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                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                   FORM 10-QSB


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

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2004

                                       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 APRIL 30, 2004: 23,970,274

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<PAGE>


                                CORVU CORPORATION
                              INDEX TO FORM 10-QSB

PART I FINANCIAL INFORMATION

   Item 1.  Financial Statements

      Consolidated Balance Sheets March 31, 2004 (Unaudited) and June 30, 2003

      Consolidated Statements of Cash Flows (Unaudited) Nine Month Periods Ended
      March 31, 2004 and 2003

      Consolidated Statements of Operations (Unaudited) Three and Nine Month
      Periods Ended March 31, 2004 and 2003

      Notes to Unaudited Consolidated Financial Statements For the Three and
      None Month Periods Ended March 31, 2004 and 2003

      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 and Use of Proceeds

      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

                                        1

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<PAGE>


                                     PART I
                              FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                       CORVU CORPORATION AND SUBSIDIARIES

                           Consolidated Balance Sheets


<TABLE>
<CAPTION>
                                                                               MARCH 31,       JUNE 30,
                                                                                 2004            2003
                                                                             ------------    ------------
                                                                              (UNAUDITED)     (AUDITED)
                                     ASSETS

Current assets:
<S>                                                                          <C>              <C>
  Cash and cash equivalents                                                  $    326,063         643,346
  Trade accounts receivable, net of allowance for doubtful
    accounts of $190,000 and $183,000, respectively                             4,372,883       3,294,193
  Deferred income taxes                                                         1,137,000       1,137,000
  Prepaid expenses and other                                                      412,315         346,490
                                                                             ------------    ------------
     Total current assets                                                       6,248,261       5,421,029
Furniture, fixtures and equipment, net                                            160,211         161,381
Deferred income taxes                                                           1,478,000       1,478,000
                                                                             ------------    ------------
                                                                             $  7,886,472       7,060,410
                                                                             ============    ============

                      LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
  Line of credit                                                             $    300,000         250,000
  Accounts payable                                                              1,883,839       1,061,768
  Accrued compensation and related costs                                        2,012,616       1,973,304
  Deferred revenue                                                              4,884,534       4,438,724
  Accrued interest                                                                 92,203         168,664
  Other accrued expenses                                                          936,459         853,999
                                                                             ------------    ------------
     Total current liabilities                                                 10,109,651       8,746,459
                                                                             ------------    ------------
Notes payable-stockholder                                                         634,584         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; 23,957,607 and 22,753,029 shares issued
    and outstanding                                                               239,576         227,474
  Additional paid-in capital                                                   18,024,189      16,886,375
  Stock subscription receivable                                                        --        (324,000)
  Accumulated deficit                                                         (20,172,220)    (18,509,486)
  Deferred compensation                                                           (23,616)       (131,250)
  Foreign currency translation adjustment                                        (925,692)       (520,929)
                                                                             ------------    ------------
     Total stockholders' deficit                                               (2,857,763)     (2,371,816)
                                                                             ------------    ------------
     Total liabilities and stockholders' deficit                             $  7,886,472       7,060,410
                                                                             ============    ============
</TABLE>

See accompanying notes to unaudited consolidated financial statements.

                                       2

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<PAGE>


                       CORVU CORPORATION AND SUBSIDIARIES

                Consolidated Statements of Cash Flows (Unaudited)

                Nine Month Periods Ended March 31, 2004 and 2003

<TABLE>
<CAPTION>
                                                                   2004           2003
                                                               -----------    -----------
Cash flows from operating activities:
<S>                                                            <C>            <C>
  Net income (loss)                                            $ (1,508,73)     1,586,658
  Adjustments to reconcile net income (loss) to net cash
    provided by operating activities:
    Depreciation                                                   103,089         52,764
    Warrants and stock options vested                              138,654         64,194
    Changes in operating assets and liabilities:
     Trade accounts receivable, net                               (978,690)       158,677
     Deferred income taxes                                              --       (708,000)
     Prepaid expenses and other                                    (65,825)       (25,029)
     Accounts payable                                              572,071       (941,381)
     Accrued compensation and related costs                        135,021       (469,070)
     Deferred revenue                                              345,810        805,527
     Accrued interest                                              (76,461)        88,737
     Other accrued expenses                                         31,276        (61,679)
                                                               -----------    -----------
       Net cash provided by (used in) operating activities      (1,303,788)       551,398
                                                               -----------    -----------

Cash flows from investing activities:
  Capital expenditures                                            (101,919)      (116,175)
                                                               -----------    -----------
       Net cash used in investing activities                      (101,919)      (116,175)
                                                               -----------    -----------

Cash flows from financing activities:
  Proceeds from sale of common stock, net                        1,396,667        100,995
  Exercise of employee stock options                                46,229             --
  Redemption of preferred stock                                         --         (2,340)
  Repurchase of common stock                                      (154,000)            --
  Payments on notes payable-stockholder                           (210,605)            --
  Increase in line of credit                                        50,000             --
                                                               -----------    -----------
       Net cash provided by financing activities                 1,128,291         98,655
Effect of exchange rate changes on cash                            (39,867)        26,285
                                                               -----------    -----------
       Net increase (decrease) in cash and cash equivalents       (317,283)       560,163
Cash and cash equivalents at beginning of period                   643,346        279,176
                                                               -----------    -----------
Cash and cash equivalents at end of period                     $   326,063        839,339
                                                               ===========    ===========

Supplemental cash flow disclosures:
Cash paid during the period for interest                       $   142,258             --
Cash paid during the period for taxes                               43,869             --
                                                               ===========    ===========

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

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<PAGE>


                       CORVU CORPORATION AND SUBSIDIARIES

                Consolidated Statements of Operations (Unaudited)

           Three and Nine Month Periods Ended March 31, 2004 and 2003

<TABLE>
<CAPTION>
                                        THREE MONTHS ENDED              NINE MONTHS ENDED
                                  ----------------------------    ----------------------------
                                    MARCH 31,       MARCH 31,       MARCH 31,       MARCH 31,
                                      2004            2003            2004            2003
                                  ------------    ------------    ------------    ------------

Revenues:
<S>                               <C>             <C>             <C>             <C>
  Software and license fees       $  1,947,935         961,155       5,126,554       5,733,054
  Maintenance fees                   1,630,643       1,204,614       4,081,665       3,175,740
  Consulting and other                 894,931       1,007,071       2,796,851       2,600,488
                                  ------------    ------------    ------------    ------------

    Total revenues                   4,473,509       3,172,840      12,005,070      11,509,282
                                  ------------    ------------    ------------    ------------
Operating costs and expenses:
  Cost of maintenance,
    consulting, and other              902,967         745,341       2,569,536       2,300,093
  Product development                  464,785         325,241       1,358,552         935,835
  Sales and marketing                2,190,074       1,438,159       5,934,629       4,255,417
  General and administrative         1,228,769       1,034,736       3,595,985       3,077,480
                                  ------------    ------------    ------------    ------------
    Total operating costs and
     expenses                        4,786,595       3,543,477      13,458,702      10,568,825
                                  ------------    ------------    ------------    ------------

    Operating income (loss)           (313,086)       (370,637)     (1,453,632)        940,457

Interest expense, net                  (13,433)        (11,580)        (55,101)        (61,799)
                                  ------------    ------------    ------------    ------------

    Income (loss) before income
     taxes                            (326,519)       (382,217)     (1,508,733)        878,658

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

    Net income (loss)             $   (326,519)       (382,217)     (1,508,733)      1,586,658
                                  ============    ============    ============    ============

Net income (loss) per common
  share--basic                    $      (0.01)          (0.02)          (0.07)           0.07
Weighted average shares
  outstanding--basic                23,631,776      22,694,554      22,785,381      22,030,901
Net income (loss) per common
  share--diluted                  $      (0.01)          (0.02)          (0.07)           0.07
Weighted average shares
  outstanding--diluted              23,631,776      22,694,554      22,785,381      22,809,208
</TABLE>

See accompanying notes to unaudited consolidated financial statements.

                                        4

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<PAGE>

                       CORVU CORPORATION AND SUBSIDIARIES

            NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR
                        THE THREE AND NINE MONTH PERIODS
                          ENDED MARCH 31, 2004 AND 2003

(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 nine months ended March 31, 2004 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

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<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
      for the nine month period ended March 31, 2003 includes 778,307 shares of
      dilutive securities. Dilutive common equivalent shares have not been
      included in the computation of diluted net loss per common share for the
      three month period and nine month periods ended March 31, 2004 and for the
      three month period ended March 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 nine months ended March 31, 2004 and 2003,
      respectively:

<TABLE>
<CAPTION>
                                                            THREE MONTHS ENDED            NINE MONTHS ENDED
                                                                 MARCH 31,                      MARCH 31,
                                                       ----------------------------    ----------------------------
                                                           2004            2003            2004            2003
                                                       ------------    ------------    ------------    ------------
<S>                                                    <C>             <C>             <C>             <C>
      Net income (loss)                                $   (326,519)       (382,217)     (1,508,733)      1,586,658

      Weighted average shares                            23,631,776      22,694,554      22,785,381      22,030,901
        outstanding

      Net income (loss) per common
        share-- basic                                  $      (0.01)          (0.02)          (0.07)           0.07

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

      Net income (loss)                                $   (326,519)       (382,217)     (1,508,733)      1,586,658

      Weighted average shares                            23,631,776      22,694,554      22,785,381      22,030,901
        outstanding

      Common stock equivalents                                    0               0               0         778,307

      Weighted average shares and                        23,631,776      22,694,554      22,785,381      22,809,208
        potential diluted shares
        outstanding

      Net income (loss) per common
        share -- Diluted                               $      (0.01)          (0.02)          (0.07)           0.07
</TABLE>

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


                                       6

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<PAGE>


      Options and warrants to purchase 7,859,890 shares of common stock with a
      weighted average exercise price of $1.40 were outstanding at March 31,
      2004 but were excluded from the computation of common share equivalents
      for the three and nine months ended March 31, 2004 because their exercise
      prices were greater than the average market price of the common shares.
      Options and warrants to purchase 4,187,077 shares of common stock with a
      weighted average exercise price of $2.25 were outstanding at March 31,
      2003 but were excluded from the computation of common share equivalents
      for the nine months ended March 31, 2003 because their exercise prices
      were greater than the average market price of the common shares. All
      options and warrants outstanding at March 31, 2003 were excluded from the
      computation of common share equivalents for the three months ended March
      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.

      Had 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          NINE MONTHS ENDED
                                                             MARCH 31,                   MARCH 31,
                                                    --------------------------  --------------------------
                                                        2004          2003           2004          2003
                                                    ------------  ------------  -------------  -----------
<S>                                                 <C>            <C>           <C>            <C>
      Net income (loss):
        As reported                                 $  (326,519)     (382,217)    (1,508,733)    1,586,658
        Pro forma                                      (585,707)     (468,658)    (1,871,750)    1,281,289
      Basic net income (loss) per common share:
        As reported                                       (0.01)        (0.02)         (0.07)         0.07
        Pro forma                                         (0.02)        (0.02)         (0.08)         0.06
      Diluted net income (loss) per common share:
        As reported                                       (0.01)        (0.02)         (0.07)         0.07
        Pro forma                                         (0.02)        (0.02)         (0.08)         0.06
      Stock based compensation:
        As reported                                      30,150             0        138,654        17,385
        Pro forma                                       259,188        86,441        363,017       305,369
</TABLE>

      In determining the compensation cost of options granted during the three
      and nine months ended March 31, 2004 and 2003, 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         NINE MONTHS ENDED
                                              MARCH 31,                 MARCH 31,
                                      ------------------------   ------------------------
                                          2004        2003           2004        2003
                                      ----------- ------------   ----------- ------------
<S>                                   <C>            <C>         <C>             <C>
       Risk-free interest rate        2.625-3.25%        4.00%   2.625-3.25%        4.00%
       Expected life of options
         granted                       5-7 years      7 years     5-7 years      7 years
       Expected volatility                   122%         188%          122%         188%
       Expected dividend yield                 0%           0%            0%           0%
</TABLE>

                                       7

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<PAGE>


(3)   COMPREHENSIVE INCOME (LOSS)

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

<TABLE>
<CAPTION>
                                       THREE MONTHS ENDED            NINE MONTHS ENDED
                                   --------------------------    --------------------------
                                    MARCH 31,      MARCH 31,       MARCH 31,     MARCH 31,
                                       2004           2003           2004           2003
                                   -----------    -----------    -----------    -----------
<S>                                <C>            <C>            <C>            <C>
      Net income (loss)            $  (326,519)      (382,217)    (1,508,733)   $ 1,586,658
      Other comprehensive loss:
      Foreign currency
        translation adjustment         (96,637)      (265,009)      (404,763)      (398,644)
                                   -----------    -----------    -----------    -----------
      Comprehensive income (loss   $  (423,156)   $  (647,226)   $(1,913,496)   $ 1,188,014
                                   ===========    ===========    ===========    ===========
</TABLE>

(4)   INCOME TAXES

      Through June 30, 2003, the Company has U.S. net operating loss
      carryforwards of approximately $5,462,000. 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 March 31, 2005.
      The notes are collateralized by substantially all of the assets of the
      Company. Interest expense was $14,221 and $15,393 for the three month
      periods ended March 31, 2004 and 2003, respectively and was $46,859 and
      $44,846 for the nine month periods ended March 31, 2004 and 2003,
      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
      March 31, 2004), is collateralized by the assets of its wholly-owned
      subsidiary CorVu North America, Inc. and is guaranteed by the Company. The
      amount outstanding as of March 31, 2004 and June 30, 2003 was $300,000 and
      $250,000, respectively, which is included in the accompanying consolidated
      balance sheets. Interest expense was $4,720 and $10,972 for the three and
      nine month periods ended March 31, 2004, respectively, which is included
      in interest expense in the accompanying consolidated statements of
      operations. In April 2004, the term of the line of credit agreement was
      extended to June 2004.


                                       8

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<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 nine month period ended March 31, 2004, the Company sold
      2,100,001 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 $1.4 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 630,000 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

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<PAGE>


ITEM  2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

            FOR THE THREE AND NINE MONTH PERIODS ENDED MARCH 31, 2004
                              VERSUS MARCH 31, 2003

REVENUES:

Total revenue increased 41% and 4% for the three and nine month periods ended
March 31, 2004, respectively, compared to the same periods a year ago.

Software revenues increased $986,780 (103%) and decreased $606,500 (11%) for the
three and nine month periods ended March 31, 2004, respectively, from the same
periods last year. In addition, software revenues increased in the three month
period ended March 31, 2004 over the previous quarter (December 31, 2003) by
$163,722 (9%). Increases for the three month period ended March 31, 2004 when
compared to the comparable period ended March 31, 2003, as well as the three
month period ended December 31, 2003 shows the improvement in sales performance
due in part to improved performance by our new sales team and due to improved
conditions as it relates to corporate spending on business software.

Maintenance revenues increased $426,029 (35%) and $905,925 (29%) for the three
and nine month periods ended March 31, 2004, respectively, from the same periods
last year. These results reflect continued improvement of maintenance contract
renewals and collections.

Consulting and other revenues decreased $112,140 (11%) and increased $196,363
(8%), for the three and nine month periods ended March 31, 2004, respectively,
from the same periods last year. Performance in the Americas region has
decreased $188,088 (49%) and $143,593 (15%) for the three and nine month periods
ended March 31, 2004, respectively, when compared to the same periods last year
due to reduced demand for services. Revenues in other regions have improved by
22% and 19% for the Asia-Pacific region and the UK/Europe region, respectively,
due to 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 $1,243,118 (35%) and $2,889,877 (27%) for the three
and nine month periods ended March 31, 2004, respectively, from the same periods
last year.

Cost of maintenance, consulting and other expenses increased $157,626 (21%) and
$269,443 (12%) for the three and nine month periods ended March 31, 2004,
respectively, from the same periods last year due to continued demand for our
consulting and training services.

Product development costs increased $139,544 (43%) and $422,717 (45%) for the
three and nine month periods ended March 31, 2004, 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. We
have reclassified certain overhead expenses to this category that had previously
been categorized elsewhere.

Sales and marketing expenses increased $751,915 (52%) and $1,679,212 (39%) for
the three and nine month periods ended March 31, 2004, respectively, from the
same periods last year. These increases are the result of a 28% increase in
sales positions (an increase of 10 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 $194,033 (19%) and $518,505 (17%)
for the three and nine month periods ended March 31, 2004, 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 $139,000, have contributed to these increases.


                                       10

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INTEREST EXPENSE, NET:

Interest expense, net increased $1,853 (16%) and decreased $6,698 (11%) for the
three and nine month periods ended March 31, 2004, respectively, compared to the
same periods last year.

BENEFIT FROM INCOME TAXES:

For the nine month period ended March 31, 2003, 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 nine month periods ended March 31, 2004, 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 $326,519 and $1,508,733 for the three
and nine month periods ended March 31, 2004, respectively, compared to net loss
of $382,217 and net income of $1,586,658 for the three and nine month periods
ended March 31, 2003, respectively. Results for the nine month period ended
March 31, 2003 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 anticipated positive financial performance.
For the three and nine month periods ended March 31, 2004, 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 decreased by $317,283 during the nine month
period ended March 31, 2004 from $643,346 as of June 30, 2003 to $326,063 as of
March 31, 2004. Net cash used by operating activities was $1,303,788 for the
nine month period ended March 31, 2004. Net cash used in investing activities
was $101,919, reflecting the acquisition of capital assets during the period.
Net cash provided by financing activities was $1,128,291 for the nine month
period ended March 31, 2004, primarily the result of proceeds from the sale of
2.0 million shares of common stock to accredited investors under a private
placement that raised approximately $1.4 million, net of expenses. In addition,
we repurchased shares of our common stock for $154,000, paid $211,000 of notes
payable-stockholder and increased borrowings under our line of credit by
$50,000.

During the nine month period ended March 31, 2004, the Company has generated
consolidated revenues of approximately $12.0 million and incurred a net loss of
approximately $1.5 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

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(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:

      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.

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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 of duties are insignificant and the potential benefits of adding
employees to clearly segregate duties do not justify the expenses associated
with such increases.

                                       13

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                                     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 and Use of Proceeds.

      In March 2004, for an aggregate purchase price of $225,000, the Company
      sold to an accredited investor a total of 300,000 shares of common stock
      at a price of $0.75 per share and a three year warrant to purchase up to
      90,000 shares of common stock at an exercise price of $1.25 per share.

      Item 3. Default Upon Senior Securities.

      None



                                       14

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

      None

      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

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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:  May 10, 2004                          By    /s/ David C. Carlson
                                                ------------------------------
                                                       David C. Carlson
                                                       Chief Financial Officer

                                       16

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                                  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