EXHIBIT 11.1 RIMAGE CORPORATION 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. Diluted net income per common share is determined by dividing net income by the weighted average number of shares of common stock and common share equivalents 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 Nine months ended September 30, September 30, ---------------------------- ---------------------------- 2001 2000 2001 2000 ---------- ---------- --------- ---------- Shares outstanding at end of period 8,665,881 8,653,285 8,665,881 8,653,285 ========== ========== ========== ========== Weighted average shares of common stock outstanding 8,734,692 8,510,224 8,720,018 8,338,555 Weighted average shares of assumed conversion shares 743,871 1,231,013 815,073 1,340,642 ---------- ---------- ---------- ---------- Weighted average shares of common stock and assumed conversion shares 9,478,563 9,741,237 9,535,091 9,679,197 ========== ========== ========== ========== Net income $1,395,107 $1,194,900 $3,376,953 $5,829,483 ========== ========== ========== ========== Basic net income per common share $ 0.16 $ 0.14 $ 0.39 $ 0.70 ========== ========== ========== ========== Diluted net income per common share $ 0.15 $ 0.12 $ 0.35 $ 0.60 ========== ========== ========== ========== 16