EXHIBIT 11.1 STATEMENT REGARDING CALCULATION OF EARNINGS PER SHARE PRIMARY FULLY DILUTED ------- ------------- (IN THOUSANDS, EXCEPT PER SHARE DATA) YEAR ENDED DECEMBER 31, 1995 Weighted average shares outstanding....................................... 7,733 7,733 Effect of dilutive common stock equivalents............................... -- -- ------- ------- Weighted average shares outstanding for EPS purposes...................... 7,733 7,733 Net loss.................................................................. $(2,405) $(2,405) Net loss per share(1)..................................................... $ (0.31) $ (0.31) ======= ======= THREE MONTHS ENDED MARCH 31, 1996(2) Weighted average shares outstanding....................................... 8,968 N/A(3) Effect of dilutive common stock equivalents............................... 492 ------- Weighted average shares outstanding for EPS purposes...................... 9,460 Net income................................................................ $ 1,291 Net income per share(1)................................................... $ 0.14 ======= (1) In accordance with Accounting Principle Board Opinion No. 15, any reduction of less than 3% need not be considered dilutive. Accordingly, the consolidated statements of operations reflect net income (loss) per share and the weighted average number of shares used in the calculation on a primary basis only. (2) As of March 31, 1996, options to purchase 698,558 shares of common stock were outstanding. In the calculation of primary net income per share, these options were included in the average number of common shares outstanding using the treasury stock method based on the average price of the common stock for the period. (3) As the price of the Company's common stock as of March 31, 1996 was less than the average price for the three month period ended March 31, 1996, the fully diluted earnings per share calculation for the three month period is not applicable.