Exhibit 11.1 DSP GROUP, INC. STATEMENT RE COMPUTATION OF PER SHARE EARNINGS (in thousands, except per share data) Three Months Nine Months Ended September 30, Ended September 30, -------------------- -------------------- 1997 1996 1997 1996 -------- -------- -------- -------- Net income (loss) $ 3,348 $ (263) $ 7,589 $ 578 -------- -------- -------- -------- -------- -------- -------- -------- PRIMARY: Computation of weighted average common and common equivalent shares outstanding: Weighted average common shares outstanding 9,773 9,534 9,641 9,500 Common equivalent shares from dilutive stock options and warrants 577 -- 377 67 -------- -------- -------- -------- Shares used in per share computation 10,350 9,534 10,018 9,567 -------- -------- -------- -------- -------- -------- -------- -------- Net income (loss) per share $ .32 $ (.03) $ .76 $ .06 -------- -------- -------- -------- -------- -------- -------- -------- FULLY DILUTED: Computation of weighted average common and common equivalent shares outstanding: Weighted average common shares outstanding 9,773 9,534 9,641 9,500 Common equivalent shares from dilutive stock options and warrants 758 -- 800 67 -------- -------- -------- -------- Shares used in per share computation 10,531 9,534 10,441 9,567 -------- -------- -------- -------- -------- -------- -------- -------- Net income (loss) per share $.32 $ (.03) $ .73 $ .06 -------- -------- -------- -------- -------- -------- -------- --------