**Exhibit 11.1**

 

**ALLEGIANCE TELECOM, INC.**

**(Debtors and Debtors-in-Possession)**

**COMPUTATION OF PER SHARE EARNINGS(LOSS)**

**QUARTER ENDED MARCH 31, 2004**

 
|                                                 |   | **Number of  Shares** |   | **Percent  Outstanding** |   | **Equivalent    Shares** |        |
|------------------------------------------------------|--------|-----------------------|--------|--------------------------|--------|--------------------------|-------------|
|                                                 |   |                  |   |                     |   |                     |        |
| Prior to Initial  Public Offering                    |   |                  |   |                     |   |                     |        |
| 1997 Common  Stock Offering                          |   | 639                   |   | 100.00                   | %      | 639                      |        |
| After Initial  Public Offering                       |   |                  |   |                     |   |                     |        |
| 1998 Common  Stock Offering                          |   | 15,000,000            |   | 100.00                   | %      | 15,000,000               |        |
| Preferred Stock  Converted to Common Stock           |   | 60,511,692            |   | 100.00                   | %      | 60,511,692               |        |
| 1999 Common  Stock Offering                          |   | 21,041,100            |   | 100.00                   | %      | 21,041,100               |        |
| 2000 Common  Stock Offering                          |   | 10,703,109            |   | 100.00                   | %      | 10,703,109               |        |
| Cash in Lieu of  Stock Split                         |   | (577                  | )      | 100.00                   | %      | (577                     | )           |
| Treasury Shares                                      |   | (573,541              | )      | 100.00                   | %      | (573,541                 | )           |
| Warrants                                             |   | 973,871               |   | 100.00                   | %      | 973,871                  |        |
| Stock Options  Exercised                             |   | 1,362,257             |   | 100.00                   | %      | 1,362,257                |        |
| Employee Stock  Discount Purchase Plan Shares Issued |   | 3,458,578             |   | 100.00                   | %      | 3,458,578                |        |
| Common Stock  Issued for Business Acquisitions       |   | 5,874,505             |   | 100.00                   | %      | 5,874,505                |        |
| Restricted  Shares Issued to Employees               |   | 2,205,022             |   | 100.00                   | %      | 2,205,022                |        |
| WEIGHTED AVERAGE  SHARES OUTSTANDING                 |   |                  |   |                     |   | 120,556,655              |        |
| NET LOSS  APPLICABLE TO COMMON STOCK                 |   |                  |   |                     |   | $                        | (59,891,000 | ) |
| NET LOSS PER  SHARE, BASIC AND DILUTED               |   |                  |   |                     |   | $                        | (0.50       | ) |

 

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