INTERLEAF, INC. EXHIBIT 11-COMPUTATION OF EARNINGS PER SHARE In thousands, except for per share amounts Three months ended Nine months ended December 31 December 31 (unaudited) (unaudited) 1994 1993 1994 1993 ---- ---- ---- ---- PRIMARY Average shares outstanding of Common Stock 13,971 13,452 13,887 13,310 Net effect of Senior Series B Convertible - 2,506 - - Preferred Stock, if dilutive Net effect of stock options, if dilutive, based on - 412 - - the treasury method using average market price Net effect of stock purchase warrants, if dilutive, based on the treasury method using average market price - 267 - - Net effect of stock purchase plan rights, if dilutive, based on the treasury method using average - 18 - - market price ------ ------ ------ ------ TOTAL 13,971 16,655 13,887 13,310 ------ ------ ------ ------ ------ ------ ------ ------ Income (loss) before cumulative effect of change in accounting principle $(5,781) $ 40 $(28,491) $(10,990) ------ ------ ------ ------ ------ ------ ------ ------ Per share amount $ (.41) $ .00 $ (2.05) $ (.82) ------ ------ ------ ------ ------ ------ ------ ------ Cumulative effect of change in accounting principle $ - $ - $ - $ 1,900 ------ ------ ------ ------- ------ ------ ------ ------- Per share amount $ - $ - $ - $ .14 ------ ------ ------ ------- ------ ------ ------ ------- Net income (loss) $(5,781) $ 40 $(28,491) $(9,090) ------ ------ ------ ------ ------ ------ ------ ------ Per share amount $ (.41) $ .00 $ (2.05) $ (.68) ------ ------ ------ ------ ------ ------ ------ ------ FULLY DILUTED Average shares outstanding of Common Stock 13,971 13,452 13,887 13,310 Net effect of Senior Series B Convertible - 2,506 - - Preferred Stock, if dilutive Net effect of stock options, if dilutive, based on - 428 - - the treasury method using quarter-end price, if higher Net effect of stock purchase warrants, if - 290 - - dilutive, based on the treasury method using quarter-end price, if higher Net effect of stock purchase plan rights, if - 21 - - ------ ------ ------ ------ dilutive, based on the treasury method using quarter-end price, if higher Total 13,971 16,697 13,887 13,310 ------ ------ ------ ------ ------ ------ ------ ------ Income (loss) before cumulative effect of change in accounting principle $ (5,781) $ 40 $(28,491) $(10,990) ------ ------ ------ ------- ------ ------ ------ ------- Per share amount $ (.41) $ .00 $ (2.05) $ (.82) ------ ------ ------ ------ ------ ------ ------ ------ Cumulative effect of change in accounting principle $ - $ - $ - $ 1,900 ------ ------ ------ ------- ------ ------ ------ ------- Per share amount $ - $ - $ - $ .14 ------ ------ ------ ------- ------ ------ ------ ------- Net income (loss) $(5,781) $ 40 $(28,491) $(9,090) ------ ------ ------ ------ ------ ------ ------ ------ Per share amount $ (.41) $ .00 $ (2.05) $ (.68) ------ ------ ------ ------ ------ ------ ------ ------ 15