SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                        For Quarter ended March 31, 1997

                Quarterly Report pursuant to Section 13 or 15(d)
                   of the Securities and Exchange Act of 1934

                         Commission File Number 1-10768


                       MEDIWARE INFORMATION SYSTEMS, INC.
             (Exact name of registrant as specified in its charter)

          New York                                              11-2209324
(State of other Jurisdiction of                              (I.R.S. Employer
incorporation or organization)                            Identification Number)


 1121 Old Walt Whitman Road
     Melville, New York                                        11747-3005
(Address of Principal Executive Officer)                        (Zip Code)



                                 (516) 423-7800
              (Registrant's telephone number, including area code)





Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports)  and  (2)  has  been  subject  to such  filing
requirements for the past 90 Days.  Yes X   No ______

As of March 31, 1997,  there were  4,957,973  shares of Common Stock,  $0.10 par
value, of the registrant outstanding.





<PAGE>


                       MEDIWARE Information Systems, Inc.

                                      Index



Part I.  Financial Information                                            Page


ITEM 1.  Financial Statements

         Consolidated Balance Sheets as of June 30, 1996
         (audited) and March 31, 1997 (unaudited)............................2


         Consolidated Statements of Operations
         for the three months and nine months ended
         March 31, 1997 & 1996 (unaudited)...................................3


         Consolidated Statements of Cash Flows
         for the nine months ended
         March 31, 1997 & 1996 (unaudited)...................................4


         Notes to Financial Statements.......................................5



ITEM 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations.............................5 - 8


Signature Page...............................................................9

EXHIBIT 11
Schedule of Computation of Net income per Share.............................10

EXHIBIT 27
Financial Data Schedule.....................................................11



<PAGE>
<TABLE>
<CAPTION>
                MEDIWARE Information Systems, Inc. and subsidiary
                           Consolidated Balance Sheets

                                                                                    March 31, 1997       June 30, 1996
                                                                                      (unaudited)
                                     ASSETS
                                     ------
<S>                                                                                     <C>                 <C>       
Current assets:
  Cash and cash equivalents                                                             $2,043,000          $2,504,000
  Accounts receivable, less estimated doubtful accounts of $264,000 at March 31,         5,363,000           3,509,000
    1997 and $188,000 at June 30, 1996
  Current portion of contract installment receivable                                       188,000             252,000
  Inventories                                                                              119,000             208,000
  Prepaid expenses and other current assets                                                252,000             166,000
                                                                                       ------------        -----------
     Total current assets                                                                7,965,000           6,639,000

Long-term contract installments receivable, less current portion                            37,000             155,000

Fixed assets, at cost, less accumulated depreciation of $1,804,000 at March 31,            635,000             576,000
    1997 and $1,364,000 at June 30, 1996

Capitalized software costs                                                               1,180,000           1,012,000
Excess of cost over fair value of net assets acquired, net of accumulated
    amortization of $639,000 at March 31, 1997 and $372,000 at June 30, 1996             6,470,000           6,737,000
        
Other assets                                                                                72,000              38,000
                                                                                       -----------         -----------
    TOTAL                                                                              $16,359,000         $15,157,000
                                                                                       ===========         ===========


                                   LIABILITIES
                                   -----------
Current liabilities:
   Accounts payable                                                                       $452,000            $483,000
   Accrued expenses and other current liabilities                                        1,773,000           1,775,000
   Advances from customers                                                               2,230,000           1,379,000
   Current portion of capital leases payable                                                16,000              15,000
   Notes payable                                                                         5,955,000           1,451,000
                                                                                       -----------         -----------
        Total current liabilities                                                       10,426,000           5,103,000

Notes payable, less current portion                                                                          5,728,000
Capital leases payable, less current portion                                                34,000              43,000
                                                                                       -----------         -----------
        Total liabilities                                                               10,460,000          10,874,000

                              STOCKHOLDERS' EQUITY
                              --------------------
Common stock - $.10 par value; authorized 12,000,000 shares; issued and outstand-          496,000             493,000
  ing 4,957,973 shares at March 31, 1997 and  4,931,320 shares at June 30, 1996

Additional paid-in capital                                                              13,457,000          13,419,000

Cumulative foreign currency translation adjustment                                         (47,000)
Accumulated Deficit                                                                     (8,007,000)         (9,629,000)
                                                                                       -----------         -----------
        Total stockholders' equity                                                       5,899,000           4,283,000
                                                                                       -----------         -----------
        TOTAL                                                                          $16,359,000         $15,157,000
                                                                                       ===========         ===========
</TABLE>
                                      -2-
<PAGE>
<TABLE>
<CAPTION>
                MEDIWARE Information Systems, Inc. and subsidiary
                      Consolidated Statements of Operations


                                        Three Months Ended March 31,                   Nine Months Ended March 31,
                                                (unaudited)                                   (unaudited)

                                         1997                   1996                   1997                 1996
                                   ------------------------------------------------------------------------------------
<S>                                     <C>                    <C>                    <C>                  <C>        
Revenues:
    System sales                       $ 1,142,000             $ 1,495,000            $ 4,543,000          $ 4,519,000
    Services                             3,285,000               1,216,000              8,915,000            3,214,000
                                   ------------------------------------------------------------------------------------

      Total revenues                     4,427,000               2,711,000             13,458,000            7,733,000
                                   ------------------------------------------------------------------------------------

Costs and expenses:
    Cost of systems                        386,000                 608,000              1,474,000            1,375,000
    Cost of services                       832,000                 459,000              2,440,000            1,350,000
    Software development costs             525,000                 429,000              1,661,000            1,185,000
    Selling, general and
    administrative                       2,001,000               1,122,000              5,781,000            3,093,000
                                   ------------------------------------------------------------------------------------
                                         3,744,000               2,618,000             11,356,000            7,003,000

Earnings (loss) before other
   income, interest income,
   interest expense, and                   683,000                  93,000              2,102,000              730,000
    income taxes 

Other income                                 7,000                                          7,000                    -


Interest income                             17,000                   3,000                 63,000                3,000

Interest (expense)                        (197,000)                (42,000)              (551,000)            (150,000)
                                   ------------------------------------------------------------------------------------
Income before income taxes                 510,000                  54,000              1,621,000              583,000

Income tax                                 (21,000)                      -                (61,000)              (3,000)
                                   ------------------------------------------------------------------------------------
NET EARNINGS                               489,000                  54,000              1,560,000              580,000
                                   ====================================================================================

Net income per share of            
  common stock:
Primary                                      $0.08                   $0.02                  $0.27                $0.19
                                   ====================================================================================
Assuming full dilution                   N/A                     N/A                    N/A                      $0.16
                                                                                                         ==============

Weighted average common 
  shares outstanding:
Primary                                  5,897,000               3,899,000              5,870,000            3,884,000
                                   ====================================================================================
Assuming full dilution                        N/A                     N/A                    N/A             4,037,000
                                                                                                         ==============
</TABLE>
                                      -3-
<PAGE>
<TABLE>
<CAPTION>
                MEDIWARE Information Systems, Inc. and subsidiary
                      Consolidated statements of cash flows

                                                                       Nine Months Ended March 31
                                                                              (unaudited)
                                                                    -----------------------------------
                                                                           1997               1996
                                                                    -----------------------------------
<S>                                                                        <C>                <C>     
Cash flows from operating activities:
   Net earnings                                                            $1,560,000         $580,000
   Adjustments to reconcile net earnings (loss) to net cash
     provided by (used in) operating activities:
      Provision for doubtful accounts                                          85,000           14,000
      Depreciation and amortization                                           774,000          490,000
      Proceeds from contract installments receivable                          182,000           22,000
      Changes in operating assets and liabilities:
        (Increase) in accounts receivable                                  (1,939,000)        (506,000)
        Decrease (Increase) in inventory                                       89,000         (115,000)
        (Increase) in prepaid and other assets                               (120,000)         (99,000)
        Increase in accounts payable, accrued expenses and
          customer advances                                                   810,000          321,000
                                                                    -----------------------------------
          Net cash provided by operating activities                         1,441,000          707,000
                                                                    -----------------------------------

Cash flows from investing activities:
   Acquisitions of fixed assets                                              (256,000)        (109,000)
   Capitalized software costs                                                (478,000)        (351,000)
                                                                    -----------------------------------
          Net cash (used in) investing activities                            (734,000)        (460,000)
                                                                    -----------------------------------

Cash flows from financing activities:
   Common stock issued                                                         41,000           63,000
   Repayment of long-term debt                                             (1,224,000)        (120,000)
                                                                    -----------------------------------
          Net cash (used in) financing activities                          (1,183,000)         (57,000)
                                                                    -----------------------------------

            Effect of exchange rate changes on cash and cash equivalents       15,000

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                         (461,000)         190,000
Cash and cash equivalents, beginning of period                              2,504,000          509,000
                                                                    --------------------------------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                   $2,043,000         $699,000
                                                                    ======================================

Supplemental  disclosures of cash flow information:  
  Cash paid during the period for:
     Interest                                                                $445,000          $29,000
     Income taxes                                                              $8,000           $3,000

</TABLE>
                                      -4-
<PAGE>
                MEDIWARE Information Systems, Inc., & Subsidiary
                     Notes to Unaudited Financial Statements


1.    Financial Statements:

        In the opinion of management, the accompanying unaudited,  consolidated,
condensed  financial  statements  contain all  adjustments  (consisting  only of
normal recurring adjustments) necessary to present fairly the financial position
of the  Company  and its  results of  operations  and cash flows for the interim
periods presented.  Such financial  statements have been condensed in accordance
with the applicable  regulations  of the Securities and Exchange  Commission and
therefore,  do not  include  all  disclosures  required  by  generally  accepted
accounting principles.  These financial statements should be read in conjunction
with the Company's audited financial statements for the year ended June 30, 1996
included in the Company's annual report filed on Form 10-KSB.

        The results of  operations  for the nine months ended March 31, 1997 are
not  necessarily  indicative of the results to be expected for the entire fiscal
year.

2.    Earnings (Loss) Per Share:

        Earnings  (Loss)  per share is  computed  on the  basis of the  weighted
average  number of common shares  outstanding  during each period.  Common share
equivalents  relating to shares  issuable  upon  exercise  of stock  options and
warrants and are included in the computation when the results are dilutive.

3.    Income Taxes:

        The tax expense is minimal due to the carry forward benefit from the net
operating loss.


ITEM 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations.

Forward-Looking Statements:

         Certain  statements  made in this  Report are or imply  forward-looking
statements.  Such  forward  looking  statements  are not  guarantees  of  future
performance and are subject to risks and  uncertainties  that could cause actual
resu1ts  to  differ   materially   from  those   expressed  or  implied  in  the
forward-looking  statements.  These risks and uncertainties are expressed in the
Risk Factors discussed in the Prospectus included in the Registration  Statement
on Form SB-2, File No.  333-18277,  especially those under the headings "Working
Capital Deficiency; Restrictive Covenants",  "Variability of Operating Results",
"Hospital Purchase  Procedures",  "Acquisition",  "Competition",  "Technological
Obsolescence;  Marketing and Acceptance of New Products",  "Product  Protection"
and "Government Regulation".


                                      -5-
<PAGE>

Results of Operations:

Three Months Ended March 31, 1997 Compared to Three Months Ended March 31, 1996.

        Company  revenues  increased by  $1,716,000  or 63% to  $4,427,000  from
$2,711,000  for the  three-month  period ended March 31, 1997 as compared to the
same period in 1996. The increase was due to continued  strong  performance from
the Hemocare  product center,  add-on system sales produced by the Pharmakon and
JAC divisions, and a continued large service revenue component.

        System sales revenues  decreased to $1,142,000  from  $1,495,000 for the
three-month period ended March 31, 1997 as compared to the corresponding  period
in 1996. A smaller number of hardware  systems sold in this period was the major
factor in the  decrease.  Gross  profit  increased  to 66 % in this 1997  period
compared to 59% in the same period a year ago.  The Company  introduced  its new
state-of-the-art  hospital pharmacy system known as WORx during this period, and
is  experiencing  a  substantial  backlog.  It also ended  shipments of the WORx
predecessor, know as Digimedics XA.

        Service  revenues are  comprised of hardware and software  support fees,
implementation  fees,  and  training  charges  for new and  existing  customers.
Service  revenues  increased by $2,069,000 or 170% to $3,285,000 from $1,216,000
in this  three-month  period ended March 31, 1997 as compared to the same period
in 1996. This increase was due to the increase in the Company's installed client
base and maintenance rate increases.

        Cost of systems  includes the cost of computer  hardware and sublicensed
software purchased from computer and software  manufacturers by Mediware as part
of its  application  sub-system.  Cost of systems was 33% of system sales in the
third quarter of 1997 and 40% of system sales in the comparable  period in 1996.
Such costs, as a percent of revenues,  vary as the mix of revenue varies between
higher margin  proprietary  software and lower margin  hardware and  sublicensed
software components changes from period to period. Costs of systems decreased by
$287,477 to $386,356 in this period as compared to $673,833  for the same period
a year ago. The  decrease in actual cost was  attributable  to hardware  being a
smaller  component  of system  sales.  The  increase in margin in 1997 is due to
software  being a larger  component of system sales in the third quarter of 1997
compared to the third quarter of 1996.

        Cost of services  includes the cost of  providing  hardware and software
maintenance  to the  Company's  installed  base as well as  sublicensed  support
subcontracted to manufacturers.  Cost of services was 25% of service revenues in
the third quarter of 1997 and 37% of service  revenues in the comparable  period
in 1996.  This  increase  in margin is due to a  decrease  in costs  related  to
support of the installed client base. Costs of Services increased by $281,526 to
$831,700 in the third  quarter of 1997 compared to $ 550,174 for the same period
a year ago.  This  increase  is due to the  addition  of the  Pharmakon  and JAC
divisions and the support of their installed client bases.

        Software  development  costs include  salaries,  documentation and other
direct  costs  incurred  in  product  development,  as well as  amortization  of
software  development costs previously  capitalized.  Software development costs
were $525,000 and $429,000 for the third quarter of


                                      -6-
<PAGE>

1997 and 1996, respectively.  Aggregate expenditures for software development in
1997  increased due primarily to the product  development  for the Company's new
state-of-the-art hospital pharmacy system known as WORx.

        Selling,  general  and  administrative  expenses  include  salaries  for
corporate,  financial, sales,  administrative staffs, utilities,  communications
expenses, professional fees, as well as other items. These expenses as a percent
of  total  revenues  were 45% and 41% in the  third  quarter  of 1997 and  1996,
respectively. Total general and administrative expenses for the third quarter of
1997 and 1996 were $2,001,000 and $1,122,000,  respectively. The increases are a
reflection of the increased S.G.A.  expenses of the Pharmakon and JAC divisions,
as well as increased commissions and employee incentive bonus expenses.

        Interest expense  increased by $155,000 to $197,000 for the three months
ended  March 31, 1997  compared  to $42,000 for the same period last year.  This
increased  interest  expense  in the  quarter  was due to  interest  paid on the
outstanding note issued in the acquisition of Pharmakon and JAC from Continental
Healthcare Systems.

        Net  earnings  increased  by $435,000 or 806% to $489,000  for the three
months ended March 31, 1997,  compared to $54,000 for the like period last year.
The earnings increase  resulted  primarily from the acquisition of Pharmakon and
JAC,  and an  increase  in support  revenues  from  installed  systems and other
revenues.

Nine Months Ended March 31, 1997 Compared to Nine Months Ended March 31, 1996.

        The Company's  revenues increased 74% from $7,733,000 for the nine-month
period ended March 31, 1996 to $13,458,000 for the nine-month period ended March
31, 1997.  The earnings  increase  resulted  primarily  from the  acquisition of
Pharmakon  and JAC, as well as an increase in support of  installed  systems and
other revenues.

        System sales  revenues had a slight  increase  from  $4,519,000  for the
nine-month  period  ended March 31,  1996 to  $4,543,000  for the  corresponding
period in 1997.

        Service  revenues  increased 177% from $3,214,000  during the first nine
months  of fiscal  1996 to  $8,915,000  during  the same  period  in 1997.  This
increase was due  primarily to the increase in the  Company's  installed  client
base and maintenance rate increases.

        Cost of systems was 32% of system  sales in the first three  quarters of
fiscal  1997 and 30% of system  sales in the  comparable  period  in 1996.  Such
costs,  as a percent  of  revenues,  typically  are varied as the mix of revenue
(software and hardware)  components carrying different margin rates changes from
period to  period.  The  decrease  in margin is due to  hardware  being a larger
component of system sales in the first and second  quarters of 1997  compared to
the same period in 1996.

        Cost of services was 27% of service revenues in the first three quarters
of 1997 and 42% of  service  revenues  in the  comparable  period in 1996.  This
increase  in margin is due to a  decrease  in costs  related  to  support of the
installed client base.

        Software  development costs were $1,661,000 and $1,185,000 for the first
three  quarters  of 1997 and  1996,  respectively.  The  increase  in  aggregate
expenditures  for  software   development  in  1997  was  due  to  WORx  product
development.


                                      -7-
<PAGE>

        Selling,  general  and  administrative  expenses  as a percent  of total
revenues  were  42%  and  39% in  the  first  nine  months  of  1997  and  1996,
respectively.  Total general and administrative  expenses for the nine months of
1997 and 1996 were $5,781,000 and $3,093,000, respectively.

        Interest  expense  increased by $401,000 to $551,000 for the nine months
ended March 31, 1997  compared to $150,000  for the same period last year.  This
increased  interest  in the first nine months of fiscal 1997 was due to interest
paid on the outstanding note issued in the acquisition of Pharmakon and JAC from
Continental Healthcare Systems.

        Net earnings increased $980,000 or 170% to $1,560,000 in the nine months
ended March 31, 1997 from $580,000 in same period a year ago.

Liquidity and Capital Resources:

         In June of 1996, Digimedics  Corporation,  a wholly owned subsidiary of
the Company,  purchased the Pharmakon division and JAC, a U.K.  affiliate,  from
Continental  Healthcare  Systems.  The total purchase price,  net of acquisition
costs, was  approximately  $9.7 million,  $3.7 million of which was paid in cash
and the  remaining  $6.0  million of which was paid in the form of a  promissory
note issued to  Continental  bearing  interest at Citibank  N.A.'s base rate due
November  30,  1996.  On October 28, 1996,  the  promissory  note was amended to
provide  for an  extension  of the due date to August  1,  1997.  The  amendment
provided for a payment of $1.0 million for principal  reduction  (which  payment
was made in  October,  1996) and monthly  payments  thereafter  of $100,000  for
principal  and  interest  (required  payments  to date  have  been  made) and an
increase in the interest  rate to 15% on  approximately  $3,763,000  of the note
(with the  original  rate  remaining  on  $l,237,000).  At March 31,  1997,  the
outstanding balance of this liability, approximately $4.8 million, is classified
as current.

         At March 31, 1997 and June 30, 1996 there were outstanding bridge loans
in the principal  amount of  $1,179,000,  due August 1, 1997. As noted below the
Company will require  additional  sources of liquidity to fund this balance due.
The Company had a working  capital  deficiency  of  $2,461,000 at March 31, 1997
reflecting notes due in August 1997.

         The Company has acquired a credit  facility of $75,000 from its bank in
New York.  As of December 31, 1996,  the  facility  has $75,000  available.  The
Company will require additional sources of liquidity to fund a net balance of up
to $4.6  million of debt due August 1, 1997.  The Company  currently  is seeking
additional  sources of credit and equity in order to fund the  reduction  of its
obligations under the  above-mentioned  notes.  However, it cannot be assured at
this time that it will be successful.

Recently Issued Accounting Standards

         The  Financial   Accounting   Standards   Board  has  recently   issued
statements,  which are not yet  effective  for the  Company.  SFAS  No.123  will
require  the  Company to make  additional  disclosures  related  to  stock-based
compensation.  SFAS No.128 will simplify the Company's  computation  of earnings
per share.


                                      -8-
<PAGE>
                                   SIGNATURES



        Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.




                                           MEDIWARE Information Systems, Inc.
                                           ----------------------------------
                                                      (Registrant)



   May 14, 1997                         By:  /s/       Les N. Dace
------------------                         ----------------------------------
     (Date)                                   Les N. Dace, President CEO


   May 14, 1997                         By:  /s/       Les N. Dace
------------------                         ----------------------------------
     (Date)                                         Les N. Dace,  CEO

                                      -9-
<PAGE>