EXHIBIT 11.1 EXCEL SWITCHING CORPORATION COMPUTATION OF EARNINGS PER SHARE (IN THOUSANDS, EXCEPT PER SHARE DATA) YEAR ENDED DECEMBER 31, SIX MONTHS ENDED --------------- YEAR ---------------- ENDED JUNE DECEMBER JUNE 30, 28, 1994 1995 28, 1996 1996 1997 ------- ------- -------- -------- ------- Net Income........................... $ 4,190 $ 5,411 $ 7,901 $ 3,687 $ 7,420 ======= ======= ======= ======= ======= Weighted average common shares outstanding......................... 27,946 27,962 28,090 28,090 28,090 Weighted average common share equivalents......................... 3,395 3,861 4,607 4,492 4,832 Weighted average common shares issued within twelve months of initial public offering(1).................. 1,090 1,090 1,090 1,090 1,090 ------- ------- ------- ------- ------- Weighted average number of common and common equivalent shares outstanding......................... 32,431 32,913 33,787 33,672 34,012 ======= ======= ======= ======= ======= Net income per common and common equivalent share.................... $ 0.13 $ 0.16 $ 0.23 $ 0.11 $ 0.22 ======= ======= ======= ======= ======= - -------- (1) Pursuant to Securities and Exchange Commission Staff Accounting Bulletin No. 83, stock options issued at prices below the initial public offering price during the 12-month period immediately preceding the initial filing date of the Company's Registration Statement of its initial public offering have been included as outstanding for all periods presented. The dilutive effect of the common stock equivalents was computed in accordance with the treasury stock method.