Interleaf, Inc. EXHIBIT 11-COMPUTATION OF EARNINGS PER SHARE Three months ended Nine months ended December 31 December 31 1996 1995 1996 1995 ---- ---- ---- ---- In thousands, except for per share (unaudited) (unaudited) amounts Primary Weighted average shares outstanding of Common Stock 17,459 16,102 17,306 15,186 Dilutive Senior Series B Convertible Preferred Stock - 1,467 - 1,929 Dilutive Series C Convertible Preferred Stock - - - - Dilutive stock options - 1,121 - 1,094 Dilutive stock purchase warrants - 109 - 130 Dilutive stock purchase plan rights - 75 - 43 ------- ------- -------- ------- Total - 18,874 - 18,382 ------- ------- -------- ------- ------- ------- -------- ------- Net income (loss) $(9,509) $ 429 $(23,636) $ 1,823 ------- ------- -------- ------- ------- ------- -------- ------- Net income (loss) per share $ (0.54) $ 0.02 $ (1.37) $ 0.10 ------- ------- -------- ------- ------- ------- -------- ------- Fully Diluted Weighted average shares outstanding of Common Stock 17,459 16,102 17,306 15,186 Dilutive Senior Series B Convertible Preferred Stock - 1,467 - 1,929 Dilutive Series C Convertible Preferred Stock - - - - Dilutive stock options - 1,121 - 1,293 Dilutive stock purchase warrants - 129 - 249 Dilutive stock purchase plan rights - 75 - 45 ------- ------- -------- ------- Total - 18,894 - 18,702 ------- ------- -------- ------- ------- ------- -------- ------- Net income (loss) $(9,509) $ 429 $(23,636) $ 1,823 ------- ------- -------- ------- ------- ------- -------- ------- Net income (loss) per share $ (0.54) $ .02 $ (1.37) $ .10 ------- ------- -------- ------- ------- ------- -------- ------- 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.