1 HEALTH MANAGEMENT SYSTEMS, INC. AND SUBSIDIARIES EXHIBIT 11--COMPUTATIONS OF EARNINGS PER SHARE (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Three months ended Nine months ended July 31, July 31, --------------------- -------------------- 1997 1996 1997 1996 -------- -------- -------- -------- Primary Earnings Per Share: Earnings data: Net income (loss) $ (603) (2,097) 1,481 4,615 ======== ======== ======== ======== Weighted average shares outstanding: Average shares of common stock outstanding 17,627 17,365 17,649 17,058 Net effect of dilutive stock options--based on the treasury stock method using average market price 0 0 287 1,390 -------- -------- -------- -------- Weighted average shares outstanding 17,627 17,365 17,936 18,448 ======== ======== ======== ======== Earnings per common share: Net income (loss) $ (0.03) (0.12) 0.08 0.25 ======== ======== ======== ========