**Exhibit 11.1**

 

**ALDILA, INC. AND SUBSIDIARIES**

**COMPUTATION OF NET INCOME (LOSS) PER COMMONSHARE**

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

 
|                                                                                                                                                                                                                                |   | **Twelve  months ended  December 31,** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                                                                                                                                                                                                |   | **2002**                               |   | **2001** |   | **2000** |   |
|                                                                                                                                                                                                                                |   |                                   |   |   |   |   |   |
| BASIC:                                                                                                                                                                                                                              |   |                                   |   |   |   |   |   |
| Net income (loss)                                                                                                                                                                                                                   |   | $                                      | (2,844 | ) | $ | (51,419 | ) | $ | 3,217 |   |
|                                                                                                                                                                                                                                |   |                                   |   |   |   |   |   |
| Weighted average number of common shares  outstanding                                                                                                                                                                               |   | 4,948                                  |   | 5,090 |   | 5,154 |   |
|                                                                                                                                                                                                                                |   |                                   |   |   |   |   |   |
| Net income (loss) per common share                                                                                                                                                                                                  |   | $                                      | (0.57  | ) | $ | (10.10 | ) | $ | 0.62 |   |
|                                                                                                                                                                                                                                |   |                                   |   |   |   |   |   |
| ASSUMING DILUTION:                                                                                                                                                                                                                  |   |                                   |   |   |   |   |   |
| Net income (loss)                                                                                                                                                                                                                   |   | $                                      | (2,844 | ) | $ | (51,419 | ) | $ | 3,217 |   |
|                                                                                                                                                                                                                                |   |                                   |   |   |   |   |   |
| Weighted average number of common shares  outstanding                                                                                                                                                                               |   | 4,948                                  |   | 5,090 |   | 5,154 |   |
|                                                                                                                                                                                                                                |   |                                   |   |   |   |   |   |
| 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 |   | —                                 |   | — |   | 47 |   |
|                                                                                                                                                                                                                                |   |                                   |   |   |   |   |   |
| Weighted average number of common and common  equivalent shares                                                                                                                                                                     |   | 4,948                                  |   | 5,090 |   | 5,201 |   |
|                                                                                                                                                                                                                                |   |                                   |   |   |   |   |   |
| Net income (loss) per common share, assuming  dilution                                                                                                                                                                              |   | $                                      | (0.57  | ) | $ | (10.10 | ) | $ | 0.62 |   |

 

----