1 HEALTH MANAGEMENT SYSTEMS, INC. AND SUBSIDIARIES EXHIBIT 11--COMPUTATIONS OF EARNINGS PER SHARE (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Three months ended Six months ended April 30, April 30, ------------------ ----------------- 1996 1995 1996 1995 ------- ------ ------ ------ Primary Earnings Per Share: Earnings data: Net income $ 3,338 2,417 7,081 4,224 ======= ====== ====== ====== Weighted average shares outstanding: Average shares of common stock outstanding 16,904 16,272 16,732 16,185 Net effect of dilutive stock options--based on the treasury stock method using average market price 1,401 1,090 1,425 1,029 ------- ------ ------ ------ Weighted average shares outstanding 18,305 17,362 18,157 17,214 ======= ====== ====== ====== Earnings per common share: Net income $ 0.18 0.14 0.39 0.25 ======= ====== ====== ======