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Exhibit 11.1

Applied Films Corporation
Computation of Earnings Per Share

(in thousands, except shares and per share)
For the year ending June 28, 2003

|                                                                  |                                            |   |            |      | 
|----------------------------------------------------------------- | ------------------------------------------ | - | ---------- | ---- | 
|BASIC EARNINGS PER SHARE                                          |                                            |   |            |     
|Earnings (loss) from continuing operations                        |                                            | $ | 1,710      |     
|Income (loss) from discontinued operations                        |                                            |   | 344        |     
|                                                                  |                                            |   |            |     
|Net Income (loss)                                                 |                                            | $ | 2,054      |     
|                                                                  |                                            |   |            |     
|Weighted average number of common shares outstanding              |                                            |   | 11,095,604 |     
|                                                                  |                                            |   |            |     
|Earnings (loss) per share                                         |                                            |   |            |     
|Basic:                                                            |                                            |   |            |     
|                                                                  | Earnings (loss) from continuing operations |   | $          | 0.15 | 
|                                                                  | Income (loss) from discontinued operations |   | $          | 0.03 | 
|                                                                  |                                            |   |            |     
|                                                                  | Net Income (loss)                          |   | $          | 0.18 | 
|                                                                  |                                            |   |            |     
|DILUTED EARNINGS PER SHARE                                        |                                            |   |            |     
|Earnings (loss) from continuing operations                        |                                            | $ | 1,710      |     
|Income (loss) from discontinued operations                        |                                            |   | 344        |     
|                                                                  |                                            |   |            |     
|Net Income (loss)                                                 |                                            | $ | 2,054      |     
|                                                                  |                                            |   |            |     
|Weighted average number of common shares outstanding              |                                            |   | 11,095,604 |     
|Assuming exercise of stock options                                |                                            |   | 446,422    |     
|Assuming repurchase of treasury stock                             |                                            |   | (292,468   | )   
|                                                                  |                                            |   |            |     
|Weighted average number of common shares outstanding, as adjusted |                                            |   | 11,249,558 |     
|                                                                  |                                            |   |            |     
|Earnings (loss) per share                                         |                                            |   |            |     
|Diluted:                                                          |                                            |   |            |     
|                                                                  | Earnings (loss) from continuing operations |   | $          | 0.15 | 
|                                                                  | Income (loss) from discontinued operations |   | $          | 0.03 | 
|                                                                  |                                            |   |            |     
|                                                                  | Net Income (loss)                          |   | $          | 0.18 | 
|                                                                  |                                            |   |            |