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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:  June 30, 2001        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 June 30,
2001 was 46,081,246.



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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
           June 30, 2001 and December 31, 2000 .............................   3

           Condensed Consolidated Statements of Operations
           Three and Six Months Ended June 30, 2001 and 2000 ...............   4

           Condensed Consolidated Statement of Changes in Stockholders' Equity
           Six Months Ended June 30, 2001...................................   5

           Condensed Consolidated Statements of Cash Flows
           Six Months Ended June 30, 2001 and 2000..........................   6

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

  Item 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations .......................................  14

  Item 3.  Quantitative and Qualitative Disclosures About Market Risk.......  22

  Item 4.  Submission of Matters to a Vote of Security Holders..............  22


PART II - OTHER INFORMATION

         Item 6.  Exhibits and Reports on Form 8-K..........................  23


SIGNATURE         ..........................................................  24


<PAGE>


PART I:       FINANCIAL INFORMATION
-----------------------------------
ITEM 1.       FINANCIAL STATEMENTS
-----------------------------------

                       INTELIDATA TECHNOLOGIES CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                       JUNE 30, 2001 AND DECEMBER 31, 2000
                  (in thousands, except share data; unaudited)
<TABLE>

                                                                                         2001            2000
                                                                                    ------------    -------------
<S>                                                                                 <C>             <C>

ASSETS
  CURRENT ASSETS
     Cash and cash equivalents                                                      $     11,582    $     27,255
     Restricted cash                                                                          --             440
     Investments                                                                           5,252          10,217
     Accounts receivable, net of allowance for doubtful accounts                           5,279           1,486
     Other receivables                                                                     1,258              83
     Prepaid expenses and other current assets                                               634             320
                                                                                    ------------    ------------
         Total current assets                                                             24,005          39,801

  NONCURRENT ASSETS
     Property and equipment, net                                                           4,732           3,282
     Goodwill, net                                                                        33,819              --
     Other assets                                                                            195             195
                                                                                    ------------    ------------

TOTAL ASSETS                                                                        $     62,751    $     43,278
                                                                                    ============    ============

LIABILITIES AND STOCKHOLDERS' EQUITY
  CURRENT LIABILITIES
     Accounts payable                                                               $      5,302    $      4,288
     Accrued expenses and other liabilities                                                4,255           3,651
     Deferred revenues                                                                     3,636           1,014
     Short-term capital lease obligations                                                     19              --
     Other liabilities                                                                       143              --
     Net liabilities of discontinued operations                                              323             455
                                                                                    ------------    ------------
TOTAL CURRENT LIABILITIES                                                                 13,678           9,408
     Net liabilities of discontinued operations                                              300             300
     Other liabilities                                                                        69              --
                                                                                    ------------    ------------
TOTAL LIABILITIES                                                                         14,047           9,708
                                                                                    -------------   ------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' 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 46,787,590 shares in 2001 and 39,320,609 shares in 2000;
        outstanding 46,081,246 shares in 2001 and 38,629,897 shares in 2000                   47              39
     Additional paid-in capital                                                          296,380         261,552
     Treasury stock, at cost:  706,344 shares in 2001 and 690,712 shares in 2000          (2,163)         (2,123)
     Deferred compensation                                                                (2,855)         (1,375)
     Accumulated other comprehensive (loss) income                                          (116)            494
     Accumulated deficit                                                                (242,589)       (225,017)
                                                                                    ------------    ------------
TOTAL STOCKHOLDERS' EQUITY                                                                48,704          33,570
                                                                                    ------------    ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                          $     62,751    $     43,278
                                                                                    ============    ============
</TABLE>

     See accompanying notes to condensed consolidated financial statements.

<PAGE>



                       INTELIDATA TECHNOLOGIES CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                THREE AND SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                (in thousands, except per share data; unaudited)

<TABLE>
                                                             Three months ended                  Six months ended
                                                                      June 30,                          June 30,
                                                          -----------------------------   -------------------------------
                                                              2001              2000            2001               2000
                                                          -----------      -----------       -----------      -----------
<S>                                                       <C>              <C>               <C>              <C>

Revenues
     Software                                             $    239         $     165         $    408         $     601
     Consulting and services                                 4,116               819            7,098             1,913
     Royalties and other                                        --               215               --               469
                                                          -----------      -----------       -----------      -----------
         Total revenues                                      4,355             1,199            7,506             2,983
                                                          -----------      -----------       -----------      -----------

Cost of revenues
     Software                                                   --                --                5                --
     Consulting and services                                 2,117               933            4,014             1,507
                                                          -----------      -----------       -----------      -----------
         Total cost of revenues                              2,117               933            4,019             1,507
                                                          -----------      -----------       -----------      -----------

         Gross profit                                        2,238               266            3,487             1,476

Operating expenses
     General and administrative                              2,669             1,449            5,492             2,850
     Selling and marketing                                   2,632             1,816            5,151             3,140
     Research and development                                4,255             3,450            8,785             5,627
     Amortization of goodwill                                1,352                --            2,528                --
                                                          -----------      -----------       -----------      -----------
         Total operating expenses                           10,908             6,715           21,956            11,617
                                                          -----------      -----------       -----------      -----------

Operating loss                                              (8,670)           (6,449)         (18,469)          (10,141)
Realized gains on sales of investments                          --             1,387            1,130            43,991
Unrealized gain (loss) on Sybase warrants                      209                --             (714)               --
Other income (expenses), net                                   166               168              481               320
                                                          -----------      -----------       -----------      -----------

Income (loss) before income taxes                           (8,295)           (4,894)         (17,572)           34,170
Provision (benefit) for income taxes                            --              (100)              --               690
                                                          -----------      -----------       -----------      -----------

Income (loss) from continuing operations                    (8,295)           (4,794)         (17,572)           33,480
Income (loss) from discontinued operations
     of Caller ID leasing, net of income taxes                  --               (51)              --               366
                                                          -----------      -----------       -----------      -----------

Net income (loss)                                         $ (8,295)        $  (4,845)        $(17,572)        $  33,846
                                                          ===========      ===========       ===========      ===========

Basic earnings per common share
     Income (loss) from continuing operations             $  (0.18)        $   (0.13)        $  (0.39)        $    0.88
     Income (loss) from discontinued operations               0.00              0.00             0.00              0.01
                                                          -----------      -----------       -----------      -----------
     Net income (loss)                                    $  (0.18)        $   (0.13)        $  (0.39)        $    0.89
                                                          ===========      ===========       ===========      ===========
Diluted earnings per common share
     Income (loss) from continuing operations             $  (0.18)        $   (0.13)        $  (0.39)        $    0.82
     Income (loss) from discontinued operations               0.00              0.00             0.00              0.01
                                                          -----------      -----------       -----------      -----------
     Net income (loss)                                    $  (0.18)        $   (0.13)        $  (0.39)        $    0.83
                                                          ===========      ===========       ===========      ===========

Basic weighted-average common shares outstanding            45,249            38,173           44,758            38,082
                                                          ===========      ===========       ===========      ===========
Diluted weighted-average common shares outstanding          45,249            38,173           44,758            40,926
                                                          ===========      ===========       ===========      ===========
</TABLE>

     See accompanying notes to condensed consolidated financial statements.

<PAGE>



                       INTELIDATA TECHNOLOGIES CORPORATION
       CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                         SIX MONTHS ENDED JUNE 30, 2001
                            (in thousands; unaudited)


<TABLE>
                                     Common stock      Additional           Deferred     Compre-       Accumu     hensive
                                  --------------------   Paid-in  Treasury    Compen-     hensive        lated     Income
                                   Shares     Amount      Capital  Stock      sation    Income (Loss)   Deficit    (Loss)    Total
                                  -------- ---------- ----------- -------- ----------- -------------- ---------- --------- ---------
<S>                               <C>      <C>        <C>         <C>      <C>         <C>            <C>        <C>       <C>

Balance at January 1, 2001         39,321    $ 39     $ 261,552   $(2,123)  $(1,375)    $    494      $(225,017)           $ 33,570
Issuance of common stock:
   Acquisition of Home Account      6,900       7        31,950         -         -            -              -              31,957
   Exercise of stock options          195       -           363         -         -            -              -                 363
   Employee stock purchase plan        11       -            23         -         -            -              -                  23
   Exerrcise of stock warrant           3       -            11         -         -            -              -                  11
Issuance of restricted stock          390       1         1,710         -    (1,711)           -              -                   -
Cancellation of restricted stock      (32)      -          (213)        -       213            -              -                   -
Home Account Incentive Plan             -       -           984         -      (984)           -              -                   -
Purchase of treasury stock              -       -             -       (40)        -            -              -                 (40)
Amortization of deferred
   compensation                         -       -             -         -     1,002            -              -               1,002
Recognized gain on investments          -       -             -         -         -         (180)             -   $   (180)    (180)
Unrealized loss on investments,
   net of taxes                         -       -             -         -         -         (430)             -       (430)    (430)
Net loss                                -       -             -         -         -            -        (17,572)   (17,572) (17,572)
                                                                                                                  --------
Comprehensive loss                                                                                                $(18,182)
                                  ------------------------------------------------------------------------------- ======== ---------

Balance at June 30, 2001
                                   46,788  $   47     $ 296,380   $(2,163)  $(2,855)    $   (116)     $(242,589)           $ 48,704
                                  ===============================================================================          =========

</TABLE>



     See accompanying notes to condensed consolidated financial statements.


<PAGE>



                       INTELIDATA TECHNOLOGIES CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                     SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                            (in thousands; unaudited)
<table>


                                                                              2001            2000
                                                                           -----------      --------
<S>                                                                        <C>              <C>
Cash flows from operating activities
Net (loss) income from continuing operations                               $   (17,572)     $ 33,480
Adjustments to reconcile net (loss) income to net cash used in
    operating activities:
   Realized gains on sales of investments, net                                  (1,130)      (43,991)
   Unrealized loss on Sybase warrants                                              714            --
   Amortization of goodwill                                                      2,528            --
   Depreciation and amortization                                                   800           693
   Deferred compensation expense                                                 1,002           184
   Deferred income taxes                                                            --           690
    Changes in certain assets and liabilities:
       Accounts receivable                                                      (2,994)          110
       Other receivables                                                        (1,175)           --
       Prepaid expenses and other current assets                                   (96)          (64)
       Accounts payable                                                           (737)        1,588
       Accrued expenses                                                         (1,251)          710
       Deferred revenues                                                         1,343          (616)
                                                                           -----------      --------
                 Net cash used in operating activities                         (18,568)       (7,216)
                                                                           -----------      --------

Cash (used in) provided by operating activities of
  discontinued operations                                                         (132)        1,131
                                                                           -----------      --------

Cash flows from investing activities
       Proceeds from the sales of investments                                    4,883        16,252
       Release of cash from escrow                                                 311            --
       Purchases of property and equipment                                        (507)       (2,000)
       Payment of acquisition costs for Home Account                            (1,749)           --
       Cash paid for Home Account common stock                                    (268)           --
                                                                           -----------      --------
              Net cash provided by investing activities                          2,670        14,252
                                                                           -----------      --------

Cash flows from financing activities
       Proceeds from issuance of common stock                                      397           748
       Capital contribution                                                         --           857
       Purchase of treasury stock                                                  (40)           --
                                                                           -----------      --------
              Net cash provided by financing activities                            357         1,605
                                                                           -----------      ---------

              (Decrease) increase in cash and cash equivalents                 (15,673)        9,772

Cash and cash equivalents, beginning of period                                  27,255         8,496
                                                                           -----------      --------

Cash and cash equivalents, end of period                                   $    11,582      $ 18,268
                                                                           ===========      ========

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

<PAGE>


                       INTELIDATA TECHNOLOGIES CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                     SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                                   (Unaudited)


(1)      Basis of Presentation

               The   condensed   consolidated   balance   sheet  of   InteliData
          Technologies  Corporation  ("InteliData"  or the "Company") as of June
          30,  2001,  and  the  related  condensed  consolidated  statements  of
          operations,  changes in stockholders'  equity,  and cash flows for the
          six month periods ended June 30, 2001 and 2000  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 in the prior periods have been reclassified
          to conform to the current period 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,
          2000.

(2)      Summary of Significant Accounting Policies

          (a)   Revenue Recognition - The Company supplies Internet banking
          and electronic bill presentment and payment software to financial
          institutions. The Company's integrated solutions that bundle software
          products with customization, installation and training services are
          recognized using the percentage of completion method of accounting.

               Starting late in 2000, the Company entered into contracts for its
          bill  payment  technology  software.  This  software  does not require
          significant  customization.  However,  as of December  31,  2000,  the
          software  had yet to be  delivered  and,  as a result,  no revenue was
          recognized under such contracts. Upon delivery, the Company expects to
          recognize  revenue ratably over the contract period as vendor specific
          objective  evidence  (VSOE) of fair value for post  contract  customer
          support (PCS) does not exist.

               The Company enters into multiple element  arrangements.  Elements
          typically include software,  consulting,  implementation  and PCS. PCS
          contracts  generally  require the Company to provide technical support
          and unspecified when-and-if available software updates and upgrades to
          customers.   Revenue  for  these  multiple  element   arrangements  is
          recognized  when there is persuasive  evidence of an  arrangement  and
          delivery  to  the  customer  has  occurred,   the  fee  is  fixed  and
          determinable,  and  collectibility  is  considered
<page>
          probable.  Advance payments are recorded as deferred revenue until the
          products are shipped,  services are delivered and all  obligations are
          met.  Currently,  the Company does not have VSOE of fair value for any
          of the elements within its multiple element  arrangements.  Therefore,
          all revenue under such  arrangements is being recognized  ratably over
          the term of the PCS  contract.  Revenue from  transactional  services,
          which  includes  hosting  and  service   bureaus,   is  recognized  as
          transactions are processed.

          (b)   Adoption of New Accounting Pronouncement - Prior to January
          1, 2001, the Company considered its investment in warrants to purchase
          common stock of Sybase, Inc. ("Sybase") to be available-for-sale under
          the provisions of Statement of Financial Accounting Standards No. 115,
          Accounting for Certain Investments in Debt and Equity Securities.
          Effective January 1, 2001, the Company adopted Statement of Financial
          Accounting Standards No. 133, Accounting for Derivative Instruments
          and Hedging Activities ("SFAS 133"), which establishes accounting and
          reporting standards for derivative instruments and for hedging
          activities by requiring that all derivatives be recognized in the
          balance sheet and measured at fair value.

               SFAS 133 requires that all derivative financial instruments, such
          as forward currency  exchange  contracts,  interest rate swaps and the
          Company's  warrants to purchase  Sybase  stock,  be  recognized in the
          financial  statements  and  measured at fair value  regardless  of the
          purpose  or intent  for  holding  them.  Changes  in the fair value of
          derivative financial instruments are either recognized periodically in
          income  or  shareholders'  equity  (as a  component  of  comprehensive
          income),  depending on whether the  derivative  is being used to hedge
          changes in fair value or cash flows.  The  Company's  adoption of this
          pronouncement,  effective  January  1,  2001,  did  not  result  in an
          adjustment for the cumulative effect of an accounting change,  because
          the carrying value reflected fair value under the previous  accounting
          guidance.  In  accordance  with  SFAS 133,  the  Company  recorded  an
          unrealized  loss on  investment  of $714,000  for the six months ended
          June 30, 2001.  Pro forma net income for the six months ended June 30,
          2000  was  $34,765,000  due to an  unrealized  gain on  investment  of
          $919,000. Pro forma earnings per share were $0.91 and $0.85 on a basic
          and diluted basis, respectively

          (c)  Recent Accounting Pronouncements - In July 2001 the
          Financial  Accounting  Standards  Board issued  Statement of Financial
          Accounting  Standards (SFAS) No. 141 "Business  Combinations" and SFAS
          No. 142 "Goodwill and Other Intangible  Assets." SFAS No. 141 requires
          business  combinations  initiated  after June 30, 2001 to be accounted
          for using the purchase method of accounting, and broadens the criteria
          for  recording  intangible  assets  separate from  goodwill.  Recorded
          goodwill and intangibles  will be evaluated  against this new criteria
          and may result in certain intangibles being subsumed into goodwill, or
          alternatively,   amounts   initially   recorded  as  goodwill  may  be
          separately identified and recognized apart from goodwill. SFAS No. 142
          requires  the  use  of a  non-amortization  approach  to  account  for
          purchased goodwill and certain  intangibles.  Under a non-amortization
          approach,  goodwill and certain intangibles will not be amortized into
          results of  operations,  but instead would be reviewed for  impairment
          and  written  down and  charged to results of  operations  only in the
          periods in which the

<page>

          recorded  value of goodwill and certain  intangibles  is more than its
          fair value.  The provisions of each statement  which apply to goodwill
          and intangible  assets acquired prior to June 30, 2001 will be adopted
          by the  Company on January 1, 2002. We expect  the  adoption  of these
          accounting standards will have the impact of reducing our amortization
          of goodwill  commencing  January 1, 2002 and reviews for impairment
          may result in future periodic write-downs.

(3)      Acquisition of Home Account

               On January 11, 2001, the Company acquired Home Account  Holdings,
          Inc.  ("Home  Account")  and its  operating  subsidiary,  Home Account
          Network,  Inc.,  pursuant to an agreement and plan of merger whereby a
          wholly-owned  subsidiary  of the  Company  merged  with and into  Home
          Account,  with Home  Account  surviving  the  merger as the  Company's
          wholly-owned  subsidiary.  Home Account is an application services and
          software  provider  to  financial  institutions  for the  delivery  of
          financial  products  and  services  over the  Internet.  Home  Account
          provides a suite of UNIX-based  Electronic banking and Electronic Bill
          Presentment and Payment (EBPP) products and services in an Application
          Services Provider (ASP) environment.

               Pursuant  to the merger  agreement,  the Company  purchased  Home
          Account for  approximately  $320,000 in cash and  6,900,000  shares of
          Company  common stock and the merger was  accounted for as a purchase.
          The  purchase  price  was the  result of an  arm's-length  negotiation
          between  the  Company  and  Home  Account,   based  on  the  Company's
          evaluation  of the  fair  market  value  of Home  Account's  business,
          including its revenues.  The value of the shares issued as part of the
          purchase consideration of approximately $29,011,000 was measured based
          on the average of the market  price of the issued  common  stock a few
          days  before  and after  January  11,  2001 - the date that the merger
          transaction was agreed to and announced.  This amount coupled with the
          liability   associated  with  the  Home  Account   Incentive  Plan  of
          $2,946,000  (see below)  resulted in an increase of $31,957,000 in the
          accompanying  statement of changes in stockholders'  equity. The total
          estimated purchase price of approximately $31,186,000 consisted of the
          following (in thousands):

          Consideration and acquisition costs:
              Value of shares issued                           $    29,011
              Home Account expense reimbursement                       250
              Cash consideration                                       320
              Acquisition costs                                      1,605
                                                               -----------
                                                               $    31,186
                                                               ===========

               The assets  acquired and  liabilities  assumed  were  recorded at
          estimated fair values as determined by the Company's  management based
          on information  currently  available and on current  assumptions as to
          future  operations.  The Company  will obtain  valuation  services for
          independent  appraisals  of the fair values of the acquired  property,
          plant and  equipment,  and  identified  intangible  assets,  and their
          remaining  useful lives. The
<page>

          Company is also  completing the review and  determination  of the fair
          values  of  the  other  assets  acquired  and   liabilities   assumed.
          Accordingly,  the  allocation  of the  purchase  price is  subject  to
          revision,  which is not  expected to be  material,  based on the final
          determination  of appraised  and other fair  values.  A summary of the
          assets acquired and liabilities assumed in the acquisition follows (in
          thousands):

         Preliminary allocation of purchase price:
           Current assets                                            $    1,047
           Property, plant and equipment                                  1,743
           Liabilities assumed and other                                 (3,931)
           Liabilities associated with Home Account Incentive Plan       (2,946)
           Acquisition integration liabilities                           (1,074)
           Goodwill (7-year, straight-line amortization)                 36,347
                                                                     -----------
                                                                     $   31,186

               As a  result  of the  acquisition  of  Home  Account,  InteliData
          incurred  acquisition expenses for costs to exit certain activities at
          Home Account locations and to involuntarily terminate employees of the
          acquired company.  Generally  accepted  accounting  principles require
          that these acquisition integration expenses,  which are not associated
          with the  generation  of  future  revenues,  have no  future  economic
          benefit and which meet certain other criteria, be reflected as assumed
          liabilities  in the allocation of the purchase price to the net assets
          acquired.  The components of the acquisition  integration  liabilities
          balance of $1,074,000  included in the purchase  price  allocation are
          approximately  $252,000 for lease costs (net of sublease proceeds) for
          the the now vacated Home Account headquarters in Emeryville,
          California, and $822,000 related to workforce reduction.

               The  workforce   reductions   focused  on  three  key  areas:  1)
          streamlining   development   efforts,   2)  eliminating  of  redundant
          administrative  overhead and support activities,  and 3) restructuring
          and repositioning of the  sales/marketing and research and development
          organizations  to eliminate  redundancies in these  activities.  As of
          June 30, 2001, 87 positions  have been  terminated  and  approximately
          $822,000 had been paid.


               Certain  aspects  of the  integration  plan  will be  refined  as
          additional studies are completed, including the evaluation of capacity
          of existing and acquired  facilities to accommodate new  manufacturing
          and  administrative  processes and the appropriate  positioning of the
          sales/marketing and research  development  organizations to best serve
          customer needs.  Adjustments to the estimated acquisition  integration
          liabilities  based on these  refinements,  if any,  will be  generally
          included in the allocation of the purchase price.

               The following pro forma quarterly financial  information presents
          the  combined   results  of  operations  of  InteliData   Technologies
          Corporation  and Home Account  Holdings,  Inc. and gives effect to the
          acquisition  of Home Account as if it occurred on January 1, 2000. The
          pro forma  condensed  combined  financial  information set


<page>

          forth below  reflects  certain  adjustments,  including  among others,
          adjustments  to reflect the  amortization  of the goodwill  associated
          with the  acquisition.  However,  pro forma results do not include any
          anticipated cost savings.  The pro forma condensed  combined financial
          information  set forth below  neither  purports to represent  what the
          consolidated   results  of  operations   or  financial   condition  of
          InteliData  would  actually have been if the Home Account  acquisition
          had in fact occurred on such date nor projects the future consolidated
          results of operations or financial condition of InteliData.

                                                           Six            Six
                                                      Months Ended  Months Ended
                                                        June 30,       June 30,
                                                          2001           2000
                                                          ----           ----
         (in thousands, except per share data)

              Revenue                                  $  7,506      $    4,997
              Net (loss) income                         (21,093)         25,552
              Basic net (loss) income per share           (0.47)           0.57
              Diluted net (loss) income per share         (0.47)           0.53

               Pro forma basic net income (loss) per share is computed using the
          weighted-average  number of shares of common stock  outstanding  after
          the issuance of  InteliData's  common stock to acquire the outstanding
          shares of Home Account.  Pro forma diluted net income (loss) per share
          also gives  effect to any dilutive  options.  Options and warrants are
          excluded from the computation during loss periods,  as their effect is
          anti-dilutive.

(4)      Home Account Incentive Plan

               In  2000,  Home  Account  approved  the  2000  Incentive  Plan to
          encourage the retention of certain  officers of Home Account through a
          change of control  transaction,  and after such a  transaction  to the
          extent,  up to one year, as desired by the acquirer.  Upon acquisition
          of Home Account by an acquirer,  the 2000  Incentive Plan provided for
          the  granting to plan  participants  of an aggregate of 15% of the net
          amount  of  the  merger  consideration  allocable  to  Home  Account's
          preferred  stockholders after payment of the debt preference and other
          expenses  associated  with  a  transaction.  Two-thirds  of  the  2000
          Incentive Plan allocation  would vest on the transaction  closing date
          and represent a pre-acquisition expense to Home Account. In connection
          with the  merger  transaction,  the  Company  agreed  to  advance  the
          participants  funds  to pay  for  their  tax  withholding  obligations
          associated  with the  two-thirds  portion.  As of June 30, 2001,  this
          receivable  balance  was  $1,116,000  and is  included  in the  "Other
          receivable" balance. The shares allocable to the participants are held
          in  an  escrow   account.   Upon  the   registration   of  the  merger
          consideration  shares, the Company will be paid the receivable balance
          from the proceeds of the sale of stock.

               The remaining  one-third of the  participants'  allocation  would
          vest one year from the transaction closing date and will be charged to
          expense over the vesting  period.  All
<page>

          forfeited shares revert to the preferred stockholders of Home Account.
          In connection  with the 2000 Incentive Plan  allocation,  the deferred
          compensation  for the  one-third  portion is  estimated to be $984,000
          based on $5.90 (the  closing  price of the  Company's  common stock at
          June 30,  2001).  For the six months ended June 30, 2001,  the Company
          recorded compensation expense of approximately $458,000.

(5)      Discontinued Operations

               As  of  June  30,  2001,  the  net  liabilities  of  discontinued
          operations of $623,000 relate to the telecommunications divisions.

               Approximately  $500,000 of the net  liabilities  of  discontinued
          operations relates to the potential  environmental clean up associated
          with InteliData's former New Milford, Connecticut property. In January
          2000, InteliData sold the New Milford,  Connecticut building, its only
          remaining asset in discontinued  operations of the  telecommunications
          division.  In the context of this sale, InteliData agreed to undertake
          limited  remediation of the site in accordance with  applicable  state
          law.  The subject  site is not a federal or state  Superfund  site and
          InteliData has not been named a "potentially responsible party" at the
          site.  The  remediation  plan  agreed  to with  the  purchaser  allows
          InteliData to use engineering and  institutional  controls (e.g., deed
          restrictions)  to  minimize  the extent and costs of the  remediation.
          Further,  at  the  time  of  the  sale  of  the  facility,  InteliData
          established     a    $200,000     escrow     account    for    certain
          investigation/remediation  costs.  As of June 30,  2001,  this  escrow
          account  balance  remained  at  $200,000.  Moreover,   InteliData  has
          obtained  environmental  insurance to pay for remediation  costs up to
          $6,600,000  in  excess  of a  retained  exposure  limit  of  $600,000.
          InteliData  estimates  its  liability  related  to this  matter  to be
          approximately $500,000 and has recorded a liability for that amount.

               We have engaged a legal firm and an environmental specialist firm
          to  represent  InteliData  regarding  this  matter.  The timing of the
          ultimate  resolution  of this matter is  estimated to be from three to
          five  years  under  the  Company's  proposed  compliance  plan,  which
          involves a natural  attenuation  and  periodic  compliance  monitoring
          approach.

               The remaining net  liabilities  of  discontinued operations
          balance of approximately $123,000 relates to warranties, royalty costs
          and potential settlements with telecom customers and others.

(6)      Earnings per Share

               Basic  earnings  per share  are  calculated  using  the  weighted
          average  number  of shares of common  stock  outstanding  during  each
          period.  Diluted  earnings per share  reflect the  dilutive  effect of
          stock  options  and other  stock  awards  granted to  employees  under
          stock-based  compensation plans, as well as stock warrants.  Basic and
          diluted  earnings per share are  calculated as follows (in  thousands,
          except per share data):

<page>
<table>

                                                                Three months ended       Six months ended
                                                                      June 30,                June 30,
                                                               --------------------      ------------------
                                                                2001         2000          2001        2000
<S>                                                            <C>        <C>           <C>          <C>

Basic EPS

Income (loss) from continuing operations                       $ (8,295)   $ (4,794)     $ (17,572)   $ 33,480
Weighted-average common shares outstanding                       45,249      38,173         44,758      38,082
                                                               --------    --------      ---------    --------
Basic earnings (loss) per share from continuing operations    $  (0.18)     $ (0.13)     $   (0.39)   $   0.88
                                                               ========    ========      =========    ========
Diluted EPS
Income (loss) from continuing operations                       $ (8,295)   $ (4,794)     $ (17,572)   $ 33,480
                                                               --------    --------      ---------    --------

Weighted-average common shares outstanding                       45,249      38,173         44,758      38,082
Effect of dilutive securities:
  Stock options and awards                                            -           -              -       2,762
  Stock warrants                                                      -           -              -          82
                                                               --------    --------      ---------    --------
    Weighted-average dilutive common shares outstanding          45,249      38,173         44,758      40,926
                                                               --------    --------      ---------    --------

Diluted earnings (loss) per common share from
    continuing operations                                      $  (0.18)   $ (0.13)      $   (0.39)   $   0.82
                                                               ========    ========      =========    ========
</table>

                                   * * * * * *


<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
Technologies  Corporation  for the three and six months  ended June 30, 2001 and
2000. Such information  should be read in conjunction with the interim financial
statements and the notes thereto in Part I, Item 1 of this Quarterly Report.

Three months ended June 30, 2001 and 2000

Revenues

     The Company's  second quarter  revenues were $4,355,000 in 2001 compared to
$1,199,000  in 2000,  an  increase of  $3,156,000.  The  increase is  attributed
primarily to an increase in software and related professional services revenues,
including the addition of the Home Account  results,  offset by the cessation of
royalties  relating to the Visa Bill-Pay  System.  During the second  quarter of
2001,  software  revenues  contributed  $239,000  and  consulting  and  services
contributed $4,116,000.

     During the second quarter of 2000, software revenues contributed  $165,000,
consulting  and services  contributed  $819,000 and other  revenues  contributed
$215,000,  all from royalties.  The stream of revenues from royalties  ceased in
September 2000.

Cost of Revenues

     The  Company's  second  quarter cost of revenues  were  $2,117,000  in 2001
compared to  $933,000  in 2000,  an  increase  of  $1,184,000.  The  increase is
attributed  primarily to increased  revenues and changes in product mix.  During
the second quarter of 2001, consulting and services costs totaled $2,117,000.

     During the second  quarter of 2000,  consulting  and services costs totaled
$933,000.

     Overall  gross profit  margins  increased to 51% for the second  quarter of
2001 from 22% for the  second  quarter of 2000.  The  increase  in gross  profit
margins was  attributed  to an  increase in  recurring  revenue,  including  the
addition of Home Account customers.

General and Administrative

     General and administrative  expenses were $2,669,000 for the second quarter
of 2001 as compared to $1,449,000 for the first quarter of 2000. The increase of
$1,220,000 was primarily the result of additional  corporate and  administrative
expenses associated with the purchase of Home Account.

<page>

Selling and Marketing

     Selling and  marketing  expenses  increased  to  $2,632,000  for the second
quarter of 2001 from  $1,816,000  for the same period last year. The increase of
$816,000  is  attributed  primarily  to  increases  in the number of selling and
marketing  employees,  travel  and  professional  services,  and the  additional
expenses  associated  with the sales and marketing  staff of Home  Account.  The
Company's  emphasis  throughout 2001 will continue to be on marketing efforts in
promoting the Company's brand and products.

Research and Development

     Research and  development  costs were  $4,255,000 in the second  quarter of
2001 as compared to  $3,450,000 in the second  quarter of 2000.  The increase of
$805,000 was largely  attributable to increases in outside  consulting  services
and the additional  expenses  associated with the research and development staff
of Home Account.  The Company incurs research and development expenses primarily
in  writing  and  developing  the  Interpose  Transaction  Engine  for the  Open
Financial  Exchange  ("OFX")  standard and building  the  Interactive  Financial
Exchange ("IFX")-based network electronic bill payment switch.

Realized Gains on Investments

     On January 20, 2000, Home Financial Network, Inc. (HFN), a company in which
InteliData held approximately a 25% ownership interest, merged with Sybase, Inc.
InteliData  accounted for its investment in HFN using the equity  method.  As of
the merger date, such investment's  carrying value was zero. In exchange for its
portion of ownership in HFN,  InteliData  received  approximately  $5,867,000 in
cash and  approximately  1,770,000 shares of Sybase stock. The Company also held
warrants to purchase HFN common  stock.  As part of the merger  agreement,  such
warrants  were  converted  into warrants to purchase  Sybase  common stock.  The
Company  received  640,000  "warrant  units" with an exercise price of $2.60 per
warrant unit.  Upon  exercise of each warrant  unit,  the Company is entitled to
receive  $1.153448 in cash and 0.34794 share of Sybase common stock.  There were
no transactions in the second quarter of 2001.

     Prior to January 1, 2001,  the Company  considered its investment in Sybase
common   stock  and   warrants   to   purchase   Sybase   common   stock  to  be
available-for-sale  under the  provisions  of Statement of Financial  Accounting
Standards  No.  115,  Accounting  for  Certain  Investments  in Debt and  Equity
Securities  ("SFAS  115").  Effective  January  1,  2001,  the  Company  adopted
Statement of Financial  Accounting  Standards No. 133, Accounting for Derivative
Instruments and Hedging  Activities ("SFAS 133"),  which establishes  accounting
and reporting standards for derivative instruments and for hedging activities by
requiring  that all  derivatives be recognized in the balance sheet and measured
at fair value.

     In accordance  with SFAS 115, the balance  sheets  include  ($116,000)  and
$494,000 of unrealized  (loss) gain on  investments  (net of taxes),  within the
stockholders' equity as of June

<page>

30, 2001 and  December  31, 2000,  respectively.  As of December  31, 2000,  the
unrealized gain on investments balance represent the increase in the fair market
value of the Sybase holdings from the January 20, 2000 merger  transaction  date
to the  respective  balance  sheet  date.  As of  June  30,  2001,  the  balance
represents  the changes in the fair market value of the Sybase common stock.  In
accordance  with SFAS 133,  the  change in the fair  market  value of the Sybase
warrants was recorded in the statement of operations (see below).

     No sales of Sybase common stock occurred during the second quarter of 2001.
During the same period of 2000, the Company  recorded a gain of $1,387,000  from
sales of Sybase common stock.

     SFAS  133  requires  that all  derivative  financial  instruments,  such as
forward  currency  exchange  contracts,  interest  rate swaps and the  Company's
warrants to purchase Sybase stock, be recognized in the financial statements and
measured at fair value  regardless  of the  purpose or intent for holding  them.
Changes  in the fair  value  of  derivative  financial  instruments  are  either
recognized  periodically  in income or  shareholders'  equity (as a component of
comprehensive  income),  depending  on whether the  derivative  is being used to
hedge  changes in fair  value or cash  flows.  The  Company's  adoption  of this
pronouncement,  effective  January 1, 2001,  did not result in an adjustment for
the  cumulative  effect of an  accounting  change,  because the  carrying  value
reflected fair value under the previous accounting guidance.  In accordance with
SFAS 133, the Company  recorded an unrealized gain on investment of $209,000 for
the three months ended June 30, 2001.

Other Income

     Other  income,  primarily  interest  income,  was  $166,000  for the second
quarter of 2001 compared to $168,000 for the same period in the prior year.  The
decrease of $2,000 was due to the decreased  cash and cash  equivalents  balance
for the second quarter of 2001 compared to the second quarter of 2000.

Discontinued Operations

     During  2000,  US West  notified  the Company  that US West would no longer
permit  InteliData to include the lease billing on the US West telephone  bills.
As such,  InteliData has discontinued billing its legacy customers for Caller ID
adjunct unit leases in the US West telephone service territory, because the cost
of individually  billing and pursuing collections for the leases would have made
it impractical and  uneconomical  for the Company to continue the lease program.
Accordingly,  the  results  of  operations  from  leasing  activities  have been
reported as  discontinued  operations.  During the second  quarter of 2000,  the
Company  had a loss  from  discontinued  operations  of the  Caller  ID  leasing
business of $51,000, net of income taxes. The stream of revenues from this lease
base ceased in June 2000.



<PAGE>


Weighted-Average Common Shares Outstanding and Basic and Diluted Income (Loss)
Per Common Share

     The basic  weighted-average  shares  increased to 45,249,000 for the second
quarter of 2001  compared  to  38,173,000  for the second  quarter of 2000.  The
increase  resulted  primarily  from the exercise of stock  options and warrants,
stock  purchases under the Employee Stock Purchase Plan, the granting of certain
stock  awards  during  2000,  and  the  issuance  of  6,900,000  shares  for the
acquisition of Home Account.

     Basic and diluted  loss per common  share  (EPS) was ($0.18)  compared to a
basic and  diluted  loss of ($.13)  for the  second  quarters  of 2001 and 2000,
respectively.

Six months ended June 30, 2001 and 2000

Revenues

         The Company's revenues for the first six months of 2001 were $7,506,000
compared to $2,983,000 in 2000, a increase of 152% or $4,523,000. The Company
recognized $408,000 in software revenue during the first six months of 2001.
During the same period in 2000, the Company recognized $601,000 in software
revenue. Consulting and services revenues aggregated $7,098,000 in the first six
months of 2001 while during the same period in 2000, the Company recognized
$1,913,000. Royalties and other revenues were $0 in the first six months of 2001
compared to $469,000 in the first six months of 2000. During the first six
months of 2000, the Company recognized $469,000 from royalties related to the
VISA Bill-Pay system. The stream of revenues from royalties ceased in September
2000.

Cost of Revenues

     The  Company's  cost of  revenues  for the  first  six  months of 2001 were
$4,019,000  compared to $1,507,000  in 2000, an increase of 167% or  $2,512,000.
The Company  incurred $5,000 in software  related  expenses during the first six
months of 2001, but did not incur any software  related expenses during the same
period in 2000.  Consulting and services cost of revenues aggregated  $4,014,000
in the first six  months of 2001,  while  during  the same  period in 2000,  the
Company's costs aggregated $1,507,000.

     Overall gross profit  margins  decreased to 47% for the first six months of
2001 from 50% for the same period in 2000.  The decrease in gross profit  margin
was  primarily  attributable  to  increased  costs and the  recording of forward
losses on strategic contracts. The Company anticipates that gross profit margins
may  fluctuate  in the future due to  changes in product  mix and  distribution,
outsourcing   activities  associated  with  a  service  bureau  business  model,
competitive  pricing pressure,  and the introduction of new products and changes
in volume.



<PAGE>


General and Administrative

     General  and  administrative  expenses  were  $5,492,000  for the first six
months of 2001, as compared to $2,850,000  for the first six months of 2000. The
increase of $2,642,000  was  primarily  the result of  additional  corporate and
administrative expenses associated with the purchase of Home Account. 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 anticipated business levels.

Selling and Marketing

     Selling and marketing  expenses  increased to $5,151,000  for the first six
months of 2001 from  $3,140,000  for the same period last year.  The increase of
$2,011,000  was  attributed  primarily to increases in the number of selling and
marketing  employees,  travel  and  professional  services,  and the  additional
expenses  associated  with the sales and marketing  staff of Home  Account.  The
Company's  emphasis  throughout 2001 will continue to be on marketing efforts in
promoting the Company's brand and products.

Research and Development

     Research and  development  costs were $8,785,000 in the first six months of
2001  compared  to  $5,627,000  for the same  period in 2000.  The  increase  of
$3,158,000 was largely  attributable to increases in outside consulting services
and the additional  expenses  associated with the research and development staff
of Home Account.  The Company incurs research and development expenses primarily
in  writing  and  developing  the  Interpose  Transaction  Engine  for the  Open
Financial  Exchange  ("OFX")  standard and building  the  Interactive  Financial
Exchange ("IFX")-based network electronic bill payment switch.

Realized Gains on Sales of Investments

     As discussed  above,  on January 20, 2000,  Home  Financial  Network,  Inc.
(HFN),  a  company  in  which  InteliData  held  approximately  a 25%  ownership
interest,  merged with Sybase,  Inc. In exchange for its portion of ownership in
HFN,  InteliData  received  approximately  $5,867,000 in cash and  approximately
1,770,000  shares of Sybase stock.  The Company also received  640,000  "warrant
units" with an exercise  price of $2.60 per warrant unit.  Upon exercise of each
warrant unit,  the Company is entitled to receive  $1.153448 in cash and 0.34794
share of Sybase common stock.

     For the six months  ended June 30, 2001 and 2000,  InteliData  recognized a
gain of  approximately  $1,130,000 and  $43,991,000,  respectively on the merger
transaction  and the  subsequent  disposition  of a portion of the investment in
Sybase common stock.

     SFAS  133  requires  that all  derivative  financial  instruments,  such as
forward  currency  exchange  contracts,  interest  rate swaps and the  Company's
warrants to purchase Sybase stock, be recognized in the financial statements and
measured at fair value  regardless  of the  purpose or

<page>


intent for  holding  them.  Changes in the fair  value of  derivative  financial
instruments are either recognized periodically in income or shareholders' equity
(as a component of comprehensive income), depending on whether the derivative is
being used to hedge changes in fair value or cash flows. The Company's  adoption
of  this  pronouncement,  effective  January  1,  2001,  did  not  result  in an
adjustment  for the  cumulative  effect of an  accounting  change,  because  the
carrying value reflected fair value under the previous accounting  guidance.  In
accordance with SFAS 133, the Company  recorded an unrealized loss on investment
of $714,000 for the six months ended June 30, 2001.

Other Income

     Other income,  primarily  investment and interest income,  was $481,000 and
$320,000  for the six months  ended June 30,  2001 and 2000,  respectively.  The
increase  of  $161,000  was  due  to the  increased  levels  of  cash  and  cash
equivalents in 2001 as compared to 2000.  This increase was a result of the cash
proceeds  from  the  Sybase  and  HFN  merger  transaction  and  the  subsequent
disposition of some of the Sybase common stock.

Discontinued Operations

     During  2000,  US West  notified  the Company  that US West would no longer
permit  InteliData to include the lease billing on the US West telephone  bills.
As such,  InteliData has discontinued billing its legacy customers for Caller ID
adjunct unit leases in the US West telephone service territory, because the cost
of individually  billing and pursuing collections for the leases would have made
it impractical and  uneconomical  for the Company to continue the lease program.
Accordingly,  the  results  of  operations  from  leasing  activities  have been
reported as  discontinued  operations.  During the first six months of 2000, the
Company  had a gain  from  discontinued  operations  of the  Caller  ID  leasing
business of  $366,000,  net of income  taxes.  The stream of revenues  from this
lease base ceased in June 2000.

Weighted-Average Common Shares Outstanding and Basic and Diluted Earnings (Loss)
Per Common Share

     The basic and diluted  weighted-average  common shares  outstanding for the
six months  ended June 30, 2000 was  38,082,000  and  40,926,000,  respectively,
compared  to  44,758,000  for both for the same  period  in 2001.  The  increase
resulted  primarily  from the  exercise  of stock  options and  warrants,  stock
purchases  under the Employee Stock Purchase Plan, the granting of certain stock
awards during 2000, and the issuance of 6,900,000  shares for the acquisition of
Home Account.

         Basic and diluted income per common share from continuing operations
was $0.88 and $0.82, respectively, for the six-month period in 2000, compared to
a loss of ($0.39) for both in the same period in 2001. There has been no
discontinued operations activity in 2001. For the six-month period in 2000,
basic and diluted income per common share was $0.01 from discontinued
operations, resulting in a basic and diluted income per common share of $0.89
and $0.83 respectively.

<page>

Liquidity and Capital Resources

     During  the  first  six  months  of  2001,  the  Company's  cash  and  cash
equivalents  decreased  by  $15,673,000.  Cash  proceeds  from  the  sale of the
investment in HFN, the sale of the building in discontinued operations,  and the
exercises of stock  options and warrants were offset by the financing of current
operations and working  capital,  as well as capital  expenditures.  At June 30,
2001,  the  Company had cash and cash  equivalents  of  $11,582,000  and working
capital of $10,327,000 with no long-term debt.

     During the first six months of 2001, cash used in operating  activities was
$18,568,000  compared to $6,850,000 in the same period in 2000.  Cash flows from
operating  activities  during the first six months of 2001 included uses of cash
for certain fixed  operating  expenses and increases in accounts  receivable and
prepaid expenses.

     Discontinued operations used a net cash of $132,000 in the first six months
of 2001  compared to  providing  $765,000  in the first six months of 2000.  The
Company  received net  proceeds of $988,000 for the sale of the building  during
January 2000.  Liabilities  remaining in the discontinued  operations  include a
reserve for potential environmental clean-up at the New Milford location,  costs
for legal shut-down of the former  operating  subsidiaries,  potential  warranty
costs, and further potential settlements with telecom customers and others.

     The Company's net cash provided by investing  activities  was $2,670,000 in
the first six months of 2001 compared to $14,252,000 in the same period in 2000.
The  decrease was  primarily  due to the cash paid for the  acquisition  of Home
Account and the related acquisition costs.

     Financing  activities  provided  $357,000  in the first six  months of 2001
compared to $1,605,000 in the same period in 2000.  Financing  activities in the
first  quarter of 2001  consisted  of  proceeds  from the sale of the  Company's
common stock through stock option  exercises offset by the purchase of treasury
stock. The activity in 2000 consisted of proceeds from the sale of the Company's
common stock through stock options  exercises,  stock warrant  exercises and the
Employee Stock Purchase Plan.

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  ability of the  Company to  successfully
assimilate  and retain the  employees of Home Account and integrate the products
of Home Account with those of the Company,  the risks of not  realizing the cost
savings  anticipated  by  eliminating  personnel and  facilities,  the Company's
ability to retain  customers and  subscribers as a result of the  acquisition

<page>

of Home Account,  the risk of anticipated  revenues following the acquisition of
Home Account not meeting the Company's expectations,  the ability of the Company
to complete  product  implementations  in required time frames and the Company's
ability to increase its recurring  revenues and profits through its ASP business
model, the impact of competitive products,  pricing pressure, product demand and
market  acceptance  risks,  pace of  consumer  acceptance  of home  banking  and
reliance on the Company's bank clients to increase usage of Internet  banking by
their customers, mergers and acquisitions,  risk of integration of the Company's
technology by large  software  companies,  the ability of financial  institution
customers to implement  applications in the anticipated  time frames or with the
anticipated  features,  functionality  or  benefits,  reliance on key  strategic
alliances  and newly  emerging  technologies,  the  ability  of the  Company  to
leverage its Spectrum  relationship into new business  opportunities in the EBPP
market,  the on-going  viability  of the  mainframe  marketplace  and demand for
traditional mainframe products, the ability to attract and retain key employees,
the availability of cash for long-term growth, product obsolescence,  ability to
reduce product costs,  fluctuations  in operating  results,  ability to continue
funding operating  losses,  delays in development of highly complex products and
other risks detailed from time to time in InteliData 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, 2000.  These risks could cause
the Company's actual results for 2001 and beyond to differ materially from those
expressed  in  any  forward  looking  statements  made  by,  or  on  behalf  of,
InteliData.  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.  InteliData  is not
under any obligation (and expressly  disclaims an obligation to) update or alter
its  forward-looking  statements,  whether  as a result  of new  information  or
otherwise.

                                   * * * * * *


<PAGE>


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
-------------------------------------------------------------------

     The Company currently has no long-term debt and is not currently engaged in
any transactions that involve foreign  currency.  The Company does not engage in
hedging activities.

     As of June 30, 2001, the fair value of the Company's  investment  portfolio
is  approximately  $5,252,000,  which  consisted of  $2,183,000 of Sybase common
stock,  $2,828,000 of warrants to purchase Sybase common stock,  and $241,000 of
fixed income  securities.  Changes in the fair value of the Sybase  common stock
and fixed income  securities  will continue to be  recognized  as  shareholders'
equity (as a component of  comprehensive  income).  SFAS 133,  which the Company
adopted  effective  January 1, 2001,  requires that changes in the fair value of
the warrants to purchase  Sybase common stock to be recognized  periodically  in
income.  A 10% decline in the stock price would result in approximate  decreases
of $218,000 and $283,000 in the fair value of the  Company's  holdings of Sybase
common stock and warrants, respectively.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
------------------------------------------------------------

     The  Company's  Annual  Meeting of  Stockholders  was held on May 23, 2001.
Matters  submitted  at the  meeting  for  vote  by  the  Stockholders  were  the
following:

1)       Election of Directors

          The  Stockholders  elected  three  Class II members  and one Class III
          member of the Board of Directors with the following votes: in Class II
          - Neal F. Finnegan  with  35,555,804  votes for and 362,868  withheld,
          John J.  McDonnell,  Jr. with  35,555,904  votes for and 362,768 votes
          withheld,  and Norman J. Tice with  35,556,004  votes for and  362,668
          votes  withheld;  and in Class III - Charles A. White with  35,556,004
          votes for and 362,668 votes withheld.

2)       Amendment to 1996 Incentive Plan

          The Stockholders approved an amendment to the Company's 1996 Incentive
          Plan reserving an additional  1,000,000 shares of the Company's Common
          Stock for issuance  thereunder and  increasing  the maximum  aggregate
          number of shares that may be issued as stock awards by 500,000  shares
          with the following  votes:  32,130,792  for,  3,544,262  against,  and
          243,618 abstain.




<PAGE>


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


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


(a)      Exhibits
         --------


         10.14    Employment and Non-Competition Agreement between InteliData
                  Technologies Corporation and Charles A. White dated
                  January 11, 2001.



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

         None.



<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, Chief Executive Officer,
                                       and Director