1 EXHIBIT 11 SECURITY DYNAMICS TECHNOLOGIES, INC. AND SUBSIDIARIES COMPUTATION OF INCOME PER COMMON AND COMMON EQUIVALENT SHARE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997 (IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------ ------------------ 1998 1997 1998 1997 ------- ------- ------- ------- Basic earnings per share(1): Net income per common share................... $ 0.08 $ 0.06 $ 0.41 $ 0.34 ======= ======= ======= ======= Weighted average number of shares outstanding................................. 41,186 38,629 40,958 38,326 ======= ======= ======= ======= Diluted earnings per share(1): Net income per common share................... $ 0.08 $ 0.06 $ 0.40 $ 0.32 ======= ======= ======= ======= Shares: Weighted average number of shares outstanding................................. 41,186 38,629 40,958 38,326 Effect of dilutive options.................... 615 1,819 1,049 2,396 ------- ------- ------- ------- Adjusted weighted average number of shares outstanding...................................... 41,801 40,448 42,007 40,722 ======= ======= ======= ======= - - --------------- (1) Results for all periods prior to March 26, 1998 and July 15, 1997, respectively, have been restated for the acquisitions of Intrusion Detection Inc. and DynaSoft AB, respectively, which acquisitions have been accounted for as poolings of interests.