EXHIBIT 11.1


                           IWERKS ENTERTAINMENT, INC.

                               EARNINGS PER SHARE
                    (in thousands, except per share amounts)

                                        


                                     For the Three Months Ended                   For the Nine Months Ended
                                               March 31,                                   March 31,
                                       1998                  1997                  1998                   1997
                               -----------------     ------------------    -----------------     --------------------
                                                                                     
Denominator for Basic Earnings
 per Share - Weighted average
 shares outstanding                       12,199                 11,918               12,173                   11,756
 
Effect of dilutive securities:
  Options and warrants                         -                    256                    -                      525
                               -----------------     ------------------    -----------------     --------------------
 
Denominator for Diluted
 Earnings per Share                       12,199                 12,174               12,173                   12,281
 
                               =================     ==================    =================     ====================
 
Net income (loss)                        $(5,077)               $   270              $(9,083)                 $   387
                               =================     ==================    =================     ====================
 
Basic and diluted income
 (loss) per share                        $ (0.42)               $  0.02              $ (0.75)                 $  0.03
 
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