EXHIBIT 11.1
RIMAGE CORPORATION
COMPUTATION OF NET INCOME PER SHARE OF COMMON STOCK
Basic net income per common share is determined by dividing net income by the weighted average number of shares of common stock outstanding. Diluted net income per common share is determined by dividing net income by the weighted average number of shares of common stock and common share equivalents outstanding, unless the result is anti-dilutive. A total of 833 and 1,981 assumed conversion shares for the three months ended March 31, 2005 and 2004, respectively, were excluded from the net income per share computation, as their effect is anti-dilutive. The following is a summary of the weighted average common shares outstanding and assumed conversion shares:
Three months ended March 31, | ||||||||
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2005 | 2004 | |||||||
Shares outstanding at end of period | 9,476,587 | 9,257,982 | ||||||
Weighted average shares of common stock outstanding | 9,422,076 | 9,167,484 | ||||||
Weighted average shares of assumed conversion shares | 670,019 | 752,595 | ||||||
Weighted average shares of common stock and assumed | ||||||||
conversion shares | 10,092,095 | 9,920,079 | ||||||
Net income | $ | 2,691,236 | $ | 1,831,649 | ||||
Basic net income per common share | $ | 0.29 | $ | 0.20 | ||||
Diluted net income per common share | $ | 0.27 | $ | 0.18 | ||||
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