SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                      For Quarter ended September 30, 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 September 30, 1997, there were 5,483,363 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 September 30, 1997
              (unaudited) and June 30, 1997 (audited)...................   2

              Consolidated Statements of Operations
              for the three months and nine months ended
              September 30, 1997 & 1996 (unaudited).....................   3

              Consolidated Statements of Cash Flows
              for the nine months ended
              September 30, 1997 & 1996 (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

<PAGE>

<TABLE>
<CAPTION>
               MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                           Consolidated Balance Sheet
                            As at September 30, 1997
                                   (unaudited)

                                      ASSETS                                               Sept-30         Jun-30
                                                                                             1997           1997
                                                                                           --------       --------
<S>                                                                                     <C>             <C>    
   Cash and cash equivalents ........................................................   $  4,231,000    $  1,935,000
   Accounts receivable, less estimated doubtful accounts of $295,000 at .............      7,237,000       6,357,000
   September 30, 1997 and $282,000 at June 30, 1997
   Inventories ......................................................................         48,000          56,000
   Prepaid expenses and other current assets ........................................        442,000         304,000
                                                                                        ------------    ------------

        Total current assets ........................................................     11,958,000       8,652,000

Fixed assets, at cost, less accumulated  depreciation of  $1,620,000 at September 30,        722,000         752,000
1997 and $1,572,000 at June 30, 1997
Capitalized software costs ..........................................................      1,573,000       1,448,000
Excess of cost over fair value of net assets acquired, net of accumulated ...........      6,338,000       6,419,000
amortization of $813,000 at September 30, 1997 and $732,000 at June 30, 1997
Other assets ........................................................................         87,000          78,000
                                                                                        ------------    ------------
                                                                                        $ 20,678,000    $ 17,349,000
                                                                                        ============    ============
                                     LIABILITIES
Current liabilities:
   Accounts payable .................................................................   $    711,000    $    713,000
   Notes payable ....................................................................        600,000       1,212,000
   Accrued expenses and other current liabilities ...................................      2,898,000       2,032,000
   Advances from customers ..........................................................      2,711,000       2,106,000
   Current portion of capital leases payable ........................................         11,000         102,000
                                                                                        ------------    ------------
        Total current liabilities ...................................................      6,931,000       6,165,000

   Notes payable, less current portion ..............................................      4,450,000       4,600,000
   Capital leases payable, less current portion .....................................         11,000          60,000
                                                                                        ------------    ------------
        Total liabilities ...........................................................     11,392,000      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;  5,483,363 shares at September 30, 1997 and 5,056,486 shares at
June 30, 1997                                                                                548,000         506,000
Unearned compensation ...............................................................        (81,000)        (91,000)
Cumulative foreign currency translation adjustment ..................................         20,000          36,000
Additional paid-in capital ..........................................................     15,724,000      13,621,000
(Deficit) ...........................................................................     (6,925,000)     (7,548,000)
                                                                                        ------------    ------------
        Total stockholders' equity ..................................................      9,286,000       6,524,000
                                                                                        ------------    ------------
                                                                                        $ 20,678,000    $ 17,349,000
                                                                                        ============    ============


</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                                       Consolidated Statements of Operations
                                                    (unaudited)


                                                              Three Months Ended September 30,
                                                                         (unaudited)
                                                              --------------------------------

<S>                                                             <C>            <C>        
Revenues:
    System sales ............................................   $ 1,863,000    $ 1,818,000
    Services ................................................     3,000,000      2,541,000
                                                                -----------    -----------
      Total revenues ........................................     4,863,000      4,359,000
                                                                               
Costs and expenses:
    Cost of systems .........................................       665,000        775,000
    Cost of services ........................................       747,000        774,000
    Software development costs ..............................       584,000        605,000
    Selling, general and administrative .....................     2,095,000      1,606,000
                                                                -----------    -----------
                                                                  4,091,000      3,760,000

Earnings before interest and taxes ..........................       772,000        599,000
Interest income .............................................        45,000         27,000
Interest (expense) ..........................................      (156,000)      (161,000)
                                                                -----------    -----------
Earnings before taxes .......................................   $   661,000    $   465,000
Provision for income taxes ..................................        38,000         19,000

NET EARNINGS ................................................   $   623,000    $   446,000
                                                                ===========    ===========
                                                                           
Earnings per share ..........................................   $      0.10    $      0.08
                                                                ===========    ===========
                                                                      
Weighted average number of common and common
equivalent shares ...........................................     6,312,378      5,848,764
                                                                ===========    ===========
                                                                               

</TABLE>
<PAGE>



<TABLE>
<CAPTION>
                                MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                                       Consolidated statements of cash flows
                                                                                                     Three Months Ended
                                                                                                  ------------------------
                                                                                                  ------------------------
                                                                                                    Sept-30      Sept-30
                                                                                                      1997         1996
                                                                                                  ------------------------
<S>                                                                                            <C>            <C>
                                                                                                  (unaudited)  (unaudited)
Cash flows from operating activities:
   Net earnings ............................................................................   $   623,000    $   446,000
   Adjustments to reconcile net earnings  (loss) to net cash
     provided by (used in) operating activities:
      Provision for doubtful accounts ......................................................        13,000         42,000
      Depreciation and amortization ........................................................       196,000        230,000
      Changes in operating assets and liabilities:
         Accounts receivable ...............................................................      (867,000)    (1,591,000)
         Inventory .........................................................................         8,000        139,000
         Prepaid and other assets ..........................................................      (147,000)      (180,000)
         Accounts payable, accrued expenses and customer advances ..........................     1,450,000        919,000
                                                                                               -----------    -----------
          Net cash provided by operating activities ........................................     1,276,000          5,000
                                                                                               -----------    -----------

Cash flows from investing activities:
   Acquisitions of fixed assets ............................................................       (78,000)       (47,000)
   Capitalized software costs ..............................................................      (192,000)      (160,000)
                                                                                               -----------    -----------
          Net cash (used in) investing activities ..........................................      (270,000)      (207,000)
                                                                                               -----------    -----------
Cash flows from financing activities:
   Proceeds from exercise of options and warrants ..........................................        32,000         12,000
   Proceeds of private placement ...........................................................     2,160,000
   Repayment of debt .......................................................................      (902,000)
                                                                                               -----------    -----------
          Net cash provided by financing activities ........................................     1,290,000         12,000
                                                                                               -----------    -----------

NET (DECREASE) IN CASH AND CASH EQUIVALENTS ................................................     2,296,000       (190,000)
Cash and cash equivalents, beginning of period .............................................     1,935,000      2,504,000
                                                                                               -----------    -----------

CASH AND CASH EQUIVALENTS, END OF PERIOD ...................................................   $ 4,231,000    $ 2,314,000
                                                                                               ===========    ===========

Supplemental disclosures of cash flow information:  
  Cash paid during the period for:
     Interest ..............................................................................   $   197,000    $   144,000
     Income taxes ..........................................................................   $    26,000    $     9,000



</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  (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, 1997
included in the Company's annual report filed on Form 10-KSB.

        The results of operations for the three months ended  September 30, 1997
are not  necessarily  indicative  of the results to be  expected  for the entire
fiscal year.

2.    Earnings Per Share:

        Earnings  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  which may be issued  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
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:  Three months ended  September 30, 1997 compared to three
months ended September 30, 1996.

        Total Company revenues increased by $504,000 or 11.6% from $4,359,000 in
the first  quarter of fiscal  1997 to  $4,863,000  for the same period in fiscal
1998.  This  increase  is  primarily  due to  the  Company's  Pharmacy  division
comprised of Digimedics and Pharmakon sales.

        System sales  increased  slightly  from  $1,818,000  for the three month
period  ended  September  30,  1996 to  $1,863,000  for the  same  period  ended
September 30, 1997. For the periods compared, the increase is principally due to
the Pharmacy division's sales increase.

        Service  revenues  increased  by  $459,000 or 18.1% from  $2,541,000  to
$3,000,000  comparing  the first  quarter of fiscal  1997 and fiscal  1998.  The
service  revenue  increases  were  due  to a  combination  of  increases  in the
Company's installed client base along with 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 43% of related system sales
in the first  quarter of fiscal 1997 and 36% of system  sales in the  comparable
period in fiscal 1998. Such costs, as a percentage of revenues,  vary as the mix
of revenue  varies  between  high margin  proprietary  software and lower margin
computer hardware and sublicensed software components. Cost of systems decreased
by $110,000 to $665,000 in the quarter  ended  September 30, 1997 as compared to
the same period a year ago.  The  improved  margin is due to a favorable  higher
margin mix of  proprietary  software in the first quarter of fiscal 1998 vs. the
first quarter of fiscal 1997.

        Cost  of  services  include   salaries  of  client  service   personnel,
communications  expenses,  unreimbursed  travel and training expenses along with
other direct expenses.  Cost of services decreased $27,000 or 3.5 % in the first
three months of fiscal 1998 as compared to the same period in fiscal  1997.  The
cost of  services  tend to be  relatively  fixed in  amount  but will  vary with
service and support staffing and related expense changes.

        Software  development cost include salaries,  documentation,  office and
other  expenses  incurred  in product  development  along with  amortization  of
software development costs.  Software development cost decreased $21,000 or 3.6%
in the first  quarter of fiscal 1998 as compared to the first  quarter of fiscal
1997.  Capitalized  software cost  additions  were $160,000 and $192,000 for the
first three months of fiscal 1997 and fiscal 1998.

        Selling, general and administrative expenses include marketing and sales
salaries, commissions,  training and advertising expenses. Also included are bad
debt  expense;  legal,  accounting  and  professional  fees;  salaries and bonus
expenses  for  corporate,   divisional,  financial  and  administrative  staffs;
utilities,  rent,  communications  and other office expenses;  and other related
direct expenses.  Selling, general and administrative expense increased $489,000
or 30.4% from  $1,606,000 in the three month period ended  September 30, 1996 to
$2,095,000 in the same period ended  September 30, 1997.  The increase  reflects
higher  communications,  travel,  bonus,  professional  fees,  and other  direct
administrative expenses.

        Net  interest  expense  decreased  by $23,000 or 17.2% from  $134,000 to
$111,000 in  comparing  the first three months of fiscal 1998 to the same period
in fiscal 1997. This decrease  primarily  reflects a decrease in promissory note
principle from approximately $7.2 million at September 30, 1996 to approximately
$5.0 million at September 30, 1997.

        Net  earnings  increased  39.7% or $177,000  from  $446,000 in the first
three  months of fiscal  1997 to $623,000  for the same  period in fiscal  1998.
Earnings per share  increased to $.10 per share for the quarter ended  September
30, 1997 from $.08 per share reported for the quarter ended September 30, 1996.

Liquidity and Capital Resources:

        The Company's  cash and cash  equivalent  position at September 30, 1997
was  $4,231,000 an increase of $2,296,000  from  $1,935,000 at June 30, 1997. At
September  30, 1997 the current ratio was 1.7 to 1. In addition to $1,276,000 in
cash provided by operations,  the current working capital  position was improved
by an August, 1997 private placement providing $2,090,000, 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 agreed to register the shares sold in the private placement with the
Securities and Exchange Commission.

     During the quarter ended September 30, 1997, the Company paid down $325,000
in principle on its  promissory  notes held by private  investors.  The $854,000
September 30, 1997 balance on these  promissory  notes are held by two directors
and another  person.  Effective  September 15, 1997 these remaining note holders
agreed to reduce the  interest  on this unpaid  amount from 12% to 9%  annually.
Additionally,  the  Company  amended  its  promissory  note held by  Continental
Healthcare Systems, Inc.  ("Continental") in July, 1997. This amendment included
a $437,000  reduction in note  principle  through the  application of the amount
owing from Continental to the Company for completed  services.  This application
is in accordance  with the Company's  service  contract  covering  collection of
Continental   accounts  receivables  along  with  other  activities  related  to
fulfilling  post-acquisition  Continental obligations.  The principle balance on
the Continental  promissory  note at September 30, 1997 was $4,196,000  which is
due in quarterly  installments  commencing  October 31, 1997 with the  remaining
balance  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)



          November 18, 1997                By:      /s/     Les N. Dace
------------------------------------            --------------------------------
               (Date)                               Les N. Dace, President CEO



          November 18, 1997                By:      /s/   George J. Barry
------------------------------------            --------------------------------
               (Date)                                   George J. Barry, CFO



<PAGE>


<TABLE>                                                          
<CAPTION>
                               MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES

                                                    EXHIBIT 11

                                  SCHEDULE OF COMPUTATION OF NET INCOME PER SHARE


                                                                                            Three months ended    Three months ended
                                                                                            September 30, 1997    September 30, 1996
                                                                                            ------------------    ------------------
                                                                                                
                                                                                                 Primary                 Primary
                                                                                                ----------             ----------
<S>                                                                                             <C>                    <C>
Modified treasury stock method adjustment to net income:
Net income ..................................................................................   $  623,000             $  446,000

                                                                                                ----------             ----------
                                                                                                $  623,000             $  446,000

Modified treasury stock method adjustment
to common stock:
Weighted average shares outstanding .........................................................    5,228,682              4,933,315
       Add:
       Net shares from exercise of options/warrants:
        Assumed exercise of options .........................................................    1,529,309              1,283,007
        Assumed repurchase of shares ........................................................      445,613                367,558
                                                                                                ----------             ----------
        Incremental shares ..................................................................    1,083,696                915,449
                                                                                                ==========             ==========
Adjusted shares .............................................................................    6,312,378              5,848,764
                                                                                                ==========             ==========

EARNINGS PER SHARE ..........................................................................   $      .10             $      .08
                                                                                                ==========             ==========


</TABLE>