Exhibit 11.1 QAD Inc. Primary and Pro Forma Earnings Per Common and Common Equivalent Share Six Months Ended July 31, 1997 and 1996 (In thousands, except per share amounts) Six Months Ended July 31, 1997 July 31, 1996 Net Income $ 1,301 $ (3,804) Add: Interest expense on purchased debt 915 738 -------- --------- Proforma Net Income $ 2,216 $ (3,066) EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE - PRIMARY Weighted Average Common Shares Outstanding 22,459 21,114 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 24,069 23,119 Net earnings per share - Primary $ 0.05 $ (0.16) -------- --------- -------- --------- EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE - PROFORMA Weighted Average Common Shares Outstanding 28,209 26,864 Stock Options 849 1,244 -------- --------- Common and Common Equivalent Shares 29,058 28,108 Net earnings per share - Proforma $ 0.08 $ (0.11) -------- --------- -------- ---------