<TABLE>
                                                                                                                          EXHIBIT 11
                                              WATKINS-JOHNSON COMPANY AND SUBSIDIARIES

                                             COMPUTATION OF NET INCOME PER COMMON SHARE
                                          FOR THE YEARS ENDED DECEMBER 31, 1996, 1995, 1994
                                          (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

<CAPTION>
                                                                                                 YEAR ENDED DECEMBER 31 
                                                                              ------------------------------------------------------
                                                                                 1996                   1995                 1994 
                                                                              ----------            ----------            ----------
<S>                                                                            <C>                   <C>                   <C>      
For primary net income per share:
 Weighted average shares outstanding .............................             8,265,000             7,938,000             7,425,000
 Equivalent shares--dilutive stock 
  options--based on treasury stock method
  using average market price......................................               272,000               838,000               728,000
                                                                              ----------            ----------            ----------
     Total .......................................................             8,537,000             8,776,000             8,153,000
                                                                              ==========            ==========            ==========
For fully diluted net income per share:
 Weighted average shares outstanding .............................             8,265,000             7,938,000             7,425,000
 Equivalent shares--dilutive stock 
  options--based on treasury stock method
  using greater of average or ending
  market price....................................................               276,000               937,000               775,000
                                                                              ----------            ----------            ----------
     Total .......................................................             8,541,000             8,875,000             8,200,000
                                                                              ==========            ==========            ==========
Net income .......................................................                $3,034               $31,428               $20,961
                                                                                  ======               =======               =======
Primary net income per share .....................................                $ 0.36               $  3.58               $  2.57
                                                                                  ======               =======               =======
Fully diluted net income per share ...............................                $ 0.36               $  3.54               $  2.56
                                                                                  ======               =======               =======
                                                                                                                      
<FN>
This   calculation  is  submitted  in  accordance   with  Regulation  S-K,  Item
601(b)(11).
</FN>
</TABLE>

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