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EXHIBIT 11
MELITA INTERNATIONAL CORPORATION
COMPUTATION OF PRO FORMA EARNINGS PER SHARE
(IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE AMOUNTS)
Three Months Nine Months
Ended September 30 Ended September 30
1997 1996 1997 1996
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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 4,025 - 1,709 -
Dilutive effect of common stock equivalents 735 139 510 139
Cheap stock adjustment (3) 113 133 100 133
Effect of shareholder distribution (4) -- 945 394 945
- -- -- -- -- --
Weighted average common and common equivalent shares 16,016 12,360 13,856 12,360
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Net income after income tax 2,083 1,426 8,131 5,540
Earnings per share .13 .12 .59 .45
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Pro forma net income 2,083 909 5,173 3,486
Pro forma earnings per share .13 .07 .37 .28
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(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 16,081, 12,478, 13,971, and 12,468, for
the three months ended September 30, 1997 and 1996, and the nine months ended
September 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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