SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                      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.


<PAGE>



                       Mediware Information Systems, Inc.


                                      Index



Part I.       Financial Information                                   Page


ITEM 1.       Financial Statements

              Consolidated Balance Sheets as of June 30, 1996 and
              September 30, 1996 (unaudited).............................2


              Consolidated Statements of Operations (unaudited) for the 
              three months ended September 30, 1996 & 1995...............3


              Consolidated Statements of Cash Flows (unaudited) for the 
              three months ended September 30, 1996 & 1995...............4


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



ITEM 2.       Management's Discussion and Analysis of Financial
              Condition and Results of Operations........................5 - 7


              Signature Page.............................................8 - 9

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


<PAGE>



<TABLE>
<CAPTION>
               MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                            AS AT SEPTEMBER 30, 1996
                                   (unaudited)


                                                                                          ---------------------------------
                                          ASSETS                                              Sep-30           Jun-30
                                                                                               1996             1996
                                                                                          ---------------------------------

Current assets:
<S>                                                                                            <C>              <C>       
   Cash and cash equivalents                                                                   $2,314,000       $2,504,000
  Accounts receivable, less estimated doubtful accounts of $230,000 at
  September 30, 1996 and $188,000 at June 30, 1996                                              5,121,000        3,509,000
   Current portion of contract installment receivable                                             243,000          252,000
   Inventories                                                                                     69,000          208,000
   Prepaid expenses and other current assets                                                      220,000          166,000
                                                                                          ---------------- ----------------

        Total current assets                                                                    7,967,000        6,639,000

Long-term contract installments receivable, less current portion                                  101,000          155,000

Fixed assets, at cost, less accumulated  depreciation of $1,384,000 at                            603,000          576,000
    September 30, 1996 and $1,364,000 at June 30, 1996

Capitalized software costs                                                                      1,060,000        1,012,000

Excess of cost over fair value of net assets acquired, net of accumulated amorti-
    zation of $470,000 at September 30, 1996 and $372,000 at June 30, 1996                      6,639,000        6,737,000

Other assets                                                                                      164,000           38,000
                                                                                          ---------------- ----------------

        TOTAL                                                                                 $16,534,000      $15,157,000
                                                                                          ================ ================

                                       LIABILITIES

Current liabilities:
   Accounts payable                                                                              $520,000         $483,000
   Accrued expenses and other current liabilities                                               2,458,000        1,775,000
   Advances from customers                                                                      1,579,000        1,379,000
   Current portion of capital leases payable                                                       20,000           15,000
   Notes payable                                                                                7,179,000        1,451,000
                                                                                          ---------------------------------

        Total current liabilities                                                              11,756,000       $5,103,000

Notes payable, less current portion                                                                              5,728,000
Capital leases payable, less current portion                                                       37,000           43,000
                                                                                          ---------------- ----------------

        Total liabilities                                                                      11,793,000      $10,874,000
                                                                                          ---------------- ----------------

                                  STOCKHOLDERS' EQUITY

Common stock - $.10 par value;  authorized 12,000,000 shares; issued and out-
    standing 4,939,344 shares at Sept.30, 1996 and 4,931,320 shares at June 30, 1996              494,000          493,000

Additional paid-in capital                                                                     13,430,000       13,419,000

Accumulated Deficit                                                                           (9,183,000)      (9,629,000)
                                                                                          ---------------------------------

          Total stockholders' equity                                                            4,741,000        4,283,000
                                                                                          ---------------- ----------------

        TOTAL                                                                                 $16,534,000      $15,157,000
                                                                                          ================ ================


</TABLE>


<PAGE>


<TABLE>
<CAPTION>

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


                                                                   Three Months Ended September 30,

                                                               ------------------------------------------
                                                                              (unaudited)

                                                                       1996                 1995
                                                               ------------------------------------------
     Revenues:
<S>                                                                      <C>                  <C>       
         System sales                                                    $1,818,000           $1,532,000
         Services                                                         2,541,000              986,000
                                                               ------------------------------------------

              Total revenues                                              4,359,000            2,518,000
                                                               ------------------------------------------

     Costs and expenses:
         Cost of systems                                                    775,000              437,000
         Cost of services                                                   774,000              448,000
         Software development costs                                         605,000              341,000
         Selling, general and administrative                              1,606,000              954,000
                                                               ------------------------------------------
                                                                          3,760,000            2,180,000

     Earnings before interest and taxes
                                                                            599,000              338,000

     Interest income                                                         27,000                    -

     Interest (expense)                                                   (161,000)             (60,000)
                                                               ------------------------------------------

     Earnings before Taxes                                                 $465,000             $278,000

     Provision for Income Taxes                                              19,000                    -
                                                               ------------------------------------------

     NET EARNINGS                                                          $446,000             $278,000
                                                               ==========================================


     Earnings per share                                                       $0.08                $0.08
                                                               ==========================================

     Weighted average number of common
         and common equivalent shares                                     5,848,764            3,933,200
                                                               ==========================================
</TABLE>



<PAGE>


<TABLE>
<CAPTION>

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



                                                                                   Three Months Ended

                                                                             -------------------------------
                                                                                 Sep-30          Sep-30
                                                                                  1996            1995
                                                                             -------------------------------
                                                                               (unaudited)    (unaudited)
Cash flows from operating activities:
<S>                                                                                 <C>            <C>     
   Net earnings                                                                     $446,000       $278,000
   Adjustments to reconcile net earnings (loss) to net cash
     provided by (used in) operating activities:
      Provision for doubtful accounts                                                 42,000         15,000
      Depreciation and amortization                                                  230,000        203,000
      Contract installment sales
      Issuance of common stock as consideration of common stock to
         directors                                                                                   64,000
      Proceeds from contract installments receivable                                  63,000
      Changes in operating assets and liabilities:
        (Increase) in accounts receivable                                        (1,654,000)      (535,000)
        Decrease (Increase) in inventory                                             139,000       (63,000)
        (Increase) in prepaid and other assets                                     (180,000)       (35,000)
        Increase in accounts payable, accrued expenses and
          customer advances                                                          919,000        399,000
                                                                             -------------------------------
          Net cash (used in) provided by operating activities                          5,000        326,000
                                                                             -------------------------------

Cash flows from investing activities:
   Acquisitions of fixed assets                                                     (47,000)      (100,000)
   Capitalized software costs                                                      (160,000)       (92,000)
                                                                             -------------------------------
          Net cash (used in) investing activities                                  (207,000)      (192,000)
                                                                             -------------------------------

Cash flows from financing activities:
   Common stock issued                                                                12,000
   Proceeds of note payable
   Repayment of long-term debt                                                                      (1,000)
                                                                             -------------------------------
          Net cash provided by (used in) financing activities                         12,000        (1,000)
                                                                             -------------------------------

NET (DECREASE) IN CASH AND CASH EQUIVALENTS                                        (190,000)        133,000
Cash and cash equivalents, beginning of period                                     2,504,000        509,000
                                                                             -------------------------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                          $2,314,000       $642,000
                                                                             ===============================

Supplemental  disclosures of cash flow information:  Cash paid during the period
   for:
     Interest                                                                       $144,000        $21,000
     Income taxes                                                                     $9,000         $3,000


</TABLE>

<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 three months ended  September 30, 1996
are not  necessarily  indicative  of the results to be  expected  for the entire
fiscal year.

2.    Earnings 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  which may be issued  upon  exercise  of stock  options  and
warrants 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.

4.    Related Party Transactions:

        During the three months ended  September  30, 1996 the Company  incurred
legal  fees of  approximately  $57,000  with a firm of which a  director  of the
Company is counsel,  primarily  relating to the acquisition  described below. In
the same period the Company  incurred  $21,132 of interest expense on notes held
by a director.

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.




Results of Operations:  1997 vs. 1996:

        System Sales Revenue  increased 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.  The increase was due to
continued strong performance from the Hemocare product center, as well as system
sales produced by the Pharmakon and JAC divisions of Mediware.

        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.  This  increase is due  primarily  to the  revenues  realized  from the
addition of the Pharmakon and JAC divisions,  fulfilling  Pharmakon's obligation
to provide services to customers, 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  Healthcare  Systems,  Inc.  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.  In the fiscal quarter ended  September 30, 1996 the Company
recognized $215,000 of such service income.

        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. This increase is due to additional system  installations  performed by the
Pharmakon and JAC divisions,  and a significant number of hardware installations
from the Hemocare  product  center,  which resulted 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.  This  increase was due primarily to the addition of the Pharmakon and JAC
divisions.

        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.  The increase was due to the  additional  costs of development
from the Pharmakon division.

        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 of the Pharmakon and JAC  divisions,  as well as increased  commissions
and employee incentive bonus expenses.

        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. This increased interest is due primarily to interest paid to "Continental"
pertaining  to the  sellers  note  for the  purchase  of the  Pharmakon  and JAC
divisions.

        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  earnings are due to continued  strong  earnings  from the
Hemocare  product center,  as well as profits  produced by the Pharmakon and JAC
divisions of Mediware  including  fulfilling  Pharmakon's  obligation to provide
services to customers.

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., ("Continental"). 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 pursuant to a
promissory  note issued to  "Continental"  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 an immediate payment of $1.0
million and monthly  payments 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).  The amount of $4,549,000 of
this  liability is classified as current at September 30, 1996. The Company will
require  additional sources of liquidity to fund the $4,549,000 debt payment 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's working capital was negative  $3,789,000 at September 30,
1996  reflecting  the purchase money note due in August 1997 issued in June 1996
to Continental in part payment for the acquisition.

        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. 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.

        The Company's  cash and cash  equivalent  position at September 30, 1996
was $2,314,000 an increase of $ 1,672,000 from the same period of 1995.


<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 13, 1996                 By: /s/  Les N. Dace
-----------------                 --------------------------------
    (Date)                           Les N. Dace, President CEO



November 13, 1996                 By: /s/ Les N. Dace
-----------------                 --------------------------------
    (Date)                           Les N. Dace, CFO


<PAGE>


<TABLE>
<CAPTION>

                Mediware Information Systems, Inc. and Subsidiary

                                   EXHIBIT 11

                 Schedule of Computation of Net Income Per Share



                                                      Three months ended             Three months ended
                                                           30-Sep-96                      30-Sep-95
                                                     ----------------------         ----------------------


                                                            Primary                        Primary

Modified treasury stock method adjustment to net income:

<S>                                                               <C>                            <C>     
Net income                                                        $446,000                       $278,000

Reduction in interest expense from retiring debt                                                  $53,000
                                                     ----------------------         ----------------------
                                                                  $446,000                       $331,000

Modified treasury stock method adjustment to common stock:
Weighted average shares outstanding                             $4,933,315                     $2,633,999

Add:
    Net shares from exercise of options/warrants:
    Assumed exercise of options                                 $1,283,007                     $1,830,191
    Assumed repurchase of shares                                  $367,558                       $530,990
                                                     ----------------------
                                                                                    ----------------------
    Incremental shares                                            $915,449                     $1,299,201
                                                     ----------------------         ----------------------

Adjusted shares                                                 $5,848,764                     $3,933,200
                                                     ======================         ======================


EARNINGS PER SHARE                                                   $0.08                          $0.08
                                                     ======================         ======================




</TABLE>