Exhibit 11.1 SanDisk Corporation Statement Regarding Computation of Per Share Earnings (In thousands, except per share data; unaudited) Three Months ended, Six Months ended, June 30, June 30, 1996 1995 1996 1995 ------- ------- ------- ------- Primary: Net income ................................... $ 3,405 $ 2,872 $ 6,459 $ 4,026 Computations of weighted average common and common equivalent shares outstanding: Weighted average common shares outstanding ................... 22,106 2,867 22,065 2,860 Common equivalent shares from stock options and convertible preferred stock granted or issued during the twelve-month period prior to the Company's initial public offering .... -- 1,408 -- 1,408 Common stock options .................... 2,035 1,053 2,107 1,063 Convertible preferred stock ............. -- 227 -- 227 ------- ------- ------- ------- Shares used in computing net income per share ............................... 24,141 5,555 24,172 5,558 ======= ======= ======= ======= Net income per share applicable to common stockholders .................. $ 0.14 $ 0.52 $ 0.27 $ 0.72 ======= ======= ======= ======= Fully Diluted: Net income ................................... $ 3,405 $ 2,872 $ 6,459 $ 4,026 Computation of weighted average common and common equivalent shares outstanding: Weighted average common shares outstanding ................... 22,106 2,867 22,065 2,860 Common equivalent shares from stock options and convertible preferred stock granted or issued during the twelve-month period prior to the Company's initial public offering .... -- 1,408 -- 1,408 Common stock options .................... 2,035 1,110 2,107 1,091 Convertible preferred stock ............. -- 14,665 -- 14,665 ------- ------- ------- ------- Shares used in computing net income per share ............................... 24,141 20,050 24,172 20,024 ======= ======= ======= ======= Net income per share ......................... $ 0.14 $ 0.14 $ 0.27 $ 0.20 ======= ======= ======= =======