1 EXHIBIT 11.1 PROJECT SOFTWARE & DEVELOPMENT, INC. STATEMENT RE COMPUTATION OF EARNINGS PER SHARE Type of Security ---------------- Basic Diluted ----- ------- COMPANY, FOR THE THREE MONTHS ENDED DECEMBER 31, 1997: Weighted average common shares outstanding........................... 9,864,535 9,864,535 Common stock equivalents ............................................ n/a 177,790 ---------- ----------- 9,864,535 10,042,325 Net income............................................................. $3,504,810 $ 3,504,810 Net income per share................................................... $ 0.36 $ 0.35 COMPANY, FOR THE THREE MONTHS ENDED DECEMBER 31, 1996: Weighted average common shares outstanding........................... 9,708,322 9,708,322 Common stock equivalents ............................................ n/a 419,564 ---------- ----------- 9,708,322 10,127,886 Historical net income ................................................. $3,528,827 $ 3,528,827 Historical net income per share ....................................... $ 0.36 $ 0.35