EXHIBIT 11.1
RIMAGE CORPORATION
COMPUTATION OF NET EARNINGS PER SHARE OF COMMON STOCK
Basic net earnings per common share is determined by dividing net earnings by
the weighted average number of shares of common stock outstanding, unless the
result is anti-dilutive. Diluted 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, unless the result is
anti-dilutive. The following is a summary of the weighted average common shares
outstanding and common share equivalents:
Three months ended
March 31,
-------------------------
1998 1997
---------- ----------
Shares outstanding at beginning of period 3,091,302 3,084,500
---------- ----------
Common stock issued in stock option exercise 13,169 0
Shares outstanding at end of period 3,104,471 3,084,500
========== ==========
Weighted average shares of common stock outstanding 3,093,369 3,084,500
========== ==========
Common stock equivalents 709,797 388,853
Weighted average shares of common stock equivalents 353,851 3,391
========== ==========
Weighted average shares of common stock and stock equivalents 3,447,220 3,087,891
========== ==========
Net earnings $1,003,475 $ 15,030
========== ==========
Basic net earnings per share $ 0.32 $ 0.01
========== ==========
Diluted net earnings per share $ 0.29 $ 0.01
========== ==========