Interleaf, Inc.
EXHIBIT 11-COMPUTATION OF EARNINGS PER SHARE
Three months ended Nine months ended
December 31 December 31
1996 1995 1996 1995
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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
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Total - 18,874 - 18,382
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Net income (loss) $(9,509) $ 429 $(23,636) $ 1,823
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Net income (loss) per share $ (0.54) $ 0.02 $ (1.37) $ 0.10
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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
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Total - 18,894 - 18,702
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Net income (loss) $(9,509) $ 429 $(23,636) $ 1,823
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Net income (loss) per share $ (0.54) $ .02 $ (1.37) $ .10
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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.