1 EXHIBIT 11.1 HMT TECHNOLOGY CORPORATION STATEMENT REGARDING COMPUTATION OF NET INCOME (LOSS) PER SHARE (In thousands, except per share data) YEAR ENDED MARCH 31, --------------------------------------- 1997 1996 1995 --------- --------- --------- Primary: Weighted average shares outstanding for the period............... 40,493 30,234 29,656 Net effect of dilutive stock options-based on the treasury stock method using average market price.................... -- -- 3,692 Common equivalent shares pursuant to Staff Accounting Bulletin No. 83................................................ -- 4,990 5,166 --------- --------- --------- Shares used in computing per share amounts....................... 44,185 35,224 34,822 ========= ========= ========= Net income (loss) available for common stockholders.............. $ 61,745 $ 45,222 $ (8,941) ========= ========= ========= Net income (loss) available for common stockholders per share.... $ 1.40 $ 1.28 $ (0.26) ========= ========= ========= Fully Diluted: Weighted average shares outstanding for the period............... 40,493 30,234 29,656 Net effect of dilutive stock options-based on the treasury stock method using the year-end market price, if higher than average market price........................... 3,692 -- -- Common equivalent shares pursuant to Staff Accounting Bulletin No. 83................................................ -- 4,990 5,166 Assumed conversion of 5 3/4% convertible subordinated notes............................................. 1,842 -- -- --------- --------- --------- Shares used in computing per share amounts....................... 46,027 35,224 34,822 ========= ========= ========= Net income (loss) available for common stockholders.............. $ 61,745 $ 45,222 $ (8,941) Add 5 3/4% convertible subordinated note interest, net of interest capitalized and income tax effect... 588 -- -- --------- --------- --------- Net income (loss) available for common stockholders.............. $ 62,333 $ 45,222 $ (8,941) ========= ========= ========= Net income (loss) available for common stockholders per share.... $ 1.35 $ 1.28 $ (0.26) ========= ========= =========