1 EXHIBIT 11 MEDAPHIS CORPORATION COMPUTATION OF PRIMARY AND FULLY DILUTED EARNINGS PER SHARE THREE AND SIX MONTHS ENDED JUNE 30, 1997 AND 1996 (IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------- ----------------- DESCRIPTION 1997 1996 1997 1996 - ----------- -------- -------- ------- ------- (IN THOUSANDS, EXCEPT PER SHARE NUMBER) (AS RESTATED, SEE NOTE 7) PRIMARY Weighted average shares outstanding during the period..... 72,443 71,167 72,339 70,795 Shares issuable upon assumed exercise of stock options, less amounts assumed repurchased under the treasury stock method............................................ 2,706 -- 2,644 3,991 ------- ------- ------- ------- Total weighted average common stock and common stock equivalents outstanding during the period............... 75,149 71,167 74,983 74,786 ======= ======= ======= ======= Pro forma net income (loss) before extraordinary item..... $(1,260) $(9,931) $(4,324) $ (507) Extraordinary income on sale of HRI....................... 76,391 -- 76,391 -- ------- ------- ------- ------- Pro forma net income (loss)............................... $75,131 $(9,931) $72,067 $ (507) ======= ======= ======= ======= Pro forma net income (loss) per common share: Pro forma net income (loss) before extraordinary item............................................... $ (0.02) $ (0.14) $ (0.06) $ (0.01) Extraordinary income on sale of HRI.................. 1.02 -- 1.02 -- ------- ------- ------- ------- Pro forma net income (loss).......................... $ 1.00 $ (0.14) $ 0.96 $ (0.01) ======= ======= ======= ======= FULLY DILUTED Weighted average shares outstanding during the period..... 72,443 71,167 72,339 70,795 Shares issuable upon assumed exercise of stock options, less amounts assumed repurchased under the treasury stock method............................................ 3,612 -- 2,869 3,993 ------- ------- ------- ------- Total weighted average common stock and common stock equivalents outstanding during the period............... 76,055 71,167 75,208 74,788 ======= ======= ======= ======= Pro forma net income (loss) before extraordinary item..... $(1,260) $(9,931) $(4,324) $ (507) Extraordinary income on sale of HRI....................... 76,391 -- 76,391 -- ------- ------- ------- ------- Pro forma net income (loss)............................... $75,131 $(9,931) $72,067 $ (507) ======= ======= ======= ======= Pro forma net income (loss) per common share: Pro forma net income (loss) before extraordinary item............................................... $ (0.02) $ (0.04) $ (0.06) $ (0.01) Extraordinary income on sale of HRI.................. 1.00 -- 1.02 -- ------- ------- ------- ------- Pro forma net income (loss).......................... $ 0.98 $ (0.04) $ 0.96 $ (0.01) ======= ======= ======= =======