TRANSACT TECHNOLOGIES INCORPORATED
                                  Exhibit 11.1
                        Computation of Earnings Per Share
                                   (unaudited)



                                                                        THREE MONTHS ENDED            NINE MONTHS ENDED
                                                                  SEPTEMBER 30,   September 23,   SEPTEMBER 30,  September 23,
(In thousands, except per share data)                                 2001            2000            2001            2000
                                                                                                      
   Net income (loss)                                                $  (162)        $   290         $(3,139)        $  (196)
   Dividends and accretion on preferred stock                           (90)            (90)           (269)           (230)
                                                                    -------         -------         -------         -------
   Net income (loss) available to common
     shareholders                                                   $  (252)            200         $(3,408)        $  (426)
                                                                    =======         =======         =======         =======
   Shares:
     Basic - Weighted average common shares
       outstanding                                                    5,584           5,512           5,557           5,496
     Dilutive effect of outstanding options and
       warrants as determined by the treasury
       stock method                                                      --              --              --              --
                                                                    -------         -------         -------         -------
     Dilutive - Weighted average common and
       common equivalent shares outstanding                           5,584           5,512           5,557           5,496
                                                                    =======         =======         =======         =======
   Net income (loss) per common and common equivalent share:
       Basic                                                        $ (0.05)        $  0.04         $ (0.61)        $ (0.08)
                                                                    =======         =======         =======         =======
       Diluted                                                        (0.05)           0.04           (0.61)          (0.08)
                                                                    =======         =======         =======         =======