EXHIBIT 11.1 DESKTOP DATA, INC. AND SUBSIDIARIES COMPUTATION OF NET EARNINGS PER SHARE (UNAUDITED) (In thousands, except per share data) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 1995 1994 1995 1994 ---------- -------- --------- -------- Net income (loss) $ 564 $ 44 $1,167 $ (381) Accretion of dividends on Series B redeemable preferred stock (34) (34) (101) (101) ------ ------ ------ ------ Net income (loss) available for common stockholders $ 530 $ 10 $1,066 $ (482) ====== ====== ====== ====== Weighted average common shares outstanding 5,904 2,605 3,742 2,573 Weighted average shares to reflect the conversion of Series A, Series C, and Series D preferred stock as of the beginning of the period 1,714 3,847 3,128 3,847 Weighted average shares to be issued sufficient to generate proceeds for the payment of dividends on the Series A preferred stock payable upon the Initial Public Offering 84 191 154 191 Common stock equivalents outstanding, pursuant to the treasury stock method (1) 233 150 195 50 ------ ------ ------ ------ Pro forma weighted average number of common and common equivalent shares outstanding 7,935 6,793 7,219 6,661 ------ ------ ------ ------ Pro forma net income (loss) per common and common equivalent share (Note 1) $0.07 $ - $0.15 $(0.07) ====== ====== ====== ====== (1) Includes common stock options issued after July 1, 1994, pursuant to the treasury stock method, in accordance with Securities and Exchange Commission Rules.