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Exhibit 11.1
Tollgrade Communications, Inc. and Subsidiaries
Calculation of Earnings Per Share
For the Years Ended December 31, 1994, 1995, and 1996
December 31,
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1994 1995 1996
Net income. . . . . . . . . . . . . . . . . . . . . . . $2,144,593 $2,521,827 $5,596,623
Accretion of fair market value of
redeemable warrants . . . . . . . . . . . . . . . 833,715 -- --
---------- ---------- ----------
Net income applicable to common stock . . . . . . . . . $1,310,878 $2,521,827 $5,596,623
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Common and common equivalent shares:
Weighted average number of common
shares outstanding during the period . . . . . 2,674,215 4,227,648 5,500,884
Common shares issuable upon
conversion of convertible
preferred stock
Primary . . . . . . . . . . . . . . . . . . 951,721 -- --
Fully diluted . . . . . . . . . . . . . . . 951,721 -- --
Common shares issuable upon
conversion of redeemable warrants
Primary . . . . . . . . . . . . . . . . . . 438,798 -- --
Fully diluted . . . . . . . . . . . . . . . 438,798 -- --
Common shares issuable upon exercise
of outstanding stock options
Primary . . . . . . . . . . . . . . . . . . 93,809 276,064 438,778
Fully diluted . . . . . . . . . . . . . . . 192,565 333,992 503,469
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Common and common equivalent
shares outstanding during the period
Primary . . . . . . . . . . . . . . . . . . 4,158,543 4,503,712 5,939,662
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Fully diluted . . . . . . . . . . . . . . . 4,257,299 4,561,640 6,004,353
---------- --------- ----------
Earnings per share data:
Net income per common and common
equivalent shares
Primary . . . . . . . . . . . . . . . . . . $ .32 $ .56 $ .94
Fully diluted . . . . . . . . . . . . . . . $ .31 $ .55 $ .93