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EXHIBIT 12.1
SDL, INC.
STATEMENT SETTING FORTH THE COMPUTATION OF RATIOS
OF EARNINGS TO FIXED CHANGES
(In thousands, except ratios)
Years Ended December 31, Six Months
Ended
1994 1995 1996 1997 1998 June 30, 1999
-------- -------- -------- -------- -------- -------------
Income (loss) before taxes $ 3,448 $ (897) $ 11,191 $(23,936) $ 8,986 $ 8,657
Add - Fixed charges 1,126 1,484 691 968 1,265 914
-------- -------- -------- -------- -------- --------
Income(loss) before taxes
and fixed charges $ 4,574 $ 587 $ 11,882 $(22,968) $ 10,251 $ 9,571
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Fixed charges:
Interest $ 855 $ 1,103 $ 196 $ 248 $ 440 $ 501
expense
Estimated interest
component of rental expense 271 381 495 720 825 413
-------- -------- -------- -------- -------- --------
Total $ 1,126 $ 1,484 $ 691 $ 968 $ 1,265 $ 914
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Ratio of earnings to fixed charges(1) 4.1x n/a 17.2x n/a 8.1x 10.5x
(1) Earnings were insufficient to cover fixed charges by approximately $23.9
million and $0.9 million in the years ended December 31, 1997 and 1995,
respectively.