DESKTOP DATA, INC. AND SUBSIDIARIES EXHIBIT 11.1 COMPUTATION OF NET EARNINGS PER SHARE (UNAUDITED) (in thousands, except per share data) Three Months Ended March 31, 1996 1995 -------- --------- Net income $ 841 $ 276 Accretion of dividends on Series B redeemable preferred stock - (34) ------ ------ Net income available for common stockholders $ 841 $ 242 ====== ====== Weighted average common shares outstanding 8,525 2,630 Weighted average shares to reflect the conversion of Series A, Series C, and Series D preferred stock as of the beginning of the period - 3,847 Common stock options issued after July 1, 1994, pursuant to the treasury stock method - 43 Common stock equivalents outstanding, pursuant to the treasury stock method 238 163 ------ ------ Weighted average number of common and common equivalent shares outstanding in 1996; Pro forma weighted average number of common and common equivalent shares outstanding in 1995 8,763 6,683 ------ ------ Net income per common and common equivalent share in 1996; Pro forma net income per common and common equivalent share in 1995 $0.10 $0.04 ====== ====== 15