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EXHIBIT 11
MELITA INTERNATIONAL CORPORATION
COMPUTATION OF PRO FORMA EARNINGS PER SHARE
(IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
Three Months Six Months
Ended June 30 Ended June 30
1997 1996 1997 1996
---- ---- ---- ----
PRIMARY (1)
Weighted average common stock outstanding 8,000 8,000 8,000 8,000
Effect of the combination (2) 3,143 3,143 3,143 3,143
Effect of issuance of shares in IPO 1,058 -- 529 --
Dilutive effect of common stock equivalents 596 139 395 139
Cheap stock adjustment (3) 71 133 94 133
Effect of shareholder distribution (4) -- 945 597 945
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Weighted average common and common equivalent shares 12,868 12,360 12,758 12,360
Net income after income tax 3,728 2,074 6,048 4,114
Earnings per share 0.29 0.17 0.47 0.33
Pro forma net income 1,665 1,299 3,090 2,577
Pro forma earnings per share 0.13 0.11 0.24 0.21
(1) Fully diluted earnings per share would change only the dilutive effect of
common stock equivalents noted above. If the dilutive effect of common stock
equivalents was computed on a fully dilutive basis, the weighted average common
and common equivalent shares would be 13,084, 12,462, 13,162, and 12,463, for
the three months ended June 30, 1997 and 1996, and the six months ended June 30,
1997 and 1996, respectively.
(2) Reflects pro forma issuance of 3,143 shares of Common Stock in connection
with the combination of Melita International Corporation, Melita Europe Limited
and Inventions, Inc.
(3) Pursuant to Securities and Exchange Commission Staff Accounting Bulletin
No. 83, common stock and common stock equivalents issued at prices below the
assumed initial public offering price per share ("cheap stock") during the
twelve months immediately preceding the initial filing date of the Company's
Registration Statement for its public offering have been included as
outstanding for all periods presented.
(4) Pursuant to Staff Accounting Bulletin 1B.3, pro forma earnings per share
gives effect to the issuance by the Company of the numbers of shares that, of
the assumed public offering price, would yield proceeds in the amount necessary
to pay the shareholder distribution that is not covered by the earnings during
the period.
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