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EXHIBIT 11.1
BSQUARE CORPORATION
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
(in thousands, except per share amounts)
The following table provides a reconciliation of the numerators and
denominators used in calculating basic and diluted earnings per share for the
three- and nine-month periods ended September 30, 2000 and 1999:
<TABLE>
<CAPTION>
Three Months Nine Months
Ended September 30, Ended September 30,
--------------------- -----------------------
2000 1999 2000 1999
------- -------- -------- --------
<S> <C> <C> <C> <C>
Net income (loss) (numerator diluted) $ 1,252 $ 378 $ (228) $ 1,249
Less: Accretion of mandatorily redeemable
Convertible preferred stock -- (30) -- (90)
------- -------- -------- --------
Net income (loss) available to common shareholders
(numerator basic) $ 1,252 $ 348 $ (228) $ 1,159
======= ======== ======== ========
Shares (denominator basic):
Weighted average common shares outstanding 33,605 18,844 33,082 18,594
======= ======== ======== ========
Basic earnings (loss) per share $ 0.04 $ 0.02 $ (0.01) $ 0.06
======= ======== ======== ========
Shares (denominator diluted) (1):
Weighted average common shares outstanding 33,605 18,844 33,082 18,594
Mandatorily redeemable convertible preferred stock -- 8,333 -- 8,333
Common stock equivalents (2) 2,617 2,623 -- 1,879
------- -------- -------- --------
Weighted average common shares and equivalents
outstanding 36,222 29,800 33,082 28,806
======= ======== ======== ========
Diluted earnings (loss) per share $ 0.03 $ 0.01 $ (0.01) $ 0.04
======= ======== ======== ========
</TABLE>
(1) Share amounts presented for 1999 give effect to the issuance of 261,391
shares to the former shareholders of BlueWater Systems to effect its
acquisition by BSQUARE. The transaction was accounted for as a pooling of
interests.
(2) As the Company incurred a net loss attributable to common shareholders for
the nine-month period ended September 30, 2000, the effect of common stock
equivalents is excluded in that period, as the effect is anti-dilutive.
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