EXHIBIT 11.1
RIMAGE CORPORATION AND SUBSIDIARIES
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 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 Nine months ended
September 30, September 30,
1998 1997 1998 1997
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Shares outstanding at
beginning of period 3,159,871 3,084,500 3,091,302 3,084,500
Common stock issued in stock
option exercise 77,128 5,335 145,697 5,335
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Shares outstanding at
end of period 3,236,999 3,089,835 3,236,999 3,089,835
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Weighted average shares
of common stock outstanding 3,218,632 3,085,701 3,151,921 3,084,905
========== ========== ========== ==========
Common stock equivalents 889,797 764,599 889,797 764,599
Weighted average shares of
common stock equivalents 512,643 198,024 462,221 139,222
========== ========== ========== ==========
Weighted average shares of
common stock and
stock equivalents 3,731,275 3,283,725 3,614,142 3,224,127
========== ========== ========== ==========
Net earnings $1,672,724 $ 526,435 $3,723,734 $ 947,515
========== ========== ========== ==========
Basic net earnings per share $ 0.52 $ 0.17 $ 1.18 $ 0.31
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Diluted net earnings per share $ 0.45 $ 0.16 $ 1.03 $ 0.29
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