1 EXHIBIT 11.1 COMPUTATION OF PER SHARE EARNINGS THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ----------------------- ----------------------- 1999 1998 1999 1998 ---------- ---------- ---------- ---------- Basic: Average shares outstanding................. 4,068,454 4,164,010 4,095,192 4,159,972 Net Income................................. $ (422,000) $1,102,000 $ (186,000) $1,959,000 Per share amount........................... $ (.1037) $ .2646 $ (.0454) $ .4709 Diluted: Average shares outstanding................. 4,068,454 4,164,010 4,095,192 4,159,972 Net effect of dilutive stock options -- based on the treasury stock method using period-end market price, if higher than average market price........ -- 1,090,816 -- 1,090,816 Assumed conversion of Class A convertible Preferred Stock............................ -- 420,000 -- 420,000 Total.............................. 4,068,454 5,674,826 4,095,192 5,670,788 Net Income................................... $ (422,000) $1,125,000 $ (186,000) $2,003,000 Per share amount* $ (.1037) $ .1982 $ (.0454) $ .3532 - --------------- * Due to a loss for the quarter ended June 30, 1999 and for the six months ended June 30, 1999, the conversion of common stock equivalents would be anti-dilutive.