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 2,720 and 2,327 assumed conversion shares for the three- and six-month periods ended June 30, 2004, respectively and 7,877 and 11,980 assumed conversion shares for the three- and six-month periods ended June 30, 2003, 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
June 30,

Six months ended
June 30,

2004
2003
2004
2003
Shares outstanding at end of period      9,304,622    9,017,785    9,017,785    9,017,785  





Weighted average shares of common stock
  
    outstanding    9,313,162    8,757,138    9,255,964    8,742,033  

Weighted average shares of assumed
  
    conversion shares    628,410    887,361    686,131    813,840  





Weighted average shares of common stock and
  
    assumed conversion shares    9,941,572    9,644,499    9,942,095    9,555,873  





Net income
   $ 2,031,146   $ 1,717,389   $ 3,862,795   $ 3,221,226  





Basic net income per common share
   $ 0.22   $ 0.20   $ 0.42   $ 0.37  





Diluted net income per common share
   $ 0.20   $ 0.18   $ 0.39   $ 0.34