----

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**U.S.      Securities and Exchange Commission**

**Washington,      D.C. 20549**

**FORM      10-QSB**

**ý**
**      QUARTERLY REPORT UNDER SECTION 13 OF 15 (D) OF THE SECURITIES      EXCHANGE**

**ACT      OF 1934**

**For      the quarterly period ended December 31, 2006**

**OR**

**o**
**      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**(State                of Incorporation)                                                                                     |   | **41-1457090**(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)                                     |

**Class:  Common      Stock, par value $.01 per share**

**Outstanding      shares as of January 31, 2007:  49,518,268**

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**CorVu      Corporation**

**Index      to Form 10-QSB**

| PART                  I FINANCIAL INFORMATION | 3                                                                                                                                                                            |
|-----------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                          |                                                                                                                                                                         |   |
|                                          | Item                  1.  Financial                  Statements                                                                                                    | 3 |
|                                          |                                                                                                                                                                         |   |
|                                          | Consolidated                  Balance Sheets December 31, 2006                  (Unaudited) and June 30, 2006                                                                | 3 |
|                                          |                                                                                                                                                                         |   |
|                                          | Consolidated                  Statements of Cash Flows (Unaudited)                  Six Month Periods Ended December 31, 2006 and 2005                                       | 5 |
|                                          |                                                                                                                                                                         |   |
|                                          | Consolidated                  Statements of Operations (Unaudited)                  Three and Six Month Periods Ended December 31, 2006 and                  2005            | 4 |
|                                          |                                                                                                                                                                         |   |
|                                          | Notes                  to Unaudited Consolidated Financial Statements For the Three and                  Six Month                  Periods Ended December 31, 2006 and 2005 | 6 |
|                                          |                                                                                                                                                                         |   |
|                                          | Item                  2.  Management’s Discussion and                  Analysis or Plan of Operation                                                         | 12 |
|                                          |                                                                                                                                                                         |   |
|                                          | Item                  3. Controls and Procedures                                                                                                                             | 15 |
|                                          |                                                                                                                                                                         |   |
| PART                  II OTHER INFORMATION    | 16                                                                                                                                                                           |
|                                          |                                                                                                                                                                         |   |
|                                          | Item                  1. Legal Proceedings                                                                                                                                   | 16 |
|                                          |                                                                                                                                                                         |   |
|                                          | Item                  2. Unregistered Sales of Equity Securities and Use                  of Proceeds                                                                        | 16 |
|                                          |                                                                                                                                                                         |   |
|                                          | Item                  3. Defaults Upon Senior                  Securities                                                                                                    | 16 |
|                                          |                                                                                                                                                                         |   |
|                                          | Item                  4. Submission of Matters to a Vote of Security                  Holders                                                                                | 16 |
|                                          |                                                                                                                                                                         |   |
|                                          | Item                  5. Other Information                                                                                                                                   | 17 |
|                                          |                                                                                                                                                                         |   |
|                                          | Item                  6. Exhibits                                                                                                                                            | 17 |
|                                          |                                                                                                                                                                         |   |
| SIGNATURES                                    | 18                                                                                                                                                                           |
|                                          |                                                                                                                                                                         |   |
| EXHIBITS                                      | 19                                                                                                                                                                           |

----

**PART      I**

**FINANCIAL      INFORMATION**

| **Item              1.** | **Finan****cial                Statements** |
|--------------------------|---------------------------------------------|

**CORVU      CORPORATION AND SUBSIDIARIES**

Balance      Sheets

|                                                                                                                                                                                                                                                                                                                    |   | **December                31,****2006** |        | **June                30,****2006** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|-------------|-------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                    |   | **(Unaudited)**                         |        | **(Audited)**                       |   |
| **Assets**                                                                                                                                                                                                                                                                                                              |   |                                    |        |                                |   |
|                                                                                                                                                                                                                                                                                                                    |   |                                    |        |                                |   |
| Current                assets:                                                                                                                                                                                                                                                                                          |   |                                    |        |                                |   |
| Cash                and cash equivalents                                                                                                                                                                                                                                                                                |   | $                                       | 2,659,636   |                                |   | 3,104,504 |   |
| Trade                accounts receivable, net of allowance for doubtful accounts of $62,000                and                $69,000, respectively                                                                                                                                                                     |   |                                    | 3,453,455   |                                |   | 3,807,362 |   |
| Prepaid                expenses and other                                                                                                                                                                                                                                                                               |   |                                    | 373,774     |                                |   | 313,861 |   |
| Total                current assets                                                                                                                                                                                                                                                                                     |   |                                    | 6,486,865   |                                |   | 7,225,727 |   |
| Furniture,                fixtures and equipment, net                                                                                                                                                                                                                                                                   |   |                                    | 205,849     |                                |   | 221,876 |   |
| Total                assets                                                                                                                                                                                                                                                                                             |   | $                                       | 6,692,714   |                                |   | 7,447,603 |   |
|                                                                                                                                                                                                                                                                                                                    |   |                                    |        |                                |   |   |   |
| **Liabilities                and Stockholders’ Deficit**                                                                                                                                                                                                                                                          |   |                                    |        |                                |   |   |   |
|                                                                                                                                                                                                                                                                                                                    |   |                                    |        |                                |   |   |   |
| Current                liabilities:                                                                                                                                                                                                                                                                                     |   |                                    |        |                                |   |   |   |
| Accounts                payable                                                                                                                                                                                                                                                                                         |   | $                                       | 740,338     |                                |   | 814,020 |   |
| Accrued                compensation and related costs                                                                                                                                                                                                                                                                   |   |                                    | 2,072,837   |                                |   | 2,241,334 |   |
| Deferred                revenue                                                                                                                                                                                                                                                                                         |   |                                    | 5,088,518   |                                |   | 5,330,222 |   |
| Accrued                interest                                                                                                                                                                                                                                                                                         |   |                                    | 78,472      |                                |   | 78,657 |   |
| Other                accrued expenses                                                                                                                                                                                                                                                                                   |   |                                    | 904,962     |                                |   | 899,987 |   |
| Total                current liabilities                                                                                                                                                                                                                                                                                |   |                                    | 8,885,127   |                                |   | 9,364,220 |   |
|                                                                                                                                                                                                                                                                                                                    |   |                                    |        |                                |   |   |   |
| Long-term                debt                                                                                                                                                                                                                                                                                           |   |                                    | 1,500,000   |                                |   | 1,500,000 |   |
| Total                Liabilities                                                                                                                                                                                                                                                                                        |   |                                    | 10,385,127  |                                |   | 10,864,220 |   |
|                                                                                                                                                                                                                                                                                                                    |   |                                    |        |                                |   |   |   |
| Stockholders’                deficit:                                                                                                                                                                                                                                                                             |   |                                    |        |                                |   |   |   |
| Undesignated                capital stock, 23,383,000 shares authorized at December 31, 2006                and June                30, 2006; none issued and outstanding                                                                                                                                               |   |                                    | —     |                                |   | — |   |
| Series                C convertible preferred stock, par value $100 per share; 17,000 shares                authorized; 17,000 outstanding at December 31, 2006 and June 30,                2006,                respectively, liquidation preference of $2,550,000 at December 31,                2006                 |   |                                    | 1,702,600   |                                |   | 1,717,200 |   |
| Series                B convertible preferred stock, par value $0.01 per share; 600,000                shares                authorized; 360,000 outstanding at December 31, 2006 and June 30,                2006,                respectively, liquidation preference of $360,000 at December 31,                2006 |   |                                    | 3,600       |                                |   | 3,600 |   |
| Series                A convertible preferred stock, par value $10 per share; 1,000,000                shares                authorized; none issued and outstanding at December 31, 2006 and                June 30,                2006, respectively                                                                 |   |                                    | —     |                                |   | — |   |
| Common                stock, $0.01 par value; 75,000,000 shares authorized; 49,518,268                and                49,498,268 shares issued and outstanding at December 31, 2006 and                June 30,                2006, respectively                                                                    |   |                                    | 495,183     |                                |   | 494,983 |   |
| Additional                paid-in capital                                                                                                                                                                                                                                                                               |   |                                    | 22,197,766  |                                |   | 22,238,620 |   |
| Accumulated                deficit                                                                                                                                                                                                                                                                                      |   |                                    | (26,830,119 | )                                   |   | (26,634,092 | ) |
| Deferred                compensation                                                                                                                                                                                                                                                                                    |   |                                    | —     |                                |   | (208,933 | ) |
| Accumulated                other comprehensive loss                                                                                                                                                                                                                                                                     |   |                                    | (1,261,443  | )                                   |   | (1,027,995 | ) |
| Total                stockholders’ deficit                                                                                                                                                                                                                                                                        |   |                                    | (3,756,413  | )                                   |   | (3,416,617 | ) |
| Total                liabilities and stockholders’ deficit                                                                                                                                                                                                                                                        |   | $                                       | 6,692,714   |                                |   | 7,447,603 |   |

----

**CORVU      CORPORATION AND SUBSIDIARIES**

Statements      of      Operations (Unaudited)

|                                                                                                      |   | **Three                Months Ended December 31,** |       | **Six                Months Ended December 31,** |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|------------|--------------------------------------------------|--------|
|                                                                                                      |   |  **2006**                                     |       |  **2005**                                   |   |  **2006** |   |  **2005** |   |
|                                                                                                      |   |                                               |       |                                             |   |   |   |   |   |
| Revenues:                                                                                                 |   |                                               |       |                                             |   |   |   |   |   |
| Software                and license fees                                                                  |   | $                                                  | 1,434,440  |                                             |   | 1,989,282 |   |   | 2,089,220 |   |   | 3,146,059 |   |
| Maintenance                fees                                                                           |   |                                               | 1,537,746  |                                             |   | 1,502,213 |   |   | 3,082,581 |   |   | 2,933,219 |   |
| Consulting                and other                                                                       |   |                                               | 616,895    |                                             |   | 681,327 |   |   | 1,334,858 |   |   | 1,386,424 |   |
|                                                                                                      |   |                                               |       |                                             |   |   |   |   |   |   |   |   |   |
| Total                revenues                                                                             |   |                                               | 3,589,081  |                                             |   | 4,172,822 |   |   | 6,506,659 |   |   | 7,465,702 |   |
| Operating                costs and expenses:                                                              |   |                                               |       |                                             |   |   |   |   |   |   |   |   |   |
| Cost                of consulting and other services                                                      |   |                                               | 680,235    |                                             |   | 787,336 |   |   | 1,383,919 |   |   | 1,523,836 |   |
| Product                development                                                                        |   |                                               | 530,128    |                                             |   | 566,579 |   |   | 1,054,793 |   |   | 1,074,491 |   |
| Sales                and marketing                                                                        |   |                                               | 1,011,366  |                                             |   | 1,257,560 |   |   | 2,012,049 |   |   | 2,375,081 |   |
| General                and administrative                                                                 |   |                                               | 1,128,540  |                                             |   | 1,190,629 |   |   | 2,176,684 |   |   | 2,335,013 |   |
| Total                operating costs and expenses                                                         |   |                                               | 3,350,269  |                                             |   | 3,802,104 |   |   | 6,627,445 |   |   | 7,308,421 |   |
|                                                                                                      |   |                                               |       |                                             |   |   |   |   |   |   |   |   |   |
| Operating                income (loss)                                                                    |   |                                               | 238,812    |                                             |   | 370,718 |   |   | (120,786 | ) |   | 157,281 |   |
|                                                                                                      |   |                                               |       |                                             |   |   |   |   |   |   |   |   |   |
| Interest                expense, net                                                                      |   |                                               | (1,272     | )                                                |   | (22,055 | ) |   | (2,541 | ) |   | (44,537 | ) |
|                                                                                                      |   |                                               |       |                                             |   |   |   |   |   |   |   |   |   |
| Income                (loss) before income taxes                                                          |   |                                               | 237,540    |                                             |   | 348,663 |   |   | (123,327 | ) |   | 112,744 |   |
|                                                                                                      |   |                                               |       |                                             |   |   |   |   |   |   |   |   |   |
| Benefit                from income taxes                                                                  |   |                                               | —    |                                             |   | — |   |   | — |   |   | — |   |
|                                                                                                      |   |                                               |       |                                             |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                                                                          |   |                                               | 237,540    |                                             |   | 348,663 |   |   | (123,327 | ) |   | 112,744 |   |
|                                                                                                      |   |                                               |       |                                             |   |   |   |   |   |   |   |   |   |
| Preferred                stock dividends                                                                  |   |                                               | (36,350    | )                                                |   | (15,900 | ) |   | (72,700 | ) |   | (31,800 | ) |
|                                                                                                      |   |                                               |       |                                             |   |   |   |   |   |   |   |   |   |
| Income                (loss) attributable to common stockholders                                          |   | $                                                  | 201,190    |                                             |   | 332,763 |   |   | (196,027 | ) |   | 80,944 |   |
|                                                                                                      |   |                                               |       |                                             |   |   |   |   |   |   |   |   |   |
| Income                (loss) attributable to common stockholders per common share-                basic   |   | $                                                  | 0.00       |                                             |   | 0.01 |   |   | (0.00 | ) |   | 0.00 |   |
| Weighted                average shares outstanding—basic                                            |   |                                               | 49,518,268 |                                             |   | 49,483,268 |   |   | 49,517,725 |   |   | 49,483,268 |   |
| Income                (loss) attributable to common stockholders per common share-                diluted |   | $                                                  | 0.00       |                                             |   | 0.01 |   |   | (0.00 | ) |   | 0.00 |   |
| Weighted                average shares outstanding—diluted                                          |   |                                               | 57,927,667 |                                             |   | 55,081,531 |   |   | 49,517,725 |   |   | 55,648,373 |   |

----

**CORVU      CORPORATION AND SUBSIDIARIES**

Cash      Flows      (Unaudited)

|                                                                                                                   |   | **2006** |      | **2005** |   |
|------------------------------------------------------------------------------------------------------------------------|--------|----------|-----------|----------|--------|
| Cash                flows from operating activities:                                                                   |   |     |      |     |   |   |   |
| Net                income (loss)                                                                                       |   | $        | (123,327  | )        |   | 112,744 |   |
| Adjustments                to reconcile net income (loss) to net cash provided by operating                activities: |   |     |      |     |   |   |   |
| Depreciation                                                                                                           |   |     | 53,488    |     |   | 85,152 |   |
| Warrants                and stock options vested                                                                       |   |     | 148,454   |     |   | 26,967 |   |
| Changes                in operating assets and liabilities:                                                            |   |     |      |     |   |   |   |
| Trade                accounts receivable, net                                                                          |   |     | 305,733   |     |   | 700,334 |   |
| Prepaid                expenses and other                                                                              |   |     | (59,913   | )        |   | 136,264 |   |
| Accounts                payable                                                                                        |   |     | (73,682   | )        |   | (105,330 | ) |
| Accrued                compensation and related costs                                                                  |   |     | (201,072  | )        |   | 120,672 |   |
| Deferred                revenue                                                                                        |   |     | (345,838  | )        |   | (718,536 | ) |
| Accrued                interest                                                                                        |   |     | (185      | )        |   | 22,562 |   |
| Other                accrued expenses                                                                                  |   |     | 4,975     |     |   | (171,932 | ) |
| Net                cash provided by (used in) operating activities                                                     |   |     | (291,367  | )        |   | 208,897 |   |
|                                                                                                                   |   |     |      |     |   |   |   |
| Cash                flows from investing activities:                                                                   |   |     |      |     |   |   |   |
| Capital                expenditures                                                                                    |   |     | (37,461   | )        |   | (38,145 | ) |
| Net                cash used in investing activities                                                                   |   |     | (37,461   | )        |   | (38,145 | ) |
|                                                                                                                   |   |     |      |     |   |   |   |
| Cash                flows from financing activities:                                                                   |   |     |      |     |   |   |   |
| Payment                of preferred stock dividends                                                                    |   |     | (87,300   | )        |   | (61,800 | ) |
| Proceeds                from exercise of stock options                                                                 |   |     | 2,400     |     |   | -- |   |
| Net                cash provided by (used in) financing activities                                                     |   |     | (84,900   | )        |   | (61,800 | ) |
| Effect                of exchange rate changes on cash                                                                 |   |     | (31,140   | )        |   | 2,563 |   |
| Net                increase (decrease) in cash and cash equivalents                                                    |   |     | (444,868  | )        |   | 111,515 |   |
| Cash                and cash equivalents at beginning of period                                                        |   |     | 3,104,504 |     |   | 2,162,866 |   |
| Cash                and cash equivalents at end of period                                                              |   | $        | 2,659,636 |     |   | 2,274,381 |   |
|                                                                                                                   |   |     |      |     |   |   |   |
| Supplemental                cash flow disclosures:                                                                     |   |     |      |     |   |   |   |
| Cash                paid during the period for interest                                                                |   | $        | 67,685    |     |   | 46,521 |   |
| Cash                paid during the period for income taxes                                                            |   |     | --        |     |   | -- |   |
| Non-cash                investing and financing activities:                                                            |   |     |      |     |   |   |   |
| Accrued                compensation and related costs paid in stock options                                            |   | $        | 17,425    |     |   | -- |   |

----

**CORVU      CORPORATION AND SUBSIDIARIES**

**Notes****to Unaudited Consolidated Financial Statements for the Three and Six Month      Periods Ended December 31, 2006 and 2005**

**(1)**
**Unaudited      Financial Statements**

**(2)**
**Summary      of Significant Accounting Policies**

***(a)    ***
***Revenue      Recognition***

----

|                                 |   |                               |      |                                |   |
|--------------------------------------|--------|------------------------------------|-----------|-------------------------------------|--------|
|                                 |   | December                  31, 2006 |      |  June                  30,2006 |   |
|                                 |   |                               |      |                                |   |
| Maintenance                  revenue |   | $                                  | 4,885,002 |                                |   | 5,040,712 |   |
| Services                  revenue    |   |                               | 203,516   |                                |   | 289,510 |   |
| Total                                |   | $                                  | 5,088,518 |                                |   | 5,330,222 |   |

***(b)    ***
***Net      Income (Loss) per Common Share***

----

|                                                                                                          |   | **Three                Months Ended****December                31,** |       | **Six                Months Ended****December                31,** |   |
|---------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|------------|--------------------------------------------------------------------|--------|
|                                                                                                          |   | **2006**                                                             |       | **2005**                                                           |   | **2006** |   | **2005** |   |
|                                                                                                          |   |                                                                 |       |                                                               |   |   |   |   |   |
| Income                (loss) attributable to common stockholders                                              |   | $                                                                    | 201,190    |                                                               |   | 332,763 |   |   | (196,027 | ) |   | 80,944 |   |
|                                                                                                          |   |                                                                 |       |                                                               |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding                                                            |   |                                                                 | 49,518,268 |                                                               |   | 49,483,268 |   |   | 49,517,725 |   |   | 49,483,268 |   |
|                                                                                                          |   |                                                                 |       |                                                               |   |   |   |   |   |   |   |   |   |
| Income                (loss) attributable to common stockholders per common share—                basic |   | $                                                                    | 0.00       |                                                               |   | 0.01 |   |   | (0.00 | ) |   | 0.00 |   |
|                                                                                                          |   |                                                                 |       |                                                               |   |   |   |   |   |   |   |   |   |
| Income                (loss) per common share — diluted:                                                |   |                                                                 |       |                                                               |   |   |   |   |   |   |   |   |   |
|                                                                                                          |   |                                                                 |       |                                                               |   |   |   |   |   |   |   |   |   |
| Income                (loss) attributable to common stockholders                                              |   | $                                                                    | 201,190    |                                                               |   | 332,763 |   |   | (196,027 | ) |   | 80,944 |   |
|                                                                                                          |   |                                                                 |       |                                                               |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding                                                            |   |                                                                 | 49,518,268 |                                                               |   | 49,483,268 |   |   | 49,517,725 |   |   | 49,483,268 |   |
|                                                                                                          |   |                                                                 |       |                                                               |   |   |   |   |   |   |   |   |   |
| Common                stock equivalents                                                                       |   |                                                                 | 3,809,399  |                                                               |   | 998,263 |   |   | -- |   |   | 1,565,105 |   |
|                                                                                                          |   |                                                                 |       |                                                               |   |   |   |   |   |   |   |   |   |
| Convertible                preferred stock                                                                    |   |                                                                 | 4,600,000  |                                                               |   | 4,600,000 |   |   | -- |   |   | 4,600,000 |   |
|                                                                                                          |   |                                                                 |       |                                                               |   |   |   |   |   |   |   |   |   |
| Weighted                average shares and potential diluted shares outstanding                               |   |                                                                 | 57,927,667 |                                                               |   | 55,081,531 |   |   | 49,517,725 |   |   | 55,648,373 |   |
|                                                                                                          |   |                                                                 |       |                                                               |   |   |   |   |   |   |   |   |   |
| Income                (loss) attributable to common stockholders — Diluted                              |   | $                                                                    | 0.00       |                                                               |   | 0.01 |   |   | (0.00 | ) |   | 0.00 |   |

***(c)    ***
***Stock-Based      Compensation***

----

|                                                                                                      |   | **Periods                Ended****December                31, 2005** |    |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|---------|
|                                                                                                      |   | **Three                Month Period**                                |    | **Six                Month Period** |   |
| Income                (loss) attributable to common stockholders:                                         |   |                                                                 |    |   |   |
| As                reported                                                                                |   | $                                                                    | 332,763 |   |   | 80,944 |   |
| Pro                forma                                                                                  |   |                                                                 | 292,648 |   |   | (19,461 | ) |
| Basic                income (loss) attributable to common stockholders per common                share:   |   |                                                                 |    |   |   |   |   |
| As                reported                                                                                |   |                                                                 | 0.01    |   |   | 0.00 |   |
| Pro                forma                                                                                  |   |                                                                 | 0.01    |   |   | (0.00 | ) |
| Diluted                income (loss) attributable to common stockholders per common                share: |   |                                                                 |    |   |   |   |   |
| As                reported                                                                                |   |                                                                 | 0.01    |   |   | 0.00 |   |
| Pro                forma                                                                                  |   |                                                                 | 0.01    |   |   | (0.00 | ) |
| Stock                based compensation:                                                                  |   |                                                                 |    |   |   |   |   |
| As                reported                                                                                |   |                                                                 | 0       |   |   | 0 |   |
| Pro                forma                                                                                  |   |                                                                 | 40,115  |   |   | 100,405 |   |

|                                            |   | **Three                Months Ended****December                31,** |                   | **Six                Months Ended****December                31,** |   |
|-------------------------------------------------|--------|----------------------------------------------------------------------|------------------------|--------------------------------------------------------------------|--------|
|                                            |   | **2006**                                                             |                   | **2005**                                                           |   | **2006** |   | **2005** |   |
|                                            |   |                                                                 |                   |                                                               |   |   |   |   |   |
| Risk-free                interest rate          |   |                                                                 | 4.50                   | %                                                                  |   | 4.50 | % |   | 4.50-4.875 | % |   | 3.875-4.50 | % |
| Expected                life of options granted |   |                                                                 | 7                years |                                                               |   | 7                years |   |   | 5-7                years |   |   | 5-7                years |   |
| Expected                volatility              |   |                                                                 | 94                     | %                                                                  |   | 152 | % |   | 94 | % |   | 152 | % |
| Expected                dividend yield          |   |                                                                 | 0                      | %                                                                  |   | 0 | % |   | 0 | % |   | 0 | % |

----

**(3)   **
**Comprehensive      Income (Loss)**

|                                                   |   | **Three                Months Ended**   |     | **Six                Months Ended**     |   |
|--------------------------------------------------------|--------|-----------------------------------------|----------|-----------------------------------------|--------|
|                                                   |   | **December                31,****2006** |     | **December                31,****2005** |   | **December                31,****2006** |   | **December                31,****2005** |   |
| Net                income (loss)                       |   | $                                       | 237,540  |                                    |   | 348,663 |   |   | (123,327 | ) |   | 112,744 |   |
| Other                comprehensive loss:               |   |                                    |     |                                    |   |   |   |   |   |   |   |   |   |
| Foreign                currency translation adjustment |   |                                    | (199,901 | )                                       |   | 26,118 |   |   | (233,448 | ) |   | 99,247 |   |
| Comprehensive                income (loss)             |   | $                                       | 37,639   |                                    |   | 374,781 |   |   | (356,775 | ) |   | 211,991 |   |

**(4)   **
**Income      Taxes**

**(5)   **
**Preferred      Stock**

----

**(6)   **
**Long-term      Debt**

----

| **Item                2.** | **Management’s                Discussion and Analysis or Plan of                Operation** |
|----------------------------|---------------------------------------------------------------------------------------------------|

**For      the Three and Six Month Periods Ended December 31, 2006**

**versus      December 31, 2005**

**REVENUES:**

**OPERATING      COSTS AND EXPENSES:**

**OPERATING      INCOME (LOSS):**

----

**INTEREST      EXPENSE, NET:**

**NET      INCOME (LOSS):**

**PREFERRED      STOCK DIVIDENDS:**

**INCOME      (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS:**

**Liquidity      and Capital Resources**

----

**Critical      Accounting Policies and Estimates-**

**Cautionary      Factors That May Affect Future Results**

----

| **Item                3.** | **Controls                  and                  Procedures** |
|----------------------------|---------------------------------------------------------------|

----

**PART      II**

**OTHER      INFORMATION**

| Item              1. | Legal                Proceedings. |
|----------------------|-----------------------------------|

| Item              2. | Unregistered                Sales of Equity Securities and Use of                Proceeds. |
|----------------------|--------------------------------------------------------------------------------------------|

| Item              3. | Defaults                Upon Senior Securities. |
|----------------------|-------------------------------------------------|

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

|  | (a) | The                Annual Meeting of the Company’s shareholders was held on December 7,                2006. |
|--|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (b) | At                the Annual Meeting a proposal to set the number of directors at seven                was                adopted by a vote of 48,081,089 shares in favor, with 4,917 shares                against, 7,900 shares abstaining, and no shares represented by broker                nonvotes. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Proxies                for the Annual Meeting were solicited pursuant to Regulation 14A                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: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Nominee                             | Number                of VotesFor | Number                of Votes Against | Number                of VotesAbstained |
|-------------------------------------|-----------------------------------|----------------------------------------|-----------------------------------------|
| Joseph                J. Caffarelli | 49,073,800                        | 20,106                                 | 0                                       |
| Robert                L. Doretti    | 49,073,800                        | 20,106                                 | 0                                       |
| Daniel                Fishback      | 49,073,800                        | 20,106                                 | 0                                       |
| Ismail                Kurdi         | 49,073,800                        | 20,106                                 | 0                                       |
| Justin                M. MacIntosh  | 48,018,800                        | 75,106                                 | 0                                       |
| James                L. Mandel      | 49,073,800                        | 20,106                                 | 0                                       |
| Robert                L. Priddy     | 49,073,800                        | 20,106                                 | 0                                       |

----

| Item              5. | Other                Information. |
|----------------------|-----------------------------------|

| Item              6. | Exhibits. |
|----------------------|-----------|

----

**SIGN****ATURES**

|                                              |   |    CORVU                CORPORATION                                     |
|---------------------------------------------------|--------|----------------------------------------------------------------------------------------|
|                                              |   |                                                                                   |
|                                              |   |                                                                                   |
| Date:  February                12, 2007 | By     |    /s/                David C. Carlson                                  |   |
|                                              |   |         David                C. Carlson        |
|                                              |   |         Chief                Financial Officer |

----

EXHIBIT      INDEX

| ExhibitNumber  | 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 |
|------|----------------------------------------------------------------------------------------------------------|

----