1 EXHIBIT 11.01 CONCORD COMMUNICATIONS, INC. COMPUTATION OF PRO FORMA NET LOSS PER COMMON SHARE (UNAUDITED)(1) SIX MONTHS ENDED JUNE 30, --------------------------- DECEMBER 28, 1996 1996 1997 ------------------ ----------- ----------- Net Loss:...................................... $ (5,054,863) $(2,795,042) $ (966,417) ================= ========== ========== Shares used in Computing Pro Forma Net Loss Per Common and Common Equivalent Shares Outstanding (Unaudited): Weighted average common stock outstanding during the period....................... 761,030 760,622 767,947 Dilutive effect of common stock issued subsequent to June 30, 1996(2).......... 263,290 263,290 263,290 Dilutive effect of common equivalent shares issued subsequent to June 30, 1996(2)................................. 635,415 635,415 635,415 Pro forma conversion of redeemable convertible preferred stock to common stock (unaudited)....................... 8,108,258 8,108,258 8,108,258 ------------------ ----------- ----------- 9,767,993 9,767,585 9,774,910 ------------------ ----------- ----------- Pro Forma Net Loss Per Common Share (unaudited).................................. $ (0.52) $ (0.29) $ (0.10) ================= ========== ========== - --------------- (1) Historical net loss per common share has not been separately presented as the amounts would not be meaningful. (2) Pursuant to Securities and Exchange Commission Staff Accounting Bulletin No. 83, common stock, preferred stock, stock options and warrants issued at prices below the initial public offering price per share ("cheap stock") during the twelve month period immediately preceding the filing date of the Company's Registration Statement for its initial public offering have been included as outstanding for all periods presented until the effective date of the Company's initial public offering. The dilutive effect of the common and common stock equivalents was computed in accordance with the treasury stock method.