Exhibit 11.01 DIGITAL LINK CORPORATION STATEMENT OF COMPUTATION OF NET INCOME PER SHARE (In thousands, except per share data, unaudited) Quarter Ended Six Months Ended June 30, June 30, ------------ -------------- 1997 1996 1997 1996 ---- ---- ---- ---- Primary: Net income ................................. $1,705 $ 852 $3,036 $1,408 ====== ====== ====== ====== Weighted average number of shares from: Common shares outstanding ......... 9,188 9,082 9,189 9,045 Common equivalent shares from stock options outstanding .................. 318 367 352 356 ------ ------ ------ ------ Common and common equivalent shares used in computing per share amounts .......................... 9,506 9,449 9,541 9,401 ====== ====== ====== ====== Net income per share ....................... $ 0.18 $ 0.09 $ 0.32 $ 0.15 ====== ====== ====== ====== Note: There is no material difference in the computation of net income per share on a fully diluted basis.