1 EXHIBIT 11.1 CALCULATION OF NET INCOME (LOSS) PER SHARE (In thousands, except per share amounts) Three Months Ended March 31, ---------------------- 1997 1996 -------- ------ Net income (loss) $ (381) $ 383 ======== ====== Weighted average shares of common stock outstanding 10,760 876 Net effect of dilutive stock options and warrants using the treasury stock method - 484 Shares related to staff accounting bulletin topic 4D: Stock options - 322 Preferred stock(1) - 1,145 -------- ------ Shares used in calculating net income (loss) per share 10,760 2,827 ======== ====== Net income (loss) per share $ (0.04) $ 0.14 ======== ====== Calculation of shares outstanding for computing pro forma net income per share: Shares used in computing net income per share 2,827 Adjusted to reflect the effect of the assumed conversion of preferred stock from the date of issuance (2) 5,736 ------ Shares used in computing pro forma net income per share 8,563 ====== Pro forma net income per share $ 0.04 ====== - -------------------- (1) Series D and E shares (2) Series A, B and C shares