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EXHIBIT 11.1
IRIDEX CORPORATION
COMPUTATION OF NET INCOME PER SHARE
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
YEAR ENDED DECEMBER 31,
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1996 1995 1994
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Weighted average shares outstanding
Common stock................................................... 5,165 1,276 1,118
Conversion of preferred stock.................................. 709 2,837 2,837
Common equivalent shares pursuant to Staff Accounting Bulletin
No. 83(2)................................................... 273 273 273
Conversion of stock options under the treasury stock method.... 331 244 287
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Weighted average common shares and equivalents................... 6,478 4,630 4,515
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Net income....................................................... $1,005 $1,000 $1,785
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Net income per share............................................. $ 0.16 $ 0.22 $ 0.40
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(1) There is no difference between primary and fully diluted net income per
share.
(2) Pursuant to Securities & Exchange Commission's Staff Accounting Bulletin No.
83, all securities issued during the period from January 17, 1995 through
the filing date of the initial public offering (January 16,1996), are
included in the calculation of Common Stock equivalents as if outstanding
for all periods prior to the effective date of the initial public offering
(February 15, 1996), even if anti-dilutive. The Common Stock and stock
options are computed using the treasury stock method, using the estimated
initial public offering price and applicable exercise prices.