1 TRANSACT TECHNOLOGIES INCORPORATED EXHIBIT 11.1 COMPUTATION OF PRO FORMA EARNINGS PER SHARE Year Ended Nine Months Ended Year Ended -------------------------------- ---------------------------- ---------- December 31, December 31, December 31, December 31, April 1, 1996 1995 1995 1994 1995 ------------ ------------ ------------ ------------ -------- (Unaudited) (Unaudited) PRIMARY: Net Income $3,340,000 $1,332,000 $ 916,000 $1,883,000 $2,304,000 ========== ========== ========== ========== ========== SHARES: Pro forma average common shares outstanding 5,864,242 5,400,000 5,400,000 5,400,000 5,400,000 Dilutive effect of outstanding options and warrants as determined by the treasury stock method 19,792 - - - - ---------- ---------- ---------- ---------- ---------- 5,884,033 5,400,000 5,400,000 5,400,000 5,400,000 ========== ========== ========== ========== ========== Pro forma earnings per common and common equivalent share: $ 0.57 $ 0.25 $ 0.17 $ 0.35 $ 0.43 ========== ========== ========== ========== ========== 31