Exhibit 11.1
PREMIERE TECHNOLOGIES, INC. AND SUBSIDIARIES
STATEMENT RE COMPUTATION OF EARNINGS PER SHARE
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1997
(in Thousands)
Three Months Ended
-------------------------
March 31 March 31
1996 1997
------------ ------------
(Unaudited)
PRIMARY (4)
Earnings applicable to common stock:
Net income (loss) $ 674 $ 3,762
Preferred dividends (1) 0 0
Interest income (2) 337 386
-------- --------
Net income (loss) applicable to common stock $ 1,011 $ 4,148
======== ========
Weighted average shares outstanding for primary:
Weighted average shares outstanding 16,157 24,039
Other shares upon assumed exercise of stock options
and warrants (3) 2,594 2,582
-------- --------
Weighted average shares 18,751 26,621
======== ========
Primary net income (loss) per share $ 0.05 $ 0.16
======== ========
_________________
(1) Dividends on cumulative convertible preferred stock are deducted to arrive
at net income applicable to common stock as the preferred stock is not a
common stock equivalent and is therefore not considered as if converted for
primary earnings per share.
(2) Reflects adjustment to interest expense, net of related income tax effect,
on excess proceeds due to 20% limitation on assumed acquisition of shares
under the modified treasury stock method. Assumed proceeds from stock
options include an income tax benefit as the options are not qualified
options under the Internal Revenue Code.
(3) Options and warrants are assumed exercised using the modified treasury stock
method, except where the effect is anti-dilutive.
(4) Fully diluted net income per share is anti-dilutive. Accordingly, fully
diluted net income per share is not presented for all periods.