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EXHIBIT 11.0
CONCORD COMMUNICATIONS, INC.
Computation of Pro Forma Net Income (Loss) Per Common Share (unaudited) (1)
FORM 10-Q, September 30, 1997
(dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 28, September 30, September 28,
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1997 1996 1997 1996
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Net Income (Loss) $ 202 $ (881) $ (764) $ (3,676)
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Shares used in computing Pro forma Net Income (Loss)
Per Common and Common Equivalent Shares outstanding
(unaudited):
Weighted average common stock outstanding
during the period 824,394 791,886 806,942 791,427
Dilutive effect of common stock issued subsequent to
June 30, 1997 (2) 263,290 263,290 263,290 263,290
Dilutive effect of common equivalent shares issued
subsequent to June 30, 1997 (2) 635,415 635,415 635,415 635,415
Pro forma conversion of redeemable convertible preferred
stock to common stock (unaudited) 8,108,258 8,108,258 8,108,258 8,108,258
Weighted average common equivalent shares outstanding
during the period 1,062,322 - - -
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10,893,679 9,798,849 9,813,905 9,798,390
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Pro forma Net Income (Loss) Per Common Share $ 0.02 $ (0.09) $ (0.08) $ (0.38)
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(1) Historical net income (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.
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