1 EXHIBIT 11.1 ABACUS DIRECT CORPORATION COMPUTATION OF EARNINGS PER SHARE (Unaudited) Three Months Ended September 30 Nine Months Ended September 30 1996 1995 1996 1995 Net Income $ 1,974,681 $ 1,121,430 $ 2,610,004 $ 1,345,132 Average shares of common stock outstanding during the period 9,061,349 9,046,534 9,051,472 9,078,271 Incremental shares from assumed exercise of stock options and grants (primary) 461,568 165,666 478,464 121,947 --------------- --------------- --------------- --------------- 9,522,917 9,212,200 9,529,937 9,200,218 Earnings Per Common Share $ 0.21 $ 0.12 $ 0.27 $ 0.15 =============== =============== =============== ===============