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, -------------------- -------------------- 1998 1997 1998 1997 -------- -------- -------- -------- Basic and Diluted Earnings Per Share: Earnings data: Net income (loss) $ 1,388 $ (603) 3,448 1,481 ======== ======== ======== ======== Weighted average shares outstanding: Average shares of common stock outstanding 17,468 17,627 17,431 17,648 Net effect of dilutive stock options -- based on the treasury stock method using average market price 651 0 519 250 -------- -------- -------- -------- Weighted average common shares and common share equivalents outstanding 18,119 17,627 17,950 17,898 ======== ======== ======== ======== Earnings per common share: Basic earnings (loss) per share $ 0.08 (0.03) 0.20 0.08 ======== ======== ======== ======== Diluted earnings (loss) per share $ 0.08 (0.03) 0.19 0.08 ======== ======== ======== ======== 17