1
EXHIBIT 11
MELITA INTERNATIONAL CORPORATION
COMPUTATION OF PRO FORMA EARNINGS PER SHARE
(IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE AMOUNTS)
Nine Months
Ended September 30,
1998 1997
---- ----
DILUTED
Weighted average common stock outstanding 15,179 8,000
Effect of the combination(1) -- 3,143
Effect of issuance of shares in IPO -- 1,709
Dilutive effect of common stock equivalents 843 510
Cheap stock adjustment(2) -- 100
Effect of shareholder distribution(3) -- 394
------ ------
Weighted average common and common equivalent shares 16,022 13,856
====== ======
Net income after income tax 8,351 8,131
Earnings per share .52 .59
====== ======
Pro forma net income 5,173
Pro forma earnings per share .37
======
(1) 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.
(2) 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.
(3) 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.
15