INTERLEAF, INC. EXHIBIT 11-COMPUTATION OF EARNINGS PER SHARE Three months ended June 30 1995 1994 ------- -------- (unaudited) In thousands, except for per share amounts PRIMARY Weighted average shares outstanding of Common Stock 14,362 13,760 Dilutive Senior Series B Convertible Preferred Stock 2,323 -- Dilutive stock options 875 -- Dilutive stock purchase warrants 78 -- Dilutive stock purchase plan rights 10 -- ------- -------- Total 17,648 13,760 ======= ======== Net income (loss) $472 $(8,153) ======= ======== Net income (loss) per share $.03 $(.59) ======= ======== Fully Diluted Weighted average shares outstanding of Common Stock 14,362 13,760 Dilutive Senior Series B Convertible Preferred Stock 2,323 -- Dilutive stock options 1,133 -- Dilutive stock purchase warrants 203 -- Dilutive stock purchase plan rights 14 -- ------- ------- Total 18,035 13,760 ======= ======== Net income (loss) $472 $(8,153) ======= ======== Net income (loss) per share $.03 $(.59) ======= ======== The dilutive effect of stock options, stock purchase warrants, and stock purchase plan rights are calculated using the treasury stock method. Under this method, these common stock equivalents are assumed to be exercised and proceeds from the exercise are assumed to be used to repurchase common stock at the average market price for primary income (loss) per share and the higher of the end of the period or average market price for fully diluted income (loss) per share. The dilutive effect of Convertible Preferred Stock is calculated using the if-converted method.