(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 April 18, 2005, there were 7,862,853 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, condensed, consolidated 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 nine months ended March 31, 2005 are not necessarily indicative of the results to be expected for the entire fiscal year.

Certain amounts have been reclassified to conform with the current presentation.

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 nine months ended March 31, 2005, the Company recognized system sales of $14,000 and $1,276,000, 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 nine months ended March 31, 2005 and 2004, 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.

The Company accounts for stock-based employee and outside directors compensation under Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees", and related interpretations. The Company has adopted the disclosure-only provisions of Statement of Financial Accounting Standards ("SFAS") No. 123, "Accounting for Stock-Based Compensation" and SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure." The following table illustrates the effect on net income and earnings per share if the fair value based method had been applied to all awards.

In August 2004, the Company entered into an employment agreement with an officer of the Company. Under the terms of this agreement, the Company granted the officer 25,000 shares of restricted Common Stock. The shares are subject to certain restrictions and vest in August 2005. 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 nine months ended March 31, 2005, the Company recorded compensation expense related to this grant of $63,000 and $151,000, respectively.

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 March 31, 2005, the related condensed consolidated statements of operations and comprehensive income for the three and nine-month periods ended March 31, 2005 and 2004, and the related condensed consolidated statements of cash flows for the nine-month periods ended March 31, 2005 and 2004. 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
April 28, 2005

Total revenues for the quarter ended March 31, 2005 were $9,881,000, an increase of $561,000 or 6.0% from the same period a year ago. The change in revenues reflects quarter over quarter increases of $1,808,000 or 54.1% in the Blood Bank Division; $70,000 or 11.4% in the Operating Room Division; and $205,000 or 20.5% in the JAC Division. These increases were partially offset by a decrease of $1,522,000 or 34.9% in the Medication Management Division (formerly the Pharmacy Division) .

Service revenues, which include recurring software support, implementation, training and validation services, were $6,193,000 during the third quarter of fiscal 2005, an increase of $206,000 or 3.4%, compared to $5,987,000 during the same period a year ago. The Operating Room Division reported service revenues of $392,000 in the third quarter of fiscal 2005, a decrease of $19,000 or 4.6% compared to $411,000 in fiscal 2004. The JAC Division reported service revenues of $765,000 in the third quarter of fiscal 2005, an increase of $56,000 or 7.9% compared to $709,000 in fiscal 2004. The increase in service revenue for the JAC Division is primarily due to increased implementation activities. The Medication Management Division reported service revenues of $2,010,000 in the third quarter of fiscal 2005, a decrease of $118,000 or 5.5% compared to $2,128,000 in fiscal 2004. The decrease in service revenue is primarily due to lower utilization rates on a specific contract and a decline in the numb er of ongoing implementation projects. The Blood Bank Division reported service revenues of $3,026,000 in the third quarter of fiscal 2005, an increase of $287,000 or 10.5% compared to $2,739,000 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.

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 $682,000 in the third quarter of fiscal 2005, a decrease of $194,000 compared to $876,000 in the same period a year ago. The decrease of relative cost is primarily due to the higher mix of HCLL software sales compared to system sales of WORx. HCLL requires the customer to purchase fewer sublicensed software components and therefore generates higher gross margins. The gross margin on systems sales was 81.5% and 73.7% during the quarters ended March 31, 2005 and 2004, 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 decreased $140,000, or 6.9% to $1,894,000, in the third quarter of fiscal 2005 as compared to the same period a year ago. The decrease in cost of services is primarily attributed to a reassignment of certain WORx system implementation staff to tasks associated with the development and design of the integrated medication management solution. The restructuring was also a result of an assessment of the amount of services necessary to implement the integrated solution. As a result, service revenue gross margin increased to 69.4% during the third quarter of fiscal 2005 compared to 66.0% in same period of fiscal year 2004, however overall cost structure for the Company remains materially the same. Management believes, but cannot give any assurance, that the infrastructure is sufficient to provide for services as customers c ontinue to license the new products.

Amortization of capitalized software increased $174,000 or 18.6% to $1,110,000 in the third quarter of fiscal 2005 compared to $936,000 in the same period of 2004. The increase primarily relates to the amortization of the MediMAR product in the Medication Management Division, which was 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. SG&A expenses for the quarter ended March 31, 2005 were $4,101,000, an increase of $253,000 or 6.6%, compared to $3,848,000 in the third quarter of fiscal 2004. The increase in SG&A expense includes increases in sales commissions and compensation expense for restricted Common Stock awards. Additionally, the Company incurred consulting services costs to document and begin testing its internal control environment as required by the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley"). These increases in SG&A costs were partially offset by decreases in legal expense and health insurance costs. Management believes that the Company will continue to incur higher consulting costs associated with Sarbanes-Oxley compliance through the issuance of the attestation report on the Company's internal control environment by the auditors.

Net income was $830,000 for the quarter ended March 31, 2005, an increase of $269,000 or 48.0% as compared to net income of $561,000 in the quarter ended March 31, 2004.

Total revenues for the nine months ended March 31, 2005 were $27,587,000, an increase of $147,000 or 0.5% from the prior year's first nine months' total of $27,440,000. The change in the first nine months' revenues reflects increases of $1,692,000 or 15.2% in the Blood Bank Division and $422,000 or 18.1% in the JAC Division. This increase was partially offset by decreases of $1,959,000 or 16.2% in the Medication Management Division and $8,000 or 0.4% in the Operating Room Division.

System sales for the nine months ended March 31, 2005 decreased $268,000 or 2.9% to $8,905,000 compared to $9,173,000 in the first nine months of fiscal 2004. The Operating Room Division reported system sales of $626,000 during the first nine months of fiscal 2005, representing a decrease of $57,000 or 8.3% from $683,000 in the same period of fiscal 2004, reflecting that the Operating Room Division's customer migration is nearing completion. The JAC Division reported system sales of $679,000 during the first nine months of fiscal 2005, representing an increase of $84,000 or 14.1% from $595,000 in the same period of fiscal 2004. The Division's sales pipeline activity is increasing because JAC has been identified as a preferred supplier of pharmacy stock control for a subcontractor as part of NPfIT. The Medication Management Division reported system sales of $3,591,000 during the first nine months of fiscal 2005, representing a decrease of $1,454,000 or 28.8% from $5,045,000 in the same peri od of fiscal 2004. This decrease reflects lower sales of the base WORx system in the first nine months of fiscal 2005 compared to the same period in fiscal 2004. During the nine months ended March 31, 2005, 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 nine months ended March 31, 2005 the Medication Management Division reported system sales of $1,276,000 resulting from this initiative, which will continue, but the Company expects these sales to continue at a significantly reduced rate. While the Company has identified a significant number of sales opportunities for the combined WORx, MediMAR and MediCOE solution, the Company believes that a fully referencable site, utilizing all three integrated products, is necessary to achieving the expected product acceptance and contract closure rates. The Blood Bank Divisi on reported systems sales of $4,009,000 during the first nine months of fiscal 2005, an increase of $1,159,000 or 40.7% from $2,850,000 during the same period in the previous year. The Division currently is experiencing record HCLL system sales, and has identified opportunities which management believes, but cannot give any assurance, will continue to grow HCLL system sales. Management believes, but cannot give any assurance, that system sales of Perioperative Solutions, MediCOE, MediMAR and HCLL will increase as a result of continued marketing efforts by the Company and growing market acceptance of these products.

Service revenues increased $415,000, or 2.3%, to $18,682,000 during the first nine months of fiscal 2005 as compared to service revenues of $18,267,000 during the same period a year ago. The increase is principally due to increased implementation activities during the period. The Operating Room Division reported service revenues of $1,268,000 in the first nine months of fiscal 2005, an increase of $49,000 or 4.0% compared to $1,219,000 in fiscal 2004. This increase in service revenue is due to increased implementation activities. The JAC Division reported service revenues of $2,073,000 in the first nine months of fiscal 2005, an increase of $338,000 or 19.5% compared to $1,735,000 in fiscal 2004. The Medication Management Division reported service revenues of $6,560,000 in the first nine months of fiscal 2005, a decrease of $505,000 or 7.1% compared to $7,065,000 in fiscal 2004. The decrease in service revenue is primarily due to lower utilization rates on a specific contract and a decline in ongoing implementation projects. The Blood Bank Division reported service revenues of $8,781,000 in the first nine months of fiscal 2005, an increase of $533,000 or 6.5% compared to $8,248,000 in fiscal 2004. This increase in service revenues is primarily due to increased rates on renewing support contracts with existing customers as well as increased implementation activity on HCLL contracts signed within the last year.

Cost of systems declined $340,000 or 17.2% to $1,638,000 in the first nine months of fiscal 2005 compared to $1,978,000 in the same period of fiscal 2004. The gross margin on system sales was 81.6% for the nine months ended March 31, 2005 compared to 78.4% 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 1.3% or $70,000, to $5,598,000 in the first nine months of fiscal 2005 compared to $5,528,000 in the same period a year ago. The increase in cost of services is primarily attributed to increases in implementation personnel as the Company increased staff levels for the rollout of its new MediMAR, MediCOE and HCLL products. Gross margin on service revenues were 70.0% during the first nine months of fiscal 2005 compared to 69.7% in the same period of fiscal 2004.

Amortization of capitalized software increased $382,000 or 14.2%, to $3,076,000 during the first nine months of fiscal 2005 compared to $2,694,000 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 $324,000 or 3.0% to $10,990,000 for the nine months ended March 31, 2005, compared to $10,666,000 for the same period a year ago. As discussed in the quarterly results, this increase reflects increased marketing expenses, increased compensation expense for restricted stock awards and consulting services relating to compliance with Sarbanes-Oxley. These increases are partially offset by decreases in legal expense and health care costs. Management believes that the Company will continue to incur higher consulting costs associated with Sarbanes-Oxley compliance through the issuance of the attestation report on the Company's internal control environment by the auditors.

Net income during the first nine months of fiscal 2005 was $2,422,000 compared to $2,732,000 in the same period a year ago.

Liquidity and Capital Resources

As of March 31, 2005, the Company had cash and cash equivalents of $13,013,000 compared to cash and cash equivalents of $10,213,000 at June 30, 2004. At March 31, 2005, working capital was $12,064,000 and the current ratio was 2.0 to 1 compared to $9,783,000 and 1.8 to 1 at June 30, 2004.

Cash provided by operating activities was $8,167,000 during the first nine months of fiscal year 2005 compared to $5,657,000 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 the change in accrued expenses.

Cash used in investing activities was $4,694,000 during the first nine months of fiscal year 2005 compared to $4,918,000 during the same period a year ago, primarily relating to the Company's ongoing investment in software development projects. Of the amounts invested, the Company capitalized $4,135,000 and $4,245,000 of product development costs during the nine months ended March 31, 2005 and 2004, respectively.

Cash used in financing activities was $725,000 during the first nine months of fiscal year 2005 compared to cash provided by financing activities of $799,000 during the same period a year ago. During the nine months ended March 31, 2005, the Company 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 expects, but cannot assure, that current available funds and cash generated from operations will continue to grow and 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 evaluates on an ongoing basis whether it is appropriate 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 Statement of Financial Accounting Standards 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 annual reporting period that begins after June 15, 2005.  The Company is currently evaluating the i mpact of SFAS 123R on our financial 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. Notwithstanding the foregoing, the Company implemented additional controls, policies and procedures during the quarter ended March 31, 2005 and will continue to enhance its internal control structure, as appropriate, on a continuing basis. Mediware believes that a control system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the control system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within any company have been detected. There were no significant deficiencies or material weaknesses identified, and therefore no corrective actions were taken.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


                                  MEDIWARE INFORMATION SYSTEMS, INC.
                                                              (Registrant)

May 4, 2005                       /s/   GEORGE J. BARRY                    
      Date                                     GEORGE J. BARRY
                                                    PRESIDENT AND CHIEF EXECUTIVE OFFICER

May 4, 2005                      /s/   JILL H. SUPPES                          
      Date                                    JILL H. SUPPES
                                                   CHIEF FINANCIAL OFFICER

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 March 31, 2005 and for the three and nine-month periods ended March 31, 2005 and 2004 as indicated in our review report dated April 28, 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 March 31, 2005, is incorporated by reference in the Registration Statements on Form S-8 (No. 333-07591, No. 333-83016, No. 333-119503 and No. 333-123496).

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
April 28, 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.