**Exhibit 11**

 

HECTORCOMMUNICATIONS CORPORATION AND SUBSIDIARIES

CALCULATIONOF EARNINGS PER SHARE

 
| ** **                                                                               | ** ** | **Year Ended December 31** | ** ** |
|------------------------------------------------------------------------------------------|------------|-------------------------------------------|------------|
|                                                                                     |       | **2005**                                  | ** ** | **2004** | ** ** | **2003** |   |
| Basic:                                                                                   |       |                                      |       |   |   |   |   |
| Income from continuing operations                                                        |       | $                                         | 6,567,334  |   | $ | 4,644,383 |   | $ | 4,296,906 |   |
| Income from discontinued operations                                                      |       |                                      |       |   |   | 881,854 |   |
| Net income                                                                               |       | $                                         | 6,567,334  |   | $ | 4,644,383 |   | $ | 5,178,760 |   |
|                                                                                     |       |                                      |       |   |   |   |   |
| Common shares:                                                                           |       |                                      |       |   |   |   |   |
| Weighted average number of common shares  outstanding                                    |       | 3,821,141                                 |       | 3,634,509 |   | 3,487,129 |   |
|                                                                                     |       |                                      |       |   |   |   |   |
| Net income per common share:                                                             |       |                                      |       |   |   |   |   |
| Continuing operations                                                                    |       | $                                         | 1.72       |   | $ | 1.28 |   | $ | 1.23 |   |
| Discontinued operations                                                                  |       |                                      |       |   |   | .25 |   |
|                                                                                     |       | $                                         | 1.72       |   | $ | 1.28 |   | $ | 1.48 |   |
|                                                                                     |       |                                      |       |   |   |   |   |
| Diluted:                                                                                 |       |                                      |       |   |   |   |   |
| Income from continuing operations                                                        |       | $                                         | 6,567,334  |   | $ | 4,644,383 |   | $ | 4,296,906 |   |
| Income from discontinued operations                                                      |       |                                      |       |   |   | 881,854 |   |
| Net income                                                                               |       | $                                         | 6,567,334  |   | $ | 4,644,383 |   | $ | 5,178,760 |   |
|                                                                                     |       |                                      |       |   |   |   |   |
| Common and common equivalent shares:                                                     |       |                                      |       |   |   |   |   |
|                                                                                     |       |                                      |       |   |   |   |   |
| Weighted average number of common shares  outstanding                                    |       | 3,821,141                                 |       | 3,634,509 |   | 3,487,129 |   |
| Dilutive effect of convertible preferred  shares outstanding                             |       | 114,387                                   |       | 203,854 |   | 220,100 |   |
| Dilutive effect of stock options  outstanding after application of treasury stock method |       | 148,589                                   |       | 130,667 |   | 56,124 |   |
| Dilutive effect of Employee Stock Purchase  Plan shares subscribed                       |       |                                      |       | 823 |   | 1,151 |   |
|                                                                                     |       | 4,084,117                                 |       | 3,969,853 |   | 3,764,504 |   |
|                                                                                     |       |                                      |       |   |   |   |   |
| Diluted net income per share:                                                            |       |                                      |       |   |   |   |   |
| Continuing operations                                                                    |       | $                                         | 1.61       |   | $ | 1.17 |   | $ | 1.14 |   |
| Discontinued operations                                                                  |       |                                      |       |   |   | .23 |   |
|                                                                                     |       | $                                         | 1.61       |   | $ | 1.17 |   | $ | 1.37 |   |
|                                                                                          |            |                                           |            |  |  |  |  |  |  |  |  |  |  |