<PAGE>

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                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(Mark one)

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
         EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999.
                                                             ------------------

[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
         EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________________
         TO _________________.

                         Commission File Number 00024865

                           NEWGEN RESULTS CORPORATION
             (Exact name of registrant as specified in its charter)

          DELAWARE                                    33-0604378
 (State or other jurisdiction of                     (I.R.S. Employer
 incorporation or organization)                   Identification Number)

                        12680 HIGH BLUFF DRIVE, SUITE 300
                           SAN DIEGO, CALIFORNIA 92130
                    (Address of principal executive offices)

                                 (858) 481-7545
              (Registrant's telephone number, including area code)

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. /X/ Yes / / No

As of November 5, 1999, there were 10,021,866 shares of the Registrant's Common
Stock outstanding.

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<PAGE>

                           NEWGEN RESULTS CORPORATION
                                 FORM 10-Q INDEX
<TABLE>
<CAPTION>
                                                                                                           PAGE
                                                                                                           ----
<S>           <C>                                                                                          <C>
PART I.       FINANCIAL INFORMATION

Item 1.       Consolidated Condensed Financial Statements.................................................   3

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

Item 3.       Quantitative and Qualitative Disclosures About Market Risk..................................  16


PART II.      OTHER INFORMATION

Item 1.       Legal Proceedings...........................................................................  16

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

</TABLE>


                                       2
<PAGE>

PART I.       FINANCIAL INFORMATION
ITEM 1.  CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

                    NEWGEN RESULTS CORPORATION AND SUBSIDIARY
                      CONSOLIDATED CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                         SEPTEMBER 30,   DECEMBER 31,
                                                                             1999            1998
                                                                         ------------    ------------
                                                                         (Unaudited)
<S>                                                                      <C>             <C>
                                   ASSETS
  CURRENT ASSETS:

   Cash and cash equivalents .........................................   $ 23,249,517    $    816,753
   Short-term investments available for sale .........................     12,299,941              --
  Accounts receivable, net of allowance for doubtful accounts of
       $352,000 and $299,000 at September 30, 1999 and December
       31, 1998, respectively ........................................      7,965,243       8,211,773
  Prepaid expenses and other .........................................        722,649         376,636
                                                                         ------------    ------------
       Total current assets ..........................................     44,237,350       9,405,162
PROPERTY AND EQUIPMENT, net ..........................................      5,418,855       2,931,836
OTHER ASSETS .........................................................        583,478         435,337
                                                                         ------------    ------------
       Total assets ..................................................   $ 50,239,683    $ 12,772,335
                                                                         ------------    ------------
                                                                         ------------    ------------

               LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES:
  Accounts payable ...................................................   $  3,181,837    $  2,787,802
  Accrued and other current liabilities ..............................      3,644,184       2,324,041
  Notes payable to related parties ...................................             --         800,000
  Current portion of capital lease obligations .......................      1,020,323         935,256
                                                                         ------------    ------------
      Total current liabilities ......................................      7,846,344       6,847,099
                                                                         ------------    ------------
LONG TERM LIABILITIES ................................................      1,443,686       1,008,628
                                                                         ------------    ------------
COMMITMENTS AND CONTINGENCIES

REDEEMABLE PREFERRED STOCK, no par value, 3,500,000 shares authorized:
   Series A convertible, 0 and 1,250,137 shares issued and
       outstanding at September 30, 1999 and December 31, 1998,
       respectively,  stated at ......................................             --       5,925,054
   Series B convertible, 0 and 2,158,604 shares issued and
      outstanding at September 30, 1999 and December 31, 1998,
      respectively, stated at ........................................             --      10,124,726
STOCKHOLDERS' EQUITY (DEFICIT):
   Common stock, $.001 par value, 15,000,000 shares authorized;
      10,021,106 and 3,767,415 shares issued and outstanding at
      September 30, 1999 and December 31, 1998, respectively .........         10,021           3,767
  Additional paid-in capital .........................................     52,257,867       5,384,455
  Deferred compensation ..............................................     (1,204,741)     (1,393,968)
  Notes receivable from stockholders .................................        (56,433)             --
  Unrealized losses on marketable securities .........................           (575)             --
  Retained deficit ...................................................    (10,056,486)    (15,127,426)
                                                                         ------------    ------------
     Total stockholders' equity (deficit) ............................     40,949,653     (11,133,172)
                                                                         ------------    ------------
     Total liabilities and stockholders' equity (deficit) ............   $ 50,239,683    $ 12,772,335
                                                                         ------------    ------------
                                                                         ------------    ------------

</TABLE>

The accompanying notes are an integral part of these financial statements.


                                       3
<PAGE>

                    NEWGEN RESULTS CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                THREE MONTHS ENDED               NINE MONTHS ENDED
                                                                   SEPTEMBER 30,                    SEPTEMBER 30,
                                                            ---------------------------     ---------------------------
                                                                1999            1998            1999            1998
                                                            -----------      ----------     -----------     -----------
<S>                                                         <C>              <C>            <C>             <C>
REVENUES:
  Database marketing services...............................$12,656,016      $8,124,378     $35,190,837     $22,593,988
  Consulting services.......................................  1,515,165       1,709,742       4,675,914       6,615,463
                                                            -----------      ----------     -----------     -----------
     Total revenues......................................... 14,171,181       9,834,120      39,866,751      29,209,451
                                                            -----------      ----------     -----------     -----------
COST OF REVENUES:
  Cost of database marketing services.......................  6,820,511       5,550,382      19,380,567      15,458,911
  Cost of consulting services...............................  1,285,604       1,333,249       3,999,208       5,098,403
  Installation costs........................................    338,276         287,531       1,088,233       1,061,739
                                                            -----------      ----------     -----------     -----------
     Total cost of revenues.................................  8,444,391       7,171,162      24,468,008      21,619,053
                                                            -----------      ----------     -----------     -----------
     Gross profit...........................................  5,726,790       2,662,958      15,398,743       7,590,398
                                                            -----------      ----------     -----------     -----------
OPERATING COSTS:
  Selling, general and administrative expenses..............  3,038,407       2,044,823       9,365,916       5,791,722
  Technology and product development........................  1,154,084         546,177       2,807,006       1,506,969
  Software rewrite costs....................................         --         701,454              --       2,222,260
                                                            -----------      ----------     -----------     -----------
     Total operating costs..................................  4,192,491       3,292,454      12,172,922       9,520,951
                                                            -----------      ----------     -----------     -----------
     Income (loss) from operations..........................  1,534,299        (629,496)      3,225,821      (1,930,553)
                                                            -----------      ----------     -----------     -----------
INTEREST INCOME (EXPENSE),  net:
   Interest income..........................................    454,996          27,741         629,375         107,879
   Interest expense.........................................    (72,389)        (62,303)       (277,151)       (151,746)
                                                            -----------      ----------     -----------     -----------
     Interest income (expense), net.........................    382,607         (34,562)        352,224         (43,867)
                                                            -----------      ----------     -----------     -----------
     Net income (loss), before tax..........................  1,916,906        (664,058)      3,578,045      (1,974,420)
     Income taxes...........................................     10,250              --          10,250              --
                                                            -----------      ----------     -----------     -----------
     Net income (loss)......................................  1,906,656        (664,058)      3,567,795      (1,974,420)
     Adjustment for accretion of redeemable
        convertible preferred stock.........................         --        (340,692)       (486,807)     (1,022,078)
                                                            -----------      ----------     -----------     -----------
     Income (loss) applicable to common
         stockholders....................................... $1,906,656     $(1,004,750)     $3,080,988     $(2,996,498)
                                                            -----------      ----------     -----------     -----------
                                                            -----------      ----------     -----------     -----------
     Basic net income (loss) per share......................      $0.19          $(0.27)          $0.45          $(0.80)
                                                            -----------      ----------     -----------     -----------
                                                            -----------      ----------     -----------     -----------
     Diluted net income (loss) per share....................      $0.18          $(0.27)          $0.38          $(0.80)
                                                            -----------      ----------     -----------     -----------
                                                            -----------      ----------     -----------     -----------
     Shares used in basic per share calculation............. 10,015,372       3,767,415       6,817,070       3,767,082
                                                            -----------      ----------     -----------     -----------
                                                            -----------      ----------     -----------     -----------
     Shares used in diluted per share calculation........... 10,802,259       3,767,415       9,386,220       3,767,082
                                                            -----------      ----------     -----------     -----------
                                                            -----------      ----------     -----------     -----------

</TABLE>

The accompanying notes are an integral part of these financial statements.

                                       4
<PAGE>

                    NEWGEN RESULTS CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                          NINE MONTHS ENDED SEPTEMBER 30,
                                                                               1999            1998
                                                                          ------------    ------------
<S>                                                                       <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss) ..................................................   $  3,567,795    $ (1,974,420)

   Adjustments to reconcile net income (loss) to net cash provided by
     (used in) operating activities:
     Depreciation and amortization ....................................      1,393,332         897,100
     Deferred rent ....................................................        (30,561)        (13,741)
     Deferred compensation ............................................        301,538         167,235
     Changes in assets and liabilities:
       Accounts receivable ............................................        246,530        (559,486)
       Prepaid expenses and other .....................................       (346,013)       (118,775)
       Accounts payable ...............................................        394,035         646,659
       Accrued and other current liabilities ..........................      1,320,170         911,979
                                                                          ------------    ------------
         Net cash provided by (used in) operating activities ..........      6,846,826         (43,449)
                                                                          ------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchases of short-term investments ..............................    (12,300,516)             --
     Purchases of property and equipment ..............................     (2,612,274)       (974,500)
     Other assets .....................................................       (148,141)         11,753
                                                                          ------------    ------------
         Net cash used in investing activities ........................    (15,060,931)       (962,747)
                                                                          ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from stock transactions .................................     32,164,286             312
     Payments of related party loans ..................................       (800,000)             --
     Payments on capital lease obligations ............................       (917,060)       (512,801)
     Proceeds from lines of credit, net ...............................        199,643         592,434
                                                                          ------------    ------------
         Net cash provided by financing activities.....................     30,646,869          79,945
                                                                          ------------    ------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ..................     22,432,764        (926,251)

CASH AND CASH EQUIVALENTS, beginning of period ........................        816,753       4,630,147
                                                                          ------------    ------------
CASH AND CASH EQUIVALENTS, end of period ..............................   $ 23,249,517    $  3,703,896
                                                                          ------------    ------------
                                                                          ------------    ------------

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
   Cash paid for interest .............................................   $    287,151    $    154,246
                                                                          ------------    ------------
                                                                          ------------    ------------

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
   Unrealized losses ..................................................   $        575    $         --
                                                                          ------------    ------------
                                                                          ------------    ------------
   Capital lease obligations entered into for equipment ...............   $  1,467,746    $  1,271,123
                                                                          ------------    ------------
                                                                          ------------    ------------
   Accretion of redeemable preferred stock ............................   $    486,807    $  1,022,078
                                                                          ------------    ------------
                                                                          ------------    ------------
</TABLE>

The accompanying notes are an integral part of these financial statements.


                                       5
<PAGE>



                    NEWGEN RESULTS CORPORATION AND SUBSIDIARY
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.       BASIS OF PRESENTATION

         The consolidated condensed interim financial statements included herein
         have been prepared by Newgen Results Corporation (the "Company")
         pursuant to the rules and regulations of the Securities and Exchange
         Commission (the "Commission") for interim financial information.
         Certain information and footnote disclosures normally included in
         financial statements prepared in accordance with generally accepted
         accounting principles have been condensed or omitted pursuant to such
         rules and regulations, although the Company believes that the
         disclosures are adequate to make the information presented not
         misleading. These consolidated condensed interim financial statements
         should be read in conjunction with the Company's audited financial
         statements and notes thereto included in its Registration Statement
         on Form S-1 as amended (No. 333-62703), as filed with the Commission.
         In the opinion of management, these interim consolidated condensed
         financial statements contain all adjustments (consisting of normal
         recurring entries) which are necessary for a fair and accurate
         presentation of financial position at September 30, 1999 and the
         results of operations and cash flows for the three and nine month
         periods ended September 30, 1999 and 1998. Interim results are not
         necessarily indicative of those to be expected for the full year.

         The preparation of financial statements in conformity with generally
         accepted accounting principles requires management to make estimates
         and assumptions that affect the reported amounts of assets and
         liabilities and disclosure of contingent assets and liabilities at the
         date of the financial statements and the reported amounts of revenues
         and expenses during the reporting period. Actual results could differ
         from those estimates.

2.       INVESTMENTS

         Investments are accounted for in accordance with Statement of Financial
         Accounting Standards (SFAS) No. 115, ACCOUNTING FOR CERTAIN INVESTMENTS
         IN DEBT AND EQUITY SECURITIES, which requires that the Company
         determine the appropriate classification of investments at the time of
         purchase and reevaluate such designation as of each balance sheet date.
         At September 30, 1999, the Company considered all investments as
         available for use in its current operations, and therefore classified
         them short-term, available-for-sale investments. Available-for-sale
         investments are stated at fair value, with unrealized gains and losses,
         if any, net of tax, reported as a separate component of stockholders'
         equity. The cost of securities sold is based on the specific
         identification method. There were no realized gains or losses for the
         nine months ended September 30, 1999.


                                       6
<PAGE>


         At September 30, 1999, cash, cash equivalents and short-term
         investments available for sale consisted of the following (unaudited):

<TABLE>
<CAPTION>
                                                                                             ESTIMATED
                                                                           UNREALIZED           FAIR
                                                           COST          GAINS (LOSSES)        VALUE
                                                     -----------------  ----------------  ----------------
               <S>                                   <C>                <C>               <C>
               Cash                                         $2,058,549                $0        $2,058,549
               Cash equivalents                             21,191,880              (912)       21,190,968
                                                     -----------------  ----------------  ----------------
                Total cash and cash equivalents             23,250,429              (912)       23,249,517
                                                     -----------------  ----------------  ----------------
               Short-term investments:
                 Corporate securities                        9,805,566               275         9,805,841
                 Government securities                       2,494,038                62         2,494,100
                                                     -----------------  ----------------  ----------------
                 Total short-term investments               12,299,604               337        12,299,941
                                                     -----------------  ----------------  ----------------
               Total cash, cash equivalents and
                 short-term investments                    $35,550,033             $(575)      $35,549,458
                                                     -----------------  ----------------  ----------------
                                                     -----------------  ----------------  ----------------

</TABLE>

3.       COMPUTATION OF BASIC AND DILUTED NET INCOME (LOSS) PER SHARE

         Net income (loss) per share has been calculated under Statement of
         Financial Accounting Standards (SFAS) No. 128, EARNINGS PER SHARE. This
         statement requires companies to compute earnings per share under two
         different methods (basic and diluted). Basic earnings per share are
         based on the weighted average number of shares of common stock
         outstanding during the period. Diluted earnings per share are based on
         the weighted average number of shares of common stock and potentially
         dilutive securities (options and warrants) outstanding during the
         period, computed using the treasury stock method.

         The following table sets forth the computation of basic and diluted
         earnings per share for the periods indicated.

<TABLE>
<CAPTION>
                                                THREE MONTHS ENDED          NINE MONTHS ENDED
                                                   SEPTEMBER 30,               SEPTEMBER 30,
                                           -------------------------    -------------------------

                                               1999          1998           1999          1998
                                           -----------   -----------    -----------   -----------
                                                  (Unaudited)                  (Unaudited)
<S>                                        <C>           <C>            <C>           <C>
NET INCOME (LOSS) PER SHARE - BASIC

Net income (loss) applicable to common
   stockholders                            $ 1,906,656   $(1,004,750)   $ 3,080,988   $(2,996,498)
                                           -----------   -----------    -----------   -----------
                                           -----------   -----------    -----------   -----------
Weighted average number of common shares    10,015,372     3,767,415      6,817,070     3,767,082
                                           -----------   -----------    -----------   -----------
                                           -----------   -----------    -----------   -----------
Net income (loss) per share - basic        $      0.19   $     (0.27)   $      0.45   $     (0.80)
                                           -----------   -----------    -----------   -----------
                                           -----------   -----------    -----------   -----------
NET INCOME (LOSS) PER SHARE - DILUTED

Net income (loss)                          $ 1,906,656   $        --    $ 3,567,795   $        --
                                           -----------   -----------    -----------   -----------
                                           -----------   -----------    -----------   -----------

Net income (loss) applicable to common
   stockholders                            $        --   $(1,004,750)   $        --   $(2,996,498)
                                           -----------   -----------    -----------   -----------
                                           -----------   -----------    -----------   -----------

Weighted average number of common shares    10,015,372     3,767,415      6,817,070     3,767,082
Potentially dilutive securities:
    Preferred stock                                 --            --      1,760,559            --
    Stock options                              705,441            --        710,806            --
    Warrants                                    81,446            --         97,785            --
                                           -----------   -----------    -----------   -----------
      Total                                 10,802,259     3,767,415      9,386,220     3,767,082
                                           -----------   -----------    -----------   -----------
                                           -----------   -----------    -----------   -----------
Net income (loss) per share - diluted      $      0.18   $     (0.27)   $      0.38   $     (0.80)
                                           -----------   -----------    -----------   -----------
                                           -----------   -----------    -----------   -----------

</TABLE>

As a result of net operating loss carryforwards, the above net income and
earnings per share amounts do not include a tax provision.


                                       7
<PAGE>


4.       STOCKHOLDERS' EQUITY

         On May 21, 1999, the Company consummated its initial public offering
         and issued 2,724,370 shares of common stock at a price of $13 per
         share. An additional 1,000,630 shares of common stock were offered by
         selling stockholders at a price of $13 per share. Concurrently with the
         offering, a selling stockholder exercised a warrant to purchase 7,576
         shares. The Company received proceeds of approximately $32,108,000, net
         of underwriting discounts, fees and other initial public offering
         costs.

         Simultaneously with the closing of the offering, outstanding shares of
         Series A convertible preferred stock and Series B convertible preferred
         stock were converted to 1,250,137 and 2,158,604 shares of common stock,
         respectively.

         In addition, the Company granted the underwriters an option for a
         period of 30 days to purchase up to 558,750 additional shares of common
         stock to cover any over-allotments. The underwriters did not exercise
         this option.

5.       SEGMENT INFORMATION

         The Company's revenues are substantially derived from two service
         segments: database marketing and consulting operations. The database
         marketing segment provides outsourced database management, direct
         marketing and related customer retention services for the service
         department of automobile dealerships and manufacturers. The consulting
         segment develops and implements new techniques and programs that enable
         automobile dealerships to grow their business, streamline inefficient
         processes and more effectively market their services.

         The following tables summarize segment information for the three and
         nine months ended September 30, 1999 and 1998.

<TABLE>
<CAPTION>
                                                        THREE MONTHS ENDED SEPTEMBER 30,
                         --------------------------------------------------------------------------------------------
                                             1999                                          1998
                                         (Unaudited)                                    (Unaudited)
                         -------------------------------------------      -------------------------------------------
                           DATABASE                                         DATABASE
                           MARKETING      CONSULTING      CONSOLIDATED      MARKETING      CONSULTING      CONSOLIDATED
                          -----------     ----------       -----------     ----------      ----------       ----------
<S>                       <C>             <C>              <C>             <C>             <C>              <C>
REVENUES:

Segment revenues          $12,656,016     $1,515,165       $14,171,181     $8,124,378      $1,709,742       $9,834,120
Segment cost of
revenues                    7,158,787      1,285,604         8,444,391      5,837,913       1,333,249        7,171,162
                          -----------     ----------       -----------     ----------      ----------       ----------
    Segment gross profit   $5,497,229       $229,561        $5,726,790     $2,286,465        $376,493       $2,662,958
                          -----------     ----------       -----------     ----------      ----------       ----------
                          -----------     ----------       -----------     ----------      ----------       ----------
</TABLE>


<TABLE>
<CAPTION>
                                                        NINE MONTHS ENDED SEPTEMBER 30,
                         --------------------------------------------------------------------------------------------
                                             1999                                          1998
                                         (Unaudited)                                    (Unaudited)
                         -------------------------------------------      -------------------------------------------
                           DATABASE                                         DATABASE
                           MARKETING      CONSULTING      CONSOLIDATED      MARKETING      CONSULTING      CONSOLIDATED
                          -----------     ----------       -----------     ----------      ----------       ----------
<S>                       <C>             <C>              <C>             <C>             <C>              <C>
REVENUES:

Segment revenues          $35,190,837     $4,675,914       $39,866,751     $22,593,988      $6,615,463      $29,209,451
Segment cost of
revenues                   20,468,800      3,999,208        24,468,008      16,520,650       5,098,403       21,619,053
                          -----------     ----------       -----------     ----------      ----------       ----------
    Segment gross profit  $14,722,037       $676,706       $15,398,743      $6,073,338      $1,517,060       $7,590,398
                          -----------     ----------       -----------     ----------      ----------       ----------
                          -----------     ----------       -----------     ----------      ----------       ----------

</TABLE>

                                       8
<PAGE>

The following table reconciles the Company's reportable segments' gross profit
to consolidated net income for the periods presented:

<TABLE>
<CAPTION>
                                                      THREE MONTHS ENDED                       NINE MONTHS ENDED
                                                         SEPTEMBER 30,                            SEPTEMBER 30,\
                                               -----------------------------          ---------------------------------
                                                   1999               1998                1999                  1998
                                               ----------         ----------          -----------            ----------
                                                        (Unaudited)                                (Unaudited)
<S>                                            <C>                <C>                 <C>                    <C>
Gross profit from reportable segments          $5,726,790         $2,662,958          $15,398,743            $7,590,398
Operating costs                                 4,192,491          3,292,454           12,172,922             9,520,951
                                               ----------         ----------          -----------            ----------
   Income (loss) from operations                1,534,299           (629,496)           3,225,821            (1,930,553)
Interest income (expense), net                    382,607            (34,562)             352,224               (43,867)
Income taxes                                       10,250                 --               10,250                    --
                                               ----------         ----------          -----------            ----------
  Net income (loss)                            $1,906,656          $(664,058)          $3,567,795           $(1,974,420)
                                               ----------         ----------          -----------            ----------
                                               ----------         ----------          -----------            ----------

</TABLE>

6.      COMPREHENSIVE INCOME

        Other comprehensive income for the three and nine months ended September
        30, 1999 was immaterial and there was no other comprehensive income for
        the three and nine months ended September 30, 1998.

7.      SUBSEQUENT EVENTS

        On October 22, 1999, the Company signed a definitive agreement to
        acquire Computer Care, a division of the Dealer Services Group of
        Automatic Data Processing, Inc. ("ADP"). Under the terms of the
        agreement, the Company will pay $11.0 million in cash at closing, which
        is expected to take place in mid-November 1999, and up to an additional
        $9.0 million in cash, dependent on certain earn-out criteria. The
        Company will be acquiring a business that services over 4,000
        dealerships. These include approximately 1,800 manufacturer accounts and
        1,000 individual dealerships to whom the Company will be providing
        database marketing services. In addition, there are over 1,200 General
        Motors dealerships to whom the Company will provide data mining
        services.

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

         The following discussion of the financial condition and results of
operations of Newgen Results Corporation (the "Company") should be read in
conjunction with the consolidated condensed unaudited financial statements and
the related notes thereto included elsewhere in this Form 10-Q and the audited
consolidated financial statements and notes thereto and Management's Discussion
and Analysis of Financial Condition and Results of Operations for the year ended
December 31, 1998 included in the Company's Registration Statement on Form S-1,
as amended (No. 333-62703).

         Certain statements set forth below and in Note 7 of Notes to
Consolidated Condensed Financial Statements above constitute "forward-looking
statements". Such forward-looking statements involve known and unknown risks,
uncertainties, and other factors including, but not limited to, those discussed
herein and in the Registration Statement on Form S-1, as amended (No.
333-62703), that may cause the actual results, performance or achievements of
the Company, or industry results to be materially different from any future
results, performance, or achievements expressed or implied by such
forward-looking statements. Given these


                                       9
<PAGE>


uncertainties, investors and prospective investors are cautioned not to place
undue reliance on such forward-looking statements. The Company disclaims any
obligation to update information contained in any forward-looking statement.

OVERVIEW

         The Company provides customized, outsourced database management, direct
marketing and related services, including consulting, for service departments of
automobile dealerships and for automobile manufacturers. The Company has
expertise both in database marketing and customer relationship services, as well
as an in-depth knowledge of automobile service department operations. Database
marketing services revenues consist of revenues from the RESULTS program as well
as ancillary products and services.

         Revenues for the RESULTS program are based on the number of active
names in a dealership's database, typically a fixed number determined by the
dealership. The Company generally invoices each of the dealers on a monthly
basis in advance. Revenues for the Company's consulting services are based
principally on a per diem rate for the services it provides. The Company is also
reimbursed for travel expenses and associated costs it incurs in providing
consulting services, which are included as revenues. The Company recognizes all
of its revenues in the month during which it performs the related database
marketing or consulting services.

         The Company derives a significant portion of its revenues from Ford and
Ford dealerships. Although each Ford dealership utilizing the Company's database
marketing services enters into a separate contract with the Company, collection
of receivables from Ford dealerships is centralized through Ford's accounting
department. The Company's current consulting engagement with Ford relating to
the implementation of the Around The Wheel program for certain Ford dealers has
been substantially completed. However, Ford has extended certain maintenance
aspects of the project through August 2000. Consulting revenue is expected to
decrease as a result of the completion of the implementation portion of the
Around The Wheel contract. The Company currently does not have a commitment from
Ford for new consulting engagements beyond August 2000. A majority of the
Company's database marketing services are attributable to Ford dealerships.
During the nine months ended September 30, 1999 and 1998, sales of RESULTS
program and other database marketing services to Ford dealerships for both
periods represented 57% of total revenues. The Company continues to provide data
mining services to Ford Motor Company. One hundred percent of consulting
services were provided to Ford during such periods.

          Cost of revenues consists of database marketing services costs,
consulting costs and installation costs. Costs of database marketing services
include the printing and mailing of letters, as well as the costs of the
teleservice contacts of dealership customers. The costs of database marketing
services also include all costs of managing and purifying the dealership
databases, as well as the costs of customer service and customer satisfaction
departments. Costs of consulting include the direct costs of consulting
personnel, as well as the cost of any independent consultants subcontracted by
the Company. Costs of consulting also include costs of travel and associated
costs incurred by the Company's Consulting Division. Installation costs include
the direct costs (excluding sales commissions) of implementing the Company's
program at dealerships and the costs of the initial download, setup and
purification of the dealership's customer database. These costs are expensed as
incurred and represent a one-time charge for each new dealership added to the
Company's customer base. As a result, these costs are expected to decrease as a
percentage of total revenues as database marketing services revenues increase.
Installation costs are presented as a separate line item to illustrate
investment in implementing


                                      10
<PAGE>


new dealerships. For the purposes of calculating the gross profit associated
with database marketing services in Management's Discussion and Analysis of
Financial Condition and Results of Operations, installation costs are added
to cost of database marketing services.

         Operating expenses consist of fixed costs, such as selling, general
and administrative expenses, technology and product development costs, and
the cost of the software rewrite of the core data management and customer
retention software system. The Company anticipates that operating expenses
will increase as it develops and introduces new services and increases its
customer base. Historically, the Company has been able to leverage operating
expenses over a growing revenue base, and to the extent that the business
continues to grow, the Company expects that operating expenses as a
percentage of total revenues will continue to decline even though they are
expected to increase in absolute dollars. However, because the Company is
generally unable to significantly reduce expenses in the short term to
compensate for any unexpected revenue shortfall, any such shortfall would
have an immediate adverse effect on the business, results of operations and
financial condition. Selling costs include costs of internal sales
department, as well as commissions earned by sales representatives. General
and administrative costs include accounting, payroll and human resources
functions. General and administrative costs also include other non-allocated
costs, such as professional fees and general corporate services. Technology
and product development costs include the cost of programming personnel who
enhance current services and develop new services. The cost of the software
rewrite to the core database management system includes all costs associated
with the implementation of the enterprise-wide software application by a
third-party developer. The costs of the software rewrite were expensed as
they were incurred in 1998. Software rewrite activities undertaken during
1999 were either capitalized in accordance with American Institute of
Certified Public Accountants' Statement of Position 98-1, ACCOUNTING FOR THE
COSTS OF COMPUTER SOFTWARE DEVELOPED OR OBTAINED FOR INTERNAL USE, or were
related to the resolution of issues associated with components which were
previously expensed. For the nine months ended September 30, 1999, $396,000
has been capitalized. As of September 30, 1999, the Company had not deployed
the rewrite because certain functionality, which is required to deploy the
system, had not yet been delivered. The Company has informed the vendor that
these deficiencies exist in the software and there is no assurance that this
functionality will be delivered, or that the system will be deployed in the
future.

         As of December 31, 1998, the Company had net operating loss
carryforwards for federal income purposes of approximately $6.5 million. These
net operating loss carryforwards expire in various years beginning in 2009. The
net deferred asset is fully reserved because of uncertainty regarding its
realizability. Utilization of the Company's net operating loss carryforwards may
be limited as a result of certain changes in the Company's ownership.

         On October 22, 1999, the Company signed a definitive agreement to
acquire Computer Care, a division of the Dealer Services Group of Automatic Data
Processing, Inc. ("ADP"). Under the terms of the agreement, the Company will pay
$11.0 million in cash at closing, which is expected to take place in
mid-November 1999, and up to an additional $9.0 million in cash dependent on
certain earn-out criteria. The Company will be acquiring a business that
services over 4,000 dealerships. These include approximately 1,800 manufacturer
accounts and 1,000 individual dealerships to whom the Company will be providing
database marketing services. In addition, there are over 1,200 General Motors
dealerships to whom the Company will provide data mining services.

THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998

         TOTAL REVENUES. Revenues from database marketing services increased by
$4.5 million, or


                                      11
<PAGE>


56%, to $12.7 million in the quarter ended September 30, 1999 from $8.1
million in the quarter ended September 30, 1998. The increase in database
marketing services revenues was due primarily to the addition by the Company
of 679 dealerships since September 30, 1998, as well as an increase in the
delivery of ancillary services. Revenues from consulting services decreased
by $195,000, or 11%, to $1.5 million in the quarter ended September 30, 1999
from $1.7 million in the quarter ended September 30, 1998. The decrease in
consulting services revenues was due primarily to the fact that the Company
has completed its implementation of the Around The Wheel consulting project
in almost all of its target dealerships.

         GROSS PROFIT. Gross profit from database marketing services increased
by $3.2 million, or 140%, to $5.5 million in the quarter ended September 30,
1999 from $2.3 million in the quarter ended September 30, 1998. As a percentage
of database marketing services revenues, database marketing services gross
profit increased to 43% in the quarter ended September 30, 1999 from 28% in the
quarter ended September 30, 1998. This increase was due primarily to increased
efficiencies associated with the implementation of the Company's new telephone
system. To a lesser extent, the Company also became more efficient in the labor
cost per letter and it obtained leverage by spreading the Company's fixed
installation costs over a larger revenue base. Gross profit from consulting
services decreased by $147,000, or 39%, to $230,000 in the quarter ended
September 30, 1999 from $376,000 in the quarter ended September 30, 1998. As a
percentage of consulting services revenues, consulting services gross profit
decreased to 15% in the quarter ended September 30, 1999 from 22% in the quarter
ended September 30, 1998. This decrease was due primarily to the fact that the
dealer implementation portion of the Around The Wheel project was in its
concluding stages, resulting in less than full utilization of the Company's
consultants.

         SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses increased by $994,000, or 49%, to $3.0 million in the
quarter ended September 30, 1999 from $2.0 million in the quarter ended
September 30, 1998. The increase was due primarily to increased commissions
associated with the selling of longer term contracts for new dealerships. To a
lesser extent, the increase was also caused by increased expenditures associated
with the Company's marketing department and increased administrative costs
associated with the Company's continued growth. Selling, general and
administrative expenses were 21% of total revenues for the quarters ended
September 30, 1999 and 1998.

         TECHNOLOGY AND PRODUCT DEVELOPMENT COSTS. Technology and product
development costs increased by $608,000, or 111%, to $1.2 million in the quarter
ended September 30, 1999 from $546,000 in the quarter ended September 30, 1998.
As a percentage of total revenues, technology and product development expenses
increased to 8% in the quarter ended September 30, 1999 from 6% in the quarter
ended September 30, 1998. The increase was due primarily to the Company's
decision to invest heavily in new service development, and the difficulty of
attracting qualified full time employees. As a result, the Company was required
to pay higher salaries and utilize higher cost contractors.

         SOFTWARE REWRITE COSTS. Software rewrite costs decreased by $701,000
to $0 in the quarter ended September 30, 1999 from $701,000 in the quarter
ended September 30, 1998. This decrease was due primarily to the fact that
the software rewrite activities undertaken in the quarter were either
capitalized in accordance with American Institute of Certified Public
Accountants' Statement of Position 98-1, ACCOUNTING FOR THE COSTS OF COMPUTER
SOFTWARE DEVELOPED OR OBTAINED FOR INTERNAL USE, or were related to the
resolution of issues associated with components which were previously
expensed. As of September 30, 1999, the Company had not deployed the rewrite
because certain functionality, which is required to deploy the system, had
not yet been delivered. The Company has informed the vendor that these


                                      12
<PAGE>


deficiencies exist in the software and there is no assurance that this
functionality will be delivered, or that the system will be deployed in the
future.

         INTEREST INCOME (EXPENSE), NET. Net interest income increased by
$417,000 to $383,000 in the quarter ended September 30, 1999 from net interest
expense of $35,000 in the quarter ended September 30, 1998. This increase was
due primarily to the increase in cash and investments as a result of the initial
public offering.

NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998

          TOTAL REVENUES. Revenues from database marketing services increased by
$12.6 million, or 56%, to $35.2 million in the nine months ended September 30,
1999 from $22.6 million in the nine months ended September 30, 1998. The
increase in database marketing services revenues was due primarily to the
addition by the Company of 679 dealerships since September 30, 1998, and to a
lesser extent, an increase in the delivery of ancillary services. Revenues from
consulting services decreased by $1.9 million, or 29%, to $4.7 million in the
nine months ended September 30, 1999 from $6.6 million in the nine months ended
September 30, 1998. The decrease in consulting services revenues was due
primarily to the fact that the Company has completed its implementation of the
Around The Wheel consulting project in almost all of the Company's target
dealerships.

         GROSS PROFIT. Gross profit from database marketing services increased
by $8.6 million, or 142%, to $14.7 million in the nine months ended September
30, 1999 from $6.0 million in the nine months ended September 30, 1998. As a
percentage of database marketing services revenues, database marketing services
gross profit increased to 42% in the nine months ended September 30, 1999 from
27% for the nine months ended September 30, 1998. This increase was due
primarily to increased efficiencies associated with the implementation of the
Company's new telephone system. To a lesser extent, the Company also became more
efficient in the labor cost per letter and it obtained leverage by spreading the
Company's installation costs over a larger revenue base. Gross profit from
consulting services decreased by $840,000, or 55%, to $677,000 in the nine
months ended September 30, 1999 from $1.5 million in the nine months ended
September 30, 1998. As a percentage of consulting services revenues, consulting
services gross profit decreased to 14% in the nine months ended September 30,
1999 from 23% in the nine months ended September 30, 1998. This decrease was due
primarily to the fact that the Around The Wheel project was in its concluding
stages, resulting in less than full utilization of the Company's consultants.

         SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses increased by $3.6 million, or 62%, to $9.4 million for
the nine months ended September 30, 1999 from $5.8 million in the nine months
ended September 30, 1998. As a percentage of total revenues, selling, general
and administrative expenses increased to 23% for the nine months ended September
30, 1999 from 20% for the nine months ended September 30, 1998. The increase was
due primarily to increased commissions associated with the selling of longer
term contracts for new dealerships. To a lesser extent, the increase was also
caused by increased expenditures associated with the Company's marketing
department and administrative costs associated with the Company's continued
growth.

         TECHNOLOGY AND PRODUCT DEVELOPMENT COSTS. Technology and product
development costs increased by $1.3 million, or 86%, to $2.8 million in the nine
months ended September 30, 1999 from $1.5 million in the nine months ended
September 30, 1998. As a percentage of total revenues, technology and product
development costs increased to 7% for the nine months ended September 30, 1999
from 5% for the nine months ended September 30, 1998. The increase was due
primarily to the Company's decision to invest heavily in new service development
and the


                                      13
<PAGE>


difficulty of attracting qualified full time employees. As a result, the
Company was required to pay higher salaries and utilize higher cost
contractors.

         SOFTWARE REWRITE COSTS. Software rewrite costs decreased by $2.2
million to $0 in the nine months ended September 30, 1999 from $2.2 million
in the nine months ended September 30, 1998. This decrease was due primarily
to the fact that the software rewrite activities undertaken in the period
were either capitalized in accordance with American Institute of Certified
Public Accountants' Statement of Position 98-1, ACCOUNTING FOR THE COSTS OF
COMPUTER SOFTWARE DEVELOPED OR OBTAINED FOR INTERNAL USE, or were related to
the resolution of issues associated with components which were previously
expensed. As of September 30, 1999, the Company had not deployed the rewrite
because certain functionality, which is required to deploy the system, had
not yet been delivered. The Company has informed the vendor that these
deficiencies exist in the software and there is no assurance that this
functionality will be delivered, or that the system will be deployed in the
future.

         INTEREST INCOME (EXPENSE), NET. Net interest income increased by
$396,000 to $352,000 in the nine months ended September 30, 1999 from net
interest expense of $44,000 for the nine months ended September 30, 1998. This
increase was due primarily to increased cash available for investment as a
result of the Company's initial public offering.

LIQUIDITY AND CAPITAL RESOURCES

         Since the Company's inception, the Company has financed its
operations primarily through the sale of equity securities and through
borrowings under the credit facility with Silicon Valley Bank ("SVB").
Through 1998, the Company raised approximately $14.5 million, net of fees and
expenses, through the sale of preferred stock. In May 1999, the Company
consummated its initial public offering and raised net proceeds of
approximately $32.1 million. The acquisition of the Computer Care division of
ADP and associated expenses will require approximately $11.5 million in cash,
which will be funded with cash on hand.

         Cash provided by (used in) operating activities was $6.8 million and
$(43,000) in the nine months ended September 30, 1999 and 1998, respectively.
The increase in cash provided by operating activities was primarily due to the
net income and collections of accounts receivable in the nine months ended
September 30, 1999, compared to the net loss in the same period in 1998.

         Cash used in investing activities was $15.1 million and $963,000 in the
nine months ended September 30, 1999 and 1998, respectively. The increase in
cash used in investing activities was primarily due to the purchases of
short-term investments and property and equipment in connection with the
expansion of the business.

         Cash provided by financing activities was $30.6 million and $80,000 in
the nine months ended September 30, 1999 and 1998, respectively. The increase in
cash provided by financing activities was primarily due to the proceeds from the
Company's initial public offering.

         The Company has a working capital line of credit with SVB that is
secured by substantially all of its assets. The total available amount of the
line is $5.0 million, with advances limited to 80% of qualified accounts
receivable, including a $1.0 million sub-limit for securing letters of credit.
Borrowings under this credit facility bear interest at SVB prime rate (8.25% at
September 30, 1999) with maturity date of May 9, 2000. The Company also has a
$2.0 million equipment line of credit with SVB that bears an interest rate of
SVB prime rate plus .5% with the draw period up to December 31, 1999. The credit
facilities contain certain covenants and restrictions, including a limitation on
indebtedness requiring the Company, as of the last day of each quarter, to
maintain a ratio of quick assets to current liabilities of at least 2.50 to 1.0.
At September 30, 1999, no borrowings were outstanding.


                                      14
<PAGE>


         The Company also has two lease lines of credit of $2.0 million each for
equipment acquisitions. These lines of credit expire in December 1999. As of
September 30, 1999, $644,000 and $894,000 are available under those lines of
credit.

         As of September 30, 1999, the Company has approximately $35.5
million of cash, cash equivalents, and short-term investments. The Company
expects to finance short-term obligations through lease financing, reduction
of receivables and use of cash on hand. The Company may utilize the credit
facility with SVB to meet short term needs. The Company believes that its
existing capital resources together with cash generated from operations and
amounts available under the line of credit will be sufficient to meet capital
requirements for at least the next twelve months.

YEAR 2000 COMPLIANCE

         The use of computer systems and software products that rely on
two-digit date programs to perform computations and decision-making functions
may cause computer systems to malfunction in the Year 2000 and lead to
significant business delays and disruptions. The Company uses a significant
number of computer software programs and operating systems in its operations and
is therefore particularly sensitive to the problems which may be caused by the
Year 2000 problem. The Company anticipates that a significant element of
exposure to malfunction created by noncompliance is in its information
technology systems. These systems include data retrieval, purification,
distribution, financial, administrative and communication operations.

         The Company has developed a program to determine its exposure to
potential Year 2000 problems and to develop plans to reduce or eliminate its
exposure. The Company expects that all phases of this program will be
successfully completed by the end of 1999. In the first phase of this program,
the Company made a detailed assessment of its computer systems, including the
enterprise-wide database management software, to identify those systems which
may have Year 2000 problems. The Company has developed plans to correct systems
critical to its business. Critical systems are currently being replaced or
modified according to plan to eliminate the Year 2000 problems which were
discovered. Finally, the Company is conducting a test of internal systems to
insure that they are ready for the year 2000.

         The Company has not spent a material amount to date in addressing Year
2000 problems. The funds used to address the Year 2000 problem to date have come
from working capital. Additionally, the Company does not expect to spend
material amounts during 1999 to complete its assessment of its Year 2000
readiness. Unanticipated costs associated with any Year 2000 compliance may
exceed present expectations and harm the business. The Company is also assessing
the Year 2000 readiness of its customers and suppliers. Any failure of third
party networks, systems or services upon which the business depends could have a
material adverse impact on the business. The Company also relies on other
systems and services that third parties provide to its customers. As a result,
the success of the plan to address Year 2000 issues depends in part on parallel
efforts being undertaken by other third parties. The Company has identified and
is conducting communications with third parties whose networks, systems or
services are critical to the business to determine the status of their Year 2000
compliance. To date, the Company has contacted and received responses from the
majority of its third party suppliers concerning their Year 2000 compliance. The
Company cannot assure that all such parties have provided, or in the future will
provide, accurate and complete information, or that all their networks, systems
or services will achieve full Year 2000 compliance in a timely fashion. The most
reasonably likely worst-case scenario resulting from Year 2000 issues is that
third-party


                                      15
<PAGE>


noncompliance would disrupt, reduce or eliminate for a period of time the
Company's ability to service existing customers or to solicit new customers.
If such occurrences are widespread, frequent or long in duration, they could
harm the Company's business.

         The Company is developing a contingency plan describing how it will
handle Year 2000 problems which would occur if preparatory efforts are not
successful. Despite its Year 2000 program or other efforts, the Company cannot
assure that all problems have been or will be foreseen and corrected or that no
material disruption of the business will occur. Potential systems interruptions
and expenditures of significant financial or management resources to solve any
Year 2000 issues may have a material adverse effect on the Company's business,
financial condition and results of operations. Furthermore, the failure of
customers and suppliers to achieve Year 2000 compliance could result in a
reallocation of the Company's financial resources to deal with the issue and
reduce customers' ability to utilize services, which could have a material
adverse effect on the Company's business, financial condition and results of
operation.

ITEM 3.       QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

     The Company invests its excess cash in interest-bearing investment-grade
securities that are held for the duration of the term of the respective
instrument. The Company does not utilize derivative financial instruments,
derivative commodity instruments or other market risk sensitive instruments,
positions or transactions in any material fashion. Accordingly, management
believes that, while the investment-grade securities the Company holds are
subject to changes in the financial standing of the issuer of such securities,
it is not subject to any material risks arising from changes in interest rates,
foreign currency exchange rates, commodity prices, equity prices or other market
changes that affect market risk sensitive instruments.

PART II.      OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

     The Company is not currently involved in any pending legal proceedings that
individually, or in the aggregate, are material.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)      Exhibits:

                  The following exhibits are included as part of this Report:

<TABLE>
<CAPTION>
                  EXHIBIT NO.         DESCRIPTION OF EXHIBIT
                  ----------          ----------------------
                  <S>                 <C>
                    10.25             Industrial Lease Agreement dated October 22, 1999 between the
                                      Registrant and The Irvine Company

                    10.26             Equipment Lease Extension dated September 30, 1999 between
                                      the Registrant and Phoenix Growth Capital Corp.

                    10.27*            Service Agreement dated October 4, 1999 between the
                                      Registrant and Mitsubishi Motor Sales of America, Inc.

                    27.1              Financial Data Schedule for the nine months ended
                                      September 30, 1999

</TABLE>


                                      16
<PAGE>


         * Confidential treatment has been requested with respect to certain
         portions of this exhibit. Omitted portions have been filed separately
         with the Securities and Exchange Commission.

         (b)      Reports on Form 8-K: On October 22, 1999, Items 5 and 7 were
                  reported.

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

                           NEWGEN RESULTS CORPORATION
                           --------------------------
                                 (Registrant)


Date:    November 15, 1999                        /s/ Gerald L. Benowitz
                                                --------------------------
                                                   Gerald L. Benowitz
                                                      President and
                                                 Chief Executive Officer
                                              (Principal Executive Officer)



Date:    November 15, 1999                          /s/ Samuel Simkin
                                                --------------------------
                                                      Samuel Simkin
                                                 Chief Financial Officer
                                              (Principal Financial Officer)



                                       17