SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                  FORM 10-QSB

                       FOR QUARTER ENDED MARCH 31, 1998

                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, 1998, there were 5,527,722 shares of Common Stock, $0.10 par
value,  of  the  registrant  outstanding.

<PAGE>
<TABLE>
<CAPTION>





MEDIWARE  INFORMATION  SYSTEMS,  INC.

INDEX

Part I.  Financial Information                                                             Page
                                                                                           ----

<S>                                            <C>                                          <C>
                                                                                      <C>   <C>
ITEM 1.  Financial Statements
         Consolidated Balance Sheets as of March 31, 1998
        (unaudited) and June 30, 1997 (audited)                                               2


         Consolidated Statements of Operations
         for the three months and nine months ended
         March 31, 1998 & 1997 (unaudited)                                                   3

         Consolidated Statements of Cash Flows
         for the nine months ended
         March 31, 1998 & 1997 (unaudited)                                                   4
         Notes to Financial Statements                                                       5


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


Signature Page                                                                               8

Exhibit 11
Schedule of Computation of Net Income per Share                                              9

Exhibit 27
Financial Data Schedule                                                                     10
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                        MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                                    CONSOLIDATED BALANCE SHEET
                                       AS AT MARCH 31, 1998
                                            (UNAUDITED)

 ASSETS                                                                    Mar-31        Jun-30
                                                                             1998          1997
                                                                       ------------  ------------
<S>                                                                     <C>           <C>
                                                                                <C>           <C> 
Current assets:
   Cash and cash equivalents                                            $ 4,061,000   $ 1,935,000 
   Accounts receivable, less estimated doubtful accounts                  7,783,000     6,357,000 
      of $410,000 at March 31, 1998 and $666,000 at June 30, 1997
   Inventories                                                              192,000        56,000 
   Prepaid expenses and other current assets                                538,000       304,000 
                                                                        ------------  ------------

        Total current assets                                             12,574,000     8,652,000 

   Fixed assets, at cost, less accumulated depreciation of $1,814,000       951,000       752,000 
      at March 31, 1998 and $1,572,000 at June 30, 1997
   Capitalized software costs                                             2,038,000     1,448,000 
   Excess of cost over fair value of net assets acquired, net of          6,138,000     6,419,000 
      accumulated amortization of $1,013,000 at March 31, 1998 and
      $732,000 at June 30, 1997
   Other assets                                                             620,000        78,000 
                                                                        ------------  ------------
                                                                        $22,321,000   $17,349,000 
                                                                        ============  ============
LIABILITIES
----------------------------------------------------------------------                            
Current liabilities:
   Accounts payable                                                         684,000   $   713,000 
   Notes payable                                                          4,750,000     1,212,000 
   Accrued expenses and other current liabilities                         2,503,000     2,032,000 
   Advances from customers                                                3,501,000     2,106,000 
   Current portion of capital leases payable                                  7,000       102,000 
                                                                        ------------  ------------
        Total current liabilities                                        11,445,000     6,165,000 
   Notes payable, less current portion                                            0     4,600,000 
   Capital leases payable, less current portion                              18,000        60,000 
                                                                        ------------  ------------
        Total liabilities                                                11,463,000    10,825,000 
                                                                        ------------  ------------
STOCKHOLDERS' EQUITY
----------------------------------------------------------------------                            
Preferred stock - $.01 par value; authorized 10,000,000 shares;
   None issued and outstanding
Common stock - $.10 par value;  authorized 12,000,000 shares;
   issued and outstanding; 5,527,722 shares at March 31, 1998
   and 5,056,486 shares at June 30, 1997                                    553,000       506,000 
Unearned compensation                                                       (61,000)      (91,000)
Cumulative foreign currency translation adjustment                           27,000        36,000 
Additional paid-in capital                                               15,822,000    13,621,000 
(Deficit)                                                                (5,483,000)   (7,548,000)
                                                                        ------------  ------------
        Total stockholders' equity                                       10,858,000     6,524,000 
                                                                        ------------  ------------
                                                                        $22,321,000   $17,349,000 
                                                                        ============  ============
</TABLE>


<PAGE>
<TABLE>
<CAPTION>

                               MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                                   (UNAUDITED)


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

                                              1998                  1997          1998          1997
                                       --------------------  -----------  ------------  ------------
<S>                                    <C>                            <C>          <C>           <C>
                                                       <C>          <C>           <C>           <C> 
REVENUES:
    System sales               $       1,985,000          $1,142,000      $ 5,046,000   $ 4,543,000 
    Services                           3,197,000           3,435,000        9,503,000     9,313,000 
                               -----------------         -------------   -------------  ------------

      Total revenues                    5,182,000           4,577,000       14,549,000    13,856,000
                                 -----------------       -------------    ------------  ------------
COSTS AND EXPENSES:
    Cost of systems                       670,000             386,000        1,701,000     1,474,000
    Cost of services                      828,000             832,000        2,306,000     2,440,000
    Software development costs            716,000             525,000        1,898,000     1,661,000
    Selling, general and administrative 2,188,000           2,105,000        6,193,000     6,086,000
                                  -----------------      -----------      ------------  ------------
     Total Costs & Expenses             4,402,000           3,848,000       12,098,000    11,661,000

Earnings before interest and taxes        780,000             729,000        2,451,000     2,195,000
Interest income                            56,000              17,000          161,000        63,000
Interest (expense)                       (152,000)           (197,000)        (426,000)    (551,000)
                                  -----------------       -----------     ------------  ------------
Earnings before taxes                     684,000             549,000        2,186,000     1,707,000
Provision for income taxes                 35,000              21,000          121,000        61,000

NET EARNINGS                    $         649,000          $  528,000      $ 2,065,000   $ 1,646,000
                                $            0.12          $     0.11      $      0.38   $      0.33
Basic earnings (loss) per share
Diluted earnings (loss) per share  $         0.10          $     0.09      $      0.32   $      0.28
Weighted average shares outstanding     5,523,250           4,951,000        5,417,036     4,942,000
                               =================          ===========     ============  ============
Average shares outstanding assuming     6,708,069           5,897,000        6,565,318     5,870,000
   dilution
</TABLE>




<PAGE>
<TABLE>
<CAPTION>


                      MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                             CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                              Nine Months Ended

                                                                   Mar-31            Mar-31
                                                                    1998              1997
                                                             -------------------  ------------
                                                                 (unaudited)      (unaudited)
<S>                                                          <C>                  <C>
                                                                            <C>           <C> 
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net earnings                                              $        2,065,000   $ 1,646,000 
   Adjustments to reconcile net earnings  (loss) to net
   cash provided by operating activities:
     Compensatory stock options issued to consultants                    30,000 
     Provision for doubtful accounts                                    128,000       373,000 
     Depreciation and amortization                                    1,088,000       774,000 
     Changes in operating assets and liabilities
            Accounts receivable                                      (1,529,000)   (2,155,000)
            Inventory                                                  (136,000)       89,000 
            Prepaid and other assets                                   (801,000)     (120,000)
            Accounts payable, accrued expenses and 
            customer advances                                         1,837,000       834,000 
                                                             -------------------  ------------
                  Net cash provided by operating activities           2,682,000     1,441,000 
                                                             -------------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Acquisitions of fixed assets                                        (639,000)     (256,000)
   Capitalized software costs                                          (957,000)     (478,000)
                                                             -------------------  ------------
          Net cash (used in) investing activities                    (1,596,000)     (734,000)
                                                             -------------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from exercise of options and warrants                        47,000        41,000 
   Cumulative foreign currency translation adjustment                    (9,000)       15,000 
   Proceeds of private placement                                      2,201,000 
   Repayment of debt                                                 (1,199,000)   (1,224,000)
          Net cash (used in) provided by financing
          activities                                                  1,040,000    (1,168,000)
                                                             -------------------  ------------

NET (DECREASE) IN CASH AND CASH EQUIVALENTS                           2,126,000      (461,000)
Cash and cash equivalents, beginning of period                        1,935,000     2,504,000 
                                                             -------------------  ------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                     $        4,061,000   $ 2,043,000 
                                                             ===================  ============
</TABLE>




<PAGE>

              MEDIWARE INFORMATION SYSTEMS, INC., & SUBSIDIARIES
                    NOTES TO UNAUDITED FINANCIAL STATEMENTS


1.          FINANCIAL  STATEMENTS:
            ---------------------

     In  the  opinion of management, the accompanying unaudited, consolidated,
condensed  financial  statements  contain all 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 ("SEC") 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, 1997 included in the Company's annual
report  filed  on  Form  10-KSB,  Amendment  No.  1.

     The  results  of  operations  for  the three months and nine months ended
March  31,  1998  are not necessarily indicative of the results to be expected
for  the  entire  fiscal  year.


2.          EARNINGS  PER  SHARE:
            --------------------

     The  Company  adopted  the  provisions  of  the  Statement  of  Financial
Accounting Standards ("SFAS") No. 128, "Earnings per Share" in the preparation
of  the financial statements included in this Quarterly Report on Form 10 QSB.
In  accordance with the provisions of SFAS No. 128, the Company is required to
report both "basic" and "diluted" earnings per share and to restate previously
reported  earnings per share amounts to conform to the provisions of SFAS 128.
Basic  earnings per share have been computed using the weighted average number
of shares of common stock of the Company ("Common Stock") outstanding for each
period presented.  The dilutive effect of stock options and other common stock
equivalents is included in the calculation of diluted earnings per share using
the  treasury  stock  method.  For the periods presented, the diluted earnings
per  share  amounts  are the same as the earnings per share amounts previously
reported  by  the  Company.

3.  SERVICE  MAINTENANCE  REVENUE
    -----------------------------

     Subsequent  to  a June 1996 acquisition, the Company recorded maintenance
revenue  on  contracts  with the acquired company's customers in a manner that
was  consistent  with  the  policies  followed  prior  to  the  acquisition.
Subsequent  to  the  acquisition, the Company's management discovered that the
prior  owners  had  not  consistently  billed  certain  contractual  software
maintenance  revenues.    Pending  an evaluation of the collectibility of such
contracts,  the  company  conservatively  elected  to  continue to follow that
policy.  For  the  quarter  ended  December  31,  1997  the  Company  obtained
satisfactory  indications  (i.e.,  it  had established a sufficiently credible
reputation  for service with the customers who had not previously been billed,
had  developed  new  and  additional  products  upon which these customers now
relied,  and  had specifically discussed collection schedules for the billings
with  the  customers)  that  such  revenue  was,  in  fact  collectible,  and
accordingly,  it  recognized  in  that  quarter  the cumulative effects of the
economic  event.    After  discussions with the accounting staff of the SEC on
April  29,  1998,  the  Company  has  now elected to restate (1) the financial
statements  of  prior  quarters  to  record  the  revenues  and  corresponding
provisions  for  doubtful  accounts in the quarters in which the services were
provided  and  (2) the financial statements for the quarter ended December 31,
1997.    Accordingly,  the  Company  has  decreased both revenues and selling,
general  and  administrative  expenses, (the latter representing a reversal of
the  allowance  for  doubtful  accounts)  from  amounts previously reported by
$480,000  for the three months ended December 31, 1997 and by $384,000 for the
six  months  ended  December 31, 1997.  These adjustments had no effect on net
income  previously  reported  for  such periods.  In addition, revenue and net
income  were  respectively  increased  by  $150,000  and $46,000 for the three
months  ended  March  31, 1997 and by $398,000 and $93,000 for the nine months
ended March 31, 1997 from amounts previously reported to reflect the above and
other  adjustments  described  in Note O to the Company's amended form 10 KSB.

4.          INCOME  TAXES:
            -------------

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

5.          RECENT  ACCOUNTING  PRONOUNCEMENTS:
            ----------------------------------

     In  June  1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 130 (SFAS 130), "Reporting Comprehensive
Income,"  and  Statement of Financial Accounting Standards No. 131 (SFAS 1310,
"Disclosure  about  Segments  of  an Enterprise and Related Information."  The
adoption  of  both  statements  is  required  for fiscal years beginning after
December  15,  1997.

     SFAS 130 establishes standards for reporting and displaying comprehensive
income  and  its  components  in the financial statements.  It requires that a
company classify items of their comprehensive income, as defined by accounting
standards,  by their nature (i.e. unrealized gains or losses on securities) in
a  financial  statement,  but  does  not  require  a  specific format for that
statement.

     SFAS  131 changes current practice under SFAS 14, "Financial Reporting of
Segments  of  a Business Enterprise," by establishing a new framework on which
to  base  segment  reporting (referred to as the management approach) and also
requires  interim  reporting  of  segment  information.

     In  October  1997, the American Institute of Certified Public Accountants
issued  Statement of Position 97-2, "Software Revenue Recognition" (SOP 97-2).
SOP  97-2 is effective for transactions entered into in fiscal years beginning
after  December  15,  1997.  "Retroactive application of the provisions of SOP
97-2  is  prohibited."

     The  Company is studying the implications of these new statements and has
yet  to  determine  the  impact  of  their  implementation,  if  any,  on  its
consolidated  financial  statements.

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
results  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."

Results  of  Operations:

     Total  Company  revenues increased by 5.0% or $693,000 for the first nine
months  of  fiscal  1998  as compared to the same period in fiscal 1997.  This
increase  is  primarily  due  to  revenue  gains in the Company's Pharmacy and
Surgiware  Divisions.    Total Company revenues increased by 13.2% or $605,000
for  the  three-month  period  ended March 31, 1998.  As with the year-to-date
comparison with the prior fiscal year, these gains in revenue were principally
due  to  the  Company's  Pharmacy  and  Surgiware  divisions.

     System  sales increased by 11.1% or $503,000 for the three-quarters ended
March 31, 1998 as compared to the same period in the prior year.  System sales
for the  quarter  ended March 31, 1998 increased by 73.8% or $843,000 from the
same  quarter  a  year  earlier.   For both the nine month and the three month
periods  compared  the  increase is primarily due to increased system sales in
the  Company's  Pharmacy  and  Surgiware  Divisions.   System sales growth for
both  the nine and three month periods compared, is primarily due to  recently
introduced products including PCCWIN, the Company's operating room periopertive
system along with the Company's Pharmacy client server drug management system,
WORx.   Fical 1998  third quarter system sales increase was $302,000 or 674.0%
for the Surgiware Division and $578,000 or 100.0% for the Pharmacy Division as
compared to the same period of the Fiscal Year 1997.

     Services  revenues increased 2.0% or $190,000 in the first nine months of
fiscal  1998  as  compared  to  the  same  period  last year.  The increase is
primarily  due  to  increased  service  revenues  at  the  Company's  Hemocare
Division.  Service revenues decreased by 6.9% or $238,000 in the third quarter
of  fiscal  1998  as  vs.  the third quarter of fiscal 1997.  This decrease is
principally due to  the  Company's  Pharmacy  Division which has substantially
completed it's service contract agreement which covered various Pharmakon post-
acquisition service obligations held by the seller.

     Cost  of  systems  includes the cost of computer hardware and sublicensed
software purchased from computer and software manufactures by Mediware as part
of  its  application  sub-system.   These costs can vary as the mix of revenue
varies  between  high  margin  proprietary  software and lower margin computer
hardware  and  sublicensed  software components.  Cost of systems increased by
$227,000  or 33.7% of related system sales for the first nine months of fiscal
1998 as compared to 32.4% of sales for the same period in fiscal 1997. Cost of
systems increased $284,000 but remained at 33.8% of related sales for both the
quarter ended  March  31,  1998  and  the  same  quarter  a  year  earlier.

  Cost  of  services  includes  the  salaries  of client service personnel and
communications  expenses along with the direct expenses.  The cost of services
will vary with technical employee activity changes between client services and
software  development. Cost of services increased $134,000 or 24.3% of related
revenue  for the nine months ended March 31, 1998 vs. 26.2% of related revenue
for the same period a year earlier. This percentage decrease primarily reflects
an increase in technical employee activities from client  services to software
development.   Cost of services decreased slightly by $4,000 from $832,000  in
the quarter ended March 31, 1997  to  $828,000  in  the  quarter  ended  March
31,  1998.

      Total   expenditures  (amounts  including  both  capitalized  and  non- 
capitalized  expenditures and excluding capitalized software amortization) for
software  development  for  the  first  nine  months  of  fiscal   1998   were
approximately  $2.5  million  dollars.    This  amount  approximates the total
software development expenditure for fiscal 1997.  Spending on development has
increased  among  all  company  divisions  but  is  principally focused on the
Company's  Pharmacy  division's  enhancements  to  its WORx product line.  The
Company  expects to continue this level of development spending with increased
focus  on continued product enhancements and integration of intra/internet web
communications  technology.   Software  development  cost  includes  salaries,
consulting,  documentation,  office  and  other  expenses  incurred in product
development  along  with  amortization of software development cost.  Software
development  costs  increased  by  $237,000  or  14.3%  in comparing the first
three-quarters  of  fiscal  1998  to the same period a year ago.  In the third
quarter  of  fiscal  1998, Software Development costs increased by $191,000 or
36.4%  as compared to the same quarter in fiscal 1997.  The increase costs for
both  periods  compared is principally due to Pharmacy Division contracting of
programming consultants to aid in  the  enhancements of the WORx product line.

     Selling,  general and administrative expenses include marketing and sales
salaries,  commissions, travel and advertising expenses.  Also included is bad
debt  expense;  legal,  accounting  and  professional fees; salaries and bonus
expense   for  corporate,  divisional,  financial  and  administrative  staff;
utilities,  rent,  communication  and other office expenses; and other related
direct  administrative expenses.  Selling, general and administrative expenses
increased  by  $107,000  or  1.8% in comparing the first nine months of fiscal
1998  to  fiscal  1997.  This increase includes higher communications, travel,
administrative, marketing,  legal and professional costs which were partially 
offset by reduced bad debt  expense.    Selling,  general  and  administrative
expense increase  by  $83,000  or  3.9%  for the quarter ended March 31, 1998 
vs. the  quarter  ended  March 31, 1997.   This increase reflects the cost of 
managing and growing  the  Company.

     Net  interest  expense  decreased  $223,000  or  45.7% in the first three
quarters  of  fiscal  1998 vs. the same period a year ago.  The March 31, 1998
quarter's  net  interest expense decreased $84,000 or 46.7% from the March 31,
1997  quarter.    For both the nine month and three month periods compared the
reduced  interest  expense  is due to the $1,230,000 decrease of notes payable
from  March  31,  1997  to  March  31,  1998.

     Net  earnings increased $419,000 or to $2,065,000 from $1,646,000 for the
first  nine  months  of  fiscal  1998 vs. the same period in fiscal 1997.  Net
earnings  increased  by $121,000 or 22.9% for the quarter ended March 31, 1998
as  compared  to  the  same  quarter  in  the  prior  year.


LIQUIDITY  AND  CAPITAL  RESOURCES:

     The  Company's cash and cash equivalent position as March 31, 1998 was an
increase  of  $2,126,000  from $1,935,000 at June 30, 1997.  At March 31, 1997
the  current ration was 1.1 to 1.  In  addition to $2,682,000 in cash provided
by  operations  in  the  first nine months of fiscal 1998, the current working
capital  position  was  improved by an August 1997 private placement providing
approximately  $2,100,000,  net  of  expenses.

     In  this  August, 1997 private placement, the Company sold 400,000 shares
of its Common Stock for $6.00 per share and issued warrants to purchase 40,000
shares of Common Stock at $6.00 per share (as part of its placement fee).  The
Company  has  registered  the  shares  sold and warrants issued in the private
placement  with  the  Securities  and  Exchange  Commission.

     During  the  first  nine  months  of  fiscal  1998, the Company paid down
$1,199,000  in  principle  on  various  promissory  notes held by both private
investors  and  Continental  Healthcare  Systems,  Inc.    At March 31, 1998 a
balance  of $854,000 in promissory notes was held by two directors and another
person.  The principle balance on the Continental promissory note at March 31,
1998  was  $3,896,000,  which is due November 30, 1998 or earlier based upon a
change  in control or refinancing by the Company.  The Company will review the
financing  needs  of  this promissory note and general cash requirements on an
ongoing  basis.    It  is  expected  that  the Company will require additional
sources  of  liquidity  to fund the payment of this promissory note along with
other  financing  needs  including  potential  acquisitions.
<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      ,  1998                    By:                    /s/
     ----------------                                           ---
     (Date)                                        Les  N. Dace, President CEO


     May        ,  1998                    By:                    /s/
     ------------------                                           ---
     (Date)                                            George  J.  Barry,  CFO

<TABLE>
<CAPTION>

                        MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES

                                             EXHIBIT 11

                          SCHEDULE OF COMPUTATION OF NET INCOME PER SHARE

                                  Three months       Three months        Nine months    Nine  months
                                      ended                ended                ended          ended
                                    March  31,          March 31,           March 31,      March 31,

          <S>                        <C>                  <C>               <C>                  <C>
                                           <C>                 <C>                  <C>         <C>
                                          1998                1997                 1998        1997

Net Income                 $           649,000  $          528,000  $         2,065,000  $1,646,000
                           -------------------  ------------------  -------------------  ----------
Weighted Average Share
Outstanding                          5,523,000           4,951,000            5,417,000   4,942,000
Effect of Dilutive
Securities: Common                   1,185,000             946,000            1,148,000     928,000
Stock Equivalents
(Options & Warrants)                 6,708,000           5,897,000            6,565,000   5,870,000
Average shares
Outstanding assuming
dilution                   $              0.12  $             0.11  $              0.38  $     0.33
                           -------------------  ------------------  -------------------  ----------
Basic earnings per share
Diluted earnings per
share                      $              0.10  $             0.09  $              0.32  $     0.28
</TABLE>
<PAGE>

[ARTICLE] 5
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   9-MOS
[FISCAL-YEAR-END]                          JUN-30-1998
[PERIOD-END]                               MAR-31-1998
[CASH]                                            4061
[SECURITIES]                                         0
[RECEIVABLES]                                     7783
[ALLOWANCES]                                       410
[INVENTORY]                                        192
[CURRENT-ASSETS]                                 12574
[PP&E]                                            2765
[DEPRECIATION]                                    1814
[TOTAL-ASSETS]                                   22321
[CURRENT-LIABILITIES]                            11463
[BONDS]                                              0
[PREFERRED-MANDATORY]                                0
[PREFERRED]                                          0
[COMMON]                                           553
[OTHER-SE]                                       10305
[TOTAL-LIABILITY-AND-EQUITY]                     22321
[SALES]                                           5182
[TOTAL-REVENUES]                                  5182
[CGS]                                             4007
[TOTAL-COSTS]                                    12098
[OTHER-EXPENSES]                                     0
[LOSS-PROVISION]                                     0
[INTEREST-EXPENSE]                                 152
[INCOME-PRETAX]                                   2451
[INCOME-TAX]                                       121
[INCOME-CONTINUING]                               2065
[DISCONTINUED]                                       0
[EXTRAORDINARY]                                      0
[CHANGES]                                            0
[NET-INCOME]                                      2065
[EPS-PRIMARY]                                        0
[EPS-DILUTED]                                       32
</TABLE>