1 EXHIBIT 11.1 STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS NINE MONTHS ENDED YEAR ENDED JULY 31, APRIL 30, ----------------------------- --------------------- 1994 1995 1996 1996 1997 ----------------------------------------------------- Primary 650,000 650,000 650,000 650,000 650,000 Average shares outstanding Net effect of dilutive stock options based on the treasury stock method 55,442 55,442 55,442 55,442 55,442 Assumed conversion of redeemable, convertible preferred stock 118,182 118,182 170,635 118,182 650,000 ----------------------------------------------------- Total 823,624 823,624 876,077 823,624 1,355,442 Net income 89,629 8,139 65,998 66,507 304,801 Accretion of preferred stock to redemption value -- -- (1,062) -- (9,555) ----------------------------------------------------- $89,629 $8,139 $64,936 $66,507 $295,246 ----------------------------------------------------- Per share amount $.11 $.01 $.07 $.08 $.22 ----------------------------------------------------- Fully Diluted Average shares outstanding 650,000 650,000 650,000 650,000 650,000 Net effect of dilutive stock options based on the treasury stock method 55,442 55,442 55,442 55,442 55,442 Assumed conversion of redeemable, convertible preferred stock 118,182 118,182 170,635 118,182 650,000 ----------------------------------------------------- Total 823,624 823,624 876,077 823,624 1,355,442 Net income 89,629 8,139 65,998 66,507 304,801 Accretion of preferred stock to redemption value -- -- (1,062) -- (9,555) ----------------------------------------------------- $89,629 $8,139 $64,936 $66,507 $295,246 ----------------------------------------------------- Per share amount $.11 $.01 $.07 $.08 $.22 -----------------------------------------------------