EXHIBIT 11.1


                           IWERKS ENTERTAINMENT, INC.

                               EARNINGS PER SHARE
                  (dollars in thousands, except share amounts)


 
 
                                         For the Three Months Ended        For the Nine Months Ended
                                                  March 31,                        March 31,
                                             1997          1996                 1997         1996
                                          -----------   -----------          -----------   -----------
                                                                              
Weighted average shares outstanding        11,918,480    10,565,134           11,756,201    10,441,541
 
Common equivalent shares:
  Options and warrants                        255,416     1,328,281              525,047     1,169,985
                                           ----------   -----------          -----------   -----------
 
                                           12,173,896    11,893,415           12,281,248    11,611,526
                                           ==========   ===========          ===========   ===========
 
Net income                                     $  270       $ 1,378                $ 387       $ 2,123
                                           ==========   ===========          ===========   ===========
 
Net income per share                           $ 0.02        $ 0.12               $ 0.03         $0.18
                                           ==========   ===========          ===========   ===========