**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,**             | ** ** |
| ** **                                                                                                                                                                                                                          | ** ** | **2006**                          | ** ** | **2005** | ** ** | **2004** | ** ** |
|                                                                                                                                                                                                                                |       |                              |       |   |   |   |   |
| BASIC:                                                                                                                                                                                                                              |       |                              |       |   |   |   |   |
| Net income                                                                                                                                                                                                                          |       | $                                 | 11,236     |   | $ | 13,404 |   | $ | 9,320 |   |
|                                                                                                                                                                                                                                |       |                              |       |   |   |   |   |
| Weighted average number of common shares outstanding                                                                                                                                                                                |       | 5,518                             |       | 5,273 |   | 5,027 |   |
|                                                                                                                                                                                                                                |       |                              |       |   |   |   |   |
| Net income per common share                                                                                                                                                                                                         |       | $                                 | 2.04       |   | $ | 2.54 |   | $ | 1.85 |   |
|                                                                                                                                                                                                                                |       |                              |       |   |   |   |   |
| ASSUMING DILUTION:                                                                                                                                                                                                                  |       |                              |       |   |   |   |   |
| Net income                                                                                                                                                                                                                          |       | $                                 | 11,236     |   | $ | 13,404 |   | $ | 9,320 |   |
|                                                                                                                                                                                                                                |       |                              |       |   |   |   |   |
| Weighted average number of common shares outstanding                                                                                                                                                                                |       | 5,518                             |       | 5,273 |   | 5,027 |   |
|                                                                                                                                                                                                                                |       |                              |       |   |   |   |   |
| 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 |       | 73                                |       | 184 |   | 228 |   |
|                                                                                                                                                                                                                                |       |                              |       |   |   |   |   |
| Weighted average number of common and common equivalent shares                                                                                                                                                                      |       | 5,591                             |       | 5,457 |   | 5,255 |   |
|                                                                                                                                                                                                                                |       |                              |       |   |   |   |   |
| Net income per common share, assuming dilution                                                                                                                                                                                      |       | $                                 | 2.01       |   | $ | 2.46 |   | $ | 1.77 |   |

 

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