1 EXHIBIT 11.1 AWARD SOFTWARE INTERNATIONAL, INC. STATEMENT REGARDING COMPUTATION OF NET INCOME (LOSS) PER SHARE --------------------------------------------------------------------- THREE MONTH YEAR ENDED PERIOD ENDED DECEMBER 31, MARCH 31, 1995 THREE MONTH SIX MONTHS ENDED --------------- -------------- PERIOD ENDED In thousands, except per share data DECEMBER 31, 1993 1994 1995 MARCH 31, 1996 ----------------- ------ ------ -------------- (Unaudited) Net income (loss)........................ $ (1,178) $1,258 $1,165 $ 316 $ 386 ----------------- ------ ------ -------------- -------------- Weighted average Common and Common Equivalent Shares Common Stock........................... 3,842 3,842 3,612 3,841 3,097 Common Stock equivalents from stock options/warrants using the treasury stock method........................ -- -- 423 316 482 Shares of Common Stock issued and options and warrants granted in accordance with SAB No. 83.......... 2,611 2,611 2,611 2,611 2,611 ----------------- ------ ------ -------------- -------------- Total.......................... 6,453 6,453 6,646 6,768 6,190 ================ ====== ====== ============= ============= Net income (loss) per share.............. $ (0.18) $ 0.19 $ 0.18 $ 0.05 $ 0.06 ================ ====== ====== ============= ============= Net Income (Loss) per Share Net income (loss) per share is computed using the weighted average number of common and common equivalent shares, when dilutive, from stock options and warrants (using the treasury stock method). Pursuant to a Securities and Exchange Commission Staff Accounting Bulletin, common and common equivalent shares (using the treasury stock method and the assumed public offering price) issued by the Company within 12 months prior to the Company's initial public offering filing and through the effective date of such filing have been included in the calculation as if they were outstanding for all periods presented.