
<PAGE>   1
                                  EXHIBIT 11.1

                             ADFLEX SOLUTIONS, INC.

                   COMPUTATION OF NET INCOME (LOSS) PER SHARE

                    (in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                              Year Ended           Year Ended           Year Ended
                                             December 31,         December 31,         December 31,
                                                 1995                 1996                 1997
                                                 ----                 ----                 ----
<S>                                          <C>                  <C>                  <C>     
Net income (loss)                             $ (3,723)             $(25,024)           $  8,596

Computation of shares used in net income
(loss) per share:

Weighted average common shares
 outstanding                                     6,855                 8,580               8,712

Incremental common equivalent
shares representing shares issuable
upon exercise of stock options
and warrants (1)                                  --                    --                   182
                                              --------              --------            --------

Total weighted average shares - diluted          6,855                 8,580               8,894
                                              ========              ========            ========

Total weighted average shares - basic            6,855                 8,580               8,712
                                              ========              ========            ========
Net income (loss) per diluted common and
common equivalent share                       $   (.54)             $  (2.92)           $   0.97
                                              ========              ========            ========
Net income (loss) per basic common and
common equivalent share                       $   (.54)             $  (2.92)           $   0.99
                                              ========              ========            ========
</TABLE>


--------
(1) Amount calculated using the treasury stock method and fair market values for
stock.
