Exhibit 11.1 DSP GROUP, INC. STATEMENT RE COMPUTATION OF PER SHARE EARNINGS (in thousands, except per share data) Three Months Six Months Ended June 30, Ended June 30, --------------------- --------------------- 1996 1995 1996 1995 ----- ------ ----- ------ Net income $ 268 $2,438 $ 842 $4,151 ----- ------ ----- ------ ----- ------ ----- ------ PRIMARY: Computation of weighted average common and common equivalent shares outstanding: Weighted average common shares outstanding 9,505 9,315 9,482 9,272 Common equivalent shares from stock options and warrants 63 343 68 335 ----- ------ ----- ------ Shares used in per share computation 9,568 9,658 9,550 9,607 ----- ------ ----- ------ ----- ------ ----- ------ Net income per share $.03 $.25 $.09 $.43 ----- ------ ----- ------ ----- ------ ----- ------ FULLY DILUTED: Computation of weighted average common and common equivalent shares outstanding: Weighted average common shares outstanding 9,505 9,315 9,482 9,272 Common equivalent shares from stock options and warrants 63 382 69 404 ----- ------ ----- ------ Shares used in per share computation 9,568 9,697 9,551 9,676 ----- ------ ----- ------ ----- ------ ----- ------ Net income per share $.03 $.25 $.09 $.43 ----- ------ ----- ------ ----- ------ ----- ------ 22