Exhibit 11.1 -------------------------------------------------------------------------------- ResMed Inc and Subsidiaries Computation of Earnings Per Common Share (in thousands, except per share amounts) Year Ended June 30, ------------------------------------------------------------ 2001 2000 1999 ------------------------------------------------------------ Basic Earnings Net income $11,630 $22,226 16,102 ============================================================ Shares Weighted average number of common shares outstanding 31,129 30,153 29,416 ============================================================ Basic earnings per share $ 0.37 $ 0.74 $ 0.55 ============================================================ Diluted Earnings Net income $11,630 $22,226 16,102 ============================================================ Shares Weighted average number of common shares outstanding 31,129 30,153 29,416 Additional shares assuming conversion of stock options under treasury stock method 2,355 2,150 1,652 ------------------------------------------------------------ Weighted average number of common and Common equivalent shares outstanding as adjusted 33,484 32,303 31,068 ============================================================ Diluted earnings per share $ 0.35 $ 0.69 $ 0.52 ============================================================ See accompanying independent auditor's report.