DESKTOP DATA, INC. AND SUBSIDIARIES EXHIBIT 11.1
COMPUTATION OF EARNINGS PER SHARE
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
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Net income $ 1,023 $ 327 $ 1,863 $ 603
Accretion of dividends on Series B
redeemable preferred stock - (34) - (68)
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Net income available for
common stockholders $ 1,023 $ 293 $ 1,863 $ 535
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Weighted average common shares
outstanding 8,565 2,647 8,545 2,673
Weighted average shares to reflect
the conversion of Series A,
Series C, and Series D preferred
stock as of the beginning of
the period - 3,847 - 3,847
Weighted average shares to be issued
sufficient to generate proceeds for
the payment of dividends on the
Series A preferred stock payable
upon the Initial Public Offering - 169 - 191
Common stock options issued after
July 1, 1994, pursuant to the
treasury stock method - 50 - 50
Common stock equivalents outstanding,
pursuant to the treasury stock
method (1) 274 158 242 161
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Weighted average number of common
and common equivalent shares
outstanding in 1996; Pro forma
weighted average number of common
and common equivalent shares
outstanding in 1995 8,839 6,871 8,787 6,922
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Net income per common and
common equivalent share in 1996;
Pro forma net income per common
and common equivalent share in
1995 $ 0.12 $ 0.04 $ 0.21 $ 0.08
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(1) For 1995, includes common stock options issued after July 1, 1994, pursuant
to the treasury stock method, in accordance with Securities and Exchange
Commission Rules.
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