EXHIBIT 11.1 ZITEL CORPORATION COMPUTATION OF EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE Year Ended September 30, ------------------------------------------ 1993 1994 1995 ----------- ----------- ----------- Average common shares outstanding 6,179,000 6,327,000 7,079,000 Computation of incremental outstanding shares Net effect of dilutive stock options based on treasury stock method 0 0 504,000 6,179,000 6,327,000 7,583,000 Net income (loss) $(8,277,000) $(6,961,000) $8,526,000 Earnings (loss) per share $ (1.34) $ (1.10) $ 1.12 Primary and fully diluted income per share differ by less than one cent in all periods. Page 41