Exhibit 11.1
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DESKTOP DATA, INC. AND SUBSIDIARIES
COMPUTATION OF NET EARNINGS PER SHARE
YEAR ENDED
DECEMBER 31,
1995 1994
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Net income (loss) $2,137,064 $ (287,067)
Accretion of dividends on Series B
preferred stock................................... (101,250) (135,000)
Discount on redemption of Series B
preferred stock................................... 1,232,238 --
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Net income (loss) available for common
stockholders...................................... $3,268,052 $ (422,067)
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Weighted average common shares outstanding.......... 4,959,013 2,582,581
Weighted average shares to reflect the
conversion of Series A, Series C, and Series D
preferred stock as of the beginning of
the period........................................ 2,350,452 3,847,123
Weighted average shares to be issued sufficient
to generate proceeds for the payment of
dividends on the Series A preferred stock
payable upon the Initial Public Offering.......... -- 190,876
Common stock options issued after July 1, 1994,
pursuant to the treasury stock method............. -- 49,830
Common stock equivalents outstanding, pursuant
to the treasury stock method...................... 209,064 N/A
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Weighted average number of common and common
equivalent shares outstanding in 1995;
Pro forma weighted average number of common
and common equivalent shares outstanding in 1994.. 7,518,529 6,670,410
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Net income per common and common equivalent
share in 1995; Pro forma net loss per common
and common equivalent share in 1994............... $ 0.43 $ (0.06)
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