Exhibit 11 QAD Inc. Primary and Pro Forma Earnings Per Common and Common Equivalent Share Three Months Ended July 31, 1997 and 1996 (In thousands, except per share amounts) Three Months Ended July 31, 1997 July 31, 1996 Net Income $ 741 $ 3,513 Add: Interest expense on purchased debt 488 383 -------- -------- Proforma Net Income $ 1,229 $ 3,897 EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE - PRIMARY Weighted Average Common Shares Outstanding 22,505 21,141 Weighted Average Shares of Common Stock and equivalents issued during the 12 months preceding the initial public offering 761 761 Stock Options 849 1,244 -------- -------- Common and Common Equivalent Shares 24,115 23,146 Net earnings per share - Primary $ 0.03 $ 0.15 -------- -------- -------- -------- EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE - PROFORMA Weighted Average Common Shares Outstanding 28,255 26,891 Stock Options 849 1,244 -------- -------- Common and Common Equivalent Shares 29,104 28,135 Net earnings per share - Proforma $ 0.04 $ 0.14 -------- -------- -------- --------