RIMAGE CORPORATION
COMPUTATION OF NET EARNINGS PER SHARE OF COMMON STOCK
Net earnings per common share is determined by dividing the net earnings by the
weighted average number of shares of common stock and common share equivalents
outstanding. The following is a summary of the weighted average common shares
outstanding and common share equivalents:
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
--------- --------- --------- ---------
Shares Outstanding at
beginning of period 3,084,500 3,069,000 3,084,500 3,051,000
Common stock issued in stock
option exercise 0 15,500 0 33,500
--------- --------- --------- ---------
Shares Outstanding at
end of period 3,084,500 3,084,500 3,084,500 3,084,500
========= ========= ========= =========
Weighted average shares
of common stock outstanding 3,084,500 3,073,253 3,084,500 3,064,937
========= ========= ========= =========
Common stock equivalents 750,353 397,453 750,353 397,453
Weighted average shares of
common stock equivalents 19,347 19,708 25,895 43,183
========= ========= ========= =========
Weighted average shares of
common stock and
stock equivalents 3,103,847 3,092,961 3,110,395 3,108,120
========= ========= ========= =========
Net earnings (loss) $406,050 ($897,359) $421,080 ($849,884)
========= ========= ========= =========
Net earnings (loss) per share $0.14 ($0.29) $0.15 ($0.27)
========= ========= ========= =========