1 Exhibit 11.1 TRANSITION SYSTEMS, INC COMPUTATION OF EARNINGS PER SHARE For the three month period ended: June 30,1996 June 24,1995 ------------ ------------ Weighted averages shares outstanding: Common stock outstanding ............... 15,638,000 15,638,000 Common stock equivalent ................ 3,693,000 3,693,000 Warrants ............................... 298,000 298,000 Weighted average number of common shares and common equivalent shares outstanding 19,629,000 19,629,000 =========== =========== Net income: Net income before extraordinary item ... $ 2,870,000 $ 1,899,000 Extraordinary item ..................... (2,149,000) -- Net income allocable to common stockholders ........................... $ 128,000 $ 1,899,000 Earnings per share: Net income before extraordinary item ... $ 0.15 $ 0.10 Extraordinary item ..................... (0.11) -- Net income allocable to common stockholders ........................... $ 0.01 $ 0.10 For the nine months ended: Weighted averages shares outstanding: Common stock outstanding ............... 11,951,000 11,951,000 Common stock equivalent ................ 3,682,000 3,682,000 Warrants ............................... 298,000 298,000 Weighted average number of common shares and common equivalent shares outstanding 15,931,000 15,931,000 =========== =========== Net income: Net income before extraordinary item ... $ 3,139,000 $ 3,303,000 Extraordinary item ..................... (2,149,000) -- Net income allocable to common stockholders ........................... $ 397,000 $ 3,303,000 Earnings per share: Net income before extraordinary item ... $ 0.20 $ 0.21 Extraordinary item ..................... (0.13) -- Net income allocable to common stockholders ........................... $ 0.02 $ 0.21