1 EXHIBIT 11.1 HNC SOFTWARE INC. STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS (IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED JUNE 30, 1997 1996 ------------------------- ------------------------- PRIMARY FULLY DILUTED PRIMARY FULLY DILUTED -------- ------------- -------- ------------- NET INCOME (LOSS) $ 2,458 $ 2,458 $ 366 $ 366 ======== ======== ======== ======== SHARES (1) Weighted average common shares outstanding 19,322 19,322 18,621 18,621 Weighted average common stock options and warrants as determined by application of the treasury stock method (2) 1,182 1,508 1,834 1,834 -------- -------- -------- -------- Weighted average common and common equivalent shares outstanding 20,504 20,830 20,455 20,455 ======== ======== ======== ======== NET INCOME (LOSS) PER SHARE OF COMMON STOCK $ 0.12 $ 0.12 $ 0.02 $ 0.02 ======== ======== ======== ======== SIX MONTHS ENDED JUNE 30, 1997 1996 ------------------------- -------------------------- PRIMARY FULLY DILUTED PRIMARY FULLY DILUTED -------- ------------- -------- ------------- NET INCOME (LOSS) $ 4,641 $ 4,641 $ (361) $ (361) ======== ======== ======== ======== SHARES (1) Weighted average common shares outstanding 19,258 19,258 18,407 18,407 Weighted average common stock options and warrants as determined by application of the treasury stock method (2) 1,190 1,516 -- -- -------- -------- -------- -------- Weighted average common and common equivalent shares outstanding 20,448 20,774 18,407 18,407 ======== ======== ======== ======== NET INCOME (LOSS) PER SHARE OF COMMON STOCK $ 0.23 $ 0.22 $ (0.02) $ (0.02) ======== ======== ======== ======== - ---------- (1) All share and per share amounts have been adjusted to give retroactive effect to the stock split effected as a stock dividend, which occurred on April 3, 1996. (2) In accordance with Accounting Principles Board Opinion No. 15, these common stock equivalents are not included in the six months ended June 30, 1996 computation of earnings per share as the Company incurred a net loss and their impact would be anti-dilutive.