1 EXHIBIT 11.1 DM MANAGEMENT COMPANY AND SUBSIDIARY QUARTERLY REPORT ON FORM 10-Q COMPUTATION OF PER SHARE EARNINGS THREE MONTHS ENDED NINE MONTHS ENDED ------------------------- ------------------------- SEPT. 27, SEPT. 28, SEPT. 27, SEPT. 28, 1997 1996 1997 1996 --------- --------- --------- --------- PRIMARY: Weighted-average shares of common stock outstanding during the period ............................................. 4,667,075 4,311,779 4,575,151 4,298,622 Assumed exercise of options ........................................ 601,061 418,624 551,918 358,108 --------- --------- --------- --------- Weighted-average common and common equivalent shares outstanding ................................................... 5,268,136 4,730,403 5,127,069 4,656,730 ========= ========= ========= ========= THREE MONTHS ENDED NINE MONTHS ENDED ------------------------- ------------------------- SEPT. 27, SEPT. 28, SEPT. 27, SEPT. 28, 1997 1996 1997 1996 --------- --------- --------- --------- FULLY DILUTED: Weighted-average shares of common stock outstanding during the period ............................................. 4,667,075 4,311,779 4,575,151 4,298,622 Assumed exercise of options ........................................ 640,753 418,680 694,883 394,280 --------- --------- --------- --------- Weighted-average common and common equivalent shares outstanding ................................................... 5,307,828 4,730,459 5,270,034 4,692,902 ========= ========= ========= =========