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EXHIBIT 11.01
ESS TECHNOLOGY, INC.
COMPUTATION OF NET INCOME PER SHARE
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
YEAR ENDED DECEMBER 31,
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1994 1995 1996
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Weighted average common shares.............................. 29,141 31,265 37,702
Weighted average common equivalent shares:
Common stock(1)........................................... 3,901 3,225 3,886
Cheap stock(1)............................................ 4,371 3,285 --
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Total weighted average common and common equivalent
shares.................................................... 37,413 37,775 41,588
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Net income.................................................. $ 8,381 $29,886 $21,626
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Net income per share........................................ $ 0.22 $ 0.79 $ 0.52
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(1) Earnings per share is computed using the weighted average number of common
and common equivalent shares ("weighted average shares") outstanding during
the period. Common equivalent shares consist of the Company's common stock
issuable upon exercise of stock options (using the treasury stock method),
except when antidilutive. Common stock issued and stock options granted
subsequent to July 31, 1994 through October 5, 1995, (the date of the
initial public offering) have been included in the calculation of weighted
average shares outstanding as if they were outstanding for reporting periods
occurring between these dates. The Company used the treasury stock method
and the initial public offering price of $15.00 per share for these
calculations.