INTERLEAF, INC.
EXHIBIT 11-COMPUTATION OF EARNINGS PER SHARE
Three months ended Six months ended
September 30 September 30
1996 1995 1996 1995
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(unaudited) (unaudited)
In thousands, except for per share amounts
PRIMARY
Weighted average shares outstanding of Common Stock 17,457 15,084 17,229 14,725
Dilutive Senior Series B Convertible Preferred Stock -- 2,000 -- 2,160
Dilutive stock options -- 1,286 -- 1,081
Dilutive stock purchase warrants -- 203 -- 141
Dilutive stock purchase plan rights -- 45 -- 27
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TOTAL 17,457 18,618 17,229 18,134
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Net income (loss) $(10,327) $ 922 $(14,127) $ 1,394
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Net income (loss) per share $ (0.59) $ 0.05 $ (0.82) $ 0.08
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FULLY DILUTED
Weighted average shares outstanding of Common Stock 17,457 15,084 17,229 14,725
Dilutive Senior Series B Convertible Preferred Stock -- 2,000 -- 2,160
Dilutive stock options -- 1,323 -- 1,366
Dilutive stock purchase warrants -- 215 -- 277
Dilutive stock purchase plan rights -- 46 -- 32
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TOTAL 17,457 18,668 17,229 18,560
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Net income (loss) $(10,327) $ 922 $(14,127) $ 1,394
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Net income (loss) per share $ (0.59) $ 0.05 $ (0.82) $ 0.08
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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.