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EXHIBIT 11
VIDEOSERVER, INC.
COMPUTATION OF NET INCOME PER SHARE (1)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1995 1996 1995 1996
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Weighted average common and common
equivalent shares:
Weighted average common shares
outstanding during the period 12,354,636 12,513,957 11,003,599 12,466,358
Weighted average common equivalent
shares resulting from stock options 796,797 781,859 696,813 775,609
Dilutive effect of common and common
equivalent shares issued subsequent
to April 12, 1994 (2) 103,740
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13,151,433 13,295,816 11,804,152 13,241,967
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Net income $ 1,300,000 $ 2,762,000 $ 2,879,000 $ 6,910,000
Primary net income per share $ 0.10 $ 0.21 $ 0.24 $ 0.52
=========== =========== =========== ===========
<FN>
(1) Fully diluted net income per share has not been separately presented, as the
amounts would not be materially different from primary net income per share.
(2) Pursuant to Securities and Exchange Commission Staff Accounting Bulletin No.
83, certain common and common equivalent shares issued by the Company during the
twelve months immediately preceding the initial filing of the registration
statement relating to the Company's initial public offering have been included
in the calculation of weighted average shares, using the treasury stock method
and the initial public offering price, as if these shares were outstanding for
all periods prior to the initial public offering.
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