SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


   
                                 AMENDMENT NO. 1

                                       TO
    

                                   FORM 10-QSB

   
                                       ON

                                  FORM 10-QSB/A
    

                      For Quarter ended September 30, 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 XX No

As of September 30, 1996, there were ( 4,939,344 ) shares of Common Stock, $0.10
par value, of the registrant outstanding.


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                       Mediware Information Systems, Inc.

                                      Index


   
Part I.        Financial Information                                      Page

    

ITEM 2.        Management's Discussion and Analysis of Financial
   
              Condition and Results of Operations..........................2 - 4


              Signature Page..............................................5
    


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

   
        This discussion and analysis contains forward looking  statements within
the meaning of the  Securities  Act of 1933, as amended,  and Section 21E of the
Securities Act of 1934, as amended,  which are not historic  facts,  and involve
risks and  uncertainties  that could cause  actual  results to differ from those
expected and projected. Reference is made to the section entitled "Risk Factors"
in the Registration Statement on Form SB-2, File No. 333-18277, for a discussion
of such material risks and uncertainties.
    

Results of Operations:  1997 vs. 1996:

   
        System  Sales  Revenue  increased  overall  by  $286,000,   or  19%,  to
$1,818,000  for the first three months of fiscal 1997 ended  September  30, 1996
compared to $1,532,000  for the  comparable  period a year earlier.  $421,000 of
this increase was due to system sales of the Pharmakon and JAC product centers.

        Service Revenues increased by $1,555,000, or 157%, to $2,541,000 for the
three months ended September 30, 1996 versus $986,000 for the comparable  period
in 1995. Substantially all of this increase is due to the revenues realized from
the addition of the  Pharmakon  and JAC  divisions.  The remainder is due to new
systems  installed in the first quarter and increases in annual support revenues
from the installed base. In connection with the acquisition described below, the
Company  entered  into an  agreement  with  Continental  to  perform  certain of
Continental's  obligations  to provide  services for  customers of  Continental,
including  the  installation  of systems,  customizing  systems,  and  providing
hardware.  The agreement also provides for the Company to assist  Continental in
the collection of certain billed and unbilled accounts  receivable,  principally
due from the  customers  who will  receive  the above  mentioned  services.  For
performing these services,  the Company is to be paid  approximately  $1,237,000
plus 30% of the amounts  collected for Continental.  In the fiscal quarter ended
September 30, 1996 the Company recognized  $215,000 of such service income based
on the percentage of completion method.

        Cost of Systems increased by $338,000, or 77%, to $775,000 for the three
months ended  September  30, 1996  compared to $437,000 for the same period last
year.  Approximately  56% of this increase was due to increased systems costs of
Pharmakon and JAC. The balance of the increase was due to a  significant  number
of  hardware  installations  in this  quarter at the  Hemocare  product  center,
resulting in higher cost of sales as a percentage of sales.

        Costs of Services  increased  by  $326,000,  or 72%, to $774,000 for the
three months ended  September  30, 1996 compared to $448,000 for the same period
last year.  All of this  increase was due to service  costs  resulting  from the
addition of Pharmakon.
    


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        Software  Development  costs increased by $264,000,  or 77%, to $605,000
for the three months ended  September 30, 1996 compared to $341,000 for the same
period last year. All of this increase was due to software  development costs of
JAC and Pharmakon.

        Selling,   General  and  Administrative   (S.G.A.)  costs  increased  by
$652,000,  or 68%, to $1,606,000  for the three months ended  September 30, 1996
compared to $954,000 for the same period last year.  This reflects the increased
S.G.A.  expenses  caused by the  addition of the  Pharmakon  and JAC  divisions,
accounting for approximately 80% of the total. The remainder  reflects increased
commissions and employee incentive bonus expenses from Hemocare and Digimedics.

        Interest  Expense  increased by $101,000,  or 168%,  to $161,000 for the
three months ended  September  30, 1996  compared to $60,000 for the same period
last year, reflecting interest on the note to Continental.

        Net Earnings  increased  by $168,000,  or 60%, to $446,000 for the three
months ended  September  30, 1996  compared to $278,000 for the like period last
year.  The increased  net earnings are due to profits  produced by the Pharmakon
and JAC divisions of Mediware.
    

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,   Inc.  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  $1,237,000).  At September 30, 1996, the outstanding
balance of this liability,  $6.0 million (before 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 $3,789,000 at September
30, 1996  reflecting  the purchase  money note due in August 1997 issued in June
1996 to Continental in partial payment for the Acquisition.
    


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        In order to cover its cash needs during fiscal years 1994 and 1995,  the
Company  carried out financing  programs under which it borrowed an aggregate of
$1,299,000 from investors, including Company directors. As part of the financing
package,  such  investors  received  1,040,025  warrants  at $0.50 per share and
129,695 warrants at $1.25 per share.  During fiscal year 1996 the Company repaid
$120,000,  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  some of the  investors
exercised  495,025 of the $0.50  warrants for a total of $247,512.  A portion of
these funds was used by the Company for Acquisition expenses.
    

        The Company has  acquired a credit  facility of $75,000 from its bank in
New York.  As of September  30, 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.


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                                   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)



   
            January 31, 1997           By:       /s/             Les N. Dace
------------------------------------         --------------------------------
               (Date)                        Les N. Dace, President CEO



            January 31, 1997           By:       /s/             Les N. Dace
------------------------------------        --------------------------------
               (Date)                       Les N. Dace, CFO
    

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