EXHIBIT 11.1
RIMAGE CORPORATION
COMPUTATION OF NET EARNINGS PER SHARE OF COMMON STOCK
Proforma 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
MARCH 31,
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1996 1995
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Shares Outstanding at beginning of period
(prior to merger) - 1,950,000
Common stock issued in merger with Dunhill
Software Services - 1,100,000
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Shares Outstanding at beginning of period 3,051,000 3,050,000
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Common stock issued in stock option exercise 18,000 -
Shares Outstanding at end of period 3,069,000 3,050,000
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Weighted average shares of common stock outstanding 3,056,621 3,050,000
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**Common stock equivalents 412,953 846,455
Weighted average shares of common stock equivalents 28,929 18,677
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Weighted average shares of common stock and stock
equivalents 3,085,550 3,068,677
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Proforma net earnings $47,475 $173,099
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Proforma net earnings per share $0.02 $0.06
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** Included as common stock equivalents for the quarter ended March 31, 1995
are 540,000 warrants which expired on July 20, 1995