1 EXHIBIT 11.1 TRIDENT MICROSYSTEMS, INC. COMPUTATION OF NET INCOME PER SHARE(1) (IN THOUSANDS EXCEPT PER SHARE DATA) Years Ended June 30, -------------------- 1996 1995 1994 ---- ---- ---- Net income $16,860 $ 8,011 $ 1,480 ------- ------- ------- Weighted average shares outstanding: Common Stock 12,255 11,678 11,445 Convertible Preferred Stock -- -- -- Mandatorily Redeemable Convertible Preferred Stock -- -- -- Weighted average incremental common stock equivalents from dilutive options and warrants(2) $ 1,168 1,485 510 ------- ------- ------- Weighted average common stock shares and equivalents 13,423 13,163 11,955 ------- ------- ------- $ 1.26 $ 0.61 $ 0.12 ======= ======= ======= (1) This Exhibit should be read in conjunction with Note 1 of Notes to Consolidated Financial Statements. (2) Computed using the treasury stock method. Stock options and warrants granted during the period from September 30, 1991 to December 16, 1992, the effective date of the initial public offering, have been included in the calculation of common and common equivalent shares as if they were outstanding for all periods before December 16, 1992. The initial public offering price of $17.00 per share was used for all periods prior to December 16, 1992. 46