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                       SECURITIES AND EXCHANGE COMMISSION


                             WASHINGTON, D.C. 20549
                             ----------------------


                                    FORM 10-Q


                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                ------------------------------------------------


For the Quarter ended: March 31, 1999          Commission File Number  000-21685


                       INTELIDATA TECHNOLOGIES CORPORATION
             (Exact name of registrant as specified in its charter)

DELAWARE                                                              54-1820617
(State of incorporation)                 (I.R.S. Employer Identification Number)

             11600 Sunrise Valley Drive, Suite 100, Reston, VA 20191
                    (Address of Principal Executive Offices)
                                 (703) 259-3000
                         (Registrant's telephone number)


Indicate by check mark whether the registrant (1) has filed all reports required
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 of the registrant's  Common Stock  outstanding on March 31,
1999 was 31,771,505.

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<PAGE>

                       INTELIDATA TECHNOLOGIES CORPORATION

                          QUARTERLY REPORT ON FORM 10-Q

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

PART I - FINANCIAL INFORMATION

         Item 1.  Unaudited Condensed Consolidated Financial Statements

                  Condensed Consolidated Balance Sheets
                  March 31, 1999 and December 31, 1998 ........................3

                  Condensed Consolidated Statements of Operations
                  Three Months Ended March 31, 1999 and 1998 ..................4

                  Condensed Consolidated Statement of Changes in
                  Stockholders' (Deficit) Equity
                  Three Months Ended March 31, 1999............................5

                  Condensed Consolidated Statements of Cash Flows
                  Three Months Ended March 31, 1999 and 1998...................6

                  Notes to Condensed Consolidated Financial Statements ........7

         Item 2.  Management's Discussion and Analysis of Financial Condition
                  and Results of Operations ...................................9


PART II - OTHER INFORMATION

         Item 6.  Exhibits and Reports on Form 8-K............................16


SIGNATURE.....................................................................17

<PAGE>

PART I:   FINANCIAL INFORMATION
-------------------------------

ITEM 1.   FINANCIAL STATEMENTS
------------------------------

                       INTELIDATA TECHNOLOGIES CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                      MARCH 31, 1999 AND DECEMBER 31, 1998
                  (in thousands, except share data; unaudited)

<TABLE>
                                                                                    1999            1998       
                                                                                ------------    ------------
<S>                                                                             <C>             <C>
ASSETS
  CURRENT ASSETS
     Cash and cash equivalents                                                  $      6,395    $      8,050
     Accounts receivable, net of allowances
      of $697 in 1999 and $592 in 1998                                                 2,083           2,113
     Prepaid expenses and other current assets                                            97             143
                                                                                ------------    ------------
         Total current assets                                                          8,575          10,306

  NONCURRENT ASSETS
     Property and equipment, net                                                         272             348
     Other assets                                                                        257             257
                                                                                ------------    ------------

TOTAL ASSETS                                                                    $      9,104    $     10,911
                                                                                ============    ============
                
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
  CURRENT LIABILITIES
     Accounts payable                                                           $      1,628    $      1,344
     Accrued expenses and other liabilities                                              838             910
     Deferred revenues                                                                 2,923           3,056
     Net liabilities of discontinued operations                                        4,761           5,270
                                                                                ------------    ------------

TOTAL CURRENT LIABILITIES                                                             10,150          10,580

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' (DEFICIT) EQUITY
     Preferred stock, $0.001 par value; authorized 5,000,000 shares;
        no shares issued and outstanding                                                  --              --
     Common stock, $0.001 par value; authorized 60,000,000 shares;
        issued 32,453,005 shares in 1999 and 32,293,005 shares in 1998;
        outstanding 31,771,505 shares in 1999 and 31,611,505 shares in 1998               32              32
     Additional paid-in capital                                                      247,684         247,359
     Treasury stock, at cost                                                          (2,064)         (2,064)
     Deferred compensation                                                              (333)           (152)
     Accumulated deficit                                                            (246,365)       (244,844)
                                                                                ------------    ------------
TOTAL STOCKHOLDERS' (DEFICIT) EQUITY                                                  (1,046)            331
                                                                                ------------    ------------

TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY                            $      9,104    $     10,911
                                                                                ============    ============
</TABLE>

     See accompanying notes to condensed consolidated financial statements.

<PAGE>

                       INTELIDATA TECHNOLOGIES CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   THREE MONTHS ENDED MARCH 31, 1999 AND 1998
                (in thousands, except per share data; unaudited)
<TABLE>
                                                                             1999              1998      
                                                                         -------------    --------------
<S>                                                                      <C>              <C>
Revenues
      Software                                                           $         162    $           --
      Consulting and services                                                      189               148
      Leasing and other                                                          1,773             2,323   
                                                                         -------------    --------------
                  Total revenues                                                 2,124             2,471
                                                                         -------------    --------------

Cost of revenues
      Software                                                                      16                --
      Consulting and services                                                       41                 9
      Leasing and other                                                            380               705   
                                                                         -------------    --------------
                  Total cost of revenues                                           437               714
                                                                         -------------    --------------

                  Gross profit                                                   1,687             1,757

Operating expenses
      General and administrative                                                 1,638             1,435
      Selling and marketing                                                        708               642
      Research and development                                                     905               641
                                                                         -------------    --------------
                  Total operating expenses                                       3,251             2,718
                                                                         -------------    --------------
                  Operating loss                                                (1,564)             (961)
                                                                         -------------    --------------

Other income                                                                        43               136
                                                                         -------------    --------------

Loss before income taxes                                                        (1,521)             (825)
Income taxes                                                                        --                --    
                                                                         -------------    --------------

Net loss from continuing operations                                             (1,521)             (825)

Discontinued operations:
      Loss from operation of telecommunications and
        interactive services (net of income taxes)                                  --            (3,237)
      Loss on disposal of telecommunications and
        interactive services (net of income taxes)                                  --              (760)
                                                                         -------------    --------------
            Total discontinued operations                                           --            (3,997)
                                                                         -------------    --------------
Net loss                                                                 $      (1,521)   $       (4,822)
                                                                         =============    ==============

Basic and diluted loss from continuing operations
  per common share                                                       $       (0.05)   $        (0.03)
                                                                         =============    ==============
Basic and diluted loss from discontinued operations
  per common share                                                       $        0.00    $        (0.12)
                                                                         =============    ==============
Basic and diluted loss per common share                                  $       (0.05)   $        (0.15)
                                                                         =============    ==============
Basic and diluted weighted average shares                                       31,693            31,171
                                                                         =============    ==============
</TABLE>

     See accompanying notes to condensed consolidated financial statements.
<PAGE>

                       INTELIDATA TECHNOLOGIES CORPORATION
  CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' (DEFICIT) EQUITY
                        THREE MONTHS ENDED MARCH 31, 1999
                            (in thousands; unaudited)



<TABLE>

                                        Common Stock     Additional                         
                                      -----------------   paid-in    Treasury     Deferred    Accumulated  Comprehensive
                                       Shares   Amount    capital      Stock    Compensation    Deficit         Loss        Total
                                      -------- --------  ----------  ---------  ------------  -----------  -------------  ----------
<S>                                   <C>      <C>       <C>         <C>        <C>           <C>          <C>            <C>

Balance at December 31, 1998           31,612  $    32   $ 247,359   $ (2,064)  $      (152)   $(244,844)  $          -   $     331
  Issuance of common stock:
      Exercise of stock options           100        -          98          -             -            -              -          98
  Issuance of restricted stock             69        -         111          -          (111)           -              -           -
  Issuance of stock warrants                -        -         141          -          (141)           -              -           -
  Cancellation of restricted stock         (9)       -         (25)         -            25            -              -           -
  Compensation expense                      -        -           -          -            46            -              -          46
  Net loss                                  -        -           -          -             -       (1,521)        (1,521)     (1,521)
                                      -------- --------  ----------  ---------  ------------  -----------  -------------  ----------
Balance at March 31, 1999               31,772 $    32   $ 247,684   $ (2,064)  $      (333)  $ (246,365)  $     (1,521)  $  (1,046)
                                      ======== ========  ==========  =========  ============  ===========  =============  ==========

</TABLE>







 
     See accompanying notes to condensed consolidated financial statements.

<PAGE>

                       INTELIDATA TECHNOLOGIES CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                   THREE MONTHS ENDED MARCH 31, 1999 AND 1998
                            (in thousands; unaudited)

<TABLE>
                                                                              1999              1998       
                                                                          ------------      ------------
<S>                                                                       <C>               <C>
Cash flows from operating activities
Net loss                                                                  $     (1,521)     $     (4,822)
Adjustments to reconcile net loss to net cash used in
operating activities:
   Loss from discontinued operations                                                --             3,237
   Loss on disposal of discontinued operations                                      --               760
   Depreciation and amortization                                                    76               188
   Provision for losses on accounts receivable                                     105                --
   Deferred compensation expense                                                   181                18
   Other noncash activities                                                         --                30
     Changes in certain assets and liabilities:
       Accounts receivable                                                         (30)            1,039
       Prepaid expenses and other current assets                                    46                78
       Accounts payable                                                            284               121
       Accrued expenses                                                            (72)           (1,568)
       Deferred revenues                                                          (133)              707  
                                                                          ------------      ------------
                 Net cash used in operating activities                          (1,064)             (212)  
                                                                          ------------      ------------

Cash used in operating activities of
  discontinued operations                                                         (689)             (382)

Cash flows from investing activities
       Proceeds from the sale of short-term investments                             --             4,296
       Purchases of property and equipment                                          --               (95)
                                                                          ------------      ------------
                 Net cash provided by investing activities                          --             4,201
                                                                          ------------      ------------

Cash flows from financing activities
       Proceeds from issuances of common stock, net of discount                     98                --
       Payment of short-term borrowings-discontinued operations                     --            (1,500)
                                                                          ------------      ------------
                 Net cash provided by (used in) financing activities                98            (1,500)  
                                                                          ------------      ------------

                 (Decrease) increase in cash and cash equivalents               (1,655)            2,107

Cash and cash equivalents, beginning of period                                   8,050             2,055
                                                                          ------------      ------------

Cash and cash equivalents, end of period                                  $      6,395      $      4,162
                                                                          ============      ============
</TABLE>

     See accompanying notes to condensed consolidated financial statements.

<PAGE>


                       INTELIDATA TECHNOLOGIES CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                   THREE MONTHS ENDED MARCH 31, 1999 AND 1998
                                   (Unaudited)


(1)      Basis of Presentation

                  The  condensed   consolidated   balance  sheet  of  InteliData
         Technologies  Corporation  ("InteliData"  or "Company") as of March 31,
         1999, and the related condensed  consolidated  statements of operations
         and cash flows for the three  month  periods  ended  March 31, 1999 and
         1998  presented  in this Form 10-Q are  unaudited.  In the  opinion  of
         management,  all adjustments  necessary for a fair presentation of such
         financial statements have been included.  Such adjustments consist only
         of  normal  recurring  items.   Interim  results  are  not  necessarily
         indicative  of  results  for a full  year.  Certain  amounts  have been
         reclassified to conform to the current year presentation.

                  The condensed  consolidated financial statements and notes are
         presented  as  required  by  Form  10-Q,  and  do not  contain  certain
         information   included  in  the  Company's  annual  audited   financial
         statements  and notes.  These  financial  statements  should be read in
         conjunction with the annual audited financial statements of the Company
         and the  notes  thereto,  together  with  management's  discussion  and
         analysis of financial condition and results of operations, contained in
         the Form 10-K for the fiscal year ended December 31, 1998.

(2)      Subsequent Events

                  On April 16, 1999,  the Company  announced that it had entered
         into a letter of intent with Home Financial  Network,  Inc. ("HFN"),  a
         Delaware corporation. The letter of intent contemplates that InteliData
         and HFN shall  each be  merged  with and into a  newly-formed  Delaware
         corporation  ("Newco").  The  merger  is  subject  to  execution  of  a
         definitive agreement, InteliData and HFN stockholder approval and other
         customary  conditions.   Under  the  letter  of  intent,   InteliData's
         stockholders would receive  approximately 63% of the stock of Newco and
         HFN's stockholders approximately 37%.

                  On April 5,  1999,  the  Company  entered  into an  employment
         agreement with Alfred S. Dominick,  Jr.,  President and Chief Executive
         Officer. As part of the agreement, a stock award was granted which will
         result in a charge of $244,000 to the second quarter income statement.

(3)      Segment Reporting

                  The company  maintains  operations  in two  primary  operating
         segments:  Internet Banking and Leasing.  The basis for determining the
         Company's   operating   segments  is  the  manner  in  which  financial
         information  is  used  by the  Company  in its  operations.
<PAGE>

         Management  operates and organizes  itself according  to business units
         which comprise unique products  and services.  Operating  (loss) income
         in these two market  segments  represents total revenues less operating
         expenses,  and  excludes  other  income and expense  and income  taxes.
         Segment financial information is as follows (in thousands):


         -----------------------------------------------------------------------
                                       Internet Banking   Leasing   Consolidated
         -----------------------------------------------------------------------
         1999 First Quarter
             Revenues                     $    1,034      $ 1,090     $   2,124
             Operating (loss) income          (1,944)         380        (1,564)


         1998 First Quarter
             Revenues                     $      807      $ 1,664     $   2,471
             Operating (loss) income          (1,789)         964          (825)

         -----------------------------------------------------------------------

<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
----------------------------------------------------------
         CONDITION AND RESULTS OF OPERATIONS
         -----------------------------------


THREE MONTHS ENDED MARCH 31, 1999 AND 1998

Revenues

         The Company's  first quarter  revenues were $2,124,000 in 1999 compared
to  $2,471,000  in 1998,  a decrease of  $347,000.  The  decrease is  attributed
primarily  to the  expected  decrease in the  billable  Caller ID leases and was
partially offset by recognized  software  revenues.  During the first quarter of
1999,   software  revenues   contributed   $162,000,   consulting  and  services
contributed $189,000 and other revenues contributed  $1,773,000.  Other revenues
consisted of $1,090,000  from leasing  activities,  and $683,000 from  royalties
relating to the Visa Bill-Pay System.

         During the first  quarter of 1998,  there  were no  software  revenues,
consulting  and services  contributed  $148,000 and other  revenues  contributed
$2,323,000.  Other revenues consisted of $1,698,000 from leasing activities, and
$625,000 from royalties relating to the Visa Bill-Pay System.

Cost of Revenues

         The  Company's  first  quarter  cost of revenues  was  $437,000 in 1999
compared to $714,000 in 1998, a decrease of $277,000. The decrease is attributed
primarily  to the change in  product  mix and  decreased  costs on the Caller ID
leasing  activities,  which earned 65% gross profit  margins in 1999 compared to
58% gross profit  margins in 1998.  During the first  quarter of 1999,  software
cost of  revenues  contributed  $16,000,  consulting  and  services  contributed
$41,000 and other cost of revenues contributed $380,000.
Other cost of revenues consisted of expenses associated with leasing activities.

         During  the first  quarter  of 1998,  there  were no  software  cost of
revenues,  consulting and services contributed $9,000 and other cost of revenues
contributed  $705,000.  Other cost of revenues consisted of expenses  associated
with leasing activities.

         Overall gross profit margins  increased to 79% for the first quarter of
1999  from 71% for the first  quarter  of 1998.  The  increase  in gross  profit
margins was  attributed  primarily to the lack of  depreciation  expense for the
leasing  activities  in the first  quarter of 1999.  The lease base became fully
depreciated during the first quarter of 1998. The Company anticipates that gross
profit  margins  may  fluctuate  in the future due to changes in product mix and
distribution, competitive pricing pressure, the introduction of new products and
changes in the volume and terms of leasing activity.
<PAGE>

General and Administrative

         General  and  administrative  expenses  were  $1,638,000  for the first
quarter of 1999 as  compared to  $1,435,000  in the first  quarter of 1998.  The
increase of $203,000 was  primarily  the result of  relocation  expenses for the
Company's  headquarters.  Throughout  the year,  the Company  expects to control
general  and  administrative  expenses  and  plans  to  continually  assess  its
operations in managing the continued development of infrastructure to handle the
anticipated business levels.

Selling and Marketing

         Selling and  marketing  expenses  increased  to $708,000  for the first
quarter of 1999 from  $642,000  for the same period last year.  The  increase is
attributed  primarily  to  increases  in the  number of  Selling  and  Marketing
employees,  travel and professional  services,  advertising and trade shows. The
Company's primary emphasis in the first quarter of 1999 was on marketing efforts
in promoting the Company's brand name products.

Research and Development

         Research and  development  costs were  $905,000 in the first quarter of
1999 as  compared  to  $641,000  for the same  period in 1998.  The  increase of
$264,000 was largely attributable to increases in employee expenses,  as well as
outside consulting services,  expansion of the Company's development facility in
Ohio and  noncapitalized  equipment  purchases.  The Company  primarily  invests
research  and  development  expenses in writing  and  developing  the  Interpose
Transaction Engine for the Open Financial Exchange ("OFX") standard.

Other Income

         Other  income,  primarily  interest  income,  was $43,000 for the first
quarter of 1999 compared to $136,000 for the same period in the prior year.  The
decrease  of  $93,000  was  due to  decreased  cash  and  cash  equivalents  and
short-term  investment  balances for the first  quarter of 1999  compared to the
first  quarter  of  1998,  primarily  related  to use  of  investments  to  fund
operations  during 1998. The Company did not incur interest expense in the first
quarters of 1999 and 1998.

Discontinued Operations

         Discontinued  operations for the Company consist of business activities
of the telecommunications  and interactive services divisions.  During 1998, the
Company  recorded  liabilities  to account for the  operations and activities of
discontinued operations. For the first quarter of 1998, the loss from operations
of discontinued  operations  (net of income taxes) was  $3,237,000;  the loss on
disposal  of  discontinued  operations  was  $760,000.  Discontinued  operations
reported  revenues of $662,000 and $14,855,000  during the first quarter of 1999
and 1998, respectively.
<PAGE>

Weighted Average Outstanding Shares and Basic and Diluted Loss Per Common Share

         The basic  and fully  diluted  weighted  average  shares  increased  to
31,693,000  for the first quarter of 1999  compared to 31,171,000  for the first
quarter of 1998.  The  increase  resulted  primarily  from the exercise of stock
options  and the  granting  of certain  stock  awards  during 1998 and the first
quarter  of 1999.  As a result of the  foregoing,  basic and  diluted  loss from
continuing  operations  per common  share was  $(0.05) and $(0.03) for the first
quarter of 1999 and 1998, respectively. Basic and diluted loss from discontinued
operations  per common share was $0.00 and $(0.12) for the first quarter of 1999
and 1998, respectively.  Basic and diluted loss per common share was $(0.05) and
$(0.15) for the first quarter of 1999 and 1998, respectively.


LIQUIDITY AND CAPITAL RESOURCES

         During the first quarter of 1999, the Company's  cash,  equivalents and
short-term  investments  decreased by $1,655,000 resulting from the financing of
current operations and working capital as well as cash expenses  associated with
discontinued  operations.  At March 31, 1999, the Company had $6,395,000 in cash
and cash  equivalents.  Cash  equivalents are investments that are highly secure
and are considered to be available-for-sale.  At March 31, 1999, the Company had
negative  working  capital of $1,575,000  with no long-term  debt. The Company's
total liabilities exceeded total assets by $1,046,000.

         During the first quarter of 1999, cash used in operating activities was
$1,064,000  compared to  $212,000  in the same  period in 1998.  Cash flows from
operations  during the first  quarter of 1999  include  uses of cash for certain
fixed costs in operating expenses, and payment of certain liabilities, offset in
part by net cash generated from the Company's net activities of prepaid expenses
and accounts payable.

         Discontinued  operations  used  $689,000  in the first  quarter of 1999
compared to using $382,000 in the first quarter of 1998.  Cash used in the first
quarter of 1999 was  primarily  attributed  to crediting  retail  customers  for
returned product and payroll associated with certain employees,  offset by sales
of inventories.

         The  Company  did not have any  investing  activities  during the first
quarter of 1999 compared to providing $4,201,000 during the same period in 1998.
During the first  quarter of 1998,  cash  provided by investing  activities  was
primarily  contributed by the sale of short-term  investments  offset in part by
the purchase of certain property and equipment,  primarily to support an upgrade
for the Company's internal networks.

         Financing  activities  provided  $98,000  in the first  quarter of 1999
compared to using $1,500,000 in the same period in 1998. Financing activities in
the first  quarter of 1999  consisted of proceeds from the sale of the Company's
common stock through stock option exercises.  Financing  activities in the first
quarter  of 1998  consisted  of the  repayment  of  short-term  borrowings  from
December 31, 1997.
<PAGE>

         The Company's  continuation  as a going  concern is dependent  upon its
ability to generate  sufficient  cash flows to meet its  obligations on a timely
basis, to obtain additional  financing,  and ultimately to attain profitability.
To that extent,  management has retained an investment banking firm to assist in
investigating  additional financing sources and has signed a letter of intent to
merge with Home Financial Network,  Inc., which has substantially more cash than
the Company.

         In addition,  the Company's  accuracy in  predicting  revenues and cash
flow is limited in that the sale of the Company's core product is reliant on the
banking industry's willingness to invest in a new market, internet banking. This
market  segment is slowly  evolving  and is subject to a number of  variables in
1999 that will  determine  the timing and quantity of new sales that the Company
is able to achieve.  Such variables include: (1) the effect of consolidations in
the  banking  industry;  (2)  financial  institutions'  progress  on  Year  2000
compliance;  and (3) the banking  customers'  willingness to invest freely in an
untested customer channel.  These reasons further require that the Company raise
additional  working  capital in order to have  adequate  funds in 1999 to remain
competitive as the product demand evolves.

         The Company received  notification from the Nasdaq Stock Market that it
intended to delist the  Company's  common  stock from the Nasdaq  Stock  Market,
effective  May 4,  1999,  due to the  Company's  failure  to meet  Nasdaq's  net
tangible  asset  requirement  of $4 million.  InteliData  has appealed  Nasdaq's
decision in  accordance  with  Nasdaq  procedures,  initially  by  requesting  a
hearing.  Such a hearing  would likely be  scheduled  during the second or third
calendar quarter of 1999.  InteliData has taken steps to remedy its net tangible
asset  deficiency and intends to adopt further measures in an effort to maintain
its Nasdaq listing.  InteliData  believes that its proposed merger with HFN will
permit  the  Company  to comply  with  Nasdaq's  listing  requirements.  Until a
decision is made by Nasdaq's Listings Hearings Department,  the Company's common
stock will remain  listed on Nasdaq.  If  InteliData  is not  successful  in its
appeal,  its common stock will continue to trade on the over the counter  market
or on another  appropriate  trading  exchange or market.  The decision by Nasdaq
will have no effect on the Company's day-to-day business operations.

YEAR 2000 UPDATE

General
-------

         The  inability of  computers,  software and other  equipment  utilizing
microprocessors  to recognize  and properly  process data fields  containing a 2
digit year is commonly  referred to as the Year 2000  Compliance  issue.  As the
year 2000 approaches,  such systems may be unable to accurately  process certain
date-based information.

         The Company  believes it has  identified all  significant  applications
that will  require  modification  to ensure Year 2000  Compliance.  Internal and
external  resources are being used to make the required  modifications  and test
Year 2000 Compliance.
<PAGE>

Project
-------

         The Company's Year 2000 Project ("Project") is generally  proceeding on
schedule.  In  1996,  the  Company  began a  significant  re-engineering  of its
business  processes  across the Company  including  improved  access to business
information  through common,  integrated  computing  systems.  As a result,  the
Company  replaced its business systems with systems from J.D. Edwards & Company,
IBM  Corporation and Microsoft  Corporation,  which are designed to be Year 2000
Compliant. The Company became fully operational on these systems in 1998.

         The Company has a Project  team,  with  certain sub teams.  The Project
includes four major areas - corporate business systems,  local software systems,
third party suppliers of goods and services, and Interpose software systems. The
general  phases of the Project  are:  (1)  inventorying  date-aware  items;  (2)
determining  criticality  and  assigning  priorities to  identified  items;  (3)
assessing  the Year 2000  compliance  of items  determined to be material to the
Company; (4) repairing,  replacing or identifying workarounds for material items
that are determined not to be Year 2000 Compliant;  (5) testing  material items;
(6) identifying critical third parties; and (7) designing contingency plans.

         At  September  30,  1998,  the  inventory,   priority   assessment  and
compliance  assessment  phases  of each  area of the  Project  were  essentially
complete.  Material  items  are those  believed  by the  Company  to have a risk
involving the welfare of our customers or substantially affect revenues.

         Corporate  business  systems  proceeding  on schedule or complete as of
March  31,  1999   include   hardware   and  systems   software,   networks  and
telecommunications. All corporate systems activities are expected to be complete
by mid-1999.

         Local software  systems  include  process  control and  instrumentation
systems and building systems.  Operational improvement projects already underway
address  some of the Year  2000  concerns.  Some  manufacturer  replacements  or
upgrades  are  behind  schedule;   however,   the  Company  estimates  necessary
replacements or upgrades will be completed by mid-1999.

         The third party suppliers phase includes the process of identifying and
prioritizing  critical  suppliers of goods and services,  and communicating with
them about their plans and progress in addressing  the Year 2000  concerns.  The
Company has recently initiated the  identification  phase which will be followed
by an evaluation of the most critical third parties.  These  evaluations will be
followed by the development of contingency  plans as necessary,  including plans
to use  alternative  third party  vendors,  if necessary.  This Project phase is
scheduled  for  completion  by mid-1999,  with  monitoring  planned  through the
remainder of 1999.

         The   Company   has   contingency   plans  for  some   mission-critical
applications and is working on plans for others. For example,  contingency plans
for the  payroll  system  have been in place  since the second  quarter of 1998,
while detailed plans for other business  processes will be completed by mid-year
1999.  A steering  committee  is closely  monitoring  the  progress  of
<PAGE>

business  process  contingency  plans  involving,  among other  actions,  manual
workarounds and additional staffing.

         The Interpose  software phase included  actions to address the issue of
Year 2000  Compliance  as it relates to the  Company's  customer  software.  The
Company believes that its current version of the Interpose software is Year 2000
Compliant. Actions taken to address previous releases of the software were, with
minor exceptions, programming changes to replace a non-compliant date conversion
routine  with one that was  already  Year 2000  compliant.  Any  customer  whose
product was not already compliant was notified of any source code changes and/or
release  updates  made to the  product.  The Company  has issued  letters to its
customers  that assure that any changes  pertinent to the  correcting  Year 2000
concerns  were  addressed  by the  third  quarter  of 1997 and  that all  future
releases of Interpose will be fully year 2000 compliant.

Costs
-----

         The estimated  total cost  associated  with required  modifications  to
become Year 2000 compliant has not been and is not anticipated to be material to
the Company's financial position or results of operations in any given year. The
estimated  total  cost  of the  Project  is or  will be  expensed  and  includes
allowances  for  some  items  for  which  a fix or  workaround  is  still  being
determined.

Risks
-----

         The failure to correct a material  Year 2000 problem could result in an
interruption in, or failure of certain normal business activities or operations,
which could materially and adversely affect the Company's results of operations,
liquidity and financial  condition.  Due to the general uncertainty  inherent in
the Year 2000 problem,  resulting in part from the  uncertainty of the Year 2000
readiness  of  third-party  suppliers  and  customers,  the Company is unable to
determine at this time whether the  consequences of Year 2000 problems will have
a material impact on the Company's results of operations, liquidity or financial
condition.  The Project is expected to reduce  significantly the Company's level
of uncertainty  about the Year 2000 problem and, in  particular,  about the Year
2000 compliance and readiness of its material third-party suppliers. The Company
believes that with the previously accomplished implementation of global business
systems and completion of the Project as scheduled,  the possibility of material
interruptions of normal operations should be reduced significantly.


CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995

         The  above  information  includes   forward-looking   statements,   the
realization  of which  may be  impacted  by the  factors  discussed  below.  The
forward-looking  statements  are made pursuant to the safe harbor  provisions of
the Private  Securities  Litigation Reform Act of 1995 (the "Act").  This report
contains forward looking statements that are subject to risks and uncertainties,
including,  but not limited to, the  successful  completion  of the  anticipated
merger with Home
<PAGE>

Financial  Network,  Inc.,  successful   implementation  of  business  strategy,
liquidity  and  capital  resources,  developing  internet  banking  marketplace,
fluctuations  in  operating  results,  reliance  on Caller ID leasing  revenues,
InteliData  common stock owned by  WorldCorp  and World  Airways,  technological
considerations,  competition,  dependence on key employees,  volatility of stock
price,  the  Company's  ability to continue  its listing on the Nasdaq  National
Market,  limited proprietary  protection,  and other risks detailed from time to
time in the  Company's  filings with the  Securities  and  Exchange  Commission,
including the risk factors  disclosed in the Company's  Form 10-K for the fiscal
year ended  December  31,  1998.  These risks could cause the  Company's  actual
results for 1999 and beyond to differ  materially  from those  expressed  in any
forward looking statements made by, or on behalf of, the Company.  The foregoing
list of factors  should  not be  construed  as  exhaustive  or as any  admission
regarding  the  adequacy of  disclosures  made by the Company  prior to the date
hereof or the effectiveness of said Act.

<PAGE>

PART II:  OTHER INFORMATION
---------------------------

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K
------------------------------------------


(a)       Exhibits (* denotes filed herewith)
          --------

          * 10.14    Employment Agreement dated April 5, 1999 between InteliData
                     Technologies Corporation and Alfred S. Dominick, Jr.

(b)       Reports on Form 8-K
          -------------------

          The Company filed a Current  Report on Form 8-K with the Securities
          and Exchange Commission on April 19, 1999.

<PAGE>

                                    SIGNATURE


         Pursuant  to the  requirements  of the  Securities  Act  of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


                                 INTELIDATA TECHNOLOGIES CORPORATION



                                 By:   /s/ Alfred S. Dominick, Jr.
                                       -------------------------------------
                                       Alfred S. Dominick, Jr.
                                       President and Chief Executive Officer