1 Exhibit 11.1 TRANSITION SYSTEMS, INC. COMPUTATION OF EARNINGS PER SHARE For the year ended September 30, 1995 Weighted average shares outstanding: Pro forma common stock outstanding(1) ............................... 10,087,776 Cheap stock(2) ...................................................... 3,798,353 Pro forma weighted average number of common shares and common equivalent shares outstanding ................................ 13,886,129 =========== Net income: Net income before extraordinary item ................................ $ 5,626,233 Extraordinary item .................................................. -- Net income .......................................................... 5,626,233 Net income allocable to common stockholders ......................... 5,626,233 Earnings per share: Net income before extraordinary item ................................ $ 0.41 Extraordinary item .................................................. -- Net income .......................................................... 0.41 Net income allocable to common stockholders ......................... 0.41 For the year ended September 30, 1996 Weighted average shares outstanding: Common stock outstanding(1) ......................................... 13,214,432 Common stock equivalent ............................................. 3,757,289 Pro forma weighted average number of common shares and common equivalent shares outstanding ................................ 16,971,721 =========== Net income: Net income before extraordinary item ................................ $ 6,287,256 Extraordinary item .................................................. (2,148,697) Net income .......................................................... 4,138,559 Net income allocable to common stockholders ......................... $ 3,545,083 Earnings per share: Net income before extraordinary item ................................ $ 0.37 Extraordinary item .................................................. (0.13) Net income .......................................................... 0.24 Net income allocable to common stockholders ......................... $ 0.21 <FN> (1) Gives effect to the Recapitalization. See Note 9 of Notes to Consolidated Financial Statements. (2) Calculated in accordance with the Securities and Exchange Commission Staff Accounting Bulletin No. 83 ("SAB 83"), except that common stock issuable upon conversion of the preferred stock is included in pro forma common stock outstanding and excluded from cheap stock.