1 HEALTH MANAGEMENT SYSTEMS, INC. AND SUBSIDIARIES EXHIBIT 11--COMPUTATIONS OF EARNINGS PER SHARE (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Three months ended January 31, --------------------------------- 1997 1996 ------------ ------------ Primary Earnings Per Share: Earnings data: Net income $ 1,803 3,610 ============ ============ Weighted average shares outstanding: Average shares of common stock outstanding 17,632 16,733 Net effect of dilutive stock options--based on the treasury stock method using average market price 604 1,447 ------------ ------------ Weighted average shares outstanding 18,236 18,180 ============ ============ Earnings per common share: Net income $ .10 .20 ============ ============