1 EXHIBIT 11.1 APPLIED DIGITAL ACCESS, INC. STATEMENT REGARDING COMPUTATION OF NET LOSS PER SHARE (UNAUDITED) (Amounts in thousands, except per share data) FOR THE THREE MONTHS FOR THE NINE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, 1997 1996 1997 1996 ---- ---- ---- ---- Net income (loss) ($526) ($3,165) ($4,349) ($5,473) ======== ======== ======== ======== Reconciliation of weighted average number of shares outstanding to amount used in net income per share computation: Weighted average number of common shares outstanding 12,512 12,175 12,425 12,033 Weighted average number of options and warrants outstanding, - - - - -------- -------- -------- -------- Weighted average number of shares outstanding 12,512 12,175 12,425 12,033 ======== ======== ======== ======== Net income (loss) per share ($0.04) ($0.26) ($0.35) ($0.45) ======== ======== ======== ======== See Note 3 to Condensed Financial Statements