Exhibit 11.1
CYANOTECH CORPORATION
COMPUTATION OF EARNINGS PER SHARE
Fiscal years ended March 31, 1998, 1997 and 1996
1998 1997 1996
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BASIC EARNINGS PER SHARE
Net income (loss) $ (300,000) $ 4,159,000 $ 2,509,000
Less: Requirement for Preferred Stock dividends (289,000) (294,000) (354,000)
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Net income (loss) available to Common stockholders $ (589,000) $ 3,865,000 $ 2,155,000
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Weighted average Common Shares outstanding 12,909,000 12,583,000 9,583,000
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Net income (loss) per Common Share $ (0.05) $ 0.31 $ 0.22
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DILUTED EARNINGS PER SHARE
Net income (loss) available to Common stockholders $ (589,000) $ 3,865,000 $ 2,155,000
Plus: Requirement for Preferred Stock dividends -- 294,000 354,000
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Net income (loss) available to Common stockholders as
adjusted $ (589,000) $ 4,159,000 $ 2,509,000
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Weighted average Common Shares outstanding 12,909,000 12,583,000 9,583,000
Effect of dilutive securities
Stock Options and Warrants -- 340,000 994,000
Convertible Preferred Stock -- 3,675,000 3,925,000
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Weighted average Common Shares outstanding as adjusted 12,909,000 16,598,000 14,502,000
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Net income (loss) per Common Share (1) $ (0.05) $ 0.25 $ 0.17
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(1) For the year ended March 31, 1998, warrants and options to purchase Common
Stock shares of the Company and convertible preferred stock were outstanding,
but were not included in the 1998 computation of Diluted net loss per common
share because the inclusion of these securities would have had an antidilutive
effect on the net loss per common share.