STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE
                     (In Thousands Except Per Share Amounts)

                                               Primary (1)   Fully Diluted(1)
                                           -------------------------------------
                                           (In thousands, except per share data)

Three months ended March 31, 1997

Weighed average shares outstanding............   11,800            N/A
Effect of dilutive common stock equivalents...      459
                                                -------
Weighted average shares outstanding for
  EPS purposes ...............................   12,259
Net income ...................................  $ 2,528
                                                -------
Net income per share (2) .....................    $0.21
                                                =======



(1) As of March 31, 1997,  options to purchase  1,554,929 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.

As the price of the  Company's  common  stock as of March 31, 1997 was less than
the average  price for the three  months  ended March 31,  1997,  fully  diluted
earnings per share is not applicable.

(2) In accordance with Accounting Principles Board Opinion No. 15, any reduction
of less than 3% need not be considered dilutive.  Accordingly,  the consolidated
statements of operations  reflect net income per share and the weighted  average
number of shares used in the calculation on a primary basis only.


                                    Page 11