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Exhibit 11.1
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
AETHER SYSTEMS, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE
<TABLE>
<CAPTION>
Computation of Earnings
per Common Share
-----------------------------------------------------------------
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, 1999 June 30, 1999
------------------------------- -------------------------------
Net Loss Shares Per Share Net Loss Shares Per Share
-------- ------ --------- -------- ------ ---------
<S> <C> <C> <C> <C> <C> <C>
BASIC EPS
Pro forma net loss available
To common shareholders (2,918) 19,878 (0.15) (4,320) 19,878 (0.22)
EFFECT OF DILUTIVE SHARES
Stock options -- -- -- -- -- --
------ ------ ----- ------ ------ -----
DILUTIVE EPS (1)
Pro forma net loss available
to common shareholders (2,918) 19,878 (0.15) (4,320) 19,878 (0.22)
------ ------ ----- ------ ------ -----
</TABLE>
<TABLE>
<CAPTION>
Computation of Earnings
per Common Share
--------------------------------------------------------------------
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, 2000 June 30, 2000
------------------------------- ---------------------------------
Net Loss Shares Per Share Net Loss Shares Per Share
-------- ------ --------- -------- ------ ---------
<S> <C> <C> <C> <C> <C> <C>
BASIC EPS
Pro forma net loss available
To common shareholders (89,914) 38,031 (2.36) (123,185) 33,765 (0.07)
EFFECT OF DILUTIVE SHARES
Stock options -- -- -- -- -- --
------- ------- ----- --------- ------- -----
DILUTIVE EPS (1)
Pro forma net loss available
to common shareholders (89,914) 38,031 (2.36) (123,185) 33,765 (0.07)
------- ------- ----- -------- ------- -----
</TABLE>
1. Options and warrants to purchase approximately 7.010 million and 2.865
million shares of common stock were outstanding at June 30, 2000 and 1999
respectively and were not included in the computation of pro forma diluted
earnings per share because the effect would have been antidilutive.
Additionally, effective March 22, 2000, the Company issued $310.5 million of %6
convertible subordinated notes due 2005, which are convertible at a price of
$243.95 (or 4.0992 shares per $1,000 principal amount of notes, subject to
adjustment. These notes were not considered in the calculation of the pro forma
diluted earnings per share because the effect would have been antidilutive.
