<PAGE>
 
                                                                   EXHIBIT  11.1

                     STATEMENT RE: COMPUTATION OF EARNINGS
<TABLE>
<CAPTION>
                                                  (In thousands, except per share data)
  
                                                          Twelve Months Ended
                                                                March 31,
                                                       -------------------------
                                                           1997         1996
                                                       ------------ ------------
<S>                                                    <C>          <C> 
Primary

   Average common shares outstanding                         22,072       15,363
   Assumed conversion of preferred stock                          0        2,248
   Net effect of common stock equivalents (2)(3)                  0        5,565
                                                       ------------ ------------
   Total shares                                              22,072       23,176
                                                       ============ ============ 
   Net (loss) income                                       $(45,691)     $16,579
   Adjustments to net (loss) income:               
       Reduction of interest expense (net of tax)  
          related to assumed retired debt                         0          398
       Increase in interest income (net of tax) from
        assumed investment of excess proceeds in 
        short-term paper                                          0          172
                                                       ------------ ------------
   Adjusted net (loss) income                              $(45,691)     $17,149
                                                       ============ ============ 
   Per share (loss) earnings:                       
   Net (loss) income                                         $(2.07)     $   .74
                                                    
Fully Diluted                                       
   Average common shares outstanding                         22,072       15,363
   Assumed conversion of preferred stock                          0        2,248
   Net effect of common stock equivalents (2)(4)                  0        5,677
                                                       ------------ ------------
   Total shares                                              22,072       23,288
                                                       ============ ============ 
   Net (loss) income                                       $(45,691)     $16,579
 
   Adjustments to net (loss) income:
       Reduction of interest expense (net of tax)
          related to assumed retired debt                         0            0
       Increase in interest income (net of tax) from
        assumed investment of excess proceeds in 
        short-term paper                                          0            0
                                                       ------------ ------------
   Adjusted net (loss) income                              $(45,691)     $16,579
                                                       ============ ============
   Per share (loss) earnings:                       
   Net (loss) income (1)                                     $(2.07)      $  .71
                                                       ============ ============ 
</TABLE>
(1) This calculation is submitted in accordance with the requirements of
    Regulation S-K although not required by APB Opinion No. 15 because it
    results in dilution of less than 3%.

(2) Common stock equivalents include the effect of the exercise of stock options
    and warrants.

(3) Based on common stock equivalents using the if converted method and average
    market price.

(4) Based on common stock equivalents using the if converted method and the
    period-end market price, if higher than the average market price.