1 EXHIBIT 11.1 TEKELEC STATEMENT OF COMPUTATION OF EARNINGS PER SHARE Three Months Ended Nine Months Ended PRIMARY September 30, September 30, (thousands, except per share data) -------------------- --------------------- 1997 1996 1997 1996 ---- ---- ---- ---- Net income (loss) ....................... $15,061 $ 275 $20,059 $ (5,105) ======= ======= ======= ======== Basis for computation of primary earnings per common and common equivalent share: Weighted average number of shares outstanding during period ............... 25,463 23,688 24,943 23,466 Weighted average (incremental) common share equivalent after considering the effects of options exercised and canceled during the period and after assumed repurchase of treasury shares--treasury stock method ............................ 3,532 1,584 3,185 -- ------- ------- ------- -------- 28,995 25,272 28,128 23,466 ======= ======= ======= ======== Earnings (Loss) per share ............... $ 0.52 $ 0.01 $ 0.71 $ (0.22) ======= ======= ======= ======== Three Months Ended Nine Months Ended FULLY DILUTED September 30, September 30, (thousands, except per share data) -------------------- --------------------- 1997 1996 1997 1996 ---- ---- ---- ---- Net income (loss) ....................... $15,061 $ 275 $20,059 $ (5,105) ======= ======= ======= ======== Basis for computation of fully diluted earnings per common and common equivalent share: Weighted average number of shares outstanding during period ............... 25,463 23,688 24,943 23,466 Weighted average (incremental) common share equivalent after considering the effects of options exercised and canceled during the period and after assumed repurchase of treasury shares -- treasury stock method ............................ 3,690 2,004 3,937 -- ------- ------- ------- -------- 29,153 25,692 28,880 23,466 ======= ======= ======= ======== Earnings (Loss) per share ............... $ 0.52 $ 0.01 $ 0.69 $ (0.22) ======= ======= ======= ========