(913) 307-1000                    
(Registrant's telephone number, including area code)


                                                                                               
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X] Yes  [_]  No

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). [X] Yes [ ] No

As of January 15, 2005, there were 7,835,352 shares of Common Stock, $0.10 par value, of the registrant outstanding.

See Notes to Unaudited Condensed Consolidated Financial Statements.

See Notes to Unaudited Condensed Consolidated Financial Statements.

In the opinion of management, the accompanying unaudited, consolidated, condensed financial statements contain all adjustments necessary to present fairly the financial position of the Company and its results of operations and cash flows for the interim periods presented. Such financial statements have been condensed in accordance with the applicable regulations of the Securities and Exchange Commission and, therefore, do not include all disclosures required by accounting principles generally accepted in the United States of America. These financial statements should be read in conjunction with the Company's audited financial statements for the year ended June 30, 2004 included in the Company's Annual Report filed on Form 10-K for such year.

The results of operations for the three and six months ended December 31, 2004 are not necessarily indicative of the results to be expected for the entire fiscal year.

In July 2004, the Company initiated a program to monitor customer usage, which resulted in the sale of additional proprietary user licenses and related third party software under the terms of their existing license agreements. As a result, during the three and six months ended December 31, 2004, the Company recognized system sales of $76,000 and $1,262,000, respectively.

Basic earnings per share have been computed using the weighted average number of shares of common stock, par value $0.10 ("Common Stock"), of the Company outstanding for each period presented. For the three and six months ended December 31, 2004 and 2003, the dilutive effect of stock options and other common stock equivalents is included in the calculation of diluted earnings per share using the treasury stock method.

On August 20, 2004 the Company repaid the outstanding principal and accrued interest on a note payable to the Chairman of the Board of Directors of the Company. This note accrued interest at 1/4% over prime per annum and was secured by certain trade accounts receivable of the Company. The total payment was $1,419,000.

In August 2004, the Company granted 25,000 shares of restricted Common Stock to an officer. The shares are subject to certain restrictions, including a one-year vesting period. The fair value of the related Common Stock on the grant date was $252,000. The related compensation expense is being recognized in the financial statements over the vesting period. For the three and six months ended December 31, 2004, the Company recorded compensation expense related to this grant of $63,000 and $88,000, respectively.

The Company has committed to grant an additional 25,000 shares of restricted Common Stock to an officer, subject to the amendment of the Company's 2003 Equity Incentive Plan by August 25, 2005. This amendment would increase the number of shares of Common Stock available under the plan. Shares under this grant would vest in August 2006 and are subject to certain restrictions.

The Company uses the Black-Scholes option pricing model to determine the weighted average fair value of options. The fair value of options at date of grant and the assumptions utilized to determine such values are indicated in the following table:

To The Board of Directors and Stockholders of
Mediware Information Systems, Inc.

We have reviewed the accompanying condensed consolidated balance sheet of Mediware Information Systems, Inc. and subsidiaries (the "Company") as of December 31, 2004, the related condensed consolidated statements of operations and comprehensive income for the three and six-month periods ended December 31, 2004 and 2003, and the related condensed consolidated statements of cash flows for the six-month periods ended December 31, 2004 and 2003. These interim condensed consolidated financial statements are the responsibility of the Company's management.

We conducted our reviews in accordance with standards established by the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim condensed consolidated financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of the Company as of June 30, 2004, and the related consolidated statements of operations and comprehensive income, stockholders' equity, and cash flows for the year then ended (not presented herein); and in our report dated August 6, 2004 (with respect to Notes 6 and 16, August 20, 2004), we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of June 30, 2004 is fairly stated in all material respects in relation to the consolidated balance sheet from which it has been derived.

Eisner LLP

New York, New York
January 26, 2005

Total revenues for the quarter ended December 31, 2004 were $9,226,000, an increase of $117,000 or 1.3% from the same period a year ago. The change in revenues reflects quarter over quarter increases of $544,000 or 14.6% in the Blood Bank Division and $32,000 or 4.4% in the JAC Division. These increases were partially offset by decreases of $414,000 or 10.5% in the Pharmacy Division and $45,000 or 6.3% in the Operating Room Division.

Service revenues, which include recurring software support, implementation, training and validation services, were $6,550,000 during the second quarter of fiscal 2005, an increase of $543,000 or 9.0%, compared to $6,007,000 during the same period a year ago. The Blood Bank Division reported service revenues of $2,971,000 in the second quarter of fiscal 2005, an increase of $213,000 or 7.7% compared to $2,758,000 in fiscal 2004. This increase in service revenues is due to increased rates on renewing support contracts with existing customers as well as increased implementation and training services provided to HCLL customers. The Pharmacy Division reported service revenues of $2,454,000 in the second quarter of fiscal 2005, an increase of $209,000 or 9.3% compared to $2,245,000 in fiscal 2004. The Operating Room Division reported service revenues of $468,000 in the second quarter of fiscal 2005, an increase of $43,000 or 10.1% compared to $425,000 in fiscal 2004. The JAC Division reported se rvice revenues of $657,000 in the second quarter of fiscal 2005, an increase of $78,000 or 13.5% compared to $579,000 in fiscal 2004. The increase in service revenue for the Pharmacy, Operating Room and JAC Divisions is primarily due to increased implementation activities.

Cost of systems includes the cost of computer hardware and sublicensed software purchased from computer and software manufacturers as part of a complete system offering and excludes amortization of capitalized software. Cost of systems was $506,000 in the second quarter of fiscal 2005, a decrease of $105,000 compared to $611,000 in the same period a year ago. This decrease is primarily due to the reduction in FDA validation system sales in the Blood Bank Division reported in the second quarter of fiscal 2004. The gross margin on systems sales was 81.1% and 80.3% during the quarters ended December 31, 2004 and 2003, respectively. These margins can fluctuate as the mix of revenue varies between high margin proprietary software and lower margin computer hardware and sublicensed software components.

Cost of services includes the salaries of client service personnel and communications expenses along with the direct expenses of the client service function. Cost of services increased $98,000 or 5.6% to $1,845,000 in the second quarter of fiscal 2005 as compared to the same period a year ago. The increase in cost of services is primarily attributable to additional system implementation staff associated with the Company's Blood Bank Division. Service revenue gross margin increased to 71.8% during the second three months of fiscal 2005 compared to 70.9% in same period of fiscal year 2004. Management believes, but cannot give any assurance, that the Company's infrastructure is sufficient to provide for services as customers continue to migrate to the new products without material change.

Amortization of capitalized software increased $109,000 or 12.1% to $1,008,000 in the second quarter of fiscal 2005 compared to $899,000 in the same period of 2004. Amortization of capitalized software increased for all Divisions; however, approximately half of the increase in the December 2004 quarter is related to the Pharmacy Division's new MediMAR product released during the fourth quarter of fiscal year 2004.

Selling, general and administrative ("SG&A") expenses include marketing and sales salaries, commissions, travel and advertising expenses. Also included is bad debt expense; legal, accounting and professional fees; salaries and bonus expenses for corporate, divisional, financial and administrative staffs; utilities, rent, communications and other office expenses; and other related direct administrative expenses. While SG&A expenses for the quarter ended December 31, 2004 were $3,575,000, an increase of $39,000 or 1.1%, compared to $3,536,000 in the second quarter of fiscal 2004, amounts related to marketing of the Company's products increased while legal costs associated with various business matters declined. Management believes, but cannot give any assurance, that the Company's infrastructure is adequate to support anticipated growth trends. However, management believes that direct and variable marketing costs for its new products will increase as the Company executes on its marke ting strategies.

Net income was $949,000 for the quarter ended December 31, 2004, a decrease of $24,000 or 2.5% as compared to net income of $973,000 in the quarter ended December 31, 2003.

Total revenues for the six months ended December 31, 2004 were $17,706,000, a decrease of $414,000 or 2.3% from the prior year's first six months' total of $18,120,000. The change in the first six months' revenues reflects decreases of $437,000 or 5.6% in the Pharmacy Division; $116,000 or 1.5% in the Blood Bank Division; and $78,000 or 6.1% in the Operating Room Division. This decrease was partially offset by an increase of $217,000 or 16.3% in the JAC Division.

System sales for the six months ended December 31, 2004 decreased by $623,000 or 10.7% to $5,217,000 compared to $5,840,000 in the first half of fiscal 2004. The Blood Bank Division reported systems sales of $1,887,000 during the first six months of fiscal 2005, a decrease of $362,000 or 16.1% from $2,249,000 during the same period in the previous year. During fiscal 2004, the Blood Bank Division reported system sales related to assisting its customers with a required FDA validation process for the Hemocare legacy product, resulting in revenue of approximately $500,000. The Pharmacy Division reported system sales of $2,756,000 during the first six months of fiscal 2005, representing a decrease of $50,000 or 1.8% from $2,806,000 in the same period of fiscal 2004. During the last three months of the period, the Pharmacy Division restructured its marketing and related sales staff to reflect the combination of the WORx product and the MediMAR and MediCOE products into a single medication manag ement solution. The Company believes that the restructuring will better match the Division's products with its clients' needs and increase the Division's sales pipeline. While the opportunities are increasing, the Company believes that the restructuring of the sales and marketing staff along with a fully referencable site have to be completed to achieve the expected product acceptance and contract closure rates. During the six months ended December 31, 2004, the Company commenced an initiative to sell additional proprietary user licenses and related third party software licenses to certain customers, based on their current usage levels, pursuant to the terms of existing license agreements. During the six months ended December 31, 2004 the Pharmacy Division reported system sales of $1,262,000 resulting from this initiative, which will continue, but the Company expects these sales to continue at a reduced rate. The Operating Room Division reported system sales of $333,000 during the first six months of fiscal 2005, representing a decrease of $146,000 or 30.5% from $479,000 in the same period of fiscal 2004, reflecting less migration activity in the current period. The JAC Division reported system sales of $241,000 during the first six months of fiscal 2005, representing a decrease of $65,000 or 21.2% from $306,000 in the same period of fiscal 2004, reflecting less migration activity in the current period. Management believes, but cannot give any assurance, that system sales of Perioperative Solutions, MediCOE, MediMAR and HCLL will continue to increase as a result of continued marketing efforts of these products by the Company.

Service revenues increased $209,000, or 1.7%, to $12,489,000 during the first half of fiscal 2005 as compared to service revenues of $12,280,000 during the same period a year ago. The Blood Bank Division reported service revenues of $5,755,000 in the first half of fiscal 2005, an increase of $246,000 or 4.5% compared to $5,509,000 in fiscal 2004. This increase in service revenues is primarily due to increased rates on renewing support contracts with existing customers. The Pharmacy Division reported service revenues of $4,550,000 in the first half of fiscal 2005, a decrease of $387,000 or 7.8% compared to $4,937,000 in fiscal 2004. This decrease in service revenue is due to lower utilization rates on a specific project. The Operating Room Division reported service revenues of $876,000 in the first half of fiscal 2005, an increase of $68,000 or 8.4% compared to $808,000 in fiscal 2004. This increase in service revenue is due to increased implementation activities. The JAC Division reported service revenues of $1,308,000 in the first half of fiscal 2005, an increase of $282,000 or 27.5% compared to $1,026,000 in fiscal 2004. The increase is principally due to increased implementation activities during the period.

Cost of systems declined $146,000 or 13.2% to $956,000 in the first six months of fiscal 2005 compared to $1,102,000 in the same period of fiscal 2004. The gross margin on system sales was 81.7% for the six months ended December 31, 2004 compared to 81.1% in the same period last year. These margins can fluctuate as the mix of revenue varies between high margin proprietary software and lower margin computer hardware and sublicensed software components.

Cost of services increased 6.0% or $210,000 to $3,704,000 in the first six months of fiscal 2005 compared to $3,494,000 in the same period a year ago. The increase in cost of services is primarily attributable to increases in implementation personnel as the Company increases staff levels for the rollout of its new MediMAR, MediCOE and HCLL products. Gross margin on service revenues was 70.3% during the first six months of fiscal 2005 compared to 71.5% in the first half of fiscal 2004.

Amortization of capitalized software increased $208,000 or 11.8%, to $1,966,000 during the first half of fiscal 2005 compared to $1,758,000 in the same period of 2004. This increase is primarily due to increased amortization of capitalized software costs related to the Company's HCLL, MediMAR and MediCOE products.

SG&A expenses increased $71,000 or 1.0% to $6,889,000 for the six months ended December 31, 2004, compared to $6,818,000 for the same period a year ago. This increase reflects increased marketing expenses and a rise in general business insurance expenses.

Net income during the first six months of fiscal 2005 was $1,592,000 compared to $2,171,000 in the same period a year ago.

As of December 31, 2004, the Company had cash and cash equivalents of $10,221,000 compared to cash and cash equivalents of $10,213,000 at June 30, 2004. At December 31, 2004, working capital was $11,100,000 and the current ratio was 1.99:1 compared to $9,783,000 and 1.82:1 at June 30, 2004.

Cash provided by operating activities was $3,862,000 during the first half of fiscal year 2005 compared to $3,528,000 during the same period a year ago. The increased cash provided by operating activities is primarily due to improved accounts receivable collections, partially offset by decreases in accrued expenses.

The Company invested $3,159,000 and $3,329,000 during the six months ended December 31, 2004 and 2003, respectively, primarily relating to the Company's ongoing investment in software development projects. Of the amounts invested, the Company capitalized $2,651,000 and $2,868,000 of product development costs during the six months ended December 31, 2004 and 2003, respectively.

For the six months ended December 31, 2004, the Company received $661,000 related to proceeds from the exercise of options, compared to $311,000 generated in the same period a year ago. During the six months ended December 31, 2004, the Company also repaid its note payable and accrued interest to a related party in the amount of $1,419,000.

The Company's liquidity is influenced by its ability to perform on a "best of breed" basis in a competitive industry that is currently impacted by consolidations of healthcare information system providers. The factors that may affect liquidity are the Company's ability to penetrate the market for its products, to maintain or reduce the length of the selling cycle, and to collect cash from clients as systems are implemented. Exclusive of activities involving any future acquisitions of products or companies that complement or augment the Company's existing line of products, management believes that current available funds and cash generated from operations will provide sufficient liquidity to meet operating requirements for the foreseeable future. The Company continues to review its long-term cash needs and investment options. The Company is evaluating whether to obtain additional financing from outside sources.

The Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company's financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to the Company.

In December 2004, the FASB issued SFAS No. 123 (revised 2004) "Share-Based Payment" ("SFAS 123(R)").  SFAS 123(R) addresses the accounting for transactions in which an enterprise exchanges its equity instruments for employee services.  It also addresses transactions in which an enterprise incurs liabilities that are based on the fair value of the enterprise's equity instruments or that may be settled by the issuance of those equity instruments in exchange for employee services.  The cost of employee services received in exchange for equity instruments, including employee stock options, is to be measured on the grant-date fair value of those instruments.  That cost will be recognized as compensation expense over the service period, which would normally be the vesting period.  SFAS 123(R) is effective as of the first interim or annual reporting period that begins after June 15, 2005.  The Company is currently evaluating the impact of SFAS 123R on our fi nancial position and results of operations. 

The Company does not currently have any material exposure to foreign currency transaction gains or losses. However, the Company does have some exposure to foreign currency rate fluctuations arising from sales made to customers in the United Kingdom. These transactions are made by the Company's U.K. based, wholly owned subsidiary which transacts business in the local functional currency. To date, the Company has not entered into any derivative financial instrument to manage foreign currency risk and is currently not evaluating the future use of any such financial instruments.

The Company's Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") have reviewed and evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 240.13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of a date within ninety days prior to the filing date of this quarterly report. Based on that review and evaluation, which included inquiries made to certain other employees of the Company, the CEO and CFO have concluded that the Company's current disclosure controls and procedures, as designed and implemented, are reasonably adequate to ensure that they are provided with material information relating to the Company required to be disclosed in the reports the Company files or submits under the Exchange Act. There have not been any significant changes in the Company's internal controls or in other factors that could significantly affect these controls subsequent to the dat e of their evaluation. There were no significant deficiencies or material weaknesses identified, and therefore no corrective actions were taken.

February 1, 2005                    /s/   GEORGE J. BARRY                    
          Date                                      GEORGE J. BARRY
                                                         PRESIDENT AND CHIEF EXECUTIVE OFFICER

February 1, 2005                    /s/   JILL H. SUPPES                         
          Date                                      JILL H. SUPPES
                                                        CHIEF FINANCIAL OFFICER

To the Board of Directors and Stockholders of
Mediware Information Systems, Inc.

We have reviewed, in accordance with standards of Public Company Accounting Oversight Board (United States) the unaudited interim condensed consolidated financial statements of Mediware Information Systems, Inc. and subsidiaries as of December 31, 2004 and for the three and six-month periods ended December 31, 2004 and 2003 as indicated in our review report dated January 26, 2005. Because we did not perform an audit, we expressed no opinion on those financial statements.

We are aware that our review report, which is included in your Quarterly Report on Form 10-Q for the quarter ended December 31, 2004, is incorporated by reference in the Registration Statements on Form S-8 (No. 333-07591, No. 333-83016 and No. 333-119503).

We are also aware that our review report, pursuant to Rule 43(c) under the Securities Act of 1933 (the "Act"), is not considered a part of the Registration Statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of Sections 7 and 11 of the Act and the accountants' Section 11 liability does not extend to such report.

Eisner LLP

New York, New York
January 26, 2005

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Mediware Information Systems, Inc. and will be retained by Mediware Information Systems, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.