1 EXHIBIT 11.1 CALCULATION OF EARNINGS PER SHARE FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1996 - ------------------------------------------------------------------------------------------------------------------- THREE MONTHS THREE MONTHS NINE MONTHS NINE MONTHS ENDED ENDED ENDED ENDED SEPT. 30, 1996 SEPT. 30, 1995 SEPT. 30, 1996 SEPT. 30, 1995 - ------------------------------------------------------------------------------------------------------------------- Net income . . . . . . . . . . . . . . . . . . $1,395,676 $483,932 $ 3,965,342 $ 1,972,503 ========== ======== ========== =========== Common and common equivalent shares: Weighted average number of common shares outstanding during the period . . . . . . . . . . . . 5,504,280 3,273,298 5,463,983 3,238,482 Common shares issuable upon conversion of convertible preferred stock Primary . . . . . . . . . . . . -- 958,721 958,721 Fully diluted . . . . . . . . . -- 958,721 958,721 Common shares issuable upon exercise of outstanding stock options Primary . . . . . . . . . . . . 435,786 236,588 437,592 168,502 Fully diluted . . . . . . . . . 438,985 236,588 455,596 168,502 Common and common equivalent shares outstanding during the period Primary . . . . . . . . . . . . 5,940,066 4,468,607 5,901,575 4,365,705 ========= ========= ========= ========= Fully diluted . . . . . . . . . 5,943,265 4,468,607 5,919,579 4,365,705 ========= ========= ========= ========= Earnings per share data Net income per common and common equivalent shares Primary . . . . . . . . . . . . $ 0.23 $ 0.11 $ 0.67 $ 0.45 Fully diluted . . . . . . . . . $ 0.23 $ 0.11 $ 0.67 $ 0.45 21