EXHIBIT 11.1 RIMAGE CORPORATION AND SUBSIDIARIES COMPUTATION OF NET INCOME PER SHARE OF COMMON STOCK Basic net income per common share is determined by dividing net income by the weighted average number of shares of common stock outstanding, unless the result is anti-dilutive. Diluted net income per common share is determined by dividing net income by the weighted average number of shares of common stock and assumed conversion shares outstanding, unless the result is anti-dilutive. The following is a summary of the weighted average common shares outstanding and assumed conversion shares: Three months ended Six months ended June 30, June 30, 2000 1999 2000 1999 ------------ ------------ ------------ ------------ Shares outstanding at beginning of period 8,259,113 7,891,998 7,962,358 7,899,338 Common stock issued in stock option/ warrant exercise 145,432 3,749 442,187 233,586 Repurchases of common stock -- -- -- (237,177) ------------ ------------ ------------ ------------ Shares outstanding at end of period 8,404,545 7,895,747 8,404,545 7,895,747 ============ ============ ============ ============ Weighted average shares of common stock outstanding 8,344,059 7,892,863 8,251,124 7,855,015 ============ ============ ============ ============ Assumed conversion shares 1,535,063 1,929,311 1,535,063 1,929,311 Weighted average shares of assumed conversion shares 1,321,687 1,365,691 1,389,277 1,429,486 ============ ============ ============ ============ Weighted average shares of common stock and assumed conversion shares 9,665,746 9,258,554 9,640,401 9,284,501 ============ ============ ============ ============ Income from continuing operations $ 2,480,477 $ 1,037,441 $ 4,634,583 $ 2,021,729 ============ ============ ============ ============ Income from discontinued operations $ -- $ 378,824 $ -- $ 489,494 ============ ============ ============ ============ Income per basic share: Continuing operations $ 0.30 $ 0.13 $ 0.56 $ 0.26 Discontinued operations -- 0.05 -- 0.06 ------------ ------------ ------------ ------------ Net income per basic share $ 0.30 $ 0.18 $ 0.56 $ 0.32 ============ ============ ============ ============ Income per diluted share: Continuing operations $ 0.26 $ 0.11 $ 0.48 $ 0.22 Discontinued operations -- 0.04 -- 0.05 ------------ ------------ ------------ ------------ Net income per diluted share $ 0.26 $ 0.15 $ 0.48 $ 0.27 ============ ============ ============ ============ 17