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, ------------------------------- ---------------------------------- 1998 1997 1998 1997 ------------ --------------- -------------- --------------- Basic and Diluted Earnings Per Share: Earnings data: Net income $1,185 281 2,057 2,084 ============ =============== ============== =============== Weighted average shares outstanding: Average shares of common stock outstanding 17,361 17,688 17,354 17,660 Net effect of dilutive stock options -- based on the treasury stock method using average market price 733 144 453 374 ------------ --------------- -------------- --------------- Weighted average common shares and common share equivalents outstanding 18,094 17,832 17,807 18,034 ============ =============== ============== =============== Earnings per common share: Basic earnings per share $0.07 0.02 0.12 0.12 ============ =============== ============== =============== Diluted earnings per share $0.07 0.02 0.12 0.12 ============ =============== ============== ===============