EXHIBIT 11 AMERICAN TELESOURCE INTERNATIONAL INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE For the period from December 17, 1993 (Inception) through For the year ended For the year ended July 31, 1994 July 31, 1995 July 31, 1996 ------------------- ------------------ ------------------ Primary Earnings: Net loss ($343,528) ($2,004,167) ($2,204,727) ============ ============ ============ Shares: Weighted average number of common shares outstanding 9,146,091 13,922,018 19,928,372 Incremental shares assuming conversion of warrants 0 162,360 175,539 ------------ ------------ ------------ Weighted average number of common shares outstanding as adjusted 9,146,091 14,084,378 20,103,911 ============ ============ ============ Primary earnings per common share Net loss ($0.04) ($0.14) ($0.11) ============ ============ ============ Fully Diluted Earnings: Net loss ($343,528) ($2,004,167) ($2,204,727) Add: Interext expense applicable to convertible debt 0 6,000 12,000 ------------ ------------ ------------ Net loss - as adjusted ($343,528) ($1,998,167) ($2,192,727) ============ ============ ============ Shares: Weighted average number of common shares outstanding 9,146,091 13,922,018 19,928,372 Incremental shares assuming conversion of convertible debt 0 100,000 200,000 Incremental shares assuming conversion of warrants 39,835 202,229 240,513 ------------ ------------ ------------ Weighted average number of common shares outstanding as adjusted 9,185,926 14,224,247 20,368,885 ============ ============ ============ Fully diluted earnings per common share Net loss, as adjusted ($0.04) ($0.14)(a) ($0.11) ============ ============ ============ (a) This calculation is submitted in accordance with paragraph 601 (b) (11) of Regulation S-K although it is contrary to APB Opinion No. 15 because it produces an antidilutive result.