Form 10-Q

Applied Signal Technology, Inc.

Index to Exhibits

Exhibits

Incorporated by reference to corresponding exhibit to Registrants' Registration Statement on Form S-1, filed January 29, 1993 (File No. 33-58168).

(11) Statement re Computation of per share earnings

Applied Signal Technology, Inc.
Exhibit 11

Computation of Net Income Per Share

(In thousands except per share data)

                                       Three Months Ended                Six Months Ended
                                   _____________  _____________     _____________  _____________

                                   Apr. 28, 1995  Apr. 29, 1994     Apr. 28, 1995  Apr. 29, 1994
                                   _____________  _____________     _____________  _____________
Number of shares

   Weighted average outstanding 
   common                             $ 7,152       $ 7,493            $ 7,178        $ 7,480

   Dilutive common stock 
   equivalents of:
     Stock options (treasury 
     stock method) (1)                    425           365                436            357
                                      _______       _______            _______        _______

                                        7,577         7,858              7,614          7,837
                                      _______       _______            _______        _______
                                      _______       _______            _______        _______
  
Net income                            $   270       $   379            $ 1,290        $   938 
                                      _______       _______            _______        _______
                                      _______       _______            _______        _______

Net income per share                  $  0.04       $  0.05            $  0.17        $  0.12
                                      _______       _______            _______        _______
                                      _______       _______            _______        _______
 
(1) Effect of assumed exercised all dilutive stock options and assumed repurchase
of shares from proceeds.

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