1 Exhibit 11.1 SOFTWARE SPECTRUM, INC. AND SUBSIDIARIES COMPUTATION OF PRIMARY EARNINGS (LOSS) PER SHARE (Unaudited) Three Months Ended Six Months Ended September 30, September 30, ---------------------------- ---------------------------- 1996 1995 1996 1995 --------- ---------- --------- ---------- Net income (loss) $(533,000) $1,788,000 $(789,000) $3,403,000 ========= ========== ========= ========== Shares as adjusted: Average number of shares outstanding 4,288,277 4,195,712 4,275,903 4,186,938 Incremental shares from outstanding stock options as determined under the treasury stock method, using the average market price -- * 95,060 -- * 71,865 Shares as adjusted 4,288,277 4,290,772 4,275,903 4,258,803 ========= ========== ========= ========== Primary earnings (loss) per share $ (.12) $ .42 $ (.18) $ .80 ========= ========== ========= ========== * No incremental shares from outstanding stock options are included as they would be anti-dilutive. 20