MELVILLE, N.Y., May 20 /PRNewswire/ -- Mediware Information Systems, Inc. (Nasdaq: MEDW) said revenue for its third fiscal quarter ended March 31, 1999 was $7.299 million compared to $5.182 million a year ago, an increase of 40.9 percent reflecting strong performance in all of the company's product lines. Excluding the acquisition of Informedics, Inc. which was completed September, 1998, revenue for the quarter increased 27.1 percent. Revenue for the nine months ended March 31, 1999 totaled $20.363 million, an increase of 40 percent over the year ago period. Net earnings for the most recent quarter were $966,000, or 16 cents a basic share and 14 cents a fully diluted share, compared to $649,000, or 12 cents a basic share and 10 cents a fully diluted share, a year ago. Excluding a one-time acquisition charge, net earnings for the latest nine months increased to $2.696 million, or 46 cents a basic share and 39 cents a fully diluted share, compared to $2.065 million a year ago, or 38 cents a basic share and 31 cents a fully diluted share. Including the acquisition charge, the net loss for the latest nine-month period was $1,857,000, or 31 cents per share. John Esposito, Mediware's chief executive officer, attributed the company's strong performance to solid performance across all product lines. The company also recently signed important marketing agreements with Sunquest Information Systems, Inc. (Tucson, AZ) and Immucor Inc. (Norcross, GA). Mediware provides clinical information systems for hospitals and integrated healthcare delivery systems. Its products include Hemocare(TM) and LifeLine(TM) (blood bank), WORx, Digimedics(TM) and Pharmakon(TM) (pharmacy) and Surgiware(TM) and PCCWin(TM) (operating room), as well as the JAC Stock Control System (pharmacy) in the United Kingdom. Mediware has approximately 1,000 systems installed in the US, Canada, UK and elsewhere. This press release may contain "forward-looking statements" within the meaning of the private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to differ materially from the results expressed or implied by such statements, including general economic and business conditions, conditions affecting the industries served by the company and its subsidiaries, conditions affecting the company's customers and suppliers, competitor responses to the company's product and services, the overall market acceptance of such products and services, and other factors disclosed in the company's Annual Report on Form 10KSB for the year ended June 30, l998 and all of the company's subsequent Quarterly Reports on Form 10QSB through December 31, 1998. Accordingly, although the company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS Mar-31 Jun-30 1999 1998 (unaudited) ASSETS Current assets: Cash and cash equivalents $3,658,000 $4,681,000 Accounts receivable, less allowance for doubtful accounts of $472,000 at March 31, 1999 and $490,000 at June 30, 1998 8,863,000 7,485,000 Inventories 453,000 331,000 Deferred Tax Asset 550,000 550,000 Prepaid expenses and other current assets 712,000 514,000 Total current assets 14,236,000 13,561,000 Fixed assets, at cost, less accumulated depreciation of $2,431,000 at March 31, 1999 and $2,058,000 at June 30, 1998 1,819,000 1,170,000 Capitalized software costs 3,262,000 2,444,000 Excess of cost over fair value of net assets acquired, net of accumulated amortization of $1,384,000 at March 31, 1999 and $1,091,000 at June 30, 1998 6,458,000 5,853,000 Purchased technology less accumulated amortization of $35,000 at March 31, 1999 463,000 -- Other assets 237,000 719,000 $26,475,000 $23,747,000 LIABILITIES Current liabilities: Accounts payable $1,344,000 $1,176,000 Notes payable 854,000 4,600,000 Accrued expenses and other current liabilities 2,926,000 2,618,000 Advances from customers 5,916,000 3,132,000 Current portion of capital leases payable 11,000 9,000 Total current liabilities 11,051,000 11,535,000 Advances from customers - long term 10,000 7,000 Other liabilities - long term 106,000 -- Capital leases payable, less current portion 10,000 15,000 Total liabilities 11,177,000 11,557,000 STOCKHOLDERS' EQUITY Preferred stock - $.0l par value; authorized 10,000,000 shares; none issued and outstanding Common stock - $.10 par value; authorized 12,000,000 shares; issued and outstanding; 6,096,000 shares at March 31, 1999 and 5,591,O00 shares at June 3O, 1998 610,000 559,000 Unearned compensation (21,000) (51,000) Cumulative foreign currency translation adjustment 20,000 36,000 Additional paid-in capital 21,164,000 16,264,000 (Deficit) (6,475,000) (4,618,000) Total stockholders' equity 15,298,000 12,190,000 $26,475,000 $23,747,000 MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES STATEMENTS OF OPERATIONS (UNAUDITED) Three months ended Nine months ended March 31, March 31, (unaudited) (unaudited) 1999 1998 1999 1998 REVENUES: System sales $3,284,000 $1,985,000 $9,246,000 $5,046,000 Services 4,015,000 3,197,000 11,117,000 9,503,000 Total revenues 7,299,000 5,182,000 20,363,000 14,549,000 COSTS AND EXPENSES: Cost of systems 1,080,000 670,000 2,897,000 1,701,000 Cost of services 1,031,000 828,000 3,023,000 2,306,000 Purchased research and development -- -- 4,553,000 -- Software development costs 859,000 716,000 2,380,000 1,898,000 Selling, general and administrative 3,174,000 2,188,000 8,837,000 6,193,000 Total Costs & Expenses 6,144,000 4,402,000 21,690,000 12,098,000 Earnings (Loss) before interest and taxes 1,155,000 780,000 (1,327,000) 2,451,000 Interest and other income 20,000 56,000 90,000 161,000 Interest (expense) (37,000) (152,000) (143,000) (426,000) Earnings (Loss) before taxes 1,138,000 684,000 (1,380,000) 2,186,000 Provision for income taxes 172,000 35,000 477,000 121,000 NET EARNINGS (LOSS) $966,000 $649,000 ($1,857,000) $2,065,000 Basic earnings (loss) per share $.16 $.12 ($.31) $.38 Diluted earnings (loss) per share $.14 $.10 ($.31) $.31 Weighted average shares outstanding 6,066,000 5,523,000 5,914,000 5,417,000 Average shares outstanding assuming Dilution 7,095,000 6,708,000 5,914,000 6,565,000  