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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, 1997           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)

               13100 Worldgate Drive, Suite 600, Herndon, VA 20170
                    (Address of Principal Executive Offices)
                                 (703) 834-8500
                         (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,
1997 was 31,816,693.


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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, 1997 and December 31, 1996 .............................. 3

           Condensed Consolidated Statements of Operations
           Three Months Ended March 31, 1997 and 1996 ........................ 4

           Condensed Consolidated Statement of Changes in Stockholders' Equity
           Three Months Ended March 31, 1997.................................. 5

           Condensed Consolidated Statements of Cash Flows
           Three Months Ended March 31, 1997 and 1996......................... 6

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

  Item 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations ......................................... 8


PART II - OTHER INFORMATION

  Item 6.  Exhibits and Reports on Form 8-K...................................12


SIGNATURES..................................................................  13

<PAGE>
PART I:  FINANCIAL INFORMATION
------------------------------

ITEM 1:  FINANCIAL STATEMENTS
-----------------------------

<TABLE>
                                         INTELIDATA TECHNOLOGIES CORPORATION
                                        CONDENSED CONSOLIDATED BALANCE SHEETS
                                        MARCH 31, 1997 AND DECEMBER 31, 1996
                                          (in thousands, except share data)
<CAPTION>

                                                                                   1997               1996
                                                                                -----------        -----------
                                                                                (unaudited)
<S>                                                                             <C>                <C>
ASSETS
 CURRENT ASSETS
     Cash and cash equivalents                                                  $    18,596        $    26,644
     Short-term investments                                                           9,906             12,418
     Accounts receivable, net of reserves of
         $1,374 in 1997 and $1,788 in 1996                                           22,221             12,925
     Inventories                                                                     27,134             28,420
     Prepaid expenses and other current assets                                        1,323              2,582
                                                                                -----------        -----------
         Total current assets                                                        79,180             82,989
                                                                                -----------        -----------

 NONCURRENT ASSETS
     Costs in excess of net assets acquired                                          49,327             50,061
     Property, plant and equipment, net                                               7,412              9,143
     Other assets                                                                     1,376              1,553
                                                                                -----------        -----------
TOTAL ASSETS                                                                    $   137,295        $   143,746
                                                                                ===========        ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
  CURRENT LIABILITIES
     Accounts payable                                                           $     2,769        $     4,684
     Accrued expenses and other liabilities                                          10,043             12,773
     Short-term borrowings                                                               --              2,000
                                                                                -----------        -----------
TOTAL LIABILITIES                                                                    12,812             19,457
                                                                                -----------        -----------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; authorized 5,000,000 shares in 1997
  and 1996; no shares issued and outstanding in 1997 and 1996                            --                 --
Common stock, $0.001 par value; authorized 60,000,000 shares in 1997
  and 1996; issued and outstanding 31,816,693 shares in 1997 and 1996                    32                 32
Additional paid-in capital                                                          243,757            243,757
Receivable from sale of stock                                                        (2,456)            (2,456)
Deferred compensation                                                                  (104)              (133)
Accumulated deficit                                                                (116,746)          (116,911)
                                                                                -----------        -----------
TOTAL STOCKHOLDERS' EQUITY                                                          124,483            124,289
                                                                                -----------        -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                      $   137,295        $   143,746
                                                                                ===========        ===========


                      See accompanying notes to condensed consolidated financial statements.
</TABLE>

<PAGE>
<TABLE>
                                      INTELIDATA TECHNOLOGIES CORPORATION
                                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  THREE MONTHS ENDED MARCH 31, 1997 AND 1996
                               (in thousands, except per share data; unaudited)
<CAPTION>
                                                                                   1997               1996
                                                                                -----------        -----------
<S>                                                                             <C>                <C>
REVENUES
     Consumer telecommunications                                                $    20,408        $       777
     Electronic commerce                                                              1,148                549
     Interactive services                                                                 8                 --
                                                                                -----------        -----------
         Total revenues                                                              21,564              1,326
                                                                                -----------        -----------

COST OF REVENUES
     Consumer telecommunications                                                     13,027                612
     Electronic commerce                                                                795                318
     Interactive services                                                                 6                 --
                                                                                -----------        -----------
         Total cost of revenues                                                      13,828                930
                                                                                -----------        -----------
         Gross profit                                                                 7,736                396

OPERATING EXPENSES
     General and administrative                                                       3,098              1,841
     Selling and marketing                                                            2,036                 29
     Research and development                                                         2,083                559
     Goodwill amortization                                                              770                 --
                                                                                -----------        -----------
         Total operating expenses                                                     7,987              2,429
                                                                                -----------        -----------
         Operating loss                                                                (251)            (2,033)
                                                                                -----------        -----------

OTHER INCOME
     Interest, net                                                                      439                359
     Equity in loss of affiliate                                                         --               (426)
     Other, net                                                                          --                112
                                                                                -----------        -----------
         Total other income                                                             439                 45
                                                                                -----------        -----------

Income (loss) before income taxes                                                       188             (1,988)
     Income taxes                                                                        23                 --
                                                                                -----------        -----------
Net income (loss)                                                               $       165        $    (1,988)
                                                                                ===========        ===========
Net income (loss) per common share                                              $      0.01        $     (0.13)
                                                                                ===========        ===========
Weighted average outstanding shares                                                  32,223             15,783
                                                                                ===========        ===========



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


<TABLE>
                                           INTELIDATA TECHNOLOGIES CORPORATION
                              CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                                          THREE MONTHS ENDED MARCH 31, 1997
                                              (in thousands; unaudited)

<CAPTION>
                                            Common Stock       Additional   Receivable
                                         ------------------     paid-in      from sale      Deferred      Accumulated
                                         Shares     Amount      capital      of stock     Compensation      Deficit        Total
                                         ------   ---------    ----------   ----------    ------------    -----------   ----------
<S>                                      <C>      <C>          <C>          <C>           <C>             <C>           <C>
Balance at December 31, 1996             31,817   $      32    $ 243,757     $ (2,456)      $ (133)       $ (116,911)   $  124,289
  Compensation expense                                                                          29                              29
  Net income                                                                                                     165           165
                                         ------   ---------    ---------     ---------      -------       -----------   ----------
Balance at March 31, 1997                31,817   $      32    $ 243,757     $ (2,456)      $ (104)       $ (116,746)   $  124,483
                                         ======   =========    =========     =========      =======       ===========   ==========





























                      See accompanying notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
                                      INTELIDATA TECHNOLOGIES CORPORATION
                                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  THREE MONTHS ENDED MARCH 31, 1997 AND 1996
                                           (in thousands; unaudited)
<CAPTION>
                                                                                   1997              1996
                                                                                -----------       -----------
<S>                                                                             <C>               <C>
Cash flows from operating activities
Net income (loss)                                                               $       165       $    (1,988)
Adjustments to reconcile net loss to net cash used in
operating activities:
   Depreciation and amortization                                                      2,139                93
   Equity in loss of affiliate                                                           --               426
   Other noncash activities                                                             693               (72)
   Changes in certain assets and liabilities, net of effects of noncash
     transactions:
       Accounts receivable                                                           (9,296)               51
       Inventories                                                                    1,286                50
       Due from affiliates                                                               --              (264)
       Prepaid expenses and other current assets                                      1,259                 7
       Accounts payable                                                              (1,915)             (673)
       Accrued expenses and other liabilities                                        (2,730)             (334)
                                                                                -----------       -----------
                 Net cash used in operating activities                               (8,399)           (2,704)
                                                                                -----------       -----------

Cash flows from investing activities
       Proceeds from the sale of short-term investments                               2,512                --
       Purchases of property and equipment                                             (161)             (318)
       Proceeds from sale of property and equipment                                      --               112
                                                                                -----------       -----------
             Net cash provided by (used in) investing activities                      2,351              (206)
                                                                                -----------       -----------

Cash flows from financing activities
       Payment of short-term borrowings                                              (2,000)               --
       Proceeds from issuance of common stock                                            --               517
                                                                                -----------       -----------
             Net cash provided by (used in) financing activities                     (2,000)              517
                                                                                -----------       -----------

             Decrease in cash and cash equivalents                                   (8,048)           (2,393)

Cash and cash equivalents, beginning of period                                       26,644            25,120
                                                                                -----------       -----------
Cash and cash equivalents, end of period                                        $    18,596       $    22,727
                                                                                ===========       ===========








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


               INTELIDATA TECHNOLOGIES CORPORATION AND SUBSIDIARY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


(1)  Basis of Presentation

          The condensed consolidated balance sheet as of March 31, 1997, and the
     related condensed consolidated  statements of operations and cash flows for
     the three month  periods  ended March 31, 1997 and 1996  presented  in this
     Form 10-Q represent the results of InteliData Technologies  Corporation for
     1997 and the historical results of US Order, Inc. ("US Order") for 1996. On
     November 7, 1996, US Order and Colonial Data Technologies Corp.  ("Colonial
     Data")   merged   with  and  into   InteliData   Technologies   Corporation
     ("InteliData" or the "Company").

          The condensed consolidated balance sheet of InteliData as of March 31,
     1997, and the related condensed  consolidated  statements of operations and
     cash flows for the three month periods  ended March 31, 1997 and 1996,  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, 1996.

(2)  New Accounting Standards

          Statement  of Financial  Accounting  Standards  No. 128,  Earnings Per
     Share  ("SFAS  128")  was  issued in  February  1997 and is  effective  for
     financial   statements  issued  after  December  15,  1997.  The  statement
     establishes  new standards for computing and presenting  earnings per share
     ("EPS") and will  require  restatement  of prior years'  information.  This
     statement  simplifies the standards for computing EPS  previously  found in
     APB Opinion 15. It replaces the  presentation  of primary and fully diluted
     EPS with a  presentation  of basic EPS and  diluted  EPS,  requires  a dual
     presentation  on the  face of the  financial  statements,  and  requires  a
     reconciliation  of basic EPS to diluted EPS. The  presentation of basic EPS
     and diluted EPS would have been the same as EPS  actually  reported for the
     respective periods.
<PAGE>
ITEM 2: MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        ------------------------------------------------------------------------
        OF OPERATIONS
        -------------

RESULTS OF OPERATIONS
---------------------

The following  represents the results of operations for InteliData for the three
months  ended March 31, 1997 and 1996.  Results for the three months ended March
31, 1997 represent the  operations of  InteliData;  results for the three months
ended March 31, 1996 were based on the stand alone operations of US Order, Inc.,
the predecessor corporation to InteliData.

THREE MONTHS ENDED MARCH 31, 1997 AND 1996

Revenues

     The Company's first quarter  revenues were  $21,564,000 in 1997 compared to
$1,326,000  in  1996 an  increase  of  $20,238,000.  Revenues  generated  by the
consumer  telecommunications  division were $20,408,000 during the first quarter
of 1997. Consumer  telecommunications  division revenues are generated primarily
from  marketing  and  promotional  campaigns  for  Caller ID units and  services
conducted by telephone operating companies and the Company.  Contributing to the
consumer  telecommunications  revenues were $16,691,000 from Caller ID and small
business  product  shipments  on the  sale of  approximately  543,000  adjuncts,
telephones and small business key systems; $2,818,000 from customers within a US
West  Communications  leasing  program;  and  $899,000 in the  telephone  repair
business.

     The electronic commerce division contributed  $1,148,000 in revenues in the
first  quarter of 1997, a 109%  increase over the same period in the prior year.
The increase is primarily  attributed to the expansion of the division's product
sales which  aggregated  $636,000  for the first  quarter of 1997.  Service fees
revenues for the first  quarter of 1997 were  $512,000  compared to $549,000 for
the same period in 1996, a decrease of $37,000.  The Company's  customer support
revenues,  which  are  remarketed  by Visa  InterActive  to Visa  member  banks,
increased 86% and aggregated $364,000 for the first quarter of 1997, compared to
$196,000 for the same period in the prior year.  Monthly  service fees  revenues
decreased to $60,000 in 1997 from  $90,000 for the same period in 1996.  Monthly
service  fees  revenues  are  from  customers  who  use the  Company's  previous
generation smart  telephones and associated  interactive  applications,  and the
decrease was primarily due to the Company's  continuing efforts to convert these
customers to Visa member banks.

Cost of Revenues

     The Company's  first quarter cost of revenues  increased to $13,828,000 for
1997 from $930,000 for the same period in 1996. The consumer  telecommunications
division  contributed  $13,027,000 of the total cost of revenues,  consisting of
$11,076,000  from the sale of Caller ID and small  business  product  shipments;
$1,446,000 from leasing activities and $505,000 from telephone repair services.
<PAGE>
     The  electronic  commerce  division  reported cost of revenues  aggregating
$795,000 for the first  quarter of 1997 or a 150%  increase over the same period
in the prior year. Cost of revenues from the electronic commerce division during
the first  quarter of 1997  consisted  of $105,000 in  software  product  sales,
$340,000  in  customer  service   expenses,   and  $350,000  in  consulting  and
professional  services  including  service cost of revenue related to generating
monthly fee revenues.

     Overall gross profit margins increased to 36% for the first quarter of 1997
from 30% for the first  quarter of 1996.  Gross profit  margins for the consumer
telecommunications,  electronic commerce and interactive services divisions were
36%, 31% and 25%,  respectively  for the first quarter of 1997. The gross profit
margin  derived from the sale of Caller ID and small  business units was 34% for
the first quarter of 1997. 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.

General and Administrative

     General and  administrative  expenses were $3,098,000 for the first quarter
of 1997 as compared to $1,841,000 in the first quarter of 1996.  The increase of
$1,257,000  was primarily the result of additional  staff  obtained  through the
merger with Colonial Data and the  acquisition of Braun  Simmons,  and upgrading
systems and operations in  anticipation  of the potential of increased  business
later in 1997.  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
increase in  business in both the  consumer  telecommunications  and  electronic
commerce divisions.

Selling and Marketing

     Selling  and  marketing  expenses  increased  to  $2,036,000  for the first
quarter of 1997 from  $29,000  for the same  period  last year.  The  Company is
increasing its marketing efforts in promoting the residential and small business
telecommunications  product  lines to retail  markets and to the  regional  Bell
operating  companies  and  other  telephone  operating  companies  with whom the
Company generates its product,  lease and service revenues. In the first quarter
of  1997,   selling  and  marketing  expenses  were  related  primarily  to  the
development of innovative marketing programs, paying salaries and commissions to
the Company's sales force and working with  telemarketers  and other third party
vendors to sell telecommunications products.

Research and Development

     Research and development costs were $2,083,000 in the first quarter of 1997
as compared to $559,000 for the same period in 1996.  The increase of $1,524,000
was   largely   attributable   to   developing,   designing   and   testing  new
telecommunications products and the Company's home banking connectivity products
and support  services and the Company's next generation  smart telephone and its
associated  interactive  services.  The  Company  has been  actively  engaged in
<PAGE>
research and development  since its inception and expects that these  activities
will be essential to the  operations  of the Company in the future.  The Company
also expects research and development  costs to increase during the remainder of
1997.

Goodwill Amortization

     The Company incurred  $770,000 in goodwill  amortization as a result of the
Company's  acquisition  of  Braun  Simmons  and  merger  with  Colonial  Data in
September and November 1996,  respectively.  With respect to goodwill from these
transactions,  goodwill is amortized on a  straight-line  basis over seven years
for the  acquisition  of Braun  Simmons  or fifteen  years for the  merger  with
Colonial Data.

Other Income

     Other income was $439,000 for the first quarter of 1997 compared to $45,000
for the same period in the prior year. Interest income, net was $439,000 for the
first quarter of 1997  compared to $359,000 for the first  quarter of 1996.  The
increase  of $80,000  was due to  increased  cash,  equivalents  and  short-term
investment  balances for the first quarter of 1997 compared to the first quarter
of 1996,  primarily  related to the merger  with  Colonial  Data which  provided
additional  cash,  equivalent and short-term  investment  balances.  The Company
incurred minimal interest expense in the first quarter of 1997 and 1996.  During
the first  quarter  of 1996,  the  Company  incurred a loss of  $426,000  in its
proportionate share of Home Financial Network,  Inc. and recognized other income
from the sale of assets of $112,000.

Weighted Average Outstanding Shares and Net Income (Loss) Per Common Share

     The  primary  and  fully  diluted  weighted  average  shares  increased  to
32,223,000  for the first quarter of 1997  compared to 15,783,000  for the first
quarter  of  1996.  The  increase  resulted  primarily  from  shares  issued  in
connection  with the  acquisition  of Braun,  Simmons & Co. and the merger  with
Colonial Data in September and November 1996,  respectively.  As a result of the
foregoing, net income (loss) per common share was $0.01 for the first quarter of
1997 compared to $(0.13) for the first quarter of 1996.


LIQUIDITY AND CAPITAL RESOURCES

     During the first  quarter of 1997,  the  Company's  cash,  equivalents  and
short-term  investments  decreased by $10,560,000  resulting from the payment of
outstanding  liabilities  at  year-end  and the  financing  of certain  accounts
receivable.  At March 31, 1997, the Company had $28,502,000 in cash, equivalents
and short-term  investments that were invested in financial instruments that are
diversified among high credit quality  securities.  The investments are reported
at cost,  which  approximates  market  value,  and are  classified as short-term
investments and cash equivalents.  Additionally,  at March 31, 1997, the Company
had working  capital of $66,368,000  with no long-term debt. The Company's total
assets exceeded total liabilities by $124,483,000.
<PAGE>
     During the first  quarter of 1997,  cash used in operating  activities  was
$8,399,000  compared to $2,704,000 in the same period in 1996. This increase was
primarily related to financing an increase in accounts  receivable of $9,296,000
and funding  payments from accounts  payable and accrued expenses of $4,465,000,
offset in part by  decreases in  inventories  and prepaid  expenses  aggregating
$2,545,000.

     Investing  activities  provided $2,351,000 during the first quarter of 1997
compared  to  using  $206,000  in the same  period  in 1996.  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 used $2,000,000 in the first quarter of 1997 compared
to providing  $517,000 in the same period in 1996. This change resulted from the
repayment of  short-term  borrowings  from  December 31, 1996 offset by proceeds
received from the issuance of common stock during the first quarter of 1996.

     The Company's  primary needs for cash in the future are for  investments in
product  development,  working capital,  the financing of operations,  strategic
ventures,  potential  acquisitions,  capital expenditures and the upgrade of the
Company's systems and operations.  In order to meet the Company's needs for cash
throughout the year, the Company will utilize cash,  short-term  investments and
may utilize,  to the extent  available,  funds  generated from operations in the
second half of 1997.


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,  uncertainty  as to future  financial  results,
developing marketplace, fluctuations in operating results, reliance on Caller ID
revenues,  concentration  of distribution  of products and services,  InteliData
common stock owned by  WorldCorp,  technological  considerations,  dependence on
foreign  production,  restrictions  from the  Company's  agreements  with  Visa,
importance  of  strategic  alliances,   competition,   relationship  with  Visa,
dependence on key  employees,  regulation,  volatility  of stock price,  limited
proprietary  protection,  limited sources of supply and 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, 1996.  These risks could cause the Company's
actual results for 1997 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
     --------

     None


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

     None

<PAGE>


                                   SIGNATURES



     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: __________________________________________
                                 John C. Backus
                                 President and Chief Executive Officer




                             By: __________________________________________
                                 John W. Hillyard
                                 Vice President and Chief Financial Officer