1 Exhibit 11 DATAWORKS CORPORATION STATEMENT OF COMPUTATION OF EARNINGS PER SHARE (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------------ --------------------- 1996 1995 1996 1995 --------- ------- ------- ------- Primary: Average shares outstanding 7,780 4,360 7,674 4,285 Net effect of dilutive stock options - based on the treasury stock method using average market price -- 1,099 505 1,099 --------- ------- ------- ------- Totals 7,780 5,459 8,179 5,384 ========= ======= ======= ======= Income (loss) before extraordinary item $ (684) $ 1,123 $ 1,479 $ 1,690 Extraordinary item -- (627) -- (627) --------- ------- ------- ------- Net income (loss) $ (684) $ 496 $ 1,479 $ 1,063 ========= ======= ======= ======= Per share information: Income (loss) before extraordinary item $ (.09) $ .20 $ .18 $ .31 Extraordinary item -- (.11) -- (.11) --------- ------- ------- ------- Net income (loss) $ (.09) $ .09 $ .18 $ .20 ========= ======= ======= ======= Fully dilutive effect of stock options on per share amounts for the three and nine month periods ended September 30, 1996 and 1995, has not been presented since any reduction of less than 3% in the aggregate need not be considered as dilution. 14