SUMMIT MEDICAL SYSTEMS, INC. EXHIBIT 11.1 Computation of Earnings Per Share (Unaudited) Three Months Ended March 31, 1996 1995 -------------------------- PRIMARY EARNINGS PER SHARE: Weighted average shares outstanding 7,527,314 3,263,350 Net effect of dilutive stock options--based on the treasury stock method - - SAB No. 83 shares--for stock options granted at exercise prices less than the 12 months preceding the initial public offering using the treasury method - 115,524 -------------------------- 7,527,314 3,378,874 ========================== Net loss $ (281,349) $ (300,437) ========================== Net loss per share $ (0.04) $ (0.09) ========================== FULLY DILUTED EARNINGS PER SHARE: Weighted average shares outstanding 7,527,314 4,330,006 Net effect of dilutive stock options--based on the treasury stock method - - SAB No. 83 shares--for stock options granted at exercise prices less than the 12 months preceding the initial public offering using the treasury method - 115,524 -------------------------- 7,527,314 4,445,530 ========================== Net loss $ (281,349) $ (300,437) ========================== Net loss per share $ (0.04) $ (0.07) ==========================