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 100 and 1,744 assumed conversion shares for the three and six months ended June 30, 2005, respectively, and 2,720 and 2,327 assumed conversion shares for the three and six months ended June 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
June 30,

Six months ended
June 30,

2005
2004
2005
2004
Shares outstanding at end of period      9,502,420    9,304,622    9,502,420    9,304,622  




 
Weighted average shares of common stock outstanding    9,490,910    9,313,162    9,456,683    9,255,964  
 
Weighted average shares of assumed conversion shares    723,214    628,410    695,788    686,131  




 
Weighted average shares of common stock and assumed conversion shares    10,214,125    9,941,572    10,152,471    9,942,095  




 
Net income   $ 2,287,570   $ 2,031,146   $ 4,978,806   $ 3,862,795  




 
Basic net income per common share   $ 0.24   $ 0.22   $ 0.53   $ 0.42  




 
Diluted net income per common share   $ 0.22   $ 0.20   $ 0.49   $ 0.39