1 EXHIBIT 11.1 Lexant Inc. Computation of Earnings Per Share (Dollars in thousands except per share amounts) For the year ended December 31, 1997 For the year ended December 31, 1998 ------------------------------------ ------------------------------------ Income Shares Per Share Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount ----------- ------------- --------- ----------- ------------- --------- Net Income $ 2,189 $ 3,828 Less: Preferred Stock Dividends -- (301) -------------------------- -------------------------- NET INCOME PER SHARE - BASIC: Income available to common shareholders 2,189 45,433 $ 0.05 3,527 45,433 $ 0.08 ========= ======= EFFECT OF DILUTIVE SECURITIES: Convertible preferred stock -- -- 301 7,345 Common stock options -- -- -- -- -------------------------- -------------------------- NET INCOME PER SHARE - DILUTED: Income available to common shareholders plus assumed conversions $ 2,189 45,433 $ 0.05 $ 3,828 52,778 $ 0.07 ============================================================================== For the year ended December 31, 1999 ------------------------------------ Income Shares Per Share (Numerator) (Denominator) Amount ----------- ------------- --------- Net Income $ 9,256 Less: Preferred Stock Dividends (690) -------------------------- NET INCOME PER SHARE - BASIC: Income available to common shareholders 8,566 45,442 $ 0.19 ========= EFFECT OF DILUTIVE SECURITIES: Convertible preferred stock 690 17,481 Common stock options -- 2,668 -------------------------- NET INCOME PER SHARE - DILUTED: Income available to common shareholders plus assumed conversions $ 9,256 65,591 $ 0.14 =====================================