Aldila 10-Q 2006 Q3 Quarterly report

Exhibit 11.1

ALDILA, INC. AND SUBSIDIARIES

COMPUTATION OF NET INCOME PER COMMON SHARE - UNAUDITED

(In thousands, except per share amounts)

	Three months ended				Nine months ended
	September 30,				September 30,
	2006		2005		2006		2005
BASIC:
Net income	$	2,861	$	3,761	$	9,888	$	10,714
Weighted average number of common shares outstanding	5,567		5,333		5,516		5,238
Net income per common share	$	0.51	$	0.71	$	1.79	$	2.05
ASSUMING DILUTION:
Net income	$	2,861	$	3,761	$	9,888	$	10,714
Weighted average number of common shares outstanding	5,567		5,333		5,516		5,238
The number of shares resulting from the assumed exercise of stock options reduced by the number of shares which could have been purchased with the proceeds from such exercise, using the average market price during the period	64		215		74		200
Weighted average number of common and common equivalent shares	5,631		5,548		5,590		5,438
Net income per common share, assuming dilution	$	0.51	$	0.68	$	1.77	$	1.97