Exhibit 11.1

                         C-CUBE MICROSYSTEMS INC.
                                     
                    COMPUTATION OF EARNINGS PER SHARE
                  Quarter Ended March 31, 1997 and 1996
                 (in thousands, except per share amounts)


                                          Quarter Ended March 31,           
                                          ----------------------    
                                             1997         1996      
                                          ---------    ---------    
        Net income                        $  15,395    $  13,581    
                                          =========    =========    
        Weighted average common 
           shares outstanding                36,214       32,742    
        Common share equivalents 
           related to stock options           1,730        3,300    
                                          ---------    ---------    
        Weighted average common and 
           equivalent shares                 37,944       36,042    
                                          =========    =========    
        Net income per share              $    0.41    $    0.38    
                                          =========    =========