<PAGE>
 
                                                                      EXHIBIT 11

METROWERKS INC. AND SUBSIDIARIES
STATEMENT OF COMPUTATION OF EARNINGS PER SHARE
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                    YEAR ENDED JULY 31,
                                                                      1996                 1997                1998
                                                                ------------------    ----------------    ----------------  
<S>                                                             <C>                   <C>                 <C>              
Primary -                                                                                                                   
    Weighted average common share outstanding/1/                            8,811              11,523               12,311  
    Conversion of warrants using the if converted method                    1,809                 --                   --   
                                                               ------------------    ----------------     ----------------  
                                                                           10,620              11,523               12,311  
                                                                                                                            
    Net income (loss)                                                     $   105             $(5,975)             $(5,897) 
                                                               ------------------    ----------------     ----------------  
    Net income (loss) per share                                           $  0.01             $ (0.52)             $ (0.48) 
</TABLE>

<TABLE>
<CAPTION>                                                                                                                   
                                                                                    YEAR ENDED JULY 31,                     
                                                                      1996                 1997                1998        
                                                               ------------------    ----------------     ----------------  
<S>                                                            <C>                   <C>                  <C>               
Dilutive -                                                                                                                  
    Weighted average common share outstanding/1/                            8,811              11,523               12,311  
    Conversion of warrants using the if converted method                    1,809                 --                   --   
    Net effect of dilutive options  based on treasury stock                                                                 
     method using average market price                                        108                 --                   --   
                                                               ------------------    ----------------     ----------------  
                                                                           10,728              11,523               12,311  
                                                                                                                            
    Net income (loss)                                                     $   105             $(5,975)             $(5,897) 
                                                               ------------------    ----------------     ----------------  
    Net income (loss) per share                                           $  0.01             $ (0.52)             $ (0.48) 
</TABLE>


/1/  Weighted average number of Common Shares is calculated based on the number
     of days outstanding during the year.