1 Exhibit 11.1 RESOUND CORPORATION STATEMENT OF COMPUTATION OF NET INCOME (LOSS) PER SHARE (in thousands except per share data) March 31, March 31, --------- --------- 1997 1996 ---- ---- Net income (loss) applicable to common shareholders ............... $ (969) $ 118 ======== ======== Average common shares outstanding (1) ............................. 19,389 15,690 Net effect of dilutive stock options (based on treasury stock method .......................................................... -- 429 -------- -------- Total shares for primary and fully diluted net income per share (2) 19,389 16,119 ======== ======== Net income (loss) per share ....................................... $ (0.05) $ 0.01 ======== ======== Notes: (1) Actual shares issued and outstanding as of March 31, 1997 were 19,428,760. (2) Fully diluted amounts do not differ materially.