,748
Conversion of preferred shares and 
 promissory notes                                    217        37       -
                                                   -----     -----   -----
Fully diluted shares                               3,771     2,166   1,748
                                                   =====     =====   =====
(Loss) earnings per share:
  Continuing operations before 
   extraordinary item                             $  .11    $ (.09) $  118
  Discontinued operations                           (.02)     (.21)   (.49)
  Extraordinary item                                   -         -     .30
                                                   -----     -----    -----
     Net (loss) earnings                          $ (.09)   $ (.30) $  .99
                                                   =====     =====    =====
</TABLE>