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. A total of 4,236 and 8,100
assumed conversion shares for the three- and nine-month periods ended September
30, 2003, respectively and 51,713 and 68,089 assumed conversion shares for the
three- and nine-month periods ended September 30, 2002, respectively, were
excluded from the net loss per share computation as their effect 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,
------------- -------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Shares outstanding at end of period 9,093,712 8,713,111 9,093,712 8,713,111
========== ========== ========== ==========
Weighted average shares of common stock
outstanding 9,066,835 8,712,285 8,872,558 8,698,020
Weighted average shares of assumed
conversion shares 767,792 809,005 797,323 797,170
---------- ---------- ---------- ----------
Weighted average shares of common stock and
assumed conversion shares 9,834,627 9,521,289 9,669,881 9,495,190
========== ========== ========== ==========
Net income $1,979,579 $1,879,106 $5,200,805 $4,814,134
========== ========== ========== ==========
Basic net income per common share $ 0.22 $ 0.22 $ 0.59 $ 0.55
========== ========== ========== ==========
Diluted net income per common share $ 0.20 $ 0.20 $ 0.54 $ 0.51
========== ========== ========== ==========
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