1 EXHIBIT 11.1 PROJECT SOFTWARE & DEVELOPMENT, INC. STATEMENT RE COMPUTATION OF EARNINGS (LOSS) PER SHARE Type of Security ---------------- Fully ----- COMPANY, FOR THE YEAR ENDED SEPTEMBER 30, Primary Diluted 1994: (in thousands, except share and per ----------- ----------- share data) Weighted average common shares outstanding . 6,858,513 6,858,513 Common stock equivalents ................... 83,909 104,298 ----------- ----------- 6,942,422 6,962,811 ----------- ----------- Historical net income ...................... $ 2,315 $ 2,315 Historical net income per share ............ $ 0.33 $ 0.33 Pro forma net income ....................... $ 2,601 $ 2,601 Pro forma income per share ................. $ 0.37 $ 0.37 COMPANY, FOR THE YEAR ENDED SEPTEMBER 30, 1995: (in thousands, except share and per share data) Weighted average common shares outstanding.. 8,530,882 8,530,882 Common stock equivalents ................... 314,864 329,420 ----------- ----------- 8,845,746 8,860,302 ----------- ----------- Historical net income ...................... $ 5,629 $ 5,629 Historical net income per share....................................... $ 0.64 $ 0.64 COMPANY, FOR THE YEAR ENDED SEPTEMBER 30, 1996: (in thousands, except share and per share data) Weighted average common shares outstanding.. 9,602,710 9,602,710 Common stock equivalents ................... 449,198 481,571 ----------- ----------- 10,051,908 10,084,281 ----------- ----------- Historical net income ...................... $ 10,046 $ 10,046 Historical net income per share ............ $ 1.00 $ 1.00