EXHIBIT 11.1 SBE, INC. COMPUTATION OF EARNINGS PER SHARE FOR THE THREE YEARS ENDED OCTOBER 31 YEARS ENDED OCTOBER 31 ---------------------- 1999 1998 1997 ---------- ---------- ---------- BASIC EARNINGS PER SHARE: Net income $ 151,423 $ 380,349 $3,333,181 Weighted average number of common shares outstanding during the year 2,849,349 2,666,707 2,501,786 ---------- ---------- ---------- Number of shares for computation of net income per share 2,849,349 2,666,707 2,501,786 ========== ========== ========== Basic earnings per share $ 0.05 $ 0.14 $ 1.33 ========== ========== ========== DILUTED EARNINGS PER SHARE: Weighted average number of common shares outstanding during the year 2,849,349 2,666,707 2,501,786 Assumed issuance of stock under the employee and non-employee stock option plans 59,264 224,033 201,637 ---------- ---------- ---------- Number of shares for computation of net income per share 2,908,613 2,890,740 2,703,423 ========== ========== ========== Diluted earnings per share $ 0.05 $ 0.13 $ 1.23 ========== ========== ========== 43