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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:  SEPTEMBER 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 September
30, 2001 was 46,006,319.



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

           Condensed Consolidated Statements of Operations
           Three and Nine Months Ended September 30, 2001 and 2000 ..........  4

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

           Condensed Consolidated Statements of Cash Flows
           Nine Months Ended September 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



PART II - OTHER INFORMATION

  Item 6.  Exhibits and Reports on Form 8-K.................................. 22


SIGNATURE         ........................................................... 23


<PAGE>


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

                       INTELIDATA TECHNOLOGIES CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                    SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
                        (in thousands, except share data)
<table>
                                                                                          2001            2000
                                                                                    ------------------------------
                                                                                     (unaudited)       (audited)
<S>                                                                                 <C>             <C>
ASSETS
  CURRENT ASSETS
     Cash and cash equivalents                                                      $      6,540    $     27,255
     Restricted cash                                                                          --             440
     Investments                                                                           2,751          10,217
     Accounts receivable, net of allowance for doubtful accounts                           6,000           1,486
     Other receivables                                                                     1,408              83
     Prepaid expenses and other current assets                                               544             320
                                                                                    ------------    ------------
         Total current assets                                                             17,243          39,801

  NONCURRENT ASSETS
     Property and equipment, net                                                           4,350           3,282
     Goodwill, net                                                                        33,184              --
     Other assets                                                                            195             195
                                                                                    ------------    ------------

TOTAL ASSETS                                                                        $     54,972    $     43,278
                                                                                    ============    ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
  CURRENT LIABILITIES
     Accounts payable                                                               $      5,579    $      4,288
     Accrued expenses                                                                      5,251           3,651
     Deferred revenues                                                                     3,426           1,014
     Other liabilities                                                                       332              --
     Net liabilities of discontinued operations                                              271             455
                                                                                    ------------    ------------
TOTAL CURRENT LIABILITIES                                                                 14,859           9,408
     Net liabilities of discontinued operations                                              300             300
     Other liabilities                                                                       600              --
                                                                                    ------------    ------------
TOTAL LIABILITIES                                                                         15,759           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 46,812,663 shares in 2001 and 39,320,609 shares in 2000;
        outstanding 46,006,319 shares in 2001 and 38,629,897 shares in 2000                   47              39
     Additional paid-in capital                                                          295,916         261,552
     Treasury stock, at cost:  806,344 shares in 2001 and 690,712 shares in 2000          (2,473)         (2,123)
     Deferred compensation                                                                (1,847)         (1,375)
     Accumulated other comprehensive (loss) income                                        (1,046)            494
     Accumulated deficit                                                                (251,384)       (225,017)
                                                                                    ------------    ------------
TOTAL STOCKHOLDERS' EQUITY                                                                39,213          33,570
                                                                                    ------------    ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                          $     54,972    $     43,278
                                                                                    ============    ============
</table>
     See accompanying notes to condensed consolidated financial statements.

<PAGE>



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

<table>
                                                             Three months ended                  Nine months ended
                                                                   September 30,                      September 30,
                                                          -----------------------------   -------------------------------
                                                              2001              2000            2001               2000
                                                          -----------      -----------       -----------      -----------
<S>                                                       <C>              <C>               <C>              <C>
Revenues
     Software                                             $  1,195         $      54         $  1,603         $     655
     Consulting and services                                 4,112             1,387           11,210             3,300
     Royalties and other                                        --                75               --               544
                                                          -----------      -----------       -----------      -----------
         Total revenues                                      5,307             1,516           12,813             4,499
                                                          -----------      -----------       -----------      -----------

Cost of revenues
     Software                                                   --                --                5                --
     Consulting and services                                 2,421               850            6,435             2,357
                                                          -----------      -----------       -----------      -----------
         Total cost of revenues                              2,421               850            6,440             2,357
                                                          -----------      -----------       -----------      -----------
         Gross profit                                        2,886               666            6,373             2,142

Operating expenses
     General and administrative                              3,058             1,748            8,550             4,598
     Selling and marketing                                   2,167             1,554            7,318             4,694
     Research and development                                3,850             3,801           12,635             9,428
     Amortization of goodwill                                1,291                --            3,819                --
                                                          -----------      -----------       -----------      -----------
         Total operating expenses                           10,366             7,103           32,322            18,720
                                                          -----------      -----------       -----------      -----------

Operating loss                                              (7,480)           (6,437)         (25,949)          (16,578)
Realized gains on sales of investments                          --             3,831            1,130            47,822
Unrealized loss on Sybase warrants                          (1,554)               --           (2,268)               --
Other income (expenses), net                                    79               339              560               659
                                                          -----------      -----------       -----------      -----------

Income (loss) before income taxes                           (8,955)           (2,267)         (26,527)           31,903
Provision (benefit) for income taxes                          (160)              (57)            (160)              633
                                                          -----------      -----------       -----------      -----------

Income (loss) from continuing operations                    (8,795)           (2,210)         (26,367)           31,270
Income (loss) from discontinued operations
     of Caller ID leasing, net of income taxes                  --              (633)              --              (267)
                                                          -----------      -----------       -----------      -----------

Net income (loss)                                         $ (8,795)        $  (2,843)        $(26,367)        $  31,003
                                                          ===========      ===========       ===========      ===========

BASIC EARNINGS PER COMMON SHARE
     Income (loss) from continuing operations             $  (0.19)        $   (0.06)        $  (0.59)        $    0.82
     Income (loss) from discontinued operations               0.00             (0.01)            0.00             (0.01)
                                                          -----------      -----------       -----------      -----------
     Net income (loss)                                    $  (0.19)        $   (0.07)        $  (0.59)        $    0.81
                                                          ===========      ===========       ===========      ===========
DILUTED EARNINGS PER COMMON SHARE
     Income (loss) from continuing operations             $  (0.19)        $   (0.06)        $  (0.59)        $    0.77
     Income (loss) from discontinued operations               0.00             (0.01)            0.00             (0.01)
                                                          -----------      -----------       -----------      -----------
     Net income (loss)                                    $  (0.19)        $   (0.07)        $  (0.59)        $    0.76
                                                          ===========      ===========       ===========      ===========

Basic weighted-average common shares outstanding            45,521            38,265           45,007            38,199
                                                          ===========      ===========       ===========      ===========
Diluted weighted-average common shares outstanding          45,521            38,265           45,007            40,994
                                                          ===========      ===========       ===========      ===========
</table>
     See accompanying notes to condensed consolidated financial statements.


<PAGE>




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


<table>


                                                                                                              Accumulated
                                              Common stock          Additional                                  Other
                                        -------------------------   Paid-in      Treasury      Deferred      Comprehensive
                                          Shares       Amount       Capital       Stock      Compensation    Income (Loss)
                                        ----------- ------------- ------------- ----------- --------------- ----------------
<S>                                     <C>         <C>           <C>           <C>         <C>             <C>

Balance at January 1, 2001                 39,321   $      39     $   261,552   $  (2,123)    $  (1,375)       $     494
Issuances of common stock:
   Acquisition of Home Account              6,900           7          31,950           -             -                -
   Exercises of stock options                 199           -             369           -             -                -
   Employee stock purchase plan                11           -              23           -             -                -
   Exercises of stock warrants                  3           -              11           -             -                -
Issuances of restricted stock                 430           1           1,857           -        (1,858)               -
Cancellations of restricted stock             (51)          -            (293)          -           293                -
Home Account Incentive Plan                     -           -             447           -          (447)               -
Purchases of treasury stock                     -           -               -        (350)            -                -
Amortization of deferred compensation           -           -               -           -         1,540                -
Recognized gain on investments                  -           -               -           -             -             (180)
Unrealized loss on investments,
   net of income taxes                          -           -               -           -             -           (1,360)
Net loss                                        -           -               -           -             -                -

Comprehensive loss

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

Balance at September 30, 2001              46,813   $      47     $   295,916   $  (2,473)    $  (1,847)       $  (1,046)
                                        =========== ============= ============= =========== =============== ================


  Accumulated   Comprehensive
    Deficit     Income (Loss)      Total
 -------------- --------------- ------------


Balance at January 1, 2001            $  (225,017)                   $  33,570
Issuances of common stock:
   Acquisition of Home Account                  -                       31,957
   Exercises of stock options                   -                          369
   Employee stock purchase plan                 -                           23
   Exercises of stock warrants                  -                           11
Issuances of restricted stock                   -                            -
Cancellations of restricted stock               -                            -
Home Account Incentive Plan                     -                            -
Purchases of treasury stock                     -                         (350)
Amortization of deferred compensation           -                        1,540
Recognized gain on investments                  -      $    (180)         (180)
Unrealized loss on investments,
   net of income taxes                          -         (1,360)       (1,360)
Net loss                                  (26,367)       (26,367)      (26,367)
                                                       ----------
Comprehensive loss                                     $ (27,907)
                                                       ==========
                                     --------------                 -----------

Balance at September 30, 2001        $  (251,384)                   $   39,213
                                     ==============                 ===========


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

<PAGE>



                       INTELIDATA TECHNOLOGIES CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                            (in thousands; unaudited)

<Table>
                                                                               2001                    2000
                                                                           ------------            -----------
<S>                                                                        <C>                     <C>
CASH FLOWS FROM OPERATING ACTIVITIES
     Net (loss) income from continuing operations                          $   (26,367)            $   31,270
     Adjustments to reconcile net (loss) income to net cash used in
        operating activities:
        Realized gains on sales of investments, net                             (1,130)               (47,822)
        Unrealized loss on Sybase warrants                                       2,268                    --
        Amortization of goodwill                                                 3,819                    --
        Depreciation and amortization                                            1,266                    363
        Amortization of deferred compensation                                    1,540                    400
        Deferred income taxes                                                       --                    633
        Changes in certain assets and liabilities:
          Accounts receivable                                                   (3,200)                   (51)
          Other receivables                                                     (1,325)                    --
          Prepaid expenses and other current assets                                 (6)                  (199)
          Accounts payable                                                        (463)                 1,439
          Accrued expenses                                                        (805)                 1,450
          Deferred revenues                                                      1,233                   (616)
                                                                           ------------             ----------
                  Net cash used in operating activities                        (23,170)               (13,133)
                                                                           ------------             ----------

CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES OF
  DISCONTINUED OPERATIONS                                                         (184)                   438
                                                                           ------------            -----------

CASH FLOWS FROM INVESTING ACTIVITIES
     Proceeds from the sales of investments                                      4,883                 34,145
     Release of cash from escrow                                                   311                     --
     Purchases of investments                                                       --                   (251)
     Purchases of property and equipment                                          (712)                (2,861)
     Sale of property and equipment                                                121                     --
     Payment of acquisition costs for Home Account                              (1,749)                    --
     Cash paid for Home Account common stock                                      (268)                    --
                                                                           ------------            -----------
                   Net cash provided by investing activities                     2,586                 31,033
                                                                           ------------            -----------

CASH FLOWS FROM FINANCING ACTIVITIES
     Proceeds from issuance of common stock                                        403                    802
     Capital contribution                                                           --                    857
     Purchases of treasury stock                                                  (350)                   (59)
                                                                           ------------            -----------
                   Net cash provided by financing activities                        53                  1,600
                                                                           ------------            -----------

              (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                 (20,715)                19,938

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                  27,255                  8,496
                                                                           ------------            -----------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                   $     6,540             $   28,434
                                                                           ============           ============


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


                       INTELIDATA TECHNOLOGIES CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                  NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                   (UNAUDITED)


(1)      BASIS OF PRESENTATION

               The   condensed   consolidated   balance   sheet  of   InteliData
          Technologies  Corporation   ("InteliData"  or  the  "Company")  as  of
          September 30, 2001, and the related condensed consolidated  statements
          of operations, changes in stockholders' equity, and cash flows for the
          nine month periods ended September 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  revenues  associated  with  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.   Upon   delivery,   the  Company  either
          recognizes  revenue  ratably  over the contract  period for  contracts
          where vendor specific objective evidence (VSOE) of fair value for post
          contract  customer support (PCS) does not exist or recognizes  revenue
          in full where VSOE of fair value for PCS does 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
<page>

          customer  has  occurred,  the  fee  is  fixed  and  determinable,  and
          collectibility is considered  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 some 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  stockholders'  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 $2,268,000 for the nine months ended
          September 30, 2001. For the nine months ended  September 30, 2000, pro
          forma net income (assuming that SFAS 133 was adopted effective January
          1, 2000) was  $31,922,000  due to an unrealized  gain on investment of
          $919,000, while pro forma earnings per share were $0.84 and $0.78 on a
          basic and diluted basis, respectively.

          (c)   Recent  Accounting   Pronouncements  -  In  June  2001,  the
          Financial  Accounting  Standards  Board issued  Statement of Financial
          Accounting  Standards No. 141,  Business  Combinations  (SFAS 141) and
          SFAS No. 142,  Goodwill and Other  Intangible  Assets (SFAS 142). SFAS
          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.
          SFAS 142  requires  the use of an  amortization  and  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 recorded value of goodwill
          and certain  intangibles is more than its fair value.
<page>

          The amortization and  non-amortization  provisions of SFAS 142 will be
          applied to all goodwill and intangible  assets acquired after June 30,
          2001.  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 the  current  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 an independent appraisal of
          the fair values of the acquired  property,  plant and  equipment,
<page>

          and identified  intangible  assets,  and their remaining useful lives.
          The 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                                            $    1,562
           Property, plant and equipment                                  1,743
           Liabilities assumed and other                                 (4,344)
           Liabilities associated with Home Account Incentive Plan       (2,946)
           Acquisition integration liabilities                           (1,832)
           Goodwill (7-year, straight-line amortization)                 37,003
                                                                     -----------
                                                                     $   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 $1,832,000  included in the purchase  price  allocation are
          approximately  $1,010,000  for lease  costs for 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    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
          September   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 forth
<page>

          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.

                                                       Nine Months   Nine Months
                                                          Ended         Ended
                                                        9/30/2001     9/30/2000
                                                        ---------    -----------

         (in thousands, except per share data)
           Revenue                                   $  12,813         $  10,403
           Net (loss) income                           (30,048)           12,646
           Basic net (loss) income per share             (0.67)             0.28
           Diluted net (loss) income per share           (0.67)             0.26

               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.  Under the InteliData and Home
          Account merger transaction, this incentive plan is payable in the form
          of  InteliData  common  stock and such  payments are to be made by the
          group  of  former  Home  Account   preferred   stockholders  (who  are
          collectively considered as a "principal  stockholder").  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 September
          30, 2001,  this  receivable  balance was $1,116,000 and is included in
          the  "Other   receivable"   balance.   The  shares  allocable  to  the
          participants  were placed in an escrow account and are released to the
          Home  Account  Stockholders'  Representative  in  accordance  with the
          Merger  Consideration  Escrow  Agreement.  As of  September  30, 2001,
          690,000  shares of  InteliData  common stock had been  released to the
          Stockholders'   Representative.   Upon   the   sale   of  the   merger
          consideration shares by the Stockholders'
<page>

          Representative,  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 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 $447,000  based on $3.28 (the closing price
          of the Company's  common stock at September  30,  2001).  For the nine
          months ended  September 30, 2001,  the Company  recorded  compensation
          expense of approximately $321,000.

(5)      DISCONTINUED OPERATIONS

               As of September 30, 2001,  the net  liabilities  of  discontinued
          operations of $571,000 relate to the telecommunications divisions.

               Approximately  $448,000 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 September 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 $448,000 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
<page>

          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):

<Table>
                                                                      Three months ended             Nine months ended
                                                                         September 30,                  September 30,
                                                                      -------------------            ------------------
                                                                      2001        2000             2001            2000
                                                                      ----        ----             ----            ----
<S>                                                               <C>           <C>             <C>             <C>
Basic EPS
Income (loss) from continuing operations                          $ (8,795)     $ (2,210)       $ (26,367)      $ 31,270
Weighted-average common shares outstanding                          45,521        38,265           45,007         38,199
                                                                  --------      ---------       ---------       --------
Basic earnings (loss) per share from continuing operations        $  (0.19)     $  (0.06)       $   (0.59)      $   0.82
                                                                  ========      ========        =========       ========

Diluted EPS
Income (loss) from continuing operations                          $ (8,795)     $ (2,210)       $ (26,367)      $ 31,270
                                                                  --------      ---------       ---------       --------
Weighted-average common shares outstanding                          45,521        38,265           45,007         38,199
Effect of dilutive securities:
Stock options and awards                                              -             -                -             2,721
Stock warrants                                                        -             -                -                74
                                                                  --------      ---------       ---------       --------
Weighted-average dilutive common shares outstanding                 45,521        38,265           45,007         40,994
                                                                  --------      ---------       ---------       --------
Diluted earnings (loss) per common share from continuing operat  $   (0.19)     $  (0.06)       $   (0.59)      $   0.77
                                                                  ========      ========        =========       ========
</Table>

               Options to purchase  285,000 shares of common stock at a range of
          $7.25 to $19.44 were outstanding during 2000, but were not included in
          the  computation of diluted  earnings per share,  because the options'
          exercise price was greater than the average market price of the common
          share.

(7)      SUBSEQUENT EVENT

               During October 2001, the Company sold its remaining investment in
          the  Sybase  common  stock  and  received  proceeds  of  approximately
          $1,775,000 and recognized a realized loss from sales of investments of
          approximately  $717,000. This realized loss represents the decrease in
          value from the $18.88  closing price at the time of the Home Financial
          Network  and  Sybase   merger  on  January  20,  2000  to  the  actual
          dispositions at the average sales price of $13.45 during October 2001.
          As of October  31,  2001,  the  Company  still  maintained  all of its
          warrants to purchase Sybase common stock.

                                   * * * * * *


<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 nine months ended September 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 SEPTEMBER 30, 2001 AND 2000

Revenues

     The Company's  third quarter  revenues were  $5,307,000 in 2001 compared to
$1,516,000  in  2000,  an  increase  of  250% or  $3,791,000.  The  increase  is
attributable  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
third quarter of 2001, software revenues  contributed  $1,195,000 and consulting
and services revenues contributed $4,112,000.

     During the third quarter of 2000,  software revenues  contributed  $54,000,
consulting and services revenues contributed $1,387,000, and royalties and other
revenues  contributed  $75,000,  all of which  were  royalties  relating  to the
original sale of the Visa Bill-Pay system.

Cost of Revenues

     The  Company's  third  quarter  cost of  revenues  was  $2,421,000  in 2001
compared to $850,000 in 2000, an increase of 185% or $1,571,000. The increase is
attributable  primarily to increased revenues and changes in product mix. During
the third quarter of 2001, consulting and services costs totaled $2,421,000.

     During the third  quarter of 2000,  consulting  and services  costs totaled
$850,000.

     Overall gross profit margins increased to 54% for the third quarter of 2001
from 44% for the third quarter of 2000. The increase in gross profit margins was
attributable  to an increase in software and  recurring  revenue,  including the
addition of Home Account  customers.  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 $3,058,000 for the third quarter
of 2001 as compared to $1,748,000 in the third quarter of 2000.  The increase of
$1,310,000 was primarily the result of additional  corporate and  administrative
expenses associated with the purchase of Home Account,  including an increase in
facilities  expense and in bad debt  expense  associated  with the Home  Account
receivables  assumed in connection with the acquisition.  The Company expects to
continue   controlling   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  $2,167,000  for the third
quarter of 2001 from  $1,554,000  for the same period last year. The increase of
$613,000 is  attributable  primarily  to  increases in the number of selling and
marketing  employees,   travel  and  outside  professional   services,  and  the
additional  expenses  associated  with the sales and  marketing  efforts of Home
Account.

Research and Development

     Research and  development  costs were  $3,850,000  in the third  quarter of
2001,  as compared to  $3,801,000  in the same period in 2000.  The  increase of
$49,000 was attributable to the additional expenses associated with the research
and development  staff of Home Account,  offset by the cost reduction efforts of
the Company's  acquisition  integration  plan. 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

     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 warrant  exercises or sales of Sybase  common  stock in the third  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

<page>

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  ($1,046,000)  and
$494,000  of  unrealized  (loss)  gain on  investments  (net of  taxes),  within
stockholders'   equity  as  of  September   30,  2001  and  December  31,  2000,
respectively.  As of December  31,  2000,  the  unrealized  gain on  investments
balance represented 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 September 30, 2001, the accumulated other  comprehensive  loss
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 third quarter of 2001.
During the same period of 2000, the Company  recorded a gain of $3,831,000  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 the fair value under the previous accounting  guidance.  In accordance
with  SFAS 133,  the  Company  recorded  an  unrealized  loss on  investment  of
$1,554,000 for the three months ended September 30, 2001.

Other Income

     Other income,  primarily interest income, was $79,000 for the third quarter
of 2001 compared to $339,000 for the same period in the prior year. The decrease
of $260,000 was due to the decreased cash and cash  equivalents  balance for the
third quarter of 2001 compared to the third 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

<page>

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 third  quarter  of 2000,  the  Company  had a loss from
discontinued  operations of the Caller ID leasing  business of $633,000,  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 Loss Per Common
Share

     The basic and diluted  weighted-average  shares increased to 45,521,000 for
the third quarter of 2001 compared to 38,265,000  for the third 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  2001,  and  the  issuance  of  6,900,000  shares  for the
acquisition of Home Account.

     Basic and diluted loss per common  share was ($0.19) for the third  quarter
of 2001  compared to a basic and diluted loss per common  share from  continuing
operations  of  ($0.06)  and a basic and  diluted  loss per  common  share  from
discontinued  operations  of ($0.01)  for the third  quarter of 2000.  Basic and
diluted net loss per common share was ($0.19)  compared to ($0.07) for the third
quarters of 2001 and 2000, respectively.


NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

Revenues

     The Company's  revenues for the first nine months of 2001 were  $12,813,000
compared  to  $4,499,000  for the same  period in 2000,  an  increase of 185% or
$8,314,000.  The Company  recognized  $1,603,000 in software  revenue during the
first  nine  months  of 2001.  During  the same  period  in  2000,  the  Company
recognized  $655,000 in  software  revenue.  Consulting  and  services  revenues
aggregated  $11,210,000  in the first nine months of 2001 while  during the same
period in 2000, the Company recognized $3,300,000.  Royalties and other revenues
were $0 in the first nine months of 2001  compared to $544,000 in the first nine
months of 2000. The $544,000  represents  royalties related to the VISA Bill-Pay
system and this stream of revenues from royalties ceased in September 2000.

Cost of Revenues

     The  Company's  cost of  revenues  for the first  nine  months of 2001 were
$6,440,000  compared to  $2,357,000  for the same period in 2000, an increase of
173% or $4,083,000.  The Company  incurred $5,000 in software  related  expenses
during the first nine  months of 2001,  but did not incur any  software  related
expenses  during  the same  period  in 2000.  Consulting  and  services  cost of
revenues  aggregated  $6,435,000 in the first nine months of 2001,  while during
the same period in 2000, the Company's costs aggregated $2,357,000.

<page>

     Overall gross profit margins  increased to 50% for the first nine months of
2001 from 48% for the same period in 2000.  The increase in gross profit margins
was attributable to an increase in software and recurring revenue, including the
addition of Home Account  customers.  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.

General and Administrative

     General and  administrative  expenses  were  $8,550,000  for the first nine
months of 2001, as compared to $4,598,000 for the first nine months of 2000. The
increase of $3,952,000  was  primarily  the result of  additional  corporate and
administrative expenses associated with the purchase of Home Account,  including
an increase in facilities  expense and in bad debt expense  associated  with the
Home Account receivables assumed in connection with the acquisition. The Company
expects to continue controlling 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 $7,318,000 for the first nine
months of 2001 from  $4,694,000  for the same period last year.  The increase of
$2,624,000 was attributable  primarily to increases in the number of selling and
marketing  employees,   travel  and  outside  professional   services,  and  the
additional  expenses  associated  with the sales and  marketing  efforts of Home
Account.

Research and Development

     Research and development costs were $12,635,000 in the first nine months of
2001  compared  to  $9,428,000  for the same  period in 2000.  The  increase  of
$3,207,000 was largely  attributable to increases in outside consulting services
and the additional  expenses  associated with the research and development staff
of Home  Account,  offset  by the cost of  reduction  efforts  of the  Company's
acquisition  integration  plan.  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
<page>

of each warrant unit,  the Company is entitled to receive  $1.153448 in cash and
0.34794 share of Sybase common stock.

     For the nine months ended September 30, 2001 and 2000, InteliData
recognized net gains of approximately $1,130,000 and $47,822,000, 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 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 $2,268,000
for the nine months ended September 30, 2001.

Other Income

     Other income,  primarily  investment and interest income,  was $560,000 and
$659,000 for the nine months ended  September  30, 2001 and 2000,  respectively.
The  decrease  of  $99,000  was due to the  decreased  levels  of cash  and cash
equivalents in 2001 as compared to 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 first nine months of 2000, the
Company  had a loss  from  discontinued  operations  of the  Caller  ID  leasing
business of  $267,000,  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 Income (Loss)
Per Common Share

     The basic and diluted  weighted-average  common shares  outstanding for the
nine  months  ended  September  30,  2001 was  45,007,000,  compared  to a basic
weighted-average   common  shares   outstanding  of  38,199,000  and  a  diluted
weighted-average  common shares outstanding of 40,994,000 for the same period in
2000.  The increase  resulted  primarily  from the exercise of stock options and
warrants,  stock  purchases under the Employee Stock Purchase Plan, the
<page>

granting of certain  stock  awards  during  2001,  and the issuance of 6,900,000
shares for the acquisition of Home Account.

     Basic and  diluted  loss per common  share was  ($0.59)  for the nine month
period in 2001,  compared  to a basic and diluted  income per common  share from
continuing operations of $0.82 and $0.77, respectively,  and a basic and diluted
loss per  common  share from  discontinued  operations  of ($0.01)  for the same
period in 2000.  Basic and diluted net loss per common share was ($0.59) for the
nine-month  period in 2001,  compared to a basic net income per common  share of
$0.81 and a diluted net income per common  share of $0.76 for the same period in
2000.


LIQUIDITY AND CAPITAL RESOURCES

     During  the  first  nine  months  of  2001,  the  Company's  cash  and cash
equivalents  decreased by  $20,715,000.  At September 30, 2001,  the Company had
$6,540,000 in cash and cash equivalents,  $2,751,000 in investments, and working
capital of $2,384,000,  with $900,000 of long-term  liabilities and no long-term
debt.

     During the first nine months of 2001, cash used in operating activities was
$23,170,000  compared to $13,133,000 in the same period in 2000. Cash flows from
operating  activities during the first nine months of 2001 included uses of cash
for operating expenses and increases for accounts  receivable,  accounts payable
and accrued expenses.

     Discontinued  operations used net cash of $184,000 in the first nine months
of 2001  compared to  providing  $438,000 in the first nine 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 $2,586,000 in
the first nine  months of 2001  compared  to  $31,033,000  in the same period in
2000. The difference was primarily due to the gain recognized in January 2000 in
connection with the Home Financial Network, Inc. merger with Sybase, Inc.

     Financing  activities  provided  $53,000 in the first  nine  months of 2001
compared to $1,600,000 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 purchases of treasury
stock.  The activity in 2000  consisted of proceeds from a capital  contribution
and the issuances of the Company's common stock through stock options exercises,
stock warrant exercises and the Employee Stock Purchase Plan.

     During  2001,  the Company has focused on reducing  its cash burn rate from
quarter to quarter and has  periodically  rationalized  its  headcount and other
expenses in light of its available  capital and anticipated  business  forecast.
However,  in order for the Company to continue
<page>

funding its product  development efforts and operations at the current level, it
may be necessary to obtain additional sources of working capital. The Company is
currently engaged in efforts to obtain such additional capital;  however, we can
make no assurances  that these efforts will be successful.  Whether or not these
efforts are successful,  the Company expects to continue to control its expenses
in light of its available capital.


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

     The  information   contained  in  this  report   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,  risks  associated  with  the
acquisition and assimilation of Home Account,  the Company's ability to continue
funding  operating  losses,  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,  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  September  30,  2001,  the fair  value of the  Company's  investment
portfolio is approximately  $2,751,000,  which consisted of $1,235,000 of Sybase
common  stock,  $1,275,000  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  in
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 $128,000 in the fair value of the Company's holdings of
Sybase warrants.

     During  October  2001,  the Company sold its  remaining  investment  in the
Sybase  common  stock and  received  proceeds of  approximately  $1,775,000  and
recognized a realized loss from sales of investments of approximately  $717,000.
This  realized  loss  represents  the decrease in value from the $18.88  closing
price at the time of the Home Financial Network and Sybase merger on January 20,
2000 to the actual  dispositions  at the average  sales  price of $13.45  during
October 2001. As of October 31, 2001,  the Company still  maintained  all of its
warrants to purchase Sybase common stock.


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


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


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

         None.


(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