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 2,969 and 10,827 assumed conversion shares for the three- and nine-month periods ended September 30, 2004, respectively, and 4,236 and 8,100 assumed conversion shares for the three- and nine-month periods ended September 30, 2003, respectively, were excluded from the net income 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,

2004
2003
2004
2003

Shares outstanding at end of period
     9,354,645    9,093,712    9,354,645    9,093,712  





Weighted average shares of common stock outstanding
    9,339,208    9,066,835    9,265,451    8,872,558  

Weighted average shares of assumed
  
conversion shares    580,363    767,792    645,553    797,323  





Weighted average shares of common stock and
  
assumed conversion shares    9,919,571    9,834,627    9,911,003    9,669,881  





Net income
   $ 2,110,359   $ 1,979,579   $ 5,973,154   $ 5,200,805  





Basic net income per common share
   $ 0.23   $ 0.22   $ 0.64   $ 0.59  





Diluted net income per common share
   $ 0.21   $ 0.20   $ 0.60   $ 0.54