EXHIBIT 11.1
POLYCOM, INC.
COMPUTATION OF NET INCOME (LOSS)
PER COMMON AND COMMON EQUIVALENT SHARE
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
March 31, March 31,
1997 1996
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PRIMARY & FULLY DILUTED
Weighted average common shares outstanding 18,958 2,748
Common equivalent shares from options and warrants 0 115
Common equivalent shares from common stock
subject to repurchase (2) 0 629
Common equivalent shares from convertible
redeemable preferred stock and warrants 0 11,990
Common equivalent shares from options and
convertable redeemable preferred stock (1) 0 1,682
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Total shares 18,958 17,164
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Net income (loss):
Amount $ (474) $ 134
Per share $ (0.03) $ 0.01
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(1) Pursuant to the requirements of the Securities and Exchange Commission,
common equivalent shares relating to stock options, using the treasury stock
method and the initial public offering price of $9.00 per share, and common
equivalent shares from convertible redeemable preferred stock using the
if-converted method issued during the twelve months period prior to the
initial public offering are included in the computation for the three month
period ended March 31, 1996.
(2) Commons stock issued under stock option plan which are subject to
repurchase are excluded from shares issued in the computation of net loss per
share as their effect is antidilutive.
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