EX-11.1 2 rimage054595_ex11-1.htm COMPUTATION OF EARNINGS PER SHARE Exhibit 11.1 to Rimage Corporation Form 10-Q dated September 30, 2005

Exhibit 11.1

RIMAGE CORPORATION
COMPUTATION OF NET INCOME PER SHARE OF COMMON STOCK

Basic net income per common share is determined by dividing net income by the weighted average number of shares of common stock outstanding. Diluted net income per common share is determined by dividing net income by the weighted average number of shares of common stock and common share equivalents outstanding, unless the result is anti-dilutive. A total of 192 assumed conversion shares for the nine months ended September 30, 2005, and 2,969 and 10,827 assumed conversion shares for the three and nine months ended September 30, 2004, respectively, were excluded from the net loss per share computation as their effect is anti-dilutive. The following is a summary of the weighted average common shares outstanding and assumed conversion shares:

Three months ended
September 30,

Nine months ended
September 30,

2005
2004
2005
2004
 
Shares outstanding at end of period      9,579,873    9,354,645    9,579,873    9,354,645  




 
Weighted average shares of common stock outstanding    9,553,208    9,339,208    9,506,540    9,265,451  
 
Weighted average shares of assumed conversion shares    826,727    580,363    743,012    645,553  




 
Weighted average shares of common stock and assumed conversion shares    10,379,935    9,919,571    10,249,552    9,911,003  




 
Net income   $ 4,085,031   $ 2,110,359   $ 9,063,837   $ 5,973,154  




 
Basic net income per common share   $ 0.43   $ 0.23   $ 0.95   $ 0.64  




 
Diluted net income per common share   $ 0.39   $ 0.21   $ 0.88   $ 0.60