1 EXHIBIT 11 MEDAPHIS CORPORATION COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE THREE AND SIX MONTHS ENDED JUNE 30, 1998 AND 1997 (IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------ ------------------ DESCRIPTION 1998 1997 1998 1997 - ----------- -------- ------- -------- ------- (IN THOUSANDS, EXCEPT PER SHARE NUMBER) Weighted average shares outstanding during the period............................................... 77,136 72,443 75,318 72,339 Shares issuable upon assumed exercise of stock options, less amounts assumed repurchased under the treasury stock method......................................... -- 2,706 -- 2,644 -------- ------- -------- ------- Total weighted average common stock and common stock equivalents outstanding during the period................................. 77,136 75,149 75,318 74,983 ======== ======= ======== ======= Net loss before extraordinary item..................... $(29,816) $(1,260) $(34,966) $(4,324) Extraordinary items, net of tax........................ -- 76,391 (5,557) 76,391 -------- ------- -------- ------- Net income (loss)............................ $(29,816) $75,131 $(40,523) $72,067 ======== ======= ======== ======= Net income (loss) per common share: Net loss before extraordinary item................... $ (0.39) $ (0.02) $ (0.46) $ (0.06) Extraordinary items, net of tax...................... -- 1.02 (0.08) 1.02 -------- ------- -------- ------- Net income (loss)............................ $ (0.39) $ 1.00 $ (0.54) $ 0.96 ======== ======= ======== =======