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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 Nine Months Ended
November 30, November 30,
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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 160,825,059 139,082,115 157,705,691 85,691,876
Effect of dilutive stock options and warrants (a) - - - -
Effect of dilutive preferred stock (b) - - - -
Weighted average common shares --------------------------------- --------------------------------
outstanding for the period - diluted EPS 160,825,059 139,082,115 157,705,691 85,691,876
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Net income (loss) (21,413,389) (6,298,628) (51,977,720) (15,315,360)
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Net income (loss) per share - basic (0.13) (0.05) (0.33) (0.18)
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Net income (loss) per share - diluted (0.13) (0.05) (0.33) (0.18)
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(a) Options and warrants to purchase 12,100,709 and 14,826,153 shares of common
stock were outstanding in the three months ended November 30, 2000 and 1999,
respectively, and options and warrants to purchase 12,917,626 and 15,538,502
shares of common stock were outstanding in the nine months ended November 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 41,355,923 were outstanding in the nine
months ended November 30, 1999 but were not included in the computation of
diluted EPS as their effect was antidilutive.
