Exhibit 11.1 DESKTOP DATA, INC. AND SUBSIDIARIES COMPUTATION OF NET EARNINGS PER SHARE YEAR ENDED DECEMBER 31, 1996 1995 ---- ---- Net income $ 4,584,798 $ 2,137,064 Accretion of dividends on Series B preferred stock - (101,250) Discount on redemption of Series B preferred stock - 1,232,238 ------------- ------------ Net income (loss) available for common stockholders $ 4,584,798 $ 3,268,052 ============= ============= Weighted average common shares outstanding 8,572,200 4,959,013 Weighted average shares to reflect the conversion of Series A, Series C, and Series D preferred stock as of the beginning of the period - 2,350,452 Common stock equivalents outstanding, pursuant to the treasury stock method 206,279 209,064 -------------- ----------- Weighted average number of common and common equivalent shares outstanding in 1996 and 1995 8,778,479 7,518,529 ------------- ----------- Net income per common and common equivalent share in 1996 and 1995 $ 0.52 $ 0.43 ============= ===========