1 EXHIBIT 11.1 WALL DATA INCORPORATED COMPUTATION OF EARNINGS PER SHARE Year Ended December 31, --------------------------------------------- 1996 1995 1994 ---------- ---------- ----------- PRIMARY Average shares outstanding 9,058,380 9,223,949 8,983,049 Net effect of dilutive stock options based on the treasury stock method using average market price 466,288 626,921 1,140,712 Dilutive effect of Convertible Preferred Stock -- -- -- ========== ========== =========== Total weighted average shares outstanding 9,524,668 9,850,870 10,123,761 ========== ========== =========== Net income $4,193,000 $7,251,000 $14,184,000 ========== ========== =========== Net income per share $ 0.44 $ 0.74 $ 1.40 ========== ========== =========== FULLY DILUTED Average shares outstanding 9,058,380 9,223,949 8,983,049 Net effect of dilutive stock options based on the treasury stock method using the period-end market price, if higher than average market price 466,288 626,921 1,140,712 Dilutive effect of note payable -- -- 42,662 ========== ========== =========== Total weighted average shares outstanding 9,524,668 9,850,870 10,166,423 ========== ========== =========== Net income $4,193,000 $7,251,000 $14,184,000 ========== ========== =========== Net income per share $ 0.44 $ 0.74 $ 1.40 ========== ========== ===========