1 EXHIBIT 11.1 DIAMOND MULTIMEDIA SYSTEMS, INC. STATEMENT REGARDING COMPUTATION OF NET INCOME (LOSS) PER SHARE (in thousands, except per share data) THREE MONTHS ENDED MARCH 31, ------------------------ 1997 1996 ------- ------- Weighted average common shares outstanding for period 34,179 34,493 Dilutive employee stock options -- 849 ------- ------- Shares used in per share calculations 34,179 35,342 ======== ======== Net income (loss) ($5,951) $11,194 Net income (loss) per share ($0.17) $0.32 ======= ======== The difference between the calculation of net income (loss) per share calculated on the primary and fully diluted basis is not material.