Exhibit 11.1 C-CUBE MICROSYSTEMS INC. COMPUTATION OF EARNINGS PER SHARE Quarter Ended March 31, 1996 (in thousands, except per share amounts) Quarter Ended March 31, --------------------- 1996 1995 ------- ------ Net income $13,581 $3,194 ======= ====== Weighted average common shares outstanding 32,742 31,276 Common share equivalents related to stock options 3,300 2,340 ------- ------ Weighted average common and equivalent shares 36,042 33,616 ======= ====== Net income per share $0.38 $0.10 ======= ======