1 Exhibit 11 HEALTH MANAGEMENT SYSTEMS, INC. AND SUBSIDIARIES EXHIBIT 11 - COMPUTATION OF EARNINGS PER SHARE (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Years ended October 31, --------------------------------------------- 2000 1999 1998 ---------- ------- ------- Numerator: Net income (loss) $ (25,426) $ 7,483 $ 6,088 ========== ======= ======= Denominator: Weighted average common shares outstanding 17,467 17,357 17,366 Net effect of dilutive stock options - based on the Treasury stock method using average market price - (a) 62 467 ---------- ------- ------- Weighted average common shares and common share equivalents 17,467 17,419 17,833 ========== ======= ======= Basic earnings (loss) per share: $ (1.46) $ 0.43 $ 0.35 ========== ======= ======= Diluted earnings (loss) per share: $ (1.46) $ 0.43 $ 0.34 ========== ======= ======= (a) Stock options would be anti-dilutive for fiscal year 2000 and are therefore excluded from the denominator.