PINNACLE SYSTEMS, INC. AND SUBSIDIARIES Exhibit 11.1 - Statement of Computation of Net Income (Loss) Per Share (In thousands, except per share data) Three Six Months Ended Months Ended December 31, December 31, ----------------------- ------------------------ 1997 1996 1997 1996 -------- -------- -------- -------- Weighted average shares of common stock outstanding 8,464 7,505 7,942 7,489 Weighted average common stock equivalent shares 859 -- -- -- -------- -------- -------- -------- Shares used to compute diluted net income (loss) per share 9,323 7,505 7,942 7,489 ======== ======== ======== ======== Net income (loss) used in per share calculation $ 2,453 $ (9,344) $(13,894) $ (8,733) ======== ======== ======== ======== Net income (loss) per share - basic $ 0.29 $ (1.25) $ (1.75) $ (1.17) ======== ======== ======== ======== Net income (loss) per share - diluted $ 0.26 $ (1.25) $ (1.75) $ (1.17) ======== ======== ======== ========