Exhibit 11.1
RED HAT, INC.
COMPUTATION OF NET INCOME (LOSS) PER SHARE
(Unaudited)
Three-Months Ended Six-Months Ended
August 31, August 31,
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1999 1998 1999 1998
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Weighted average common shares
outstanding for the period - basic EPS 33,649,671 23,500,000 29,016,512 23,500,000
Effect of dilutive stock options and warrants (a) -- 3,740,000 -- 3,737,474
Effect of dilutive preferred stock (b) -- 13,602,800 -- 13,602,800
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Weighted average common shares
outstanding for the period - diluted EPS 33,649,671 40,842,800 29,016,512 40,840,274
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Net income (loss) (3,147,316) 132,146 (5,279,786) 79,645
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Net income (loss) per share - basic (0.0935) 0.0056 (0.1820) 0.0034
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Net income (loss) per share - diluted (0.0935) 0.0032 (0.1820) 0.0020
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(a) Options to purchase 8,001,015 and 8,209,681 shares of common stock were
outstanding at the three and six-months ended August 31, 1999, respectively, but
were not included in the computation of diluted EPS as their effect was
antidilutive.
(b) Convertible preferred shares of 28,410,867 and 30,904,562 were outstanding
at the three and six-months ended August 31, 1999, respectively, but were not
included in the computation of diluted EPS as their effect was antidilutive.