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 assumed conversion shares 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 Six months ended
June 30, June 30,
1999 1998 1999 1998
----------- ----------- ----------- -----------
Shares outstanding at
beginning of period 5,047,585 4,656,707 4,936,088 4,636,953
Common stock issued in stock
option exercise 2,499 83,100 113,996 102,854
----------- ----------- ----------- -----------
Shares outstanding at
end of period 5,050,084 4,739,807 5,050,084 4,739,807
=========== =========== =========== ===========
Weighted average shares
of common stock outstanding 5,048,162 4,713,576 5,022,929 4,677,018
=========== =========== =========== ===========
Assumed conversion shares 1,039,401 1,334,696 1,039,401 1,334,696
Weighted average shares of
assumed conversion shares 740,584 715,608 777,663 681,825
=========== =========== =========== ===========
Weighted average shares of
common stock and assumed
conversion shares 5,788,746 5,429,184 5,800,592 5,358,843
=========== =========== =========== ===========
Income from continuing operations $ 1,323,405 $ 1,158,601 $ 2,308,267 $ 2,115,818
=========== =========== =========== ===========
Income (loss) from discontinued operations $ 378,824 $ (111,067) $ 489,494 $ (64,808)
=========== =========== =========== ===========
Income (loss) per basic share:
Continuing operations $ 0.26 $ 0.24 $ 0.46 $ 0.45
Discontinued operations 0.08 (0.02) 0.10 (0.01)
----------- ----------- ----------- -----------
Net income per basic share $ 0.34 $ 0.22 $ 0.56 $ 0.44
=========== =========== =========== ===========
Income (loss) per diluted share:
Continuing operations $ 0.23 $ 0.21 $ 0.40 $ 0.39
Discontinued operations 0.06 (0.02) 0.08 (0.01)
----------- ----------- ----------- -----------
Net income per diluted share $ 0.29 $ 0.19 $ 0.48 $ 0.38
=========== =========== =========== ===========