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Exhibit 11.1
RED HAT, INC.
COMPUTATION OF NET INCOME (LOSS) PER SHARE
(Unaudited)
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<CAPTION>
Three-Months Ended
May 31,
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2000 1999
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<S> <C> <C>
Weighted average common shares
outstanding for the period - basis EPS 154,664,865 49,925,913
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 154,664,865 49,925,913
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Net income (loss) (14,851,458) (4,132,613)
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Net income (loss) per share - basic (0.10) (0.08)
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Net income (loss) per share - diluted (0.10) (0.08)
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(a) Options and warrants to purchase 14,564,355 and 14,365,247 shares of common
stock were outstanding in the three months ended May 31, 2000 and 1999,
respectively, but were not not included in the computation of diluted EPS as
their effect was antidilutive.
(b) Convertible preferred shares of 66,796,512 were outstanding in the three
months ended May 31, 1999, but were not included in the computation of diluted
EPS as their effect was antidilutive.
