EXHIBIT 11.1
SEACHANGE INTERNATIONAL, INC.
COMPUTATION OF NET INCOME (LOSS) PER SHARE(1)
JULY 9, 1993
(INCEPTION)
THROUGH YEAR ENDED YEAR ENDED SIX MONTHS
DECEMBER 31, DECEMBER 31, DECEMBER 31, ENDED JUNE 30,
1993 1994 1995 1996
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Weighted average common
and common equivalent
shares:
Weighted average common
shares outstanding
during the period...... 1,076,730 4,657,487 9,125,588 8,584,714
Weighted average common
equivalent shares...... -- 885,600 1,328,400 1,867,513
Dilutive effect of
common equivalent
shares issued
subsequent to September
1995(2)................ 678,208 678,208 1,053,428 1,062,628
---------- ---------- ----------- -----------
1,754,937 6,221,295 11,507,416 11,514,855
========== ========== =========== ===========
Net income (loss)........ $ (17,900) $ 154,800 $ 1,210,800 $ 2,122,100
Primary net income (loss)
per share............... $ (.01) $ .02 $ .11 $ .18
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(1) Fully diluted net income (loss) per share has not been separately
presented, as the amounts would not be materially different from primary
net income (loss) per share.
(2) Common share equivalents are comprised of common stock options and
convertible preferred stock and have been included in the calculation to
the extent their effect is dilutive, except that pursuant to Securities
and Exchange Commission Staff Accounting Bulletin No. 83, common share
equivalents issued at prices below the anticipated initial public offering
price in the twelve months preceding the anticipated initial public
offering have been included in the calculation for all periods presented.