EXHIBIT 11.1 PARADIGM TECHNOLOGY, INC. COMPUTATION OF NET INCOME (LOSS) PER SHARE (1) (in thousands, except net income per share) Three Months Ended Nine Months Ended ----------------------- ----------------------- Sept. 30, Sept. 30, Sept. 30, Sept. 30, 1997 1996 1997 1996 --------- --------- --------- --------- Net income (loss) from operations $ (3,032) $ (7,280) $ (6,739) $(23,735) Accretion on Convertible Preferred Stock (432) -- (1,167) -- -------- -------- -------- -------- Net income (loss) available to Common Stockholders $ (3,464) $ (7,280) $ (7,906) $(23,735) ======== ======== ======== ======== Weighted average shares outstanding: Common Stock 8,843 7,184 7,899 6,933 Common Stock issuable upon exercise of options and 0 0 0 200 warrants -------- -------- -------- -------- Weighted average common shares and equivalents 8,843 7,184 7,899 7,133 ========= ========= ========= ======== Net income (loss) per share ($0.39) ($1.01) ($1.00) ($3.33) ========= ========= ========= ======== <FN> (1) This Exhibit should be read in conjunction with Note 2 of Notes to Condensed Financial Statements. </FN> Page 34