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 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 assumed conversion shares: Three months ended March 31, 1999 1998 ---------- ---------- Shares outstanding at beginning of period 4,936,088 4,636,944 Common stock issued in stock option exercise 111,497 19,751 ---------- ---------- Shares outstanding at end of period 5,047,585 4,656,695 ========== ========== Weighted average shares of common stock outstanding 4,997,417 4,640,044 ========== ========== Common stock equivalents 1,006,650 1,064,689 Weighted average shares of assumed conversion shares 812,205 530,773 ========== ========== Weighted average shares of common stock and assumed conversion shares 5,809,622 5,170,817 ========== ========== Net earnings $1,095,531 $1,003,475 ========== ========== Basic net earnings per common share $ 0.22 $ 0.22 ========== ========== Diluted net earnings per common share and assumed conversion shares $ 0.19 $ 0.19 ========== ==========