Exhibit 11.1 DSP GROUP, INC. STATEMENT RE COMPUTATION OF PER SHARE EARNINGS (in thousands, except per share data) Three Months Nine Months Ended September 30, Ended September 30, -------------------------- -------------------------- 1996 1995 1996 1995 ---------- ---------- ---------- ---------- Net income $(263) $2,490 $578 $6,641 -------- -------- -------- -------- -------- -------- -------- -------- PRIMARY: Computation of weighted average common and common equivalent shares outstanding: Weighted average common shares outstanding 9,534 9,422 9,500 9,323 Common equivalent shares from stock options and warrants - 307 67 333 -------- -------- -------- -------- Shares used in per share computation 9,534 9,729 9,567 9,656 -------- -------- -------- -------- -------- -------- -------- -------- Net income per share $(.03) $.26 $.06 $.69 -------- -------- -------- -------- -------- -------- -------- -------- FULLY DILUTED: Computation of weighted average common and common equivalent shares outstanding: Weighted average common shares outstanding 9,534 9,422 9,500 9,323 Common equivalent shares from stock options and warrants - 307 67 337 -------- -------- -------- -------- Shares used in per share computation 9,534 9,729 9,567 9,660 -------- -------- -------- -------- -------- -------- -------- -------- Net income per share $(.03) $.26 $.06 $.69 -------- -------- -------- -------- -------- -------- -------- --------