EXHIBIT 11.1
POLYCOM, INC.
COMPUTATION OF NET INCOME (LOSS)
PER COMMON AND COMMON EQUIVALENT SHARE
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Six Months
Ended June 30 Ended June 30
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1996 1995 1996 1995
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PRIMARY & FULLY DILUTIVE
Weighted average common shares outstanding 13,450 2,658 8,099 2,642
Common equivalent shares from options and warrants 393 254
Common equivalent shares from common stock subject to repurchase (2) 574 602
Common equivalent shares from convertible redeemable preferred stock and warrants 3,997 7,993
Common equivalent shares from options and convertible redeemable preferred stock (1) 561 1,682 1,121 1,682
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Total shares 18,975 4,340 18,069 4,324
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Net income (loss):
Amount 389 (584) 523 (1,270)
Per Share $ 0.02 $(0.13) $ 0.03 $ (0.29)
(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 and six month
periods ended June 30, 1995 and 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.