EXHIBIT 11.1

                           KLA INSTRUMENTS CORPORATION
                        CALCULATION OF EARNINGS PER SHARE
                                   (UNAUDITED)



<TABLE>
<CAPTION>
                                           Three Months Ended   Six Months Ended
                                              December 31,        December 31,
(In thousands except per share amounts)        1996      1995    1996     1995
- -------------------------------------------------------------------------------
<S>                                           <C>      <C>      <C>      <C>    
Primary earnings per share

Net income                                    $21,331  $29,835  $45,308  $57,161
                                              =======  =======  =======  =======

Average common and common
  equivalent shares:
   Average common shares outstanding           51,307   50,363   51,244   50,512
   Dilutive options                             1,777    2,023    1,361    1,885
                                              -------  -------  -------  -------
                                               53,084   52,386   52,605   52,397
                                              =======  =======  =======  =======

Net income per share                          $  0.40  $  0.57  $  0.86  $  1.09
                                              =======  =======  =======  =======
</TABLE>