<PAGE>

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                                   UNITED STATES 
                        SECURITIES AND EXCHANGE COMMISSION    
                                WASHINGTON, D.C. 20549
                                   ________________
                                           
                                      FORM 10-Q
                                           
                    
                    
           /X/   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
                 OF THE SECURITIES EXCHANGE ACT OF 1934

                 FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 1997
                                          
                                          
           / /   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                 OF THE SECURITIES EXCHANGE ACT OF 1934
                                          
          FOR THE TRANSITION PERIOD FROM _____________ TO _______________
                                          
                        ____________________________________
                                          
                          COMMISSION FILE NUMBER 333-11445
                                          
                                PUMA TECHNOLOGY, INC.
                                          
               (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
                                          
                                          
           DELAWARE                                   77-0349154
           (State or other jurisdiction of            (I.R.S. Employer
           incorporation or organization)             Identification No.)
                                          
                                          
       2940 NORTH FIRST STREET, SAN JOSE, CALIFORNIA                95134
                     408-321-7650                                 (Zip Code)
(Address and telephone number of principal executive office)                   
                                          
                                          
Indicate by check mark whether the registrant (1) has filed all reports to be 
filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during 
the preceding 12 months (or for such shorter period that the registrant was 
required to file such reports), and (2) has been subject to such filing 
requirements for the past 90 days.
                                          
Yes / X /   No  /  /
                                          
The number of shares outstanding of the registrant's common stock, par value 
$0.001 per share, as of January 31, 1997 was 11,981,891.
                                                                                
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                         THIS REPORT CONSISTS OF 25 PAGES.
                                          

<PAGE>

                               PUMA TECHNOLOGY, INC.
                                          
                                     FORM 10-Q
                                          
                  FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 1997
                                          
                                 TABLE OF CONTENTS
                                          
                                          
                            PART I.  FINANCIAL INFORMATION                PAGE
                                                                          ----

Item 1.     Condensed Consolidated Financial Statements                     4

Item 2.     Management's Discussion and Analysis of Financial Condition     9
            and Results of Operations
                                          
                                          
                             PART II.  OTHER INFORMATION
                                          
Item 6.    Exhibits                                                         22
                                          
Signature                                                                   24
                                           
Summary of Trademarks                                                       25



                                         2
<PAGE>

PART I.  FINANCIAL INFORMATION
                                          
ITEM I.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS                  
                                                                                
The condensed consolidated financial statements included under this item are 
as follows:       
                                          
FINANCIAL STATEMENT DESCRIPTION                                       PAGE
--------------------------------------------------------------------------
                                          
-       Condensed Consolidated Balance Sheet                           4
        January 31, 1997 and July 31, 1996
                                                 
-       Condensed Consolidated Statement of Operations                 5
        Three and Six Months Ended January 31, 1997 and 1996
                                                 
-       Condensed Consolidated Statement of Cash Flows                 6
        Six Months Ended January 31, 1997 and 1996
                                                 
-       Notes to Condensed Consolidated Financial Statements           7



                                         3
<PAGE>

                                PUMA TECHNOLOGY, INC.
                                          
                        CONDENSED CONSOLIDATED BALANCE SHEET
                                   (in thousands)
                                    (Unaudited)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
                                                  JANUARY 31,        JULY 31,
                                                      1997            1996
-------------------------------------------------------------------------------
<S>                                               <C>               <C>
ASSETS         
Current assets:     
  Cash and cash equivalents                        $  8,967          $  982 
  Short-term investments                             15,749               -   
  Accounts receivable, net                            2,209           1,837 
  Inventories                                           216             165 
  Other current assets                                  355             114 
-------------------------------------------------------------------------------
                                          
       Total current assets                          27,496           3,098 
-------------------------------------------------------------------------------
Property and equipment, net                             517             449 
Other assets                                            514             457 
-------------------------------------------------------------------------------
                                          
          TOTAL ASSETS                            $  28,527        $  4,004 
-------------------------------------------------------------------------------
                                          
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                                   $  726        $    682 
  Accrued liabilities                                   649             645 
  Deferred revenue                                      879           1,042 
  Current portion of capital lease obligations           14              21 
-------------------------------------------------------------------------------
                                          
       Total current liabilities                      2,268           2,390 
-------------------------------------------------------------------------------
Capital lease obligations, net of current portion        16              28 
Convertible debenture                                     -             933 
-------------------------------------------------------------------------------
                                          
       Total liabilities                              2,284           3,351 
-------------------------------------------------------------------------------
Stockholders' equity:     
  Stock subscription                                      -           1,582 
  Convertible preferred stock, $0.001 par value; 
     none and 2,620 shares issued                         -               -  
     and outstanding at January 31, 1997 and 
     July 31, 1996, respectively                          -               3 
  Common stock, $0.001 par value; 11,982 and 4,297 
     shares issued and outstanding at January 31, 
     1997 and July 31, 1996, respectively                12               4 
  Additional paid-in capital                         31,644           6,686 
  Receivable from stockholders                         (499)         (2,013)
  Deferred stock compensation                           (94)           (108)
  Accumulated deficit                                (4,820)         (5,501)
-------------------------------------------------------------------------------
                                          
       Total stockholders' equity                    26,243             653 
-------------------------------------------------------------------------------
                                          
          TOTAL LIABILITIES AND STOCKHOLDERS' 
            EQUITY                                $  28,527        $  4,004 
-------------------------------------------------------------------------------
                                          
</TABLE>

  SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

                                       4

<PAGE>
                                                 
                              PUMA TECHNOLOGY, INC.     
               
                CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS         
                     (in thousands, except per share data)    
                                  (Unaudited)     
               
<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------
                                       THREE MONTHS ENDED         SIX MONTHS ENDED
                                           JANUARY 31,               JANUARY 31,
                                        1997         1996         1997         1996
-------------------------------------------------------------------------------------
<S>                                   <C>         <C>          <C>           <C>
REVENUE                               $  3,624    $  1,752     $  6,826      $  2,904 
Cost of revenue                            295         115          652           220 
-------------------------------------------------------------------------------------
               
GROSS PROFIT                             3,329       1,637        6,174         2,684 
-------------------------------------------------------------------------------------
               
OPERATING EXPENSES:   
    Research and development             1,429         676        2,630         1,362 
    Sales and marketing                    880         494        1,758           759 
    General and administrative             505         232          932           392 
-------------------------------------------------------------------------------------
               
            Total operating expenses     2,814       1,402        5,320         2,513 
-------------------------------------------------------------------------------------
               
OPERATING INCOME                           515         235          854           171 
    Interest and other income, net         183          31          194            56 
-------------------------------------------------------------------------------------
               
INCOME BEFORE INCOME TAXES                 698         266        1,048           227 
    Provision for income taxes            (244)       (137)        (367)         (225)
-------------------------------------------------------------------------------------
               
NET INCOME                              $  454      $  129       $  681          $  2 
-------------------------------------------------------------------------------------
               
NET INCOME PER SHARE                   $  0.04     $  0.01       $ 0.06          $  -   
               
SHARES USED IN PER SHARE CALCULATION    11,843       9,861       10,975         9,769 
               
-------------------------------------------------------------------------------------
</TABLE>

    SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.      

                                      5
<PAGE>
               
                              PUMA TECHNOLOGY, INC.
                                          
                  CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                  (in thousands)     
                                    (Unaudited)        

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
                                                             SIX MONTHS ENDED
                                                                JANUARY 31,
                                                             1997        1996
-------------------------------------------------------------------------------
<S>                                                         <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income                                                  $  681       $  2
  Adjustments to reconcile net income to net cash 
   used in operating activities:
   Depreciation and amortization                               283         67 
   Customer deposits and other                                  20        (26)
   Changes in operating assets and liabilities                (779)      (880)
-------------------------------------------------------------------------------
      Net cash provided by (used in) operating activities      205       (837)
-------------------------------------------------------------------------------
                                          
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and equipment                         (219)      (165)
  Purchases of short-term investments                      (15,749)         -   
-------------------------------------------------------------------------------
      Net cash (used in) investing activities              (15,968)      (165)
-------------------------------------------------------------------------------
                                          
CASH FLOWS FROM FINANCING ACTIVITIES:    
  Principal payments under capital lease obligations           (19)        (8)
  Proceeds from conversion of warrants                         405          -   
  Net proceeds upon exercise of stock options                  548         52 
  Note repayments by stockholders                            1,514          -   
  Net proceeds from newly issued common stock               21,300          -   
-------------------------------------------------------------------------------
      Net cash provided by financing activities             23,748         44 
-------------------------------------------------------------------------------
                                          
Net increase (decrease) in cash and cash equivalents         7,985       (958)
                                          
Cash and cash equivalents at the beginning of the period       982      2,000 
                                          
-------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period        $  8,967   $  1,042
-------------------------------------------------------------------------------

</TABLE>

    SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.


                                        6

<PAGE>

                                   PUMA TECHNOLOGY, INC.
                                          
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

-----------------------------------------------------------------------------
                                          
NOTE 1.  BASIS OF PRESENTATION
               
The accompanying condensed consolidated financial statements for the three 
and six months ended January 31, 1997 and 1996 are unaudited and reflect all 
normal recurring adjustments which are, in the opinion of management, 
necessary for their fair presentation.  These condensed consolidated 
financial statements should be read in conjunction with the Company's 
consolidated financial statements and notes thereto included in the Company's 
registration statement on Form S-1 as amended on December 4, 1996.  The 
results of operations for the interim period ended January 31, 1997 are not 
necessarily indicative of results to be expected for the full year. 
                                          
NOTE 2.  ACQUISITION
                                          
On April 30, 1996, the Company completed its acquisition of IntelliLink Corp. 
("IntelliLink"), a provider of advanced data synchronization software.  The 
consolidated financial statements of the Company include the results of 
IntelliLink from the date of acquisition.  The total purchase price of $3.5 
million (including $1.2 million for liabilities assumed) was quantified based 
partially on an independent appraisal of the Company's Common Stock by 
Columbia Financial Advisors, Inc.  The purchase price was assigned, based on 
another independent appraisal, to the fair value of the assets acquired 
including $327,000 to tangible assets acquired, $2,680,000 to in-process 
research and development, $120,000 to identified intangible assets and the 
remaining $356,000 to goodwill.  The in-process research and development was 
expensed in the quarter ended July 31, 1996.  The goodwill and other 
intangible assets were capitalized and are being amortized over periods 
ranging from two to three years.
                                          
NOTE 3.  REVENUE RECOGNITION
                                          
For all periods presented, the Company has recognized revenue in accordance 
with the provisions of American Institute of Certified Public Accountants 
Statement of Position No. 91-1 entitled "Software Revenue Recognition."  
License revenue is recognized upon shipment of software if no significant 
obligation remains and collection of the resulting receivable is deemed 
probable.  Revenue from OEMs under minimum guaranteed royalty arrangements, 
which are not subject to significant future obligations, is recognized when 
such royalties are earned and become payable.  Royalty revenue that is 
subject to significant future obligations is recognized when such obligations 
are fulfilled.  Royalty revenue that exceeds minimum guarantees is recognized 
in the period earned.  Payments from customers received before revenue 
recognition criteria have been met are recorded as deferred revenue.  The 
Company cannot predict when such revenue will be recognized or the extent to 
which new agreements, which may provide for additional contract advances or 
minimum royalty payments, will be executed.  The Company also provides a 
limited amount of telephone technical support to its customers. These 
activities are generally considered insignificant post-contract customer 
support obligations and related costs are accrued upon recognition of the 
license revenue.
                                          

                                         7
<PAGE>                                          
                                          
NOTE 4.  NET INCOME PER SHARE
                                          
Net income per share is computed using the weighted average number of common 
shares outstanding and common equivalent shares arising from the assumed 
exercise of stock options (if dilutive) and preferred shares on an 
as-converted basis.  Pursuant to the requirements of the Securities and 
Exchange Commission Staff Accounting Bulletin No. 83, common shares, 
convertible preferred stock (using the as converted method) and stock option 
warrants (using the treasury stock method and the initial public offering 
price) issued during the 12 month period prior to the initial public offering 
have been included in computations as if they were outstanding for all 
periods through the effective date of the initial public offering.
                                          
NOTE 5.  COMMON STOCK
                                          
The Company completed its initial public offering in December 1996 in an 
underwriting led by Deutsche Morgan Grenfell Technology and Alex. Brown & 
Sons. The offering consisted of 2,500,000 of newly issued shares sold by the 
Company and 1,985,000 shares sold by existing shareholders, and resulted in 
net proceeds to the Company of approximately $21.3 million.
                                          
In October 1996, the board of directors adopted the 1996 Employee Stock 
Purchase Plan (the "Purchase Plan") which authorizes the issuance of 250,000 
shares of common stock.  Shares may be purchased under the Purchase Plan at 
85% of the lesser of the fair market value of the common stock on the grant 
or purchase date.  In addition, the board of directors also approved the 
increase of 1,000,000 in the number of shares authorized for issuance under 
the 1993 Stock Option Plan.
                                          
In November 1996, the Company reincorporated in the state of Delaware.  The 
par value of the Company's common stock is $0.001.                            


                                         8
<PAGE>                                          

                              PUMA TECHNOLOGY, INC.
            
ITEM II.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
                                          
THE FOLLOWING INFORMATION SHOULD BE READ IN CONJUNCTION WITH THE CONSOLIDATED 
FINANCIAL STATEMENTS AND THE NOTES THERETO AND IN CONJUNCTION WITH 
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF 
OPERATIONS IN THE COMPANY'S REGISTRATION STATEMENT ON FORM S-1 AS AMENDED ON 
DECEMBER 4, 1996. THIS QUARTERLY REPORT ON FORM 10-Q, AND IN PARTICULAR 
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF 
OPERATIONS, CONTAINS FORWARD-LOOKING STATEMENTS REGARDING FUTURE EVENTS OR 
THE FUTURE PERFORMANCE OF THE COMPANY THAT INVOLVE CERTAIN RISKS AND 
UNCERTAINTIES INCLUDING THOSE DISCUSSED IN "FACTORS THAT MAY AFFECT FUTURE 
OPERATING RESULTS" AND "BUSINESS RISKS" BELOW.  IN THIS REPORT, THE WORDS 
"ANTICIPATES," "BELIEVES", "EXPECTS", "INTENDS", "FUTURE" AND SIMILAR 
EXPRESSIONS IDENTIFY FORWARD-LOOKING STATEMENTS. ACTUAL EVENTS OR THE ACTUAL 
FUTURE RESULTS OF THE COMPANY MAY DIFFER MATERIALLY FROM ANY FORWARD LOOKING 
STATEMENTS DUE TO SUCH RISKS AND UNCERTAINTIES.  THE COMPANY ASSUMES NO 
OBLIGATION TO UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT ACTUAL 
RESULTS OR CHANGES IN FACTORS OR ASSUMPTIONS AFFECTING SUCH FORWARD-LOOKING 
ASSUMPTIONS.  READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE 
FORWARD-LOOKING STATEMENTS, WHICH REFLECT MANAGEMENT'S ANALYSIS ONLY AS OF 
THE DATE HEREOF.  THE COMPANY UNDERTAKES NO OBLIGATION TO PUBLICLY RELEASE 
THE RESULTS OF ANY REVISION TO THESE FORWARD-LOOKING STATEMENTS, WHICH MAY BE 
MADE TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE HEREOF OR TO REFLECT 
THE OCCURRENCE OF UNANTICIPATED EVENTS.
                                          
RESULTS OF OPERATIONS
                                          
OVERVIEW
                                          
Puma Technology, Inc. ("Puma") develops, markets and supports mobile data 
exchange (MDE)-TM- software, including wireless infrared connectivity and 
advanced data synchronization software.  The Company currently has two 
families of products -- its TranXit family of products that supports infrared 
connectivity and its IntelliSync-TM- family of products that performs 
advanced data synchronization.
                                          
TranXit-Registered Trademark- software is licensed primarily to original 
equipment manufacturer (OEM) customers, which are primarily makers of laptop 
computers.  These OEM customers license the Company's software for inclusion 
in their laptop computers to enable infrared connectivity from the laptop 
back to desktop computers.  These OEM customers include the Company's 
software into their products at the time of manufacture and for each device 
shipped, the Company collects a royalty.  Royalties are typically paid to The 
Company once a quarter based on volume, although certain contracts contain 
fixed royalties regardless of volume, for a given time period.
                                          
IntelliSync software is used for advanced data synchronization of data base 
information that resides on a computer such as a desktop machine and the 
increasingly popular handheld devices such as electronic organizers, handheld 
computers, smart phones and smart pagers.  The Company's software actually 
runs on the desktop computer and keeps information residing on the desktop 
and the handheld device synchronized.  IntelliSync software is currently 
distributed directly to the end user and through the retail distribution 
channel.  As this product evolves, other means of distribution such as direct 
bundling arrangements with the handheld device manufacturer are contemplated. 


                                         9
<PAGE>                                          

The following table sets forth certain consolidated statement of income data 
as a percentage of revenue for the periods indicated: 

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------
                                      THREE MONTHS ENDED      SIX MONTHS ENDED
                                          JANUARY 31,            JANUARY 31,
                                       1997       1996        1997        1996
---------------------------------------------------------------------------------
<S>                                  <C>        <C>         <C>          <C>
REVENUE                                100%       100%        100%        100%
---------------------------------------------------------------------------------
Cost of revenue                        8.1%       6.6%        9.6%        7.6% 
---------------------------------------------------------------------------------
                                          
GROSS PROFIT                          91.9%      93.4%       90.4%       92.4% 
---------------------------------------------------------------------------------
                                          
OPERATING EXPENSES:
    Research and development          39.4%     38.6%       38.5%        46.9% 
    Sales and marketing               24.3%     28.2%       25.7%        26.1% 
    General and administrative        13.9%     13.2%       13.7%        13.5% 
---------------------------------------------------------------------------------
                                          
        Total operating expenses      77.6%     80.0%       77.9%        86.5% 
---------------------------------------------------------------------------------
                                          
OPERATING INCOME                      14.3%     13.4%       12.5%         5.9% 
    Interest and other income, net     5.0%      1.8%        2.9%         1.9% 
---------------------------------------------------------------------------------
                                          
INCOME BEFORE INCOME TAXES            19.3%     15.2%       15.4%         7.8% 
    Provision for income taxes        (6.8)%    (7.8)%      (5.4)%       (7.7)%
---------------------------------------------------------------------------------
                                                       
NET INCOME                            12.5%      7.4%       10.0%         0.1%
---------------------------------------------------------------------------------
</TABLE>

                                         10
<PAGE>                                          

REVENUE.  The Company's revenue is derived primarily from license revenue and 
service revenue.  License revenue is derived from the sale of software 
products and royalty agreements with OEMs.  Service revenue is derived from 
customer funded engineering services.  For all periods presented, service 
revenue was less than 10% of revenue.  The Company believes this percentage 
may fluctuate in the future.  The Company's revenue for the three months 
ended January 31, 1997 increased by 107% to $3,624,000 as compared to 
$1,752,000 for the same period in fiscal 1996.  For the six months ended 
January 31, 1997, revenue increased to $6,826,000 as compared to $2,904,000 
for the six month period ended January 31, 1996.  The overall increases in 
revenue were partially due to increased royalties resulting from increased 
unit shipments of the Company's TranXit products.  In addition, revenue 
increased due to shipments of IntelliSync products, in particular, 
IntelliSync for Pilot.  Revenue during the six months ended 1996 did not 
include any revenues from IntelliSync products which were introduced in the 
fourth fiscal quarter of 1996 or IntelliLink products as the IntelliLink 
acquisition was not completed until April 30, 1996.
                                          
OEM revenue continues to represent a significant portion of the Company's 
revenue.  OEM revenue represented 78% and 90% of the Company's revenue in 
three months ended January 31, 1997 and 1996, respectively.  OEM revenue 
represented 72% and 93% of the Company's revenue in the six months ended 
January 31, 1997 and 1996, respectively.  Two OEMs accounted for 
approximately 39% of revenue in the three months ended January 31, 1997 and 
each individually represented more than 10% of the Company's revenue in the 
same period.  One of these same OEMs (Toshiba) represented 22% of revenue for 
the six months ended January 31, 1997. Toshiba represented 14% and 13% of 
revenue in the three and six months ended January 31, 1996, respectively.  
Although several OEMs are subject to certain contractual minimum purchase 
obligations, there can be no assurance that any particular OEM will satisfy 
the obligation.  Accordingly, the Company recognizes revenue from minimum 
guaranteed royalties when such royalties are earned and become payable.  The 
Company believes that the percentage of revenue derived from OEMs may 
fluctuate in future periods depending in part upon the marketing channels 
used by the Company for future products currently under development.
                                          
International revenue continues to represent a significant portion of the 
Company's revenue.  International revenue represented approximately 52% and 
74% of the Company's revenue in the second fiscal quarter of 1997 and 1996, 
respectively.  International revenue represented approximately 55% and 70% in 
the six months ended January 31, 1997 and 1996, respectively. 
                                          
The foregoing statements regarding new product information are 
forward-looking statements.  Actual events or the actual future results of 
the Company may differ materially from any forward looking statements due to 
such risks and uncertainties.  Introduction of new products and enhancements 
of existing products can have a significant impact on the Company's revenue.  
Any delays in the scheduled release of major new products and enhancements 
can have a material adverse impact on the Company's business, operating 
results and financial condition.  The Company plans to introduce new versions 
of TranXit, IntelliSync and several new products at various times in fiscal 
1997.  Any delays in introduction of these products or failure of these 
products to achieve anticipated levels of market acceptance will have an 
adverse impact on the Company's business, operating results and financial 
condition.
                                          
COST OF REVENUE.  Cost of revenue consists primarily of product media and
duplication, manuals, packing supplies, shipping expenses and costs incurred
under customer funded software development agreements and also includes hardware
components for certain retail products.  For the three months ended January
31, 1997 and 1996, cost of revenue as a percentage of revenue was approximately
8% and 7%, respectively.  For the six months ended January 31, 1997, cost of
revenue represented 10% of revenue compared to 8% for the same period of fiscal
1996.  The Company's cost of revenue is affected by the mix between its
distribution channels and by mix of its revenue sources including royalties, 
packaged 


                                         11
<PAGE>                                          

product and customer funded engineering contracts.  A majority of IntelliSync 
revenue is derived by direct sales to distributors and retailers as well as 
end-users.  As sales to distributors and retailers increase, the Company 
anticipates that gross margins will decrease, as the average selling price 
through this channel is lower due to distributor discounts and the cost of 
revenue is higher due to product costs.  Royalty revenue is derived largely 
from licensing TranXit to OEM customers and cost of sales attributable to 
TranXit royalties are generally insignificant.
                                          
RESEARCH AND DEVELOPMENT.  Research and development expenses consist 
primarily of salaries and other related expenses for research and development 
personnel, quality assurance personnel, fees to outside contractors and the 
cost of facilities and depreciation of capital equipment.  Research and 
development expenses increased to $1,429,000 in the second fiscal quarter of 
1997 from $676,000 in the comparable quarter of 1996.  For the six months 
ended January 31, 1997 research and development expenses totaled $2,630,000 
representing a 93% increase compared to $1,362,000 for the same six month 
period in fiscal 1996. The absolute year over year increase in research and 
development expenses was primarily due to increased personnel related costs 
and spending to develop the Company's IntelliSync product offerings and, to a 
lesser extent, increased personnel related costs and spending to develop 
enhanced versions of TranXit and to introduce other new products in the 
market.  A significant portion of the Company's research and development 
expenses are comprised of fees paid to outside contractors which are engaged 
by the Company on a project-by-project basis.  The Company anticipates that 
research and development expenses will increase in absolute dollars as the 
Company continues to invest in product development. However, such expenses 
may fluctuate from quarter to quarter both in absolute dollars as well as a 
percentage of revenue, depending upon the status of various development 
projects.
                                          
Research and development expenses have been expensed as incurred.  Statement 
of Financial Accounting Standards No. 86 requires capitalization of certain 
software development costs once technological feasibility is established.  
The Company defines establishment of technological feasibility at the point 
which product reaches beta.  Software development costs incurred subsequent 
to the establishment of technological feasibility through the period of 
general market availability of the product are capitalized, if material.  To 
date, all of these software development costs have been insignificant and 
expensed as incurred.
                                          
SALES AND MARKETING.  Sales and marketing expenses consist primarily of 
salaries, commissions, promotional expenses and other related expenses of 
sales and marketing personnel.  Sales and marketing expenses increased to 
$880,000 in the second fiscal quarter of 1997 from $494,000 for the 
comparable quarter in the prior year.  For the six months ended January 31, 
1997, sales and marketing expenses increased to $1,758,000 from $759,000 for 
the same period in the prior fiscal year.  Sales and marketing expenses 
increased in absolute dollars primarily due to the expansion of the Company's 
sales force, related travel and entertainment expenses and increased 
marketing activities in an effort to expand its customer base and channel 
presence.  The Company intends to continue expanding its sales and marketing 
organization to promote new products and increase its presence in the 
distribution and retail channel.  Accordingly, the Company anticipates that 
sales and marketing expenses will continue to increase in absolute dollars.
                                          
GENERAL AND ADMINISTRATIVE.  General and administrative expenses consist 
primarily of salaries and other related expenses of administrative, executive 
and financial personnel and other outside professional fees.  General and 
administrative expenses increased to $505,000 in the second fiscal quarter of 
1997 from $232,000 for the same period in the prior year and to $932,000 for 
the six months ended January 31, 1997 from $392,000 for the comparable fiscal 
1996 period.  The  year over year increase in absolute general and 
administrative spending was primarily due to increased headcount to support 
the need for 


                                         12
<PAGE>                                          

a growing infrastructure, and to a lesser extent, amortization of intangible 
assets related to the acquisition of IntelliLink.  The Company anticipates 
that its general and administrative expenses will increase in absolute 
dollars in the future as the Company expands its administrative staff, 
management information systems and other items related to infrastructure.
                                          
INTEREST AND OTHER INCOME, NET.  Interest and other income, net, represents 
interest earned by the Company on its cash and short-term investments, offset 
by interest expense on long-term debt and capitalized leases and 
miscellaneous fees and charges.  Interest and other income, net, increased to 
$183,000 in the second  fiscal quarter of 1997 from $31,000 for the same 
period in the prior year and increased to $194,000 for the six months ended 
January 31, 1997 from $56,000 for the comparable fiscal 1996 period.  The 
increase in interest and other income in the three and six month periods 
ended January 31, 1997 was primarily due to increased interest income on a 
larger cash, cash equivalents and short-term investment base resulting from 
the Company's recent initial public offering.
                                          
PROVISION FOR INCOME TAXES.  Provision for income taxes increased to $244,000 
in the second  fiscal quarter of 1997 from $137,000 for the same period in 
the prior year and increased to $367,000 for the six months ended January 31, 
1997 from $225,000 for the comparable fiscal 1996 period.  The provision for 
income taxes primarily represents foreign withholding taxes.  The foreign 
withholding taxes are a function of royalties earned by the Company from 
certain foreign customers.  The Company currently estimates its effective 
income tax rate for fiscal 1997 to be approximately 35%.  The Company's tax 
rate for fiscal 1997 is significantly dependent on the amount and mix of 
income derived from sources subject to foreign withholding taxes.  The 
Company's estimate of its fiscal 1997 income tax rate is based on current 
projections of the amount and mix of its pre-tax income.  Any adverse 
movement in such projections could cause the income tax rate to increase.
                                          
                                          
                                         13
<PAGE>                                          

FACTORS THAT MAY AFFECT FUTURE OPERATING RESULTS
                                          
The Company expects that its future operating results could fluctuate 
significantly as a result of numerous factors including, but not limited to, 
the demand for the Company's products, the Company's success in developing 
new products, the timing of new product introductions by the Company and its 
competitors, market acceptance of the Company's new and enhanced products, 
the emergence of new industry standards, the timing of customer orders, the 
mix of products sold, competition, the mix of distribution channels employed, 
the evolving and unpredictable nature of the markets for the Company's 
products and mobile computing devices generally, and general economic 
conditions.
                                          
The Company's revenue is difficult to forecast in part because the market for 
wireless IR connectivity and data synchronization software is rapidly 
evolving. In addition, the Company typically operates with a relatively small 
order backlog.  As a result, quarterly sales and operating results depend in 
part on the volume and timing of orders received within the quarter, which 
are difficult to forecast.  In addition, a significant portion of the 
Company's expense levels is fixed in advance based in large part on the 
Company's forecasts of future revenue.  If revenue is below expectations in 
any given quarter, the adverse impact of the shortfall on the Company's 
operating results may be magnified by the Company's inability to adjust 
spending to compensate for the shortfall. Therefore, a shortfall in actual 
revenue as compared to estimated revenue would have an immediate adverse 
effect on the Company's business, financial condition and operating results 
that could be material.
                                          
The Company historically has derived a substantial portion of its revenue 
from OEMs.  Due to the Company's planned expansion into retail and reseller 
distribution channels, an increasing percentage of the Company's licensing 
activity is expected to result from the sale of products through distributors 
and other resellers, which sales are harder to predict and may have lower 
margins than other channels.  Sales through such channels may contribute to 
increased fluctuation of operating results.  A significant portion of the 
Company's revenue in any quarter is typically derived from sales to a limited 
number of customers.  The Company has generally recognized a substantial 
portion of its revenue in the last month of each quarter, when it typically 
receives royalty reports from its OEM customers.  Any significant deferral of 
purchases of the Company's products by its customers could have a material 
adverse effect on the Company's business, operating results and financial 
condition in any particular quarter, and to the extent that significant sales 
occur earlier than expected, operating results for subsequent quarters may be 
adversely affected.
                                          
The Company's gross margin on its service revenue is substantially lower than 
its gross margin on license revenue.  Any increase in service revenue would 
have a corresponding increase in cost of revenue and may have an adverse 
effect on the Company's gross margins.  In addition, certain of the Company's 
retail products contain hardware as well as software components.  The 
Company's expense levels, therefore, may be higher than those of other 
software companies.  The Company may also reduce prices or increase spending 
in response to competition or to pursue new market opportunities.


                                         14
<PAGE>                                          

                                          
The Company has not experienced seasonality to date; however, the operating 
results of many software companies reflect seasonal fluctuations, and there 
can be no assurance that the Company will not experience such fluctuations in 
the future.  For example, sales in Europe and certain other countries 
typically are adversely affected in the summer months when business 
activities are reduced.
                                          
Because of these factors, the Company believes that period-to-period 
comparisons of its operating results are not necessarily meaningful and that 
such comparisons should not be relied upon as indications of future 
performance.  As a result of the foregoing and other factors, the Company's 
operating results and stock price may be subject to significant volatility, 
particularly on a quarterly basis. 
                                          
BUSINESS RISKS
                                          
LIMITED HISTORY OF OPERATIONS AND PROFITABILITY.  Puma was organized in 
August 1993 and began shipping products in October 1994.  Accordingly, the 
Company has a limited operating history upon which an evaluation of the 
Company can be based.  The Company has only been profitable in four quarters 
since inception. The Company's results must be considered in light of the 
risks, expenses and difficulties frequently encountered by companies in their 
early stages of development, particularly companies in a new and evolving 
market such as the mobile data exchange software market.  Although the 
Company has experienced increased quarterly revenue over the last six fiscal 
quarters, such growth rates may not be sustainable and are not indicative of 
future operating results. There can be no assurance that any of the Company's 
business strategies will be successful or that the Company's revenue growth 
or profitability will continue on a quarterly or annual basis.
                                          
PRODUCT CONCENTRATION; RISKS ASSOCIATED WITH NEW AND EVOLVING MARKETS.  The 
market for mobile data exchange software, including wireless IR connectivity 
and advanced data synchronization software, is new and evolving.  To date, 
the Company has derived a substantial portion of its revenue from the 
licensing of its TranXit IR connectivity software.  Although additional 
products are currently being sold and potential products are currently under 
development, the Company believes that the TranXit product family may 
continue to account for a substantial portion of the Company's revenue for 
the foreseeable future.  The life cycle of TranXit is difficult to estimate 
because of, among other factors, the emerging nature of the MDE software 
market and the possibility of future competition. As a result, the Company's 
future operating results, particularly in the near term, are dependent upon 
the continued market acceptance of TranXit. There can be no assurance that 
TranXit will continue to meet with market acceptance or that the Company will 
be successful in developing, introducing or marketing new or enhanced 
products.  A decline in the demand for TranXit, as a result of competition, 
technological change or other factors, and the failure to successfully 
develop, introduce or market new or enhanced products would have a material 
adverse effect on the Company's business, financial condition and results of 
operations.
                                          
The market for MDE software is still emerging, and there can be no assurance 
that it will continue to grow or that, even if the market does grow, TranXit 
will be adopted.  Moreover, although demand for TranXit has grown in recent 
years with the Company's OEM customers, the Company has no accurate method of 
determining the extent that end-users utilize TranXit.  The Company's success 
in generating significant revenue in these evolving markets will depend, 
among other things, on its ability to educate potential OEMs, retail partners 
and end users about the benefits of the Company's IR technology, to maintain 
and enhance its relationships with leading OEMs and to develop effective 
retail distribution channels.  The inability of the Company to continue to 
penetrate the existing market for MDE products or the failure of current 
markets to grow or new markets to develop or be receptive to the Company's 


                                         15
<PAGE>                                          

products would have a material adverse effect on the Company's business, 
operating results and financial condition.  The emergence of markets for the 
Company's MDE products will also be affected by a variety of factors beyond 
the Company's control.  In particular, the Company's products are designed to 
conform to certain standard IR and data communications specifications, many 
of which have not been adopted as industry standards.  There can be no 
assurance that these specifications will be widely adopted or that competing 
specifications will not emerge which will be preferred by OEMs.  The 
emergence of markets for the Company's products is also critically dependent 
upon continued expansion of the market for mobile computing devices and the 
timely introduction and successful marketing and sale of notebook and desktop 
personal computers ("PCs"), personal electronic organizers, smart phones and 
smart pagers. In addition, there can be no assurance that IR technology 
itself will be adopted as the standard or preferred technology for MDE or 
that manufacturers of personal computers will elect to bundle IR technology 
in their products.  There can be no assurance that these or other factors 
beyond the Company's control will not adversely affect the development of 
markets for the Company's products.
                                          
DEPENDENCE ON OEMS.  Revenue from OEMs was a substantial portion of  the 
Company's revenue during fiscal 1995, fiscal 1996 and the first and second 
fiscal quarters in 1997.  Weakening demand from any key OEM and the inability 
of the Company to replace revenue provided by such OEM could have a material 
adverse effect on the Company's business, operating results and financial 
condition.  The Company maintains individually significant receivable 
balances from major OEMs.  If these OEMs fail to meet their payment 
obligations, the Company's operating results could be materially adversely 
affected.
                                          
MANAGEMENT OF GROWTH.  The Company is currently experiencing rapid growth and 
expansion, which has placed, and will continue to place, a significant strain 
on its administrative, operational and financial resources and increased 
demands on its systems and controls.  This growth has resulted in a 
continuing increase in the level of responsibility for both existing and new 
management personnel.  The Company anticipates that its continued growth will 
require it to recruit, hire, train and retain a substantial number of new 
engineering, managerial, sales and marketing personnel.  The Company's 
ability to manage its growth successfully will also require the Company to 
continue to expand and improve its operational, management and financial 
systems and controls on a timely basis.  For example, the Company is 
currently in the process of evaluating a new management information system.  
There can be no assurance that the Company will be able to purchase or 
successfully implement such a system on a timely basis.  If the Company's 
management is unable to manage growth effectively, the Company's business, 
operating results and financial condition will be materially adversely 
affected. 
                                          
UNCERTAINTIES ASSOCIATED WITH THE INTEGRATION OF INTELLILINK.  In April 1996, 
the Company acquired IntelliLink.  As a result of the acquisition the Company 
acquired two additional product families, as well as other technologies. In 
addition, more than 20 new employees joined the Company.  IntelliLink had 
incurred a cumulative net loss through its acquisition by Puma on April 30, 
1996 of approximately $2.5 million on cumulative revenue of approximately 
$4.2 million.  In connection with the acquisition, the Company's personnel 
have dedicated and will continue to dedicate substantial resources in order 
to achieve the anticipated technological benefits and operating efficiencies 
from integrating the two companies.  Difficulties encountered in integrating 
the two companies' technologies and operations could adversely affect the 
Company's business, operating results and financial condition.  In addition, 
there can be no assurance that the Company will be able to develop products 
utilizing IntelliLink technology, that anticipated research and development 
costs will be sufficient to develop any such products or that any such 
products will achieve market acceptance and generate significant revenue.  
Accordingly, the increased operating expenses associated with IntelliLink's 


                                         16
<PAGE>                                          

business could have a material adverse effect on the Company's business, 
operating results and financial condition.
                                          
RISKS ASSOCIATED WITH NEW PRODUCT DEVELOPMENT AND TIMELY INTRODUCTION OF NEW 
AND ENHANCED PRODUCTS.  The markets for the Company's products are 
characterized by rapidly changing technologies, evolving industry standards, 
frequent new product introductions and short product life cycles.  The 
Company first introduced its TranXit products in October 1994.  As its 
product families mature, the Company expects that their gross margins may 
decline.  The Company's future success will depend to a substantial degree 
upon its ability to enhance its existing products and to develop and 
introduce, on a timely and cost-effective basis, new products and features 
that meet changing customer requirements and emerging and evolving industry 
standards.  The Company budgets amounts to expend for research and 
development based on planned product introductions and enhancements; however, 
actual expenditures may significantly differ from budgeted expenditures. 
Inherent in the product development process are a number of risks.  The 
development of new, technologically advanced software products is a complex 
and uncertain process requiring high levels of innovation, as well as the 
accurate anticipation of technological and market trends.  The introduction 
of new or enhanced products also requires the Company to manage the 
transition from older products in order to minimize disruption in customer 
ordering patterns, avoid excessive levels of older product inventories and 
ensure that adequate supplies of new products can be delivered to meet 
customer demand.  There can be no assurance that the Company will 
successfully develop, introduce or manage the transition to new products.  
The Company has in the past, and may in the future, experience delays in the 
introduction of its products, due to factors internal and external to the 
Company.  Any future delays in the introduction or shipment of new or 
enhanced products, the inability of such products to gain market acceptance 
or problems associated with new product transitions could adversely affect 
the Company's operating results, particularly on a quarterly basis.
                                          
DEPENDENCE ON STRATEGIC BUSINESS RELATIONSHIPS; RISKS ASSOCIATED WITH 
THIRD-PARTY SERVICES.  The Company believes that its success is largely 
dependent on its strategic relationships with key participants in the PC and 
mobile computing device industries, including Compaq, IBM, Intel, Microsoft, 
NEC, Sharp, Texas Instruments, Toshiba and U.S. Robotics.  These 
relationships generally enable the Company to receive prototypes from 
hardware manufacturers and software vendors prior to their market 
introduction.  The Company is thereby in a stronger position to launch 
complementary product offerings shortly after the commercial release of these 
companies' new hardware and software products.  The loss of any of these 
strategic relationships or any other significant partner could materially 
adversely affect the Company's product development efforts, its business, 
operating results and financial condition and its ability to realize its 
strategic objective to be the technological leader in its industry.  In 
addition, the Company relies significantly on third-party services.  In 
particular, third-party services translate the Company's products into 13 
different native languages.  The Company has generally been able to obtain 
translated, functional versions of its products in a timely manner.  However, 
any significant delays by such third parties could delay new or existing 
shipments of products and have a material adverse effect on the Company's 
business, operating results and financial condition.
                                          
RISKS ASSOCIATED WITH DEVELOPMENT OF RETAIL DISTRIBUTION CHANNEL.  The 
Company intends to distribute its products increasingly through distributors, 
major computer and software retailing organizations, consumer electronics 
stores, discount warehouse stores and other specialty retailers.  The Company 
often sells on a purchase order basis, and there are often no minimum 
purchase obligations on behalf of any principal distributor or retailer.  
Distribution and retailing companies in the computer industry have from time 
to time experienced significant fluctuations in their 


                                         17
<PAGE>                                          

businesses, and there have been a number of business failures among these 
entities.  The insolvency or business failure of any significant distributor 
or retailer of the Company's products could have a material adverse effect on 
the Company's business, operating results and financial condition.  Further, 
certain mass market retailers have established exclusive relationships under 
which such retailers will buy customer software only from one or two 
intermediaries.  In such instances, the price or other terms on which the 
Company sells to such retailers may be materially adversely affected by the 
terms imposed by such intermediaries, or the Company may be unable to sell to 
such retailers on the terms which the Company deems acceptable.
                                          
Retailers of the Company's products typically have a limited amount of shelf 
space and promotional resources, and there is intense competition among 
consumer software producers for adequate levels of shelf space and 
promotional support from retailers.  The Company expects that, as the number 
of consumer multimedia and software products and computer platforms 
increases, this competition for shelf space will intensify.  Due to increased 
competition for limited shelf space, retailers and distributors are 
increasingly in a better position to negotiate favorable terms of sale, 
including price discounts, price protection and product return policies.  
Retailers often require software publishers to pay fees or provide other 
accommodations in exchange for shelf space.  The Company's products 
constitute a relatively small percentage of each retailer's sales volume, and 
there can be no assurance that retailers will continue to purchase the 
Company's products or provide the Company's products with adequate shelf 
space and promotional support.
                                          
COMPETITION.  The Company expects the market for MDE software, including data 
synchronization and IR connectivity software, to the extent it develops, to 
become intensely competitive.  The Company currently faces direct competition 
with respect to a number of its individual products from several private 
companies, including DataViz and Traveling Software.  In addition to direct 
competition, the Company faces indirect competition from existing and 
potential customers that provide internally developed solutions.  As a 
result, the Company must educate prospective customers as to the advantage of 
the Company's products versus internally developed solutions.  The Company 
currently faces limited direct competition from major applications and 
operating systems software vendors who may choose to incorporate data 
synchronization and IR connectivity functionality into their software, 
thereby potentially reducing the need for OEMs to include the Company's 
products in their notebook and desktop PCs. For example, Microsoft's 
inclusion of certain features permitting data synchronization and IR 
connectivity between computers utilizing the Windows 95 operating system may 
have the effect of reducing revenue from the Company's software if users of 
Windows 95 perceive that their data synchronization and IR connectivity needs 
are adequately met by Microsoft.  Certain of the companies with which the 
Company competes or may in the future compete, including internal software 
development groups of its current and potential customers, have substantially 
greater financial, marketing, sales and support resources and may have more 
"brand-name" recognition than the Company. There can be no assurance that the 
Company will be able either to develop software comparable or superior to 
software offered by its current or future competitors or to adapt to new 
technologies, evolving industry standards and changes in customer 
requirements. In addition, the PC and mobile computing device markets 
experience intense price competition, and the Company expects that, in order 
to remain competitive, it may have to decrease its unit royalties on certain 
products.
                                          
DEPENDENCE ON KEY PERSONNEL.  The Company's success depends to a significant 
degree upon the continuing contributions of its engineering, management, 
sales and marketing personnel.  The Company has few employment contracts with 
its key personnel and does not maintain any key person life insurance 
policies.  The loss of key management or technical personnel could adversely 
affect the Company.  The Company believes that its future success will depend 
in large part upon its ability to 


                                         18
<PAGE>

attract and retain highly-skilled engineering, management, sales and 
marketing personnel.  In particular, the Company is currently attempting to 
recruit new engineering personnel; however, there can be no assurance that 
the Company will be successful at hiring or retaining these personnel.  
Failure to recruit, hire, train and retain key personnel could have a 
material adverse effect on the Company's business, operating results and 
financial condition.
                                          
PROPRIETARY RIGHTS, RISKS OF INFRINGEMENT AND SOURCE CODE RELEASE.  The 
Company relies on a combination of patent, copyright and trademark laws, 
trade secrets, confidentiality procedures and contractual provisions to 
protect its proprietary rights.  The Company also believes that factors such 
as the technological and creative skills of its personnel, new product 
developments, frequent product enhancements and name recognition are 
essential to establishing and maintaining a technology leadership position.  
The Company seeks to protect its software, documentation and other written 
materials under trade secret and copyright laws, which afford only limited 
protection.  The Company currently has one issued United States patent that 
expires in 2012 and has seven patent applications pending.  In addition, the 
Company has corresponding international patent applications pending under the 
Patent Cooperation Treaty in countries to be designated at a later date.  
There can be no assurance that the Company's patent will not be invalidated, 
circumvented or challenged, that the rights granted thereunder will provide 
competitive advantages to the Company or that any of the Company's pending or 
future patent applications, whether or not being currently challenged by 
applicable governmental patent examiners, will be issued with the scope of 
the claims sought by the Company, if at all.  Furthermore, there can be no 
assurance that others will not develop technologies that are similar or 
superior to the Company's technology or design around the patents owned by 
the Company.  Despite the Company's efforts to protect its proprietary 
rights, unauthorized parties may attempt to copy aspects of the Company's 
products or to obtain and use information that the Company regards as 
proprietary.  Policing unauthorized use of the Company's products is 
difficult, and while the Company is unable to determine the extent to which 
piracy of its software products exists, software piracy can be expected to be 
a persistent problem.  The Company distributes its software products in the 
United States, Japan, Taiwan and member countries of the European Union.  The 
laws of some foreign countries in which the Company does business, in 
particular Taiwan, do not ensure that the Company's means of protecting its 
proprietary rights in the United States or abroad will be adequate or that 
competition will not independently develop similar technology.  There can be 
no assurance that the Company will not distribute its software products in 
the future to countries where the enforcement of proprietary rights may be 
equally or more uncertain.  The Company has also entered into source code 
escrow agreements with a limited number of its customers requiring release of 
source code in certain circumstances.  Such agreements generally provide that 
such parties will have a limited, non-exclusive right to use such code in the 
event that there is a bankruptcy proceeding by or against the Company, if the 
Company ceases to do business or if the Company fails to meet its support 
obligations.  The Company also provides its source code to foreign language 
translation service providers and consultants to the Company in limited 
circumstances.  The provision of source code may increase the likelihood of 
misappropriation by third parties.
                                          
The Company is not aware that it is infringing any proprietary rights of 
third parties.  There can be no assurance, however, that third parties will 
not claim infringement by the Company of their intellectual property rights.  
The Company expects that software product developers will increasingly be 
subject to infringement claims as the number of products and competitors in 
the Company's industry segment grows and the functionality of products in 
different industry segments overlaps.  Any such claims, with or without 
merit, could be time-consuming to defend, result in costly litigation, divert 
management's

                                         19
<PAGE>                                          

attention and resources or cause product shipment delays.  In addition, such
claims could require the Company to discontinue the use of certain software
codes or processes, to cease the manufacture, use and sale of infringing
products, to incur significant litigation costs and expenses and to develop non-
infringing technology or to obtain licenses to the alleged infringing
technology.  There can be no assurance that the Company would be able to develop
alternative technologies or to obtain such licenses or, if a license were
obtainable, that the terms would be commercially acceptable to the Company.  In
the event of a successful claim of product infringement against the Company and
failure or inability of the Company to license the infringed or similar
technology, the Company's business, operating results and financial condition
would be materially adversely affected.
                                          
                                          
DEPENDENCE ON LICENSED TECHNOLOGY.  The Company licenses technology on a 
non-exclusive basis from several companies for use with its products and 
anticipates that it will continue to do so in the future.  The inability of 
the Company to continue to license this technology or to license other 
necessary technology for use with its products or substantial increases in 
royalty payments under third-party licenses could have a material adverse 
effect on its business, operating results and financial condition.  In 
addition, the effective implementation of the Company's products depends upon 
the successful operation of these licenses in conjunction with the Company's 
products, and therefore any undetected errors in products resulting from such 
licenses may prevent the implementation or impair the functionality of the 
Company's products, delay new product introductions and injure the Company's 
reputation.  Such problems could have a material adverse effect on the 
Company's business, operating results and financial condition.
                                          
PRODUCT ERRORS; PRODUCT LIABILITY.  Software products as complex as those 
offered by the Company typically contain undetected errors or failures when 
first introduced or as new versions are released.  Testing of the Company's 
products is particularly challenging because it is difficult to simulate the 
wide variety of computing environments in which the Company's customers may 
deploy these products.  Accordingly, there can be no assurance that, despite 
testing by the Company and by current and potential customers, errors will 
not be found after commencement of commercial shipments, resulting in loss of 
or delay in market acceptance, any of which could have a material adverse 
effect upon the Company's business, operating results and financial 
condition. Further, the Company's license agreements with its customers 
typically contain provisions designed to limit the Company's exposure to 
potential product liability claims.  Although the Company has not experienced 
any product liability claims, the sale and support of products by the Company 
entails the risk of such claims.  The Company does not currently maintain 
product liability insurance.  A successful product liability claim brought 
against the Company could have a material adverse effect upon the Company's 
business, operating results and financial condition.
                                          
RISKS ASSOCIATED WITH INTERNATIONAL OPERATIONS.  International revenue 
accounted for a significant portion of the Company's revenue in fiscal 1995, 
fiscal 1996 and the first half of fiscal 1997. The Company expects that 
international revenue will continue to account for a significant portion of 
its future revenue. Revenue from the Company's international operations is 
subject to certain inherent risks, including unexpected changes in regulatory 
requirements and tariffs, difficulties in staffing and managing foreign 
operations, longer payment cycles, problems in collecting accounts receivable 
and potentially adverse tax consequences.  In addition, sales in Europe and 
certain other parts of the world typically are adversely affected in the 
summer months of each year when many customers and users reduce their 
business activities.  These seasonal factors may have a material adverse 
effect on the Company's business, operating results and financial condition.  
Although the Company's revenue is currently denominated in U.S. dollars, 
fluctuations in currency exchange rates could cause the Company's products to 
become relatively more expensive to customers in a particular country, 
leading to 


                                         20
<PAGE>                                          

a reduction in sales or profitability in that country.  Furthermore, future 
international activity may result in foreign currency denominated sales, 
particularly if international revenue from distributors increases. 
Consequently, gains and losses on the conversion to U.S. dollars of accounts 
receivable and accounts payable arising from international operations may 
contribute to fluctuations in the Company's operating results. Royalty income 
by the Company from customers in certain countries, such as Japan and Taiwan, 
is subject to withholding income taxes.  The amount and mix of the Company's 
income derived from such customers will impact the Company's provision for 
income taxes.  Differences in the amount and mix of the Company's income 
actually derived from customers subject to foreign withholding taxes as 
compared to the amounts forecasted by the Company may adversely impact the 
Company's income tax rate.
                                          
POTENTIAL VOLATILITY OF STOCK PRICE.  The trading price of the Common Stock 
is likely to be highly volatile and may be significantly affected by factors 
such as actual or anticipated fluctuations in the Company's operating 
results, announcements of technological innovations, new products or new 
contracts by the Company or its competitors, developments with respect to 
patents, copyrights or proprietary rights, conditions and trends in the 
software and other technology industries, adoption of new accounting 
standards affecting the software industry, changes in financial estimates by 
securities analysts, general market conditions and other factors.  In 
addition, the stock market has from time to time experienced significant 
price and volume fluctuations that have particularly affected the market 
prices for the common stocks of technology companies.  These broad market 
fluctuations may materially adversely affect the market price of the 
Company's Common Stock.
                                          
LIQUIDITY AND CAPITAL RESOURCES
                                          
Up until the Company's initial public offering in December 1996, the Company 
has financed its operations and met its capital expenditure requirements 
primarily from proceeds from the private sale of preferred stock and common 
stock. Through October 31, 1996, the Company had raised approximately $6.8 
million from the sale of Preferred and Common Stock.  In December 1996, the 
Company generated net proceeds of approximately $21,300,000 from its initial 
public offering of common stock.  
                                          
The Company's operating activities provided cash of $205,000 during the six 
month period ended January 31, 1997 and used cash of $837,000 during the six 
month period ended January 31, 1996.  The increased cash provided in the six 
month period in fiscal 1997 was attributable to increased net profit 
partially offset by increases in accounts receivable, inventory, other assets 
and decreases in deferred revenue.
                                          
Cash used in investing activities was $15,968,000 and $165,000 in the six 
month periods ended January 31, 1997  and 1996, respectively.  Cash used in 
investing activities in first six months of fiscal 1997 of $15,968,000 was 
primarily related to purchases of short-term investments, and to a lesser 
extent, purchases of property and equipment.  Financing activities provided 
$23,748,000 in the six month period ended January 31, 1997 due primarily to 
the issuance of common stock and, to a much lesser extent, issuance of 
preferred stock and proceeds from conversion of warrants and exercises of 
stock options.
                                          
At January 31, 1997 the Company's principal source of liquidity represented 
by cash, cash equivalents and short-term investments totaled $24,716,000.  
The Company currently has no significant capital commitments other than 
commitments under capital leases.  The Company currently has no bank 
financing arrangements. The Company believes that its current cash, cash 
equivalents and short-term investment balances and cash generated from 
operations, if any, will be sufficient to meet its working capital and other 
cash requirements for at least the next twelve months.

                                         21
<PAGE>

                                          
                             PART II. OTHER INFORMATION
                                          
                                          
ITEM 6. EXHIBITS 
                                          
(a)  Exhibits
                                          
     11.1  Computation of net income per share is on page 23.
                                          
                                          
ITEMS 1, 2, 3, 4 AND 5 ARE NOT APPLICABLE AND HAVE BEEN OMITTED.


                                         22


<PAGE>

EXHIBIT 11.1     
               
                               PUMA TECHNOLOGY, INC.     
               
                    COMPUTATION OF NET INCOME PER SHARE (1)   
                     (in thousands, except per share data)          
                                      (Unaudited)     
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
                                                             THREE MONTHS         SIX MONTHS
                                                                ENDED                ENDED
                                                             JANUARY 31,         JANUARY 31,
                                                            1997      1996      1997      1996
-----------------------------------------------------------------------------------------------
<S>                                                        <C>       <C>       <C>       <C>
NET INCOME                                                 $  454    $  129    $  681    $    2 
                                                           ------    ------    ------    ------
                                                           ------    ------    ------    ------
PRIMARY:       
               
Weighted average common shares outstanding                  5,103     2,863     4,635     2,822 
Common stock equivalents:     
               
    Preferred stock using the as if converted method        4,089     4,089     4,089     4,089 
    Stock options using the treasury stock method             526       357       263       306 
Shares related to Staff Accounting Bulletin No. 83:         
    Shares of common stock                                  1,408     1,408     1,408     1,408 
    Stock options                                             181       463       322       463 
    Preferred stock using the as if converted method          174       286        87       286 
    Convertible debenture using the as if converted method    341       341       133       341 
    Warrants                                                   21        54        38        54 
                                                           ------    ------    ------    ------

Shares used in computing primary net income per share      11,843     9,861    10,975     9,769 
               
                                                           ------    ------    ------    ------
PRIMARY NET INCOME PER SHARE                              $  0.04   $  0.01   $  0.06    $    -
                                                           ------    ------    ------    ------
                                                           ------    ------    ------    ------
-----------------------------------------------------------------------------------------------
</TABLE>

(1) For an explanation of the number of shares used to compute net income per
    share, see notes to condensed consolidated financial statements.         


                                        23


<PAGE>
                                          
                                     SIGNATURE
                                          
Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.                                        
   
                                          
                                          
                                          
                                          Puma Technology, Inc.
                                        
                                          
                                          
                                          
Date:  March 10, 1997                     By:  /S/ M. BRUCE NAKAO
                                             -------------------------------
                                               M. Bruce Nakao
                                               Sr. Vice President and
                                               Chief Financial Officer
                                          
                                        24


<PAGE>

                              PUMA TECHNOLOGY, INC.
                                          
                              SUMMARY OF TRADEMARKS
                                          
                                          
The following trademarks of Puma Technology, Inc., which may be registered in 
certain jurisdictions, are referenced in this Form 10-Q:
                                          
IntelliLink 
IntelliSync
Mobil Data Exchange
Puma Technology
TranXit
                                          
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their respective holders.
                                          


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