Exhibit 11.1
RED HAT, INC.
COMPUTATION OF NET INCOME (LOSS) PER SHARE
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
August 31, August 31,
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2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Weighted average common shares
outstanding for the period - basis EPS 157,661,054 68,647,928 156,162,959 59,286,920
Effect of dilutive stock options and warrants (a) - - - -
Effect of dilutive preferred stock (b) - - - -
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Weighted average common shares
outstanding for the period - diluted EPS 157,661,054 68,647,928 156,162,959 59,286,920
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Net income (loss) (15,712,873) (4,884,119) (30,564,331) (9,016,732)
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Net income (loss) per share - basic (0.10) (0.07) (0.20) (0.15)
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Net income (loss) per share - diluted (0.10) (0.07) (0.20) (0.15)
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</TABLE>
(a) Options and warrants to purchase 15,977,079 and 15,544,947 shares of common
stock were outstanding in the three months ended August 31, 2000 and 1999,
respectively, and options and warrants to purchase 16,280,885 and 15,782,534
shares of common stock were outstanding in the six months ended August 31, 2000
and 1999, respectively, but were not included in the computation of diluted EPS
as their effect was antidilutive.
(b) Convertible preferred shares of 56,821,735 and 61,809,124 were outstanding
in the three and six months August 31, 1999, but were not included in the
computation of diluted EPS as their effect was antidilutive.
