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                                                                    EXHIBIT 11.1

                       TRANSACT TECHNOLOGIES INCORPORATED
                        Computation of Earnings Per Share
                                   (unaudited)



                                                                   THREE MONTHS ENDED          NINE MONTHS ENDED
                                                                      SEPTEMBER 30,              SEPTEMBER 30,
(In thousands, except per share data)                           2003           2002          2003           2002
                                                               -------       -------       -------       -------
                                                                                             
Net income (loss)                                              $ 1,140       $  (709)      $ 1,729       $  (549)
Dividends and accretion on preferred stock                         (90)          (90)         (269)         (269)
                                                               -------       -------       -------       -------
Net income (loss) available to common
   Shareholders                                                $ 1,050       $  (799)      $ 1,460       $  (818)
                                                               =======       =======       =======       =======

Shares:
   Basic - Weighted average common shares
      Outstanding                                                5,830         5,645         5,748         5,625
   Dilutive effect of outstanding options and
      warrants as determined by the treasury
      stock method                                                 491            --           309            --
                                                               -------       -------       -------       -------
   Dilutive - Weighted average common and
      common equivalent shares outstanding                       6,321         5,645         6,057         5,625
                                                               =======       =======       =======       =======

Net income (loss) per common and common equivalent share:
      Basic                                                    $  0.18       $ (0.14)      $  0.25       $ (0.15)
                                                               =======       =======       =======       =======
      Diluted                                                  $  0.17       $ (0.14)      $  0.24       $ (0.15)
                                                               =======       =======       =======       =======