1 EXHIBIT 11.1 PROJECT SOFTWARE & DEVELOPMENT, INC. STATEMENT RE COMPUTATION OF EARNINGS PER SHARE Three months Three months Nine months Nine months ended ended ended ended PRIMARY: 06/30/97 06/30/96 06/30/97 06/30/96 ------------ ------------ ----------- ----------- Weighted average common shares 9,826,396 9,608,676 9,767,357 9,583,645 outstanding .................. Common stock equivalents ..... 145,335 446,779 310,447 457,539 ---------- ----------- ----------- ----------- 9,971,731 10,055,455 10,077,804 10,041,184 ---------- ----------- ----------- ----------- Net income ................... $2,490,478 $ 2,749,896 $ 7,555,034 $ 6,324,634 Net income per share ......... $ 0.25 $ 0.27 $ 0.75 $ 0.63 FULLY DILUTED: Weighted average common shares 9,826,396 9,608,676 9,767,357 9,583,645 outstanding .................. Common stock equivalents ..... 145,886 476,853 322,716 488,986 ---------- ----------- ----------- ----------- 9,972,282 10,085,529 10,090,073 10,072,631 ---------- ----------- ----------- ----------- Net income ................... $2,490,478 $ 2,749,896 $ 7,555,034 $ 6,324,634 Net income per share ......... $ 0.25 $ 0.27 $ 0.75 $ 0.63