**Exhibit 11.1**

 

**ALDILA, INC. AND SUBSIDIARIES**

**COMPUTATION OF NET INCOME PER COMMON SHARE**

**(In thousands, except per share amounts)**

 
| ** **                                                                                                                                                                                                                          | ** ** | **Twelve months ended** | ** ** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------------------|------------|
| ** **                                                                                                                                                                                                                          | ** ** | **December 31,**        | ** ** |
| ** **                                                                                                                                                                                                                          | ** ** | **2005**                | ** ** | **2004** | ** ** | **2003** | ** ** |
|                                                                                                                                                                                                                                |       |                    |       |   |   |   |   |
| BASIC:                                                                                                                                                                                                                              |       |                    |       |   |   |   |   |
| Net income (loss)                                                                                                                                                                                                                   |       | $                       | 13,404     |   | $ | 9,320 |   | $ | (1,726 | ) |
|                                                                                                                                                                                                                                |       |                    |       |   |   |   |   |
| Weighted average number of common shares  outstanding                                                                                                                                                                               |       | 5,273                   |       | 5,027 |   | 4,934 |   |
|                                                                                                                                                                                                                                |       |                    |       |   |   |   |   |
| Net income (loss) per common share                                                                                                                                                                                                  |       | $                       | 2.54       |   | $ | 1.85 |   | $ | (0.35 | ) |
|                                                                                                                                                                                                                                |       |                    |       |   |   |   |   |
| ASSUMING DILUTION:                                                                                                                                                                                                                  |       |                    |       |   |   |   |   |
| Net income (loss)                                                                                                                                                                                                                   |       | $                       | 13,404     |   | $ | 9,320 |   | $ | (1,726 | ) |
|                                                                                                                                                                                                                                |       |                    |       |   |   |   |   |
| Weighted average number of common shares  outstanding                                                                                                                                                                               |       | 5,273                   |       | 5,027 |   | 4,934 |   |
|                                                                                                                                                                                                                                |       |                    |       |   |   |   |   |
| The number of shares resulting from the  assumed exercise of stock options reduced by the number of shares which could  have been purchased with the proceeds from such exercise, using the average market  price during the period |       | 184                     |       | 228 |   | — |   |
|                                                                                                                                                                                                                                |       |                    |       |   |   |   |   |
| Weighted average number of common and common  equivalent shares                                                                                                                                                                     |       | 5,457                   |       | 5,255 |   | 4,934 |   |
|                                                                                                                                                                                                                                |       |                    |       |   |   |   |   |
| Net income (loss) per common share,  assuming dilution                                                                                                                                                                              |       | $                       | 2.46       |   | $ | 1.77 |   | $ | (0.35 | ) |

 

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