1 EXHIBIT 11.1 PROJECT SOFTWARE & DEVELOPMENT, INC. STATEMENT RE COMPUTATION OF EARNINGS (LOSS) PER SHARE Type of Security COMPANY, FOR THE YEAR ENDED SEPTEMBER 30, 1995:(in thousands, except share and per share data) Primary Fully Diluted ----------- ----------- Weighted average common shares outstanding .......... 8,530,882 8,530,882 Common stock equivalents ............................ 314,864 329,420 ----------- ----------- 8,845,746 8,860,302 ----------- ----------- Net income .......................................... $ 5,629 $ 5,629 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 ----------- ----------- Net income .......................................... $ 10,046 $ 10,046 Net income per share ................................ $ 1.00 $ 1.00 COMPANY, FOR THE YEAR ENDED SEPTEMBER 30, 1997:(in thousands, except share and per share data) Weighted average common shares outstanding .......... 9,787,144 9,787,144 Common stock equivalents ............................ 277,124 290,434 ----------- ----------- 10,064,268 10,077,578 ----------- ----------- Net income .......................................... $ 11,570 $ 11,570 Net income per share ................................ $ 1.15 $ 1.15