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                                                                 EXHIBIT 11.1

                  NETSCAPE COMMUNICATIONS CORPORATION
             STATEMENT OF COMPUTATION OF EARNINGS PER SHARE
                 (IN THOUSANDS, EXCEPT PER SHARE DATA)
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<CAPTION>

                                    YEAR ENDED        YEAR ENDED        YEAR ENDED 
                                   DECEMBER 31,      DECEMBER 31,      DECEMBER 31,
                                      1996               1995              1994  
                                   ------------      ------------      ------------
<S>                                <C>               <C>               <C>
Primary:
   Weighted average common stock
     outstanding including stock
     related to SAB No. 64 and 83     84,001           75,735             67,181
   Net effect of dilutive stock 
     options-based on the treasury 
     stock method                      3,860             --                 --
                                   ------------      ------------      ------------
       Total weighted average 
          common and common 
          equivalent shares 
          outstanding                 87,861           75,735             67,181
                                   ------------      ------------      ------------
                                   ------------      ------------      ------------

Net income (loss)                  $  20,908         $ (6,613)         $ (13,830)
                                   ------------      ------------      ------------
                                   ------------      ------------      ------------

Net income (loss) per share        $    0.24         $  (0.09)         $   (0.21)
                                   ------------      ------------      ------------
                                   ------------      ------------      ------------

Fully diluted:

   Weighted average common stock 
     outstanding including stock 
     related to SAB No. 64 and 83     84,001           75,735             67,181
      
   Net effect of dilutive stock 
     options-based on the treasury 
     stock method                      3,996              --                 --
                                   ------------      ------------      ------------
        Total weighted average 
          common and common 
          equivalent shares 
          outstanding                 87,997           75,735             67,181
                                   ------------      ------------      ------------
                                   ------------      ------------      ------------

Net income (loss)                  $  20,908         $ (6,613)         $ (13,830)
                                   ------------      ------------      ------------
                                   ------------      ------------      ------------

Net income (loss) per share        $    0.24         $  (0.09)         $   (0.21)
                                   ------------      ------------      ------------
                                   ------------      ------------      ------------

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1. All periods reflect the business combinations with Collabra Software, 
   Inc., and InSoft, Inc., which have been accounted for as poolings of 
   interest. Financial information for periods prior to January 1, 1996 has 
   not been restated for the operations of Netcode Corporation and Paper 
   Software, Inc., due to immateriality. See Note 2 of Notes to 
   Consolidated Financial Statements.

2. All share and per share data have been restated to reflect a 
   two-for-one stock split approved on January 23, 1996.

3. No dividends have been declared or paid on the common stock of 
   Netscape. The dividends declared and paid by InSoft were 
   insignificant.

4. Shares issued within twelve months of the initial filing date of the 
   Company's Initial Public Offering have been included in the line item 
   entitled "Stock related to SAB No. 64 and 83." See Note 1 of Notes to 
   Consolidated Financial Statements.