SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                       For Quarter ended December 31, 1996

                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 December 31, 1996, there were ( 4,945,179 ) 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 December 31, 1996 (unaudited)......................2


              Consolidated Statements of Operations
              for the three months and six months ended
              December 31, 1996 & 1995 (unaudited).............................3


              Consolidated Statements of Cash Flows
              for the six months ended
              December 31, 1996 & 1995 (unaudited).............................4


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



ITEM 2.       Management's Discussion and Analysis of Financial
              Condition and Results of Operations..........................6 - 8


Signature Page............................................................9 - 10

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


                                     Page 1

<PAGE>


<TABLE>
<CAPTION>

              MEDIWARE INFORMATIONS SYSTEMS, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                             AS AT DECEMBER 31, 1996
                                   (unaudited)

                                                                         Dec-31            Jun-30
                                                                          1996              1996
                                     ASSETS
                                                                        -------------------------------
<S>                                                                       <C>               <C>
Current assets:
   Cash and cash equivalents                                              $1,372,000        $2,504,000
   Accounts receivable, less estimated doubtful accounts of
          $274,000 at December 31, 1996 and $188,000 at
          June 30, 1996                                                    5,587,000         3,509,000
   Current portion of contract installment receivable                        226,000           252,000
   Inventories                                                               155,000           208,000
   Prepaid expenses and other current assets                                 225,000           166,000
                                                                        -------------  ----------------
          Total current assets                                             7,565,000         6,639,000

Long-term contract installments receivable, less current portion              59,000           155,000
Fixed assets, at cost, less accumulated  depreciation of
         $1,479,000 at December 31, 1996 and $1,364,000 at
         June 30, 1996                                                       653,000           576,000
Capitalized software costs                                                 1,104,000         1,012,000
Excess of cost over fair value of net assets acquired, net of
         accumulated amortization of $550,000 at December 31,
         1996 and $372,000 at June 30, 1996                                6,559,000         6,737,000
Other assets                                                                  55,000            38,000
                                                                        =============  ================
                       TOTAL                                             $15,995,000       $15,157,000
                                                                        =============  ================
                                   LIABILITIES

Current liabilities:
   Accounts payable                                                         $573,000          $483,000
   Accrued expenses and other current liabilities                          1,557,000         1,775,000
   Advances from customers                                                 2,316,000         1,379,000
   Current portion of capital leases payable                                  19,000            15,000
   Notes payable                                                           6,094,000         1,451,000
                                                                        -------------  ----------------
        Total current liabilities                                         10,559,000         5,103,000

Notes payable, less current portion                                                0         5,728,000
Capital leases payable, less current portion                                  35,000            43,000
                                                                        -------------  ----------------
        Total liabilities                                                 10,594,000        10,874,000

                              STOCKHOLDERS' EQUITY

Common stock - $.10 par value;  authorized 12,000,000 shares; 
  4,945,179 issued and outstanding; shares at Dec. 31, 1996 
  and  4,931,320 shares at June 30, 1996                                     495,000           493,000
Additional paid-in capital                                                13,440,000        13,419,000
Cumulative foreign currency translation adjustment                            24,000
(Deficit)                                                                (8,558,000)       (9,629,000)
                                                                        -------------  ----------------

        Total stockholders' equity                                         5,401,000         4,283,000
                                                                        -------------  ----------------

                                TOTAL                                    $15,995,000       $15,157,000
                                                                        =============  ================
</TABLE>
                                     Page 2
<PAGE>


<TABLE>
<CAPTION>
              MEDIWARE INFORMATIONS SYSTEMS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                   (unaudited)




                                                  Three Months Ended December 31,     Six Months Ended December 31,

                                                  1996                1995               1996               1995
                                               ----------------------------------------------------------------------
<S>                                            <C>                 <C>               <C>                <C>
Revenues:
    System sales                               $ 1,583,000         $ 1,492,000       $ 3,401,000        $  3,024,000
    Services                                     3,089,000                             5,630,000           1,998,000
                                                                     1,012,000
                                               ----------------------------------------------------------------------

      Total revenues                             4,672,000           2,504,000         9,031,000           5,022,000

Costs and expenses:
    Cost of systems                                313,000             330,000         1,088,000             767,000
    Cost of services                               834,000             443,000         1,608,000             891,000
    Software development costs                     531,000             416,000         1,136,000             756,000
    Selling, general and administrative          2,174,000           1,019,000         3,780,000           1,970,000
                                                 ----------------------------------------------------------------------
                                                 3,852,000           2,208,000         7,612,000           4,384,000
  
Earnings (loss) before other income,
    interest income, interest expense, and
    income taxes                                   820,000             2,208,000       1,419,000             638,000

Other income
                                                         -                   -                 -                   -

Interest income                                     19,000                   -            46,000                   -

Interest (expense)                               (193,000)            (48,000)          (354,000)           (108,000)
                                                 ----------------------------------------------------------------------

Income before income taxes                         646,000             248,000         1,111,000             530,000

Income tax                                         (21,000)                              (40,000)             (3,000)
                                               ----------------------------------------------------------------------

NET EARNINGS                                    $  625,000          $  248,000      $  1,071,000          $  527,000
                                               ======================================================================


Earnings per share                                $   0.11            $   0.08          $   0.18            $   0.16

Weighted average number of common
    and common equivalent shares                 5,873,000           3,899,000         5,858,000           3,888,000
</TABLE>

                                     Page 3

<PAGE>


<TABLE>
<CAPTION>

              MEDIWARE INFORMATIONS SYSTEMS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (unaudited)


                                                                              Six Months Ended

                                                                      ---------------------------------
                                                                          Dec-31              Dec-31
                                                                           1996                1995
                                                                      ---------------------------------
                                                                        (unaudited)         (unaudited)
<S>                                                                      <C>                  <C>
Cash flows from operating activities:
   Net earnings                                                          $1,071,000           $527,000
   Adjustments to reconcile net earnings (loss) to net cash
     provided by (used in) operating activities:
      Provision for doubtful accounts                                        86,000             30,000
      Depreciation and amortization                                         520,000            325,000
      Proceeds from contract installments receivable                        122,000              3,000
      Changes in operating assets and liabilities:
        (Increase) in accounts receivable                                (2,164,000)          (526,000)
        Decrease (Increase) in inventory                                     53,000             (4,000)
        (Increase) in prepaid and other assets                              (76,000)          (150,000)
        Increase in accounts payable, accrued expenses and
          customer advances                                                 805,000            328,000
                                                                   ------------------------------------
          Net cash (used in) provided by operating activities               417,000            533,000

Cash flows from investing activities:
   Acquisitions of fixed assets                                            (192,000)           (94,000)
   Capitalized software costs                                              (320,000)          (208,000)
                                                                   ------------------------------------
          Net cash (used in) investing activities                          (512,000)          (302,000)

Cash flows from financing activities:
   Common stock issued                                                       23,000             64,000
   Cumulative foreign currency translation adjustment                        24,000
   Repayment of long-term debt                                           (1,084,000)          (100,000)
                                                                   ------------------------------------
          Net cash provided by (used in) financing activities            (1,037,000)           (36,000)

NET (DECREASE) IN CASH AND CASH EQUIVALENTS                              (1,132,000)           195,000
Cash and cash equivalents, beginning of period                            2,504,000            509,000
                                                                   ------------------------------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                 $1,372,000           $704,000
                                                                   ====================================

Supplemental  disclosures of cash flow information:
  Cash paid during the period for:
     Interest                                                              $283,000            $22,000
     Income taxes                                                            $8,000             $3,000
</TABLE>

                                     Page 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 six months ended December 31, 1996 are
not  necessarily  indicative of the results to be expected for the entire fiscal
year.

2.    Earnings (Loss) Per Share:

        Earnings  per share are  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.

                                     Page 5

<PAGE>





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

Results of Operations:  1997 vs. 1996:

        System Sales Revenue  increased by $91,000 or 6% to  $1,583,000  for the
three months ended  December 31, 1996 compared to $1,492,000  for the comparable
period a year earlier. System Sales increased $377,000 or 12% for the six months
ended December 31, 1996 to $3,401,000  compared to $3,024,000 for the comparable
period a year earlier. For the three months ended December 31, 1996 System Sales
Revenue for Pharmakon and JAC were $280,000.

        Service  Revenues  increased by $2,077,000 or 205% to $3,088,000 for the
three months ended  December 31, 1996 compared to $1,012,000  for the comparable
period in 1995.  Service revenues  increased by $3,632,000 or 182% to $5,630,000
for the six months  ended  December  31,  1996  compared to  $1,998,000  for the
comparable period last year. For the quarter ended December 31, 1996, 82% of the
increase is a result of Service Revenues contributed by Pharmakon and JAC, while
the Hemocare  product center  contributed  the remaining  revenue from increased
software maintenance from new system implementations for the quarter.

        Cost of Systems  decreased  by $17,000 or 5% to  $313,000  for the three
months  ended  December  31, 1996  compared to $330,000 for the same period last
year.  Cost of Systems  increased by $321,000 to  $1,088,000  or 42% for the six
months ended  December 31, 1996 compared to $767,000 for the  comparable  period
last year.  The decrease for the quarter was due to a larger  number of software
only sales, software upgrades, and installation of interfaces.

        Costs of Services increased by $391,000 or 88% to $834,000 for the three
months  ended  December  31, 1996  compared to $443,000 for the same period last
year.  Cost of services  increased by $717,000 to  $1,608,000 or 80% for the six
months  ended  December  31, 1996  compared to $891,000 for the same period last
year. The increase for the quarter was  substantially  due to service costs from
the Pharmakon and JAC product centers.

        Software  Development costs increased by $115,000 or 28% to $531,000 for
the three  months  ended  December  31, 1996  compared to $416,000  for the same
period last year.  Software  Development  costs  increased by $380,000 or 50% to
$1,136,000  for the six  months  ended  December  31,  1996 as  compared  to the
comparable  period last year. The Pharmakon  product center was  responsible for
the increase in Software Development costs for the quarter.

        Selling,  General and  Administrative  costs  increased by $1,155,000 or
113% to  $2,174,000  for the three  months ended  December 31, 1996  compared to
$1,019,000 for the same period last year.  Selling,  General and  Administrative
costs increased by $1,810,000 or 92% to $3,780,000 as compared to $1,970,000 for
the same period last year.  Pharmakon  and JAC were  responsible  for 59% of the
increase in the quarter,  while Hemocare was  substantially  responsible for the
remaining increase during the quarter.


                                     Page 6

<PAGE>


        Interest Expense  increased by $145,000 to $193,000 for the three months
ended  December  31,  1996  compared  to $48,000  for the same period last year.
Interest  Expense  increased  by $246,000 to $354,000  for the six months  ended
December  31, 1996 as compared to $108,000  for the same period the year before.
This  increased  interest in the quarter  was due to interest  paid  against the
outstanding  note in the  acquisition  of  Pharmakon  and JAC  from  Continental
Healthcare Systems.

        Net  Earnings  increased  by $377,000 or 152% to $625,000  for the three
months  ended  December  31, 1996  compared to $248,000 for the like period last
year.  Net earnings for the six months ended  December 31, 1996 were  $1,071,000
compared to $527,000 for the comparable period last year. The increased earnings
for the quarter were produced by the Pharmakon and JAC product centers.

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
provides  for a payment of $1.0  million  for  principal  reduction  and monthly
payments  thereafter  of $100,000 for  principal and interest 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 December 31, 1996, the  outstanding
balance of this  liability,  $4.9 million (after the $1.0 million  payment),  is
classified as current.  In October 1996 the Company paid to Continental the $1.0
million payment to reduce outstanding principal and made the monthly payments of
$100,000  on  November 30 and  December  31,  1996.  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.

         To finance the cash  portion of the  Acquisition,  the  Company  made a
private  placement of 1,692,308 shares of its Common Stock in June of 1996, at a
price of $3.25 per share, for total proceeds before expenses of $5,500,002.

         The Company had a working capital  deficiency of $2,994,000 at December
31, 1996  reflecting  the purchase  money note due in August 1997 issued in June
1996 to Continental in partial payment for the Acquisition.

         During  fiscal year 1996 the  Company  repaid  $120,000 of  outstanding
bridge loans,  leaving a balance of  $1,179,000  due August 1, 1997. As noted in
the third  preceding  paragraph the Company will require  additional  sources of
liquidity to fund this balance  due. In May of 1996  certain  holders  exercised
warrants for 495,025 shares for a total of $247,512.


         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 currently is seeking additional sources of credit and equity in order to
fund the reduction of its obligations  under the above mentioned note.  However,
it cannot be assured at this time that it will be successful.


                                     Page 7

<PAGE>



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".


                                     Page 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)



   February 12, 1996                   By:  /s/  Les N. Dace
------------------------                    --------------------------------
        (Date)                              Les N. Dace, President CEO



   February 12, 1996                   By:  /s/  Les N. Dace
------------------------                    --------------------------------
               (Date)                       Les N. Dace, CFO



                                     Page 9

<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)






   February 12, 1996                   By:  /s/  Les N. Dace
------------------------                    --------------------------------
        (Date)                              Les N. Dace, President CEO



   February 12, 1996                   By:  /s/  Les N. Dace
------------------------                    --------------------------------
               (Date)                       Les N. Dace, CFO



                                     Page 10

<PAGE>

<TABLE>
<CAPTION>

               MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                SCHEDULE OF COMPUTAT8ION OF NET INCOME PER SHARE

                                   EXHIBIT 11




                                                       Three months      Three months      Six months       Six months
                                                           ended            ended            ended            ended
                                                         31-Dec-96        31-Dec-95        31-Dec-96        31-Dec-95

                                                          Primary          Primary          Primary          Primary
                                                       -------------------------------------------------------------------

<S>                                                          <C>               <C>            <C>                <C>
  MODIFIED TREASURY STOCK METHOD
    ADJUSTMENT TO NET INCOME:

Net income                                                    $625,000         $248,000       $1,071,000         $527,000

Reduction in interest expense from retiring debt                                 45,000                           104,000
                                                       -------------------------------------------------------------------
                                                              $625,000         $293,000       $1,071,000         $631,000

  MODIFIED TREASURY STOCK METHOD
    ADJUSTMENT TO COMMON STOCK:

Weighted average shares outstanding                          4,942,000        2,655,000        4,938,000        2,644,000

Add: Net shares from exercise of options/warrants:
Assumed exercise of options                                  1,273,000        1,775,000        1,273,000        1,775,000
Assumed repurchase of shares                                   342,000          531,000          353,000          531,000
                                                       -------------------------------------------------------------------
Incremental shares                                             931,000        1,244,000          920,000        1,244,000
                                                       -------------------------------------------------------------------

Adjusted shares                                              5,873,000        3,899,000        5,858,000        3,888,000
                                                       ===================================================================


EARNINGS PER SHARE                                               $0.11            $0.08            $0.18            $0.16
                                                       ===================================================================

</TABLE>


                                    Page 11

<PAGE>