EXHIBIT 11.1 YES! ENTERTAINMENT CORPORATION STATEMENT REGARDING COMPUTATION OF NET INCOME (LOSS) PER SHARE (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) YEARS ENDED DECEMBER 31, ------------------------- 1996 1995 1994 -------- ------ -------- Net income (loss)................................... $(12,571) $3,478 $(21,927) Computations of weighted average common and common equivalent shares outstanding: Weighted average common shares outstanding........ 13,890 5,339 398 Common equivalent shares from convertible pre- ferred stock..................................... -- 2,259 -- Weighted average options and warrants outstanding. -- 911 -- Common equivalent shares from stock options granted or issued during the twelve-month period prior to the Company's proposed initial public offering......................................... -- 25 100 -------- ------ -------- Shares used in computing net income (loss) per share.............................................. 13,890 8,534 498 -------- ------ -------- Net income (loss) per share......................... $ (0.91) $ 0.41 $ (44.03) ======== ====== ======== Computation of shares used in pro forma net loss per share: Total weighted average common and common equivalent shares outstanding (as above)......... -- -- 498 Common equivalent shares attributable to redeem- able convertible preferred stock, convertible preferred stock, and shares issuable for antidilution adjustments (as-if-converted meth- od).............................................. -- -- 3,821 -------- ------ -------- Shares used in computing pro forma net loss per share.............................................. -- -- 4,319 ======== ====== ======== Pro forma net loss per share........................ $ -- $ -- $ (5.08) ======== ====== ========