1 EXHIBIT 11.1 PROJECT SOFTWARE & DEVELOPMENT, INC. STATEMENT RE COMPUTATION OF EARNINGS PER SHARE Type of Security ---------------- Primary Fully Diluted ------- ------------- COMPANY, FOR THE THREE MONTHS ENDED DECEMBER 31, 1996: Weighted average common shares outstanding . . . . . . . . 9,708,322 9,708,322 Common stock equivalents . . . . . . . . . . . . . . . . . 419,564 455,669 ----------- ----------- 10,127,886 10,163,991 Historical net income . . . . . . . . . . . . . . . . . . . . . $ 3,528,827 $ 3,528,827 Historical net income per share . . . . . . . . . . . . . . . . 0.35 0.35 COMPANY, FOR THE THREE MONTHS ENDED DECEMBER 31, 1995: Weighted average common shares outstanding . . . . . . . . . 9,567,757 9,567,757 Common stock equivalents. . . . . . . . . . . . . . . . . . . 481,144 518,850 ----------- ----------- 10,048,901 10,086,607 Historical net income . . . . . . . . . . . . . . . . . . . . . $ 2,127,452 $ 2,127,452 Historical net income per share . . . . . . . . . . . . . . . . $ 0.21 $ 0.21