================================================================================


                     U.S. Securities and Exchange Commission
                             Washington, D.C. 20549


                                   FORM 10-QSB


   |X| QUARTERLY REPORT UNDER SECTION 13 OF 15 (D) OF THE SECURITIES EXCHANGE
                                   ACT OF 1934

                For the quarterly period ended December 31, 2003

                                       OR

 |_| TRANSITION REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT

               For the transition period from            to        .

                          Commission File No. 000-29299


                                CorVu Corporation
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


                Minnesota                               41-1457090
                ---------                               ----------
       (State of Incorporation)                    (IRS Employer ID #)


                              3400 West 66th Street
                             Edina, Minnesota 55435
                    (Address of Principal Executive Offices)


                                  952-944-7777
                (Issuer's Telephone Number, Including Area Code)


     Check whether the issuer (1) filed all reports required to be filed by
   Sections 13 or 15(d) of the Exchange Act during the past 12 months (or 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.
                                 Yes |X| No |_|


State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date.


                  Class: Common Stock, par value $.01 per share
              Outstanding shares as of January 31, 2004: 23,581,017

================================================================================


<PAGE>

                                CorVu Corporation
                              Index to Form 10-QSB

<TABLE>
<CAPTION>
PART I FINANCIAL INFORMATION
<S>      <C>
    Item 1.  Financial Statements

       Consolidated Balance Sheets December 31, 2003 (Unaudited) and June 30, 2003

       Consolidated Statements of Cash Flows (Unaudited) Six Month Periods Ended December 31, 2003 and 2002

       Consolidated Statements of Operations (Unaudited) Three and Six Month Periods Ended December 31, 2003 and 2002

       Notes to Unaudited Consolidated Financial Statements For the Three and Six Month Periods Ended December 31, 2003 and 2002

    Item 2.  Management's Discussion and Analysis or Plan of Operations

    Item 3.  Controls and Procedures

PART II OTHER INFORMATION

    Item 1.  Legal Proceedings

    Item 2.  Changes in Securities

    Item 3.  Default Upon Senior Securities

    Item 4.  Submission of Matters to a Vote of Security Holders

    Item 5.  Other Information

    Item 6.  Exhibits and Reports on Form 8-K

SIGNATURES

EXHIBITS
</TABLE>


                                        1

<PAGE>




                                     PART I
                              FINANCIAL INFORMATION

Item 1. Financial Statements

                       CORVU CORPORATION AND SUBSIDIARIES

                           Consolidated Balance Sheets


<TABLE>
<CAPTION>
                                                                                            December 31,            June 30,
                                                                                                2003                  2003
                                                                                        ---------------------  --------------------
                                                                                            (Unaudited)             (Audited)
                                        Assets

Current assets:
<S>                                                                                     <C>                                <C>
   Cash and cash equivalents                                                            $            655,652               643,346
   Trade accounts receivable, net of allowance for doubtful accounts of $205,000 and
     $183,000, respectively                                                                        4,101,609             3,294,193
   Deferred income taxes                                                                           1,137,000             1,137,000
   Prepaid expenses and other                                                                        405,628               346,490
                                                                                        ---------------------  --------------------
        Total current assets                                                                       6,299,889             5,421,029
Furniture, fixtures and equipment, net                                                               163,027               161,381
Deferred income taxes                                                                              1,478,000             1,478,000
                                                                                        ---------------------  --------------------
                                                                                        $          7,940,916             7,060,410
                                                                                        =====================  ====================

                        Liabilities and Stockholders' Deficit

Current liabilities:
   Line of credit                                                                       $            300,000               250,000
   Accounts payable                                                                                1,456,844             1,061,768
   Accrued compensation and related costs                                                          1,864,895             1,973,304
   Deferred revenue                                                                                5,336,115             4,438,724
   Accrued interest                                                                                  110,423               168,664
   Other accrued expenses                                                                            835,463               853,999
                                                                                        ---------------------  --------------------
        Total current liabilities                                                                  9,903,740             8,746,459
                                                                                        ---------------------  --------------------

Notes payable-stockholder                                                                            726,884               685,767
                                                                                        ---------------------  --------------------

Stockholders' deficit:
   Undesignated, 24,000,000 shares                                                                                              --
   Series A convertible preferred stock, par value $10 per share; 1,000,000 shares
     authorized; none issued and outstanding                                                              --                    --
   Common stock, $0.01 par value; 75,000,000 shares authorized; 23,510,350 and
     22,753,029 shares issued and outstanding                                                        235,103               227,474
   Additional paid-in capital                                                                     17,803,710            16,886,375
   Stock subscription receivable                                                                          --              (324,000)
   Accumulated deficit                                                                           (19,845,700)          (18,509,486)
   Deferred compensation                                                                             (53,766)             (131,250)
   Foreign currency translation adjustment                                                          (829,055)             (520,929)
                                                                                        ---------------------  --------------------
        Total stockholders' deficit                                                               (2,689,708)           (2,371,816)
                                                                                        ---------------------  --------------------
        Total liabilities and stockholders' deficit                                     $          7,940,916             7,060,410
                                                                                        =====================  ====================
</TABLE>


See accompanying notes to unaudited consolidated financial statements.

                                        2
<PAGE>




                       CORVU CORPORATION AND SUBSIDIARIES

                Consolidated Statements of Cash Flows (Unaudited)

               Six Month Periods Ended December 31, 2003 and 2002

<TABLE>
<CAPTION>
                                                                                                     2003               2002
                                                                                               -----------------  -----------------
Cash flows from operating activities:
<S>                                                                                            <C>                       <C>
   Net income (loss)                                                                           $     (1,182,214)         1,968,875
   Adjustments to reconcile net income (loss) to net cash provided by operating activities:
     Depreciation                                                                                        67,857             29,206
     Warrants and stock options vested                                                                  108,504             64,194
     Changes in operating assets and liabilities:
        Trade accounts receivable, net                                                                 (557,416)          (304,502)
        Deferred income taxes                                                                                --           (708,000)
        Prepaid expenses and other                                                                      (59,138)            93,523
        Accounts payable                                                                                 95,076           (936,367)
        Accrued compensation and related costs                                                         (183,409)          (420,062)
        Deferred revenue                                                                                647,391            536,015
        Accrued interest                                                                                (58,241)           104,672
        Other accrued expenses                                                                           81,780           (148,943)
                                                                                               -----------------  -----------------
          Net cash provided by (used in) operating activities                                        (1,039,810)           278,611
                                                                                               -----------------  -----------------

Cash flows from investing activities:
   Capital expenditures                                                                                 (69,503)           (95,204)
                                                                                               -----------------  -----------------
          Net cash used in investing activities                                                         (69,503)           (95,204)
                                                                                               -----------------  -----------------

Cash flows from financing activities:
   Proceeds from sale of common stock, net                                                            1,201,680            100,000
   Exercise of employee stock options                                                                    16,264                800
   Repurchase of common stock                                                                          (154,000)                --
   Increase in line of credit                                                                            50,000                 --
                                                                                               -----------------  -----------------
          Net cash provided by financing activities                                                   1,113,944            100,800
Effect of exchange rate changes on cash                                                                   7,675                112
                                                                                               -----------------  -----------------
          Net increase in cash and cash equivalents                                                      12,306            284,319
Cash and cash equivalents at beginning of period                                                        643,346            279,176
                                                                                               -----------------  -----------------
Cash and cash equivalents at end of period                                                     $        655,652            563,495
                                                                                               =================  =================

Supplemental cash flow disclosures:
Cash paid during the period for interest                                                       $        104,993   $             --
Cash paid during the period for taxes                                                                        --                 --
                                                                                               =================  =================
Non-cash investing and financing activities:
Common stock issued for (cancellation of) stock subscription receivable                        $       (324,000)           324,000
Cashless exercise of stock warrants                                                                          --              4,888
                                                                                               =================  =================
</TABLE>


See accompanying notes to unaudited consolidated financial statements.

                                        3
<PAGE>


                       CORVU CORPORATION AND SUBSIDIARIES

                Consolidated Statements of Operations (Unaudited)

          Three and Six Month Periods Ended December 31, 2003 and 2002

<TABLE>
<CAPTION>
                                                              Three Months Ended                        Six Months Ended
                                                    ---------------------------------------  ---------------------------------------
                                                       December 31,        December 31,         December 31,        December 31,
                                                           2003                2002                 2003                2002
                                                    ------------------- -------------------  ------------------- -------------------
Revenues:
<S>                                                 <C>                          <C>                  <C>                 <C>
   Software and license fees                        $        1,784,213           2,136,925            3,178,619           4,771,899
   Maintenance fees                                          1,192,107           1,066,573            2,451,022           1,971,126
   Consulting and other                                        967,347             688,392            1,901,920           1,593,417
                                                    ------------------- -------------------  ------------------- -------------------

     Total revenues                                          3,943,667           3,891,890            7,531,561           8,336,442
                                                    ------------------- -------------------  ------------------- -------------------
Operating costs and expenses:
   Cost of maintenance, consulting, and other                  853,931             825,187            1,666,569           1,554,752
   Product development                                         448,926             328,359              893,767             610,594
   Sales and marketing                                       2,074,984           1,530,223            3,744,555           2,817,258
   General and administrative                                1,341,504             955,498            2,367,216           2,042,744
                                                    ------------------- -------------------  ------------------- -------------------
     Total operating costs and expenses                      4,719,345           3,639,267            8,672,107           7,025,348
                                                    ------------------- -------------------  ------------------- -------------------

     Operating income (loss)                                  (775,678)            252,623           (1,140,546)          1,311,094

Interest expense, net                                          (21,359)            (22,680)             (41,668)            (50,219)
                                                    ------------------- -------------------  ------------------- -------------------

     Income (loss) before income taxes                        (797,037)            229,943           (1,182,214)          1,260,875

Benefit from income taxes                                           --             708,000                   --             708,000
                                                    ------------------- -------------------  ------------------- -------------------

     Net income (loss)                              $         (797,037)            937,943           (1,182,214)          1,968,875
                                                    =================== ===================  =================== ===================

Net income (loss) per common share--basic           $            (0.04)               0.04                (0.05)               0.09
Weighted average shares outstanding--basic                  22,448,705          22,277,197           22,369,380          21,693,305
Net income (loss) per common share--diluted         $            (0.04)               0.04                (0.05)               0.09
Weighted average shares outstanding--diluted                22,448,705          23,246,834           22,369,380          22,765,184
</TABLE>


See accompanying notes to unaudited consolidated financial statements.

                                        4
<PAGE>

                       CORVU CORPORATION AND SUBSIDIARIES

          Notes to Unaudited Consolidated Financial Statements for the
          Three and Six Month Periods Ended December 31, 2003 and 2002

(1)      Unaudited Financial Statements

         The accompanying  unaudited  consolidated financial statements of CorVu
         Corporation  and  Subsidiaries  (the Company) have been prepared by the
         Company in accordance with accounting  principles generally accepted in
         the  United  States  of  America  for  interim  financial  information,
         pursuant to the rules and  regulations  of the  Securities and Exchange
         Commission.  Pursuant to such rules and regulations,  certain financial
         information  and  footnote   disclosures   normally   included  in  the
         consolidated  financial  statements have been condensed or omitted. The
         results  for the  periods  indicated  are  unaudited,  but  reflect all
         adjustments  (consisting  only of normal recurring  adjustments)  which
         management  considers  necessary for a fair  presentation  of operating
         results.

         Operating  results for the three and six months ended December 31, 2003
         are not necessarily  indicative of the results that may be expected for
         the year ending June 30, 2004. These unaudited  consolidated  financial
         statements   should  be  read  in  conjunction  with  the  consolidated
         financial  statements and footnotes  thereto  included in the Company's
         Annual Report on Form 10-KSB for the year ended June 30, 2003.

(2)      Summary of Significant Accounting Policies

         (a)      Revenue Recognition

         Software  license  revenue  is  recognized  when  all of the  following
         criteria  have  been  met:  there  is an  executed  license  agreement,
         software has been  delivered to the customer,  the license fee is fixed
         and payable  within twelve  months,  collection is deemed  probable and
         product returns are reasonably estimable.  Revenues related to multiple
         element  arrangements  are allocated to each element of the arrangement
         based on the fair values of elements such as license fees, maintenance,
         and  professional  services.  Fair value is determined  based on vendor
         specific  objective  evidence.   Maintenance  revenues  are  recognized
         ratably over the term of the maintenance  contract,  typically 12 to 36
         months.  Consulting and other revenues are recognized when services are
         performed.

         Deferred  revenue  represents  payment  received  or amounts  billed in
         advance of services to be performed.

                                        5
<PAGE>


         (b)      Net Income (Loss) per Common Share

         Basic net income  (loss) per common  share is computed by dividing  net
         income  (loss)  by  the  weighted   average  number  of  common  shares
         outstanding  during the period.  Diluted  net income  (loss) per common
         share is computed by dividing net income (loss) by the weighted average
         number of common shares  outstanding  plus all additional  common stock
         that would have been  outstanding if potentially  dilutive common stock
         related to stock options and warrants had been issued. Weighted average
         shares  outstanding-diluted  includes  969,637 and 1,071,879  shares of
         dilutive  securities for the three and six month periods ended December
         31, 2002, respectively. Dilutive common equivalent shares have not been
         included in the  computation  of diluted net loss per common  share for
         the three and six month periods  ended  December 31, 2003 because their
         inclusion would be anti-dilutive.

         Following is a  reconciliation  of basic and diluted net income  (loss)
         per common share for the three and six months  ended  December 31, 2003
         and 2002, respectively:

<TABLE>
<CAPTION>
                                                               Three Months Ended                   Six Months Ended
                                                                  December 31,                        December 31,
                                                       -----------------------------------  ----------------------------------
                                                            2003               2002              2003              2002
                                                       ----------------  -----------------  ----------------  ----------------
<S>                                                    <C>                        <C>            <C>                <C>
         Net income (loss)                             $      (797,037)           937,943        (1,182,214)        1,968,875

         Weighted average shares outstanding                22,448,705         22,277,197        22,369,380        21,693,305

         Net income (loss) per common share--basic     $         (0.04)              0.04             (0.05)             0.09

         Net income (loss) per common share -- diluted:

         Net income (loss)                             $      (797,037)           937,943        (1,182,214)        1,968,875

         Weighted average shares outstanding                22,448,705         22,277,197        22,369,380        21,693,305

         Common stock equivalents                                    0            969,637                 0         1,071,879

         Weighted average shares and potential
            diluted shares outstanding                      22,448,705         23,246,834        22,369,380        22,765,184

         Net income (loss) per common share--
            Diluted                                    $         (0.04)              0.04             (0.05)             0.09
</TABLE>


         The Company  uses the  treasury  method for  calculating  the  dilutive
         effect of the stock  options and  warrants  (using the  average  market
         price).

                                        6
<PAGE>


         Options and warrants to purchase  4,205,077 shares of common stock with
         a weighted average exercise price of $2.24 were outstanding at December
         31,  2002 but  were  excluded  from the  computation  of  common  share
         equivalents  for the three  and six  months  ended  December  31,  2002
         because  their  exercise  prices were greater  than the average  market
         price  of the  common  shares.  Options  and  warrants  outstanding  at
         December 31, 2003 totaling 7,681,973 were excluded from the computation
         of common share  equivalents  for the three and six month periods ended
         December 31, 2003 as they were anti-dilutive.

         (c)      Stock-Based Compensation

         In accordance with Accounting Principles Board (APB) Opinion No. 25 and
         related  interpretations,  the Company uses the  intrinsic  value-based
         method for  measuring  stock-based  compensation  cost  which  measures
         compensation  cost as the excess, if any, of quoted market price of the
         Company's  common  stock at the grant date over the amount the employee
         must pay for the stock. The Company's  general policy is to grant stock
         options at fair value at the date of grant. Options and warrants issued
         to  non-employees  are recorded at fair value, as required by Statement
         of  Financial  Accounting  Standards  (SFAS) No. 123,  "Accounting  for
         Stock-Based Compensation", using the Black Scholes pricing method.

         Has  compensation  cost  been  recognized  based on the  fair  value of
         options at the grant dates  consistent  with the provisions of SFAS No.
         123, the  Company's  net income (loss) and basic and diluted net income
         (loss) per common  share would have been changed to the  following  pro
         forma amounts:

<TABLE>
<CAPTION>
                                                               Three Months Ended                   Six Months Ended
                                                                  December 31,                        December 31,
                                                       -----------------------------------  ----------------------------------
                                                            2003               2002              2003              2002
                                                       ----------------  -----------------  ----------------  ----------------
         Net income (loss):
<S>                                                    <C>                        <C>            <C>                <C>
            As reported                                $      (797,037)           937,943        (1,182,214)        1,968,875
            Pro forma                                         (853,173)           811,676        (1,286,043)        1,716,814
         Basic net income (loss) per common share:
            As reported                                          (0.04)              0.04             (0.05)             0.09
            Pro forma                                            (0.04)              0.04             (0.06)             0.08
         Diluted net income (loss) per common share:
            As reported                                          (0.04)              0.04             (0.05)             0.09
            Pro forma                                            (0.04)              0.03             (0.06)             0.08
         Stock based compensation:
            As reported                                         97,516                  0           108,504            64,194
            Pro forma                                           56,136            126,267           103,829           252,061
</TABLE>


         In  determining  the  compensation  cost of options  granted during the
         three and six months ended  December 31, 2003 and 2002, as specified by
         SFAS No. 123, the fair value of each option grant has been estimated on
         the  date of  grant  using  the  Black-Scholes  pricing  model  and the
         weighted average  assumptions used in these calculations are summarized
         as follows:

<TABLE>
<CAPTION>
                                                               Three Months Ended                   Six Months Ended
                                                                  December 31,                        December 31,
                                                       -----------------------------------  ----------------------------------
                                                            2003               2002              2003              2002
                                                       ----------------  -----------------  ----------------  ----------------
<S>                                                    <C>                <C>                <C>                <C>
         Risk-free interest rate                                  3.25%       2.625-4.375%       2.625-3.25%      2.625-4.375%
         Expected life of options granted                      7 years            7 years           7 years           7 years
         Expected volatility                                        84%                84%               84%               84%
         Expected dividend yield                                     0%                 0%                0%                0%
</TABLE>

                                        7

<PAGE>

(3)      Comprehensive Income (Loss)

         Comprehensive   income  (loss)  and  its  components   consist  of  the
         following::

<TABLE>
<CAPTION>
                                                         Three Months Ended                       Six Months Ended
                                                --------------------------------------  -------------------------------------
                                                  December 31,        December 31,        December 31,       December 31,
                                                      2003                2002                2003               2002
                                                ------------------  ------------------  -----------------  ------------------
<S>                                             <C>                           <C>             <C>          <C>
        Net income (loss)                       $        (797,037)            937,943         (1,182,214)  $       1,968,875
        Other comprehensive loss:
        Foreign currency translation
           adjustment                                    (281,460)            (59,636)          (308,126)           (133,635)
                                                ------------------  ------------------  -----------------  ------------------
        Comprehensive income (loss)             $      (1,078,497)  $         878,307   $     (1,490,340)  $       1,835,240
                                                ==================  ==================  =================  ==================
</TABLE>

(4)      Income Taxes

         Through  June 30,  2003,  the  Company  has  U.S.  net  operating  loss
         carryforwards  of  approximately  $5,480,000.  The net  operating  loss
         carryforwards  expire in the  years  2010  through  2021.  The  Company
         recorded  a  deferred  tax  asset of  $2,615,000  as of June 30,  2003.
         Previous to that time,  the Company  fully  reserved  the  deferred tax
         asset due to the uncertainty of its use in future periods.  The Company
         continues  to  evaluate  the  deferred  tax  asset  and  will  record a
         valuation allowance accordingly.

         Federal tax laws impose significant  restrictions on the utilization of
         net operating loss  carryforwards in the event of a change in ownership
         of the Company which  constitutes an "ownership  change," as defined by
         the Internal  Revenue  Code,  Section 382. The  Company's net operating
         loss carryforward may be subject to the above limitations.

(5)      Notes Payable- Stockholder

         The Company has received  interest-bearing  advances from a stockholder
         under  short-term  notes. The notes bear interest at 8.5% and mature on
         December 31, 2006,  with the right to demand payment after December 31,
         2004. The notes are secured by  substantially  all of the assets of the
         Company.  Interest  expense was $15,384 and $14,932 for the three month
         periods ended December 31, 2003 and 2002,  respectively and was $32,638
         and $29,453 for the six month periods ended December 31, 2003 and 2002,
         respectively.

(6)      Line of Credit

         In April 2003,  the Company  entered into a one-year  revolving line of
         credit agreement with a bank with a credit limit of $300,000.  The line
         of credit  carries  an  interest  rate  based on the prime rate plus 2%
         (6.0%  at  December  31,  2003),  is  secured  by  the  assets  of  its
         wholly-owned  subsidiary CorVu North America, Inc. and is guaranteed by
         the Company.  The amount  outstanding  as of December 31, 2003 and June
         30, 2003 was $300,000 and $250,000,  respectively, which is included in
         the  accompanying  consolidated  balance sheets.  Interest  expense was
         $2,933 and $6,252 for the three and six month  periods  ended  December
         31, 2003,  respectively,  which is included in interest  expense in the
         accompanying consolidated statements of operations.


                                        8

<PAGE>

(7)      Consulting Agreement

         In September 2002, the Company entered into a consulting agreement with
         GlobalNet Venture Partners,  L.L.C.  (GlobalNet) to provide  management
         advisory  services  for a period of 30 months.  In  exchange  for these
         services,  the Company  paid  GlobalNet a fee of $26,500 per month.  In
         addition, GlobalNet could earn additional fees under the agreement as a
         result of its  involvement in obtaining  financing and for  introducing
         and  developing  strategic  partnerships  that result in revenue to the
         Company. The agreement could be terminated by either party upon 60 days
         written  notice.  As part of the  services  to be  provided  under this
         agreement,  a principal of GlobalNet  agreed to serve as the  Company's
         Chairman of the Board for a period of 24 months.

         On July 1, 2003,  the Company  entered into a  restructuring  agreement
         with GlobalNet  pursuant to which  GlobalNet  ceased to provide monthly
         consulting  services  to the  Company.  As  part  of the  restructuring
         agreement,  the principal of GlobalNet who was serving as the Company's
         Chairman of the Board  resigned from that position  effective  July 31,
         2003.  In  addition,  the  Company  repurchased  560,000  shares of the
         Company's  common stock that was  previously  held by  GlobalNet  for a
         price of $0.27 per share by canceling  $151,200 of the promissory  note
         that existed  between the two parties and  adjusting the balance of the
         note to $172,800.


(8)      Stock Purchase

         In September 2002, the Company sold 1.2 million shares of the Company's
         common  stock to  GlobalNet at a price of $0.27 per share under a stock
         purchase  agreement.  GlobalNet  paid  the  entire  purchase  price  by
         delivering  a  promissory  note to the  Company  and  pledged the stock
         purchased as security for the note.  The note carried an interest  rate
         of 5.5% per annum  through  September 2, 2009,  with  interest  payable
         quarterly  starting September 30, 2002. The note was a limited recourse
         note in that in the event of  non-payment,  the Company's only recourse
         was against the pledged shares.

         On September 15, 2003, under separate agreements, the Company exercised
         its option to repurchase  440,000  shares at a price of $0.62 per share
         from GlobalNet by reducing the principal balance of the promissory note
         held by $118,800 and agreeing to make cash payments totaling  $154,000.
         In addition,  for the remaining  200,000 shares of common stock held by
         GlobalNet,  the Company  converted those shares into 112,903 fully paid
         shares by reducing the remaining principal balance under the promissory
         note ($54,000) to zero.

(9)      Sale of Common Stock

         During the quarter ended  December 31, 2003, the Company sold 1,800,001
         shares  of  common  stock  at a price  of $0.75  per  share to  several
         accredited  investors under a private placement,  the proceeds of which
         totaled  approximately  $1.2 million,  net of associated  expenses.  In
         connection  therewith,  the Company  issued three year  warrants to the
         investors  which  allows them to purchase a total of 540,000  shares of
         common stock at a price of $1.25 per share.  In  addition,  the Company
         issued  five year  warrants  in  exchange  for  services  performed  in
         connection  with the private  placement for a total of 69,066 shares of
         common stock at prices ranging from $.90-$1.25 per share.



                                        9
<PAGE>

Item 2.       Management's Discussion and Analysis or Plan of Operations

           For the Three and Six Month Periods Ended December 31, 2003
                            versus December 31, 2002

REVENUES:

Total  revenue  increased 1% for the three month period ended  December 31, 2003
and decreased 10% for the six month period ended December 31, 2003,  compared to
the same  periods a year ago.  Overall,  the  weakening of the U.S.  dollar,  in
relation  to our  foreign  currencies  (Australian  dollar  and U.K.  pound) has
increased  revenues by  approximately  $200,000  for the six month  period ended
December 31, 2003.

Software  revenues  decreased  $352,712 (17%) and $1,593,280 (33%) for the three
and six month  periods  ended  December  31, 2003,  respectively,  from the same
periods  last year.  As was  reported in the Form  10-QSB for the quarter  ended
September 30, 2003, software revenues were extremely favorable for the six month
period  ended  December  31,  2002 due to the closing of several  large  license
transactions.  In addition, a significant turnover in the salesforce in the U.S.
and Europe has  contributed  to the decline in revenues for the quarter as these
new employees  become  trained and begin to build their  pipelines.  Although we
continue to trail revenues from fiscal year 2003, software revenues increased in
the three  month  period  ended  December  31,  2003 over the  previous  quarter
(September  30, 2003) by 28%  ($389,807),  which shows the  improvement in sales
performance  due in part to  improved  conditions  as it  relates  to  corporate
spending on business software.

Maintenance  revenues  increased $125,534 (12%) and $479,896 (24%) for the three
and six month  periods  ended  December  31, 2003,  respectively,  from the same
periods last year.  These results reflect  continued  improvement of maintenance
contract renewals and collections.

Consulting and other revenues  increased  $278,955 (41%) and $308,503 (19%), for
the three and six month periods ended December 31, 2003, respectively,  from the
same periods last year.  These  results  reflect  continued  utilization  of our
professional  services  personnel  required to service the increased  demand for
consulting and training services.

OPERATING COSTS AND EXPENSES:

Operating expenses increased $1,080,078 (30%) and $1,646,759 (23%) for the three
and six month  periods  ended  December  31, 2003,  respectively,  from the same
periods last year. Overall, the weakening of the U.S. dollar, in relation to our
foreign currencies  (Australian  dollar and U.K. pound) has increased  operating
costs and  expenses by  approximately  $200,000  for the six month  period ended
December 31, 2003.

Cost of maintenance,  consulting and other expenses  increased  $28,744 (3%) and
$111,817  (7%) for the three and six month  periods  ended  December  31,  2003,
respectively,  from the same periods  last year due to continued  demand for our
consulting and training services.

Product  development  costs increased  $120,567 (37%) and $283,173 (46%) for the
three and six month periods ended December 31, 2003, respectively, from the same
periods last year. Development staffing has increased by 11% (2 positions) as we
continue  to further  enhance and  improve  our  product  offerings,  as well as
develop new products like our budgeting and financial  consolidation  module. In
addition,  we have reclassified  certain overhead expenses to this category that
had previously been categorized elsewhere.

Sales and marketing expenses increased $544,761 (36%) and $927,297 (33%) for the
three and six month periods ended December 31 2003, respectively,  from the same
periods  last year.  These  increases  are the result of a 23% increase in sales
positions  (an  increase  of 8  positions),  primarily  in the U.S.  region.  In
addition,  other  increases  have  occurred in sales related  expenses,  such as
travel expenses,  and in marketing expenses,  due to our increased activities in
business shows and performance management and balanced scorecard seminars.

General and administrative  expenses increased $386,006 (40%) and $324,472 (16%)
for the three and six month periods ended December 31, 2003, respectively,  from
the same periods last year.  Increases in insurance costs and investor relations
activities,  including  non-cash  charges for  warrants  issued for  services of
approximately $109,000, have contributed to these increases.


                                       10
<PAGE>

INTEREST EXPENSE, NET:

Interest  expense,  net decreased $1,321 (6%) and $8,551 (17%) for the three and
six month periods ended  December 31, 2003,  respectively,  compared to the same
periods last year due to lower debt levels.

BENEFIT FROM INCOME TAXES:

For the three month period  ended  December  31,  2002,  the Company  recorded a
deferred  tax asset of  $708,000.  In  previous  periods,  the Company had fully
reserved  the  deferred  tax asset due to the  uncertainty  of its use in future
periods.  For the three and six month  periods  ended  December 31,  2003,  even
though the Company has incurred net losses in those  periods,  the Company still
expects to have positive financial  performance over the next twelve months. The
Company continues to evaluate the deferred tax asset and will record a valuation
allowance accordingly.

NET INCOME (LOSS):

CorVu  Corporation  reported net losses of $797,037 and $1,182,214 for the three
and six month periods  ended  December 31, 2003,  respectively,  compared to net
income of $937,943  and  $1,968,875  for the three and six month  periods  ended
December 31,  2002,  respectively.  Results for the three and six month  periods
ended  December  31,  2002  includes  a benefit  for income  taxes  related to a
deferred tax asset of $708,000 which represents the value of its accumulated net
operating  losses that will be utilized in future  periods to offset federal and
state  income  taxes,  due  to  the  Company's   continuing  positive  financial
performance.For  the three and six month periods ended  December 31, 2003.  Even
though the Company has incurred net losses,  the Company  still  expects to have
positive  financial  performance  over  the  next  twelve  months.


Liquidity and Capital Resources

Total cash and cash equivalents increased by $12,306 during the six month period
ended  December  31,  2003 from  $643,346  as of June 30, 2003 to $655,652 as of
December 31, 2003. Net cash used by operating  activities was $1,039,810 for the
six month period ended December 31, 2003. Net cash used in investing  activities
was $69,503, reflecting the acquisition of capital assets during the period. Net
cash provided by financing  activities  was  $1,113,944 for the six month period
ended  December 31, 2003,  primarily the result of proceeds from the sale of 1.8
million shares of common stock to accredited investors under a private placement
that raised approximately $1.2 million.

During the six month period ended  December 31, 2003,  the Company has generated
consolidated  revenues of approximately  $7.5 million and incurred a net loss of
approximately $1.2 million.  Management intends to continue to increase revenues
from  software  licenses and other  revenue  sources,  and to  carefully  manage
operating costs.  Management  believes these activities will generate sufficient
cash flows to sustain CorVu's operations for at least the next twelve months.



                                       11
<PAGE>

(1)      Critical Accounting Policies and Estimates-

Our significant  accounting policies are described in Note 1 to the consolidated
financial  statements  included in our annual report for the year ended June 30,
2003.  The accounting  policies used in preparing our interim 2004  consolidated
financial  statements are the same as those described in our annual report,  and
are as follows:

We believe the critical  accounting  policies  listed  below affect  significant
judgments and estimates used in the  preparation of our  consolidated  financial
statements.

         Revenue  Recognition.  We  recognize  revenues in  accordance  with the
provisions of the American Institute of Certified Public Accountants'  Statement
of Position (SOP) 97-2,  "Software Revenue  Recognition," as amended by SOP 98-4
and SOP 98-9, as well as Technical Practice Aids issued from time to time by the
American Institute of Certified Public  Accountants,  and in accordance with the
Securities and Exchange  Commission Staff Accounting  Bulletin No. 104, "Revenue
Recognition." We license software under  non-cancelable  license  agreements and
provide related  professional  services,  including  consulting,  training,  and
implementation  services,  as well as ongoing  customer support and maintenance.
Consulting,  training  and  implementation  services  are not  essential  to the
functionality  of our  software  products,  are  sold  separately  and  also are
available from a number of third-party service providers.  Accordingly, revenues
from these services are generally recorded  separately from the license fee. Our
specific revenue recognition policies are as follows:

         Software  License Fees -- Software  license fee revenues from end-users
         and  resellers  are  generally  recognized  when  there is an  executed
         license  agreement,  software has been  delivered to the customer,  the
         license fee is fixed and payable within 12 months, collection is deemed
         probable and product returns are reasonably estimable. Revenues related
         to multiple  element  arrangements are allocated to each element of the
         arrangement  based on the fair values of elements such as license fees,
         maintenance,  and professional services. Fair value is determined based
         on vendor specific objective evidence.

         Maintenance,   Consulting  and  other  -  Revenues  from  training  and
         consulting   services  are  recognized  as  services  are  provided  to
         customers.   Revenues  from  maintenance  contracts  are  deferred  and
         recognized ratably over the term of the maintenance agreements.

Software Development Costs.  Software development costs are expensed as incurred
until  technological  feasibility is  established.  Software  development  costs
incurred  subsequent to establishing  technological  feasibility are capitalized
and amortized over their estimated  useful lives.  Management is required to use
professional judgment in determining whether development costs meet the criteria
for immediate expense or capitalization.

Allowance for Doubtful  Accounts.  We maintain  allowances for doubtful accounts
for  estimated  losses  resulting  from the  inability of our  customers to make
required  payments.  If  the  financial  condition  of  our  customers  were  to
deteriorate,  resulting  in an  impairment  of their  ability to make  payments,
additional  allowances  may be  required  or  revenue  could be  deferred  until
collectibility becomes probable.

Contingencies.  We are subject to the possibility of various loss  contingencies
in the normal course of business.  We accrue for loss  contingencies when a loss
is estimable and probable.

                                       12
<PAGE>

Cautionary Factors That May Affect Future Results

This Quarterly Report on Form 10-QSB,  including the information incorporated by
reference herein and the exhibits hereto,  and other written and oral statements
made  from  time  to  time  by  us  may  include  "forward-looking"  statements.
Forward-looking  statements broadly involve our current  expectations for future
results.  Any  statement  that is not a historical  fact,  including  estimates,
projections, future trends and the outcome of events that have not yet occurred,
are forward-looking  statements. Our forward-looking statements generally relate
to our financing plans,  trends affecting our financial  condition or results of
operations, our growth and operating strategy, product development,  competitive
strengths, the scope of our intellectual property rights, sales efforts, and the
declaration and payment of dividends.  Words such as "anticipates,"  "believes,"
"could" "estimates," "expects," "forecast," "intend," "may," "plan," "possible,"
"project,"  "should,"  "will" and similar  expressions  generally  identify  our
forward-looking   statements.   You  must  carefully  consider   forward-looking
statements and understand that such statements involve a variety of assumptions,
risks and uncertainties,  known and unknown,  and may be affected by a number of
factors,  including, among others, the factors discussed in our Annual Report on
Form 10-KSB for the year ended June 30, 2003.

We also caution you that  forward-looking  statements  speak only as of the date
made. We undertake no obligation to update any  forward-looking  statement,  but
investors are advised to consult any further  disclosures  by us on this subject
in our filings with the Securities and Exchange Commission,  especially on Forms
10-KSB,  10-QSB,  and 8-K (if any),  in which we discuss in more detail  various
important  factors  that could cause actual  results to differ from  expected or
historic  results.  We intend to take advantage of the safe harbor provisions of
the  Private   Securities   Litigation   Reform  Act  of  1995   regarding   our
forward-looking  statements,  and are  including  this  sentence for the express
purpose of enabling us to use the protections of the safe harbor with respect to
all forward-looking statements.


Item 3   Controls and Procedures

Management of the Company has  evaluated,  with the  participation  of the Chief
Executive Officer and Chief Financial Officer of the Company,  the effectiveness
of the  Company's  disclosure  controls  and  procedures  (as  defined  in Rules
13a-15(e) and 15d-15(e)  under the  Securities  Exchange Act of 1934, as amended
(the  "Exchange  Act"))  as of the end of the  fiscal  quarter  covered  by this
Quarterly Report on Form 10-QSB.  Based on that evaluation,  the Chief Executive
Officer and Chief  Financial  Officer of the  Company  have  concluded  that the
Company's disclosure controls and procedures as of the end of the fiscal quarter
covered  by this  Quarterly  Report on Form  10-QSB  are  effective  to  provide
reasonable assurance that information required to be disclosed by the Company in
the  reports  that it files or  submits  under  the  Exchange  Act is  recorded,
processed,  summarized  and reported  within the time  periods  specified in the
rules and forms of the  Securities  and Exchange  Commission.  Management of the
Company  has also  evaluated,  with the  participation  of the  Chief  Executive
Officer and Chief Financial Officer of the Company,  any change in the Company's
internal  control over  financial  reporting (as defined in Rules  13a-15(f) and
15d-15(f)  under the  Exchange  Act) that  occurred  during the  fiscal  quarter
covered  by this  Quarterly  Report on Form  10-QSB.  There was no change in the
Company's  internal  control  over  financial   reporting   identified  in  that
evaluation  that occurred  during the fiscal  quarter  covered by this Quarterly
Report on Form 10-QSB that has materially  affected,  or is reasonably likely to
materially  affect,  the Company's  internal  control over financial  reporting.
Management  is aware  that there is a lack of  segregation  of duties due to the
small number of employees  dealing with  general  administrative  and  financial
matters. However, management has decided that considering the employees involved
and the  control  procedures  in  place,  risks  associated  with  such  lack of
segregation are insignificant and the potential  benefits of adding employees to
clearly  segregate  duties do not  justify  the  expenses  associated  with such
increases.

                                       13
<PAGE>

                                     PART II
                                OTHER INFORMATION

Item 1.  Legal Proceedings.

         See Item 3 of Part II of Form 10-KSB for the year ended June 30, 2003.

Item 2.  Changes in Securities.

         During the quarter  ended  December  31,  2003,  the  Company  made the
         following sales of unregistered securities:

         (a) On November 19, 2003, for an aggregate  purchase price of $550,000,
         the  Company  sold to three  accredited  investors  a total of  733,334
         shares of common  stock and a three  year  warrant  to  purchase  up to
         220,000 shares of common stock at an exercise price of $1.25 per share.
         In addition,  the Company issued to an accredited  investor a five year
         warrant to purchase up to 33,333  shares of common stock at an exercise
         price  of $.90  per  share  as part  of the  compensation  owed to such
         investor  for its services as placement  agent in  connection  with the
         investment by one of the investors.

         (b) On November 21, 2003, for an aggregate  purchase price of $500,000,
         the Company sold to four accredited investors a total of 666,667 shares
         of common  stock and a three  year  warrant to  purchase  up to 200,000
         shares of common  stock at an  exercise  price of $1.25 per  share.  In
         connection with such sale, the Company issued to an accredited investor
         a five year warrant to purchase up to 33,333  shares of common stock at
         an exercise price of $.90 per share as part of the compensation owed to
         such investor for its services as placement agent.

         (c) On December 5, 2003,  for an aggregate  purchase price of $225,000,
         the Company sold to an  accredited  investor  300,000  shares of common
         stock and a three  year  warrant  to  purchase  up to 90,000  shares of
         common stock at an exercise price of $1.25 per share.

         (d) On December 8, 2003,  for an aggregate  purchase  price of $75,000,
         the Company sold to an  accredited  investor  100,000  shares of common
         stock and a three  year  warrant  to  purchase  up to 30,000  shares of
         common stock at an exercise price of $1.25 per share.

         (e) On December 8, 2003,  as  compensation  for  services,  the Company
         issued to an accredited investor a three year warrant to purchase up to
         2,400 shares of common stock at an exercise price of $1.25.

Item 3.  Default Upon Senior Securities.

         None

                                       14
<PAGE>

Item 4.  Submission of Matters to a Vote of Security Holders.

         (a)      The Annual Meeting of the Company's  shareholders  was held on
                  December 18, 2003.

         (b)      At the  Annual  Meeting  a  proposal  to  set  the  number  of
                  directors at six was adopted by a vote of 18,256,979 shares in
                  favor,  with 20,776 shares against,  7,788 shares  abstaining,
                  and no shares represented by broker nonvotes.

         (c)      Proxies  for the Annual  Meeting  were  solicited  pursuant to
                  Regulation A under the Securities  Exchange Act of 1934, there
                  was no solicitation  in opposition to  management's  nominees,
                  and  the  following  persons  were  elected  directors  of the
                  Company to serve until the next annual meeting of shareholders
                  and until their  successors  shall have been duly  elected and
                  qualified:

<TABLE>
<CAPTION>
                    Nominee                 Number of Votes          Number of Votes Against     Number of Votes Abstained
                    -------                 ---------------          -----------------------     -------------------------
                                                  For
                                                  ---
<S>                                           <C>                               <C>                        <C>
                    David C. Carlson          18,277,943                        0                          7,600
                    Ismail Kurdi              18,277,943                        0                          7,600
                    Justin M. MacIntosh       18,268,967                      8,976                        7,600
                    James L. Mandel           18,277,943                        0                          7,600
                    Alan M. Missroon, Jr.     18,268,967                      8,976                        7,600
                    Gary P. Smaby             18,277,943                        0                          7,600
</TABLE>


         (d)      A 500,000 share increase in the number of shares  reserved for
                  grant under the Company's  1996 Stock Option Plan was approved
                  by a vote of 13,479,014  shares in favor,  with 510,497 shares
                  against,  9,638 shares abstaining and no shares represented by
                  broker nonvotes.

         (f)      The  selection  of  Virchow,  Krause &  Company,  LLP,  as the
                  Company's independent auditors for the current fiscal year was
                  approved by a vote of 18,270,105  shares in favor,  with 4,400
                  shares  against,   11,038  shares  abstaining  and  no  shares
                  represented by broker nonvotes.

Item 5.  Other Information.

         None

Item 6.  Exhibits and Reports on Form 8-K.

         (a)  Exhibits:  See  Exhibit  Index  on page  following  Certifications
         Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

         (b)  Reports on Form 8-K:   None

                                       15
<PAGE>

SIGNATURES

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                        CORVU CORPORATION


Date:  February 12, 2004                By /s/ David C. Carlson
                                           --------------------------------
                                           David C. Carlson
                                           Chief Financial Officer

                                       16
<PAGE>

                                  EXHIBIT INDEX

Exhibit
Number   Description
------   -----------

31.1     Certification of CEO Pursuant to Section 302 of  Sarbanes-Oxley  Act of
         2002

31.2     Certification of CFO Pursuant to Section 302 of  Sarbanes-Oxley  Act of
         2002

32.1     Certification of CEO Pursuant to Section 906 of  Sarbanes-Oxley  Act of
         2002

32.2     Certification of CFO Pursuant to Section 906 of  Sarbanes-Oxley  Act of
         2002

                                       17