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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, 1999       Commission File Number 000-21685



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

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

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

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed  by  Section  13 or 15 (d) of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements  for the past 90 days.
Yes X     No
   ------   ------

The number of shares of  the  registrant's  Common  Stock  outstanding  on
September  30,  1999  was 33,329,579

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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, 1999 and December 31, 1998 ....................3

                  Condensed Consolidated Statements of Operations
                  Three Months and Nine Months Ended September 30,
                  1999 and 1998 ...............................................4

                  Condensed Consolidated Statement of Changes in
                  Stockholders' Equity
                  Nine Months Ended September 30, 1999.........................5

                  Condensed Consolidated Statements of Cash Flows
                  Nine Months Ended September 30, 1999 and 1998................6

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

         Item 2.  Management's Discussion and Analysis of Financial Condition
                  and Results of Operations ..................................10


PART II - OTHER INFORMATION

         Item 6.  Exhibits and Reports on Form 8-K............................20

SIGNATURES        ............................................................21

<PAGE>
PART I:  FINANCIAL INFORMATION
------------------------------
ITEM 1:  FINANCIAL STATEMENTS
-----------------------------

                       INTELIDATA TECHNOLOGIES CORPORATION
                 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                    SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
                        (in thousands, except share data)
<TABLE>
                                                                                        1999            1998
<S>                                                                                 <C>             <C>
                                                                                    ------------    ------------
ASSETS
  CURRENT ASSETS
     Cash and cash equivalents                                                      $     10,399    $      8,050
     Accounts receivable, net of allowances of $585
         in 1999 and $592 in 1998                                                          3,222           2,113
     Prepaid expenses and other current assets                                                 5             143
                                                                                    ------------    ------------
         Total current assets                                                             13,626          10,306

  NONCURRENT ASSETS
     Property and equipment, net                                                             214             348
     Other assets                                                                            175             257
                                                                                    ------------    ------------
TOTAL ASSETS                                                                        $     14,015    $     10,911
                                                                                    ============    ============

LIABILITIES AND STOCKHOLDERS' EQUITY
  CURRENT LIABILITIES
     Accounts payable                                                               $      1,626    $      1,344
     Accrued expenses and other liabilities                                                1,503             910
     Deferred revenues                                                                     1,836           3,056
     Net liabilities of discontinued operations                                            1,812           5,270
                                                                                    ------------    ------------
         Total current liabilities                                                         6,777          10,580

  NONCURRENT LIABILITIES
     Deferred revenues                                                                         -               -
                                                                                    ------------    ------------
TOTAL LIABILITIES                                                                          6,777          10,580

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
     Preferred stock, $0.001 par value; authorized 5,000,000 shares;
         600 shares  issued and 520  outstanding  as of September 30, 1999                    --              --
     Common stock, $0.001 par value; authorized 60,000,000 shares;
         issued 34,011,079 shares in 1999 and 32,293,005, shares in 1998;
         outstanding 33,329,579 shares in 1999 and 31,611,505 in 1998                         34              32
     Additional paid-in capital                                                          257,348         247,359
     Treasury stock, at cost                                                              (2,064)         (2,064)
     Deferred compensation                                                                  (217)           (152)
     Accumulated deficit                                                                (247,863)       (244,844)
                                                                                    ------------    ------------
TOTAL STOCKHOLDERS' EQUITY                                                                 7,238             331
                                                                                    ------------    ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                          $     14,015    $     10,911
                                                                                    ============    ============
</TABLE>
     See accompanying notes to condensed consolidated financial statements.
<PAGE>
                       INTELIDATA TECHNOLOGIES CORPORATION
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
                (in thousands, except per share data; unaudited)

<TABLE>
                                                              Three months ended                  Nine months ended
                                                                 September 30,                      September 30,
                                                          ---------------------------        ---------------------------
                                                             1999             1998              1999            1998
                                                          -----------      ----------        ----------      -----------
<S>                                                       <C>              <C>               <C>             <C>
REVENUES
     Software                                             $       735       $     416        $    1,265      $       416
     Consulting and services                                      495             415             1,461              626
     Leasing and other                                          1,692           1,894             5,123            6,305
                                                          -----------      ----------        ----------      -----------
         Total revenues                                         2,922           2,725             7,849            7,347
                                                          -----------      ----------        ----------      -----------
COST OF REVENUES
     Software                                                     112               -               165                -
     Consulting and services                                      256             162               557              196
     Leasing and other                                            208             400               906            1,629
                                                          -----------      ----------        ----------      -----------
         Total cost of revenues                                   576             562             1,628            1,825
                                                          -----------      ----------        ----------      -----------
GROSS PROFIT                                                    2,346           2,163             6,221            5,522

OPERATING EXPENSES
     General and administrative                                 1,178           1,586             4,971            4,861
     Selling and marketing                                        464             714             1,676            2,001
     Research and development                                   1,306             656             2,909            2,013
                                                          -----------      ----------        ----------      -----------
         Total operating expenses                               2,948           2,956             9,556            8,875
                                                          -----------      ----------        ----------      -----------
OPERATING LOSS                                                   (602)           (793)           (3,335)          (3,353)

OTHER INCOME                                                      109              32               227              718
                                                          -----------      ----------        ----------      -----------
LOSS BEFORE INCOME TAXES                                         (493)           (761)           (3,108)          (2,635)
INCOME TAXES                                                       --              --                --               --
                                                          -----------      ----------        ----------      -----------
LOSS FROM CONTINUING OPERATIONS                                  (493)           (761)           (3,108)          (2,635)

DISCONTINUED OPERATIONS
  Gain (loss) from operation of telecommunications and
    interactive service divisions (net of income taxes)           315          (1,325)            1,624          (18,049)
  Loss on disposal of telecommunications and
    interactive service divisions                                   -          (1,500)                -          (10,493)
                                                          -----------      ----------        ----------      -----------
         Income (loss) from discontinued operations               315          (2,825)            1,624          (28,542)
                                                          -----------      ----------        ----------      -----------
NET LOSS                                                  $      (178)      $  (3,586)       $   (1,484)     $   (31,177)
                                                          ===========      ==========        ==========      ===========

Preferred stock dividends and amortization of discounts
  arising from allocation of proceeds to warrants and
  beneficial conversion feature                           $    (1,535)     $        -        $   (1,535)     $        -
                                                          ===========      ==========        ==========      ===========
Net Loss Attributable to Common Stockholders              $    (1,713)     $   (3,586)       $   (3,019)     $   (31,177)

Basic and diluted loss from continuing
  operations per common share                             $     (0.06)     $    (0.02)       $    (0.14)     $     (0.08)
                                                          ===========      ==========        ==========      ===========
Basic and diluted income (loss) from discontinued
  operations per common share                             $      0.01      $    (0.09)       $     0.05      $     (0.91)
                                                          ===========      ==========        ==========      ===========
Basic and diluted loss per common share                   $     (0.05)     $    (0.11)       $    (0.09)     $     (0.99)
                                                          ===========      ==========        ==========      ===========
Basic and diluted weighted average outstanding shares          33,056          31,644            32,459           31,397
                                                          ===========      ==========        ==========      ===========
</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, 1999
                            (in thousands; unaudited)

<TABLE>

                                      Common stock       Additional
                                   ------------------     Paid-in     Treasury     Deferred      Accumulated  Comprehensive
                                    Shares     Amount     Capital      Stock     Compensation      Deficit       Loss        Total
                                   --------- --------   -----------  ----------  -------------  ------------  ----------   ---------
<S>                               <C>       <C>         <C>          <C>         <C>            <C>           <C>          <C>

Balance at December 31, 1998          31,612  $    32   $   247,359  $  (2,064)  $       (152)  $  (244,844)  $     -      $    331
  Issuance of common stock:               -         -             -          -              -             -         -             -
     Exercise of stock options         1,140        1         2,250          -              -             -         -         2,251
     Employee Stock Purchase              23        -            27          -                            -         -            27
     Conversion of Preferred Stock       270        -             1                                                               1
  Issuance of Restricted Stock           319        1           457          -           (214)            -         -           244
  Issuance of Stock Warrants                        -           141          -           (141)            -         -             -
  Cancellation of Restricted Stock       (35)       -           (47)         -             47             -         -             -
  Preferred Convertible Investment                            5,670                                                           5,670
  Preferred Stock Dividends                                                                             (45)                    (45)
  Amortization of discount arising                            1,490                                  (1,490)                      -
   from allocation of proceeds of
   preferred stock issuance
  Compensation Expense                     -        -             -          -            243
  Net Loss                                                                                           (1,484)   (1,484)       (1,484)
                                   --------- --------   -----------  ----------  -------------  ------------  --------      --------
Balance at September 30, 1999         33,329       34       257,348     (2,064)          (217)     (247,863)   (1,484)        7,238
                                   ========= ========   ===========  ==========  =============  ============  ========      ========
</TABLE>

     See accompanying notes to condensed consolidated financial statements.
<PAGE>
                       INTELIDATA TECHNOLOGIES CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
                            (in thousands; unaudited)

<TABLE>
                                                                              1999                  1998
                                                                          -----------           -----------
<S>                                                                       <C>                   <C>
Cash flows from operating activities of continuing operations
Loss from continuing operations                                           $  (3,108)            $  (2,635)
Adjustments to reconcile loss from continuing operations
to net cash used in operating activities of continuing operations:
   Depreciation and amortization                                                190                   488
   Deferred compensation and other noncash items                                243                   148
   Changes in certain assets and liabilities:
       Accounts receivable                                                   (1,109)                  (23)
       Inventories                                                                -                   (22)
       Prepaid expenses and other current assets                                138                    52
       Other assets                                                              82                    69
       Accounts payable                                                         282                   126
       Accrued expenses and other liabilities                                   593                (1,332)
       Deferred revenues                                                     (1,220)               (1,572)
                                                                          -----------           ------------
         Net cash used in operating activities of continuing operations      (3,909)               (4,701)
                                                                          -----------           ------------

   Net gain from discontinued operations                                      1,624               (28,542)
   Change in net liabilities of discontinued operations                      (3,106)               29,693
                                                                          -----------           ------------
         Net cash (used in) provided by discontinued operations              (1,482)                1,151
                                                                          -----------           ------------
Net cash used in operating activities                                        (5,391)               (3,550)

Cash flows from investing activities
   Proceeds from the sale of short-term investments                               -                 9,304
   Purchases of property and equipment                                          (56)                   (7)
                                                                          -----------           ------------
         Net cash (used in) provided by investing activities                    (56)                9,297
                                                                          -----------           ------------

Cash flows used in financing activities
   Payment of short-term borrowings-discontinued operations                       -                (1,500)
   Proceeds from the Issuance of Preferred Stock                              5,670
   Proceeds from the issuance of common stock                                 2,126                   323
                                                                          -----------           -----------
         Net cash provided by (used in) financing activities                  7,796                (1,177)
                                                                          -----------           -----------

             Increase in cash and cash equivalents                            2,349                 4,570

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

Cash and cash equivalents at end of period                                $  10,399             $   6,625
                                                                          ===========           ============
</TABLE>
      See accompanying notes to condensed consolidated financial statements.

<PAGE>

                       INTELIDATA TECHNOLOGIES CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
             THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
                                   (Unaudited)


(1)      Basis of Presentation

                  The  condensed   consolidated   balance  sheet  of  InteliData
         Technologies  Corporation  ("InteliData"  or "Company") as of September
         30,  1999,  and  the  related  condensed  consolidated   statements  of
         operations  for the three and nine month  periods  ended  September 30,
         1999 and 1998, the condensed consolidated  statements of cash flows for
         the nine month  periods  ended  September  30,  1999 and 1998,  and the
         condensed consolidated statement of changes in stockholders' equity for
         the nine months ended  September  30, 1999  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 for previous  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, 1998.


(2)      Segment Reporting

                  The  Company's  continuing  operations  are  reported  in  two
         operating  segments:  Internet  Banking  and  Leasing.  The  basis  for
         determining  the  Company's  operating  segments is the manner in which
         financial   information   is  used  by  the  Company  in  managing  its
         operations. Management organizes and operates the business according to
         units which  provide  unique  products and services.  Operating  (loss)
         income in these two segments  represents  total revenues less operating
         expenses,  and  excludes  other  income and expense  and income  taxes.
         Segment financial information is as follows (in thousands):

<PAGE>
<TABLE>
         ----------------------------------- ----------------------- ------------------- ---------------------
                                             Internet Banking             Leasing        Consolidated
         ----------------------------------- ----------------------- ------------------- ---------------------
         <S>                                 <C>                     <C>                 <C>
         1999 Third Quarter
             Revenues                          $        1,988          $       934       $         2,922
             Operating (loss) income                   (1,328)                 726                  (602)


         1998 Third Quarter
             Revenues                          $        1,567          $     1,158       $         2,725
             Operating (loss) income                   (1,551)                 758                  (793)

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


         ----------------------------------- ----------------------- ------------------- ---------------------
                                             Internet Banking             Leasing        Consolidated
         ----------------------------------- ----------------------- ------------------- ---------------------
         1999 Nine Months
             Revenues                          $        4,833          $     3,016       $         7,849
             Operating (loss) income                   (5,445)               2,110                (3,335)


         1998 Nine Months
             Revenues                          $        3,106          $     4,241       $         7,347
             Operating (loss) income                   (5,965)               2,612                (3,353)

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

</TABLE>

(3)      Series B Convertible Preferred Stock

                  In accordance with generally accepted  accounting  principles,
portions of the proceeds from the sale of the Company's Series B Preferred Stock
were  allocated to certain  warrants  and to the  Preferred  stock's  conversion
feature.  On the Company's  statement of operations,  "Preferred stock dividends
and  amortization  of discounts  arising from allocation of proceeds to warrants
and beneficial  conversion  feature" in the amount of $1,535,000 is added to the
net loss to arrive at "Net Loss attributable to common stockholders." InteliData
expects dividends and amortization in the amount of  approximately  $600,000 to
impact the Company's earnings per share calculations for the fourth quarter.  No
such dividends and  amortization  are expected in 2000,  because as announced by
the Company on November 10, 1999,  all of the Series B Preferred  Stock has been
converted into common stock.

<PAGE>

(4)      Subsequent Events

                  On October 28, 1999, the Company  received  notification  from
         its billing agent regarding proposed changes to the billing process for
         the US West Caller ID Lease  Base.  The  pending  changes,  which could
         require the Company's  lease  billings to be removed from the U.S. West
         customer bills,  could have a substantial effect on the rate of decline
         of the lease base,  the cost of billing,  and the Company's  ability to
         pursue collections.  Any changes in billing procedures could negatively
         affect the Company's  revenue,  cost of sales,  gross margin,  and cash
         flow in future periods.

                  As  of  November  9,  1999  all  of  the  Company's  Series  B
         Convertible  Preferred Stock had been converted into common stock.  The
         total  amount of common  stock  issued  pursuant  to such  conversions,
         including accrued dividends, was 4,792,843 shares.

<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, 1999
and 1998.  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, 1999 AND 1998

Revenues

         The Company's  third quarter  revenues were $2,922,000 in 1999 compared
to  $2,725,000  in 1998,  an  increase  of 7% or  $197,000.  This is  attributed
primarily to the increase in software sales and professional  services revenues,
offset by the  expected  decrease in the billable  Caller ID leases.  During the
third quarter,  software revenues contributed $735,000,  consulting and services
revenues  contributed  $495,000,  and  other  revenues  contributed  $1,692,000.
Software   and   consulting   revenue  were  the  result  of  progress  on  bank
installations at Compass Bank, National City Bank, Old Kent, and First Hawaiian.
During the quarter,  the Company  realized  $70,000 in revenues from maintenance
contracts related to the sale of software.

         During the same  period in 1998,  there was  $416,000  in revenue  from
software,  consulting  and  services  contributed  $415,000  and other  revenues
contributed $1,894,000.  During the third quarter of 1999, revenues from leasing
and other operations  consisted of $934,000 from customers within its lease base
and $757,000 from  royalties  relating to its original sale of the Visa Bill-Pay
system.  During the same period in 1998, the Company recognized  $1,158,000 from
customers  within its lease base,  $625,000 from royalties for the VISA bill pay
operations,  and $111,000 in revenues from maintenance  contracts related to the
sale of software.

Cost of Revenues

         The  Company's  third  quarter  cost of revenues  was  $576,000 in 1999
compared  to $562,000 in 1998,  an  increase of 2% or $14,000.  The  increase is
attributed  primarily  to the  increase in cost of  revenues  for  software  and
consulting  services  over  the same  period  in 1998,  offset  by the  expected
decreasing cost of revenues from Caller ID leasing activities.  During the third
quarter of 1999, software cost of revenues contributed $112,000,  consulting and
services contributed  $256,000 and other cost of revenues contributed  $208,000.
Other cost of revenues consisted of expenses associated with leasing activities.

         During  the third  quarter  of 1998,  there  were no  software  cost of
revenues,  consulting  and  services  contributed  $162,000  and  other  cost of
revenues  contributed  $400,000.  Other cost of revenues  consisted  of expenses
associated with leasing activities.

<PAGE>

         Overall gross profit  margins  increased  slightly to 80% for the third
quarter of 1999 from 79% for the third quarter of 1998.  The slight  increase in
gross profit margin is result of a different  mix of product sales in 1999.  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, the introduction
of new products and changes in the volume,  terms,  and billing costs of leasing
activity.

General and Administrative

         General  and  administrative  expenses  were  $1,178,000  for the third
quarter of 1999 as  compared to  $1,586,000  in the third  quarter of 1998.  The
decrease of $408,000 was  primarily  related to a reduction in head count in the
G&A  areas.  Other  reductions  from the same  period of 1998 were  related to a
decrease in  depreciation  expense  allocated to the general and  administrative
departments and the reduction of bad debt expense.

Selling and Marketing

         Selling and  marketing  expenses  decreased  to $464,000  for the third
quarter of 1999 from  $714,000 for the same period last year.  The  reduction is
attributed  primarily  to  decreases  in  the  number  of  marketing  and  sales
employees, the level of newspaper and other print advertising, and the reduction
of other outside consulting expenses.

Research and Development

         Research and development  costs were $1,306,000 in the third quarter of
1999,  as  compared  to  $656,000  in the same  period in 1998.  This is largely
attributable  to the  increase in  implementation  and  development  staff hired
during the past several  months as the product line has expanded  into a hosting
and  service  bureau  business.  Other  increases  during  the  period  included
additional  depreciation associated with hardware and related items allocated to
the Research and Development departments. The Company primarily invests research
and  development  expenses in writing and developing  the Interpose  Transaction
Engine  for the Open  Financial  Exchange  ("OFX")  standard,  and has begun the
initial  development  work  associated  with the  Company's  service  bureau and
hosting businesses.

Other Income

         Other income,  primarily  investment income, was $109,000 for the third
quarter of 1999  compared to $32,000 for the same period in the prior year.  The
increase of $77,000 was  directly  attributable  to the higher level of invested
cash  maintained by the Company after the private  placement of preferred  stock
during the third quarter of this year.

<PAGE>

Discontinued Operations

         Discontinued  operations for the Company consist of business activities
of the telecommunications  and interactive services divisions.  During 1998, the
Company  recorded  liabilities  to account for the  operations and activities of
discontinued operations.  During the third quarter of 1999, the Company realized
a  gain  of  $315,000  from  the  operations  of  the   discontinued   business,
attributable  to specific  events that  occurred  during the third  quarter that
caused  assumptions on future expenses to be revised.  Items included  favorable
settlements with former  telecommunication  customers, the success of aggressive
collection  efforts  related  to  accounts  receivable  from  customers  of  the
discontinued  business,  and decreased  expenses  related to warranty,  customer
service,  and  royalties.  For the third quarter of 1998,  the total loss of the
discontinued  businesses  accounted for $2,825,000.  The loss from operations of
discontinued  operations  (net of income taxes) was $1,325,000 and the loss from
disposal of the discontinued operations was $1,500,000.

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

         The basic and diluted  weighted  average shares increased to 33,056,000
for the third quarter of 1999  compared to  31,644,000  for the third quarter of
1998. The increase  resulted  primarily from the exercise of stock options,  the
granting  of certain  stock  awards  during the third  quarter of 1999,  and the
issuance and  conversion  of  preferred  shares to common stock during the third
quarter of 1999.

         The Company's net loss attributable to common stockholders was impacted
by a charge of $1,535,000  related to the Series B Preferred Stock dividends and
the  amortization  of discounts  arising from allocation of proceeds to warrants
and the beneficial conversion feature.

         As a result of the  foregoing,  basic and diluted loss per common share
from continuing operations was $(0.06) for the third quarter of 1999 compared to
a loss of $(0.02) for the third quarter of 1998.  Basic and diluted  income from
discontinued  operations  per common share was $0.01 during the third quarter of
1999,  as compared  to a loss of $(0.09) for the same period in 1998.  Basic and
diluted loss per common share was $(0.05) for the third quarter of 1999 compared
to a loss of $(0.11) for the third quarter of 1998.

NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998

Revenues

         The  Company's  revenues  for  the  first  nine  months  of  1999  were
$7,849,000  compared to $7,347,000  in 1998, an increase of 7% or $502,000.  The
Company  recognized  $1,265,000 in software revenue during the first nine months
of 1999.  During the same  period in 1998,  the Company  recognized  $416,000 of
software revenue.  Consulting and services revenues aggregated $1,461,000 in the
first nine  months of 1999 while  during the same  period in 1998,  the  Company
recognized $626,000 in consulting and services.  Leasing and other revenues were
$5,123,000  in the first nine months of 1999 compared to $6,305,000 in the first
nine months of

<PAGE>
1998.  During the first nine  months of 1999,  revenues  from  leasing and other
operations  consisted of $3,016,000  from  customers  within its lease base, and
$2,107,000 from royalty revenues related to the VISA Bill-Pay system. During the
same period in 1998, the Company recognized $4,241,000 from customers within its
lease base, $189,000 in revenues from maintenance  contracts related to the sale
of software,  and $1,875,000 from royalties related to the VISA Bill-Pay system.
The  number  of  active   customers  in  the  Company's   installed  lease  base
historically has decreased at a rate of approximately  27% per year. The rate of
decline  could be negatively  affected by any changes in the billing  procedures
for the lease base. Cost of Revenues

         The  Company's  cost of revenues  for the first nine months of 1999 was
$1,628,000  compared to $1,825,000  in 1998, a decrease of 12% or $197,000.  The
Company had no cost of revenues related to the sale of software during the first
nine  months of 1998  while in the same  period in 1999,  the  Company  incurred
$165,000 in costs  associated with software sales.  Consulting and services cost
of revenues  aggregated  $557,000 in the first nine months of 1999, while during
the same period in 1998, the Company  incurred  $196,000 in cost of revenues for
consulting and services.  Cost of revenues  associated  with leasing  aggregated
$906,000 in the first nine months of 1999  compared  to  $1,629,000  in the same
period of 1998.  The decrease in cost of revenues for the  Company's  lease base
from  the  first  nine  months  of 1998 to the  first  nine  months  of 1999 was
attributed primarily to the lease base becoming fully depreciated in 1998 and an
expected decrease in the number of active lease customers.

         Overall gross profit margin  increased to 79% for the first nine months
of 1999  from 75% for the same  period in 1998.  The  increase  in gross  profit
margin was  attributed  primarily  to a shift in the source of revenues  for the
Company and the effects of the Company's lease base becoming fully  depreciated.
The Company  anticipates  that gross profit  margins may fluctuate in the future
due to changes in product mix, competitive pricing pressure, the introduction of
new  products  and changes in the volume,  terms,  and billing  costs of leasing
activity.

General and Administrative

         General and administrative  expenses were $4,971,000 for the first nine
months of 1999 as compared to $4,861,000  in the first nine months of 1998.  The
increase of $110,000 was  attributed  to  expanding  the  Company's  development
facilities in Toledo,  Ohio,  expenses associated with the move of the Company's
headquarters to Reston, Virginia, non-cash charges associated with certain stock
grants, and expenses  associated with the due diligence  performed in connection
with the potential  merger and joint marketing  arrangement  with Home Financial
Network,  Inc..  Throughout the year, the Company expects to control general and
administrative  expenses  and plans to  continually  assess  its  operations  in
managing the  continued  development  of  infrastructure  to handle  anticipated
business levels. The Company expects to increase the level of contract activity,
thereby  reducing  general and  administrative  expense as a percentage of total
expenses.

<PAGE>

Selling and Marketing

         Selling and marketing  expenses  decreased to $1,676,000  for the first
nine months of 1999 from  $2,001,000 for the same period last year. The decrease
is primarily  attributable to the lower  headcount and personnel  expense in the
sales and marketing  areas,  and lower expenses  associated with advertising and
trade shows.

Research and Development

         Research and development costs were $2,909,000 in the first nine months
of 1999  compared to  $2,013,000  for the same period in 1998.  The  increase of
$896,000 was largely  attributable to increases in employee  expenses during the
first nine months of the year, as well as outside consulting services, expansion
of the  Company's  development  facility  in Ohio and  noncapitalized  equipment
purchases.  The Company primarily  invests research and development  expenses in
writing and developing the Interpose  Transaction  Engine for the Open Financial
Exchange ("OFX") standard, and has begun the initial development work associated
with the Company's service bureau and hosting business.

Other Income

         Other income,  primarily  investment income, was $227,000 for the first
six months of 1999  compared to $718,000  for the same period in the prior year.
The decrease of $491,000 was attributed to decreased cash, cash  equivalents and
short-term  investment  balances in the first half of 1999 compared to the first
half of 1998 and the  realization  of a large gain in the  Company's  investment
portfolio  during 1998. The decrease in cash,  cash  equivalents  and short-term
investment balances were related to the funding of the Company's working capital
and  operating  losses,  partially  offset by the effects of favorable  customer
settlements and improved collections in discontinued operations.

Discontinued Operations

         Discontinued  operations for the Company consist of business activities
of the telecommunications  and interactive services divisions.  During 1998, the
Company  recorded  liabilities  to account for the  operations and activities of
discontinued  operations.  During the first  nine  months of 1999,  the  Company
realized a gain of $1,624,000 from the operations of the discontinued  business,
primarily from favorable settlements with former telecommunication customers and
retailers,  the success of  aggressive  collection  efforts  related to accounts
receivable from customers of the  discontinued  business,  and reduced  expenses
related to warranty,  customer service, and royalty payments. For the first nine
months of 1998, the loss from discontinued  operations (net of income taxes) was
$18,049,000  and the loss  from  disposal  of the  discontinued  operations  was
$10,493,000.  Total  losses for  discontinued  operations  during the first nine
months of 1998 were $28,542,000.

<PAGE>

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

         The basic and diluted  weighted  average shares increased to 32,459,000
for the first nine  months of 1999  compared  to  31,397,000  for the first nine
months of 1998. The increase in shares is primarily attributable to the exercise
of stock options and stock grants to key employees and the conversion of certain
preferred shares to common stock during the third quarter of 1999.

         The Company's net loss attributable to common stockholders was impacted
by a charge of $1,535,000  related to the Series B Preferred Stock dividends and
the  amortization  of discounts  arising from allocation of proceeds to warrants
and the beneficial conversion feature.

         As a result of the  foregoing,  basic and diluted loss per common share
from  continuing  operations  was  $(0.14)  for the  first  nine  months of 1999
compared to $(0.08) for the first nine months of 1998;  basic and diluted income
per  common  share  from  discontinued  operations  was $0.05 for the first nine
months of 1999  compared to a loss of $(0.91) for the first nine months of 1998;
basic and diluted loss per common share was $(0.09) for the first nine months of
1999 compared to $(0.99) for the first nine months of 1998.

LIQUIDITY AND CAPITAL RESOURCES

         During  the  first  nine  months  of 1999,  the  Company's  cash,  cash
equivalents and short-term investments increased by $2,349,000. At September 30,
1999, the Company had $10,399,000 in cash and cash equivalents. At September 30,
1999, the Company had working  capital of $6,849,000 with no long-term debt. The
Company's total assets exceeded total liabilities by $7,238,000.

         During  the first  nine  months of 1999,  cash  used in  activities  of
continuing  operations was $3,909,000  compared to $4,701,000 in the same period
in 1998. Cash used in operating  activities of continuing  operations during the
first nine months of 1999 reflects  operating  losses arising from certain fixed
costs,  increase in Accounts  Receivable,  offset in part by net cash  generated
from increases in accounts  payable,  prepaid expenses,  accrued  expenses,  and
decreases in deferred revenues. Cash used in activities of continuing operations
during the first nine months of 1998  include  certain  fixed  costs,  operating
expenses,  payment of certain  liabilities  and recognition of income related to
deferred revenues.

         Cash used in  discontinued  operations  during the first nine months of
1999 was  $1,482,000  resulting  primarily  from  payments  related to severance
agreements and settlements with customers,  partially offset by cash collections
from telecommunications customers.

         Cash provided by investing  activities in 1998 was primarily the result
of the sale of short-term  investments offset in part by the purchase of certain
property  and  equipment,  primarily  to support  an  upgrade  to the  Company's
internal  networks.  In the first  nine  months of 1999,  $56,000  was spent for
property additions.

<PAGE>

         Financing  activities  provided  $7,796,000 in the first nine months of
1999 compared to the use of $1,177,000 during the same period in 1998. Financing
activities in the first nine months of 1999 consisted primarily of proceeds from
the sale of the  Company's  common stock  through the issuance of  $6,000,000 of
preferred  stock  during the third  quarter of 1999 and the  issuance  of common
stock upon the  exercise  of  options.  Financing  activities  in the first nine
months of 1998  consist  primarily  of the  payment  of  short-term  borrowings,
partially offset by proceeds from the sale of the Company's common stock through
stock option exercises.

         The Company's  continuation  as a going  concern is dependent  upon its
ability to generate  sufficient  cash flows to meet its  obligations on a timely
basis, to obtain additional  financing,  and ultimately to attain profitability.
To that extent,  on July 22, 1999, the Company closed a private placement of 600
shares of 4%  Convertible  Preferred  Stock for an aggregate  purchase  price of
approximately  $6.0  million,  generating  approximately  $5.7  million  of  net
proceeds.

         In addition,  the Company's  accuracy in  predicting  revenues and cash
flow is limited in that the sale of the Company's core product is reliant on the
banking  industry's  willingness to invest in a relatively new market,  internet
banking.  This market  segment is slowly  evolving and is subject to a number of
variables in 1999 and beyond that will  determine the timing and quantity of new
sales that the  Company is able to  achieve.  Such  variables  include:  (1) the
effect of consolidations in the banking  industry;  (2) financial  institutions'
progress on Year 2000 compliance;  and (3) the banking customers' willingness to
invest freely in this emerging customer channel.

         The Company had received notification from the Nasdaq Stock Market that
it intended to delist the  Company's  common stock from the Nasdaq Stock Market,
effective  May 4,  1999,  due to the  Company's  failure  to meet  Nasdaq's  net
tangible asset  requirement of $4 million.  The Company took steps to remedy its
net tangible asset deficiency, and, as noted above, on July 22, 1999, InteliData
secured a  private  placement  of  approximately  $6.0  million  of  Convertible
Preferred  Stock in an effort to maintain its Nasdaq  listing.  On September 10,
1999,  Nasdaq  sent  notice to the Company  that its common  stock would  remain
listed on the National Market, if InteliData provided evidence in SEC filings of
$4,000,000 of net tangible assets as of July 31, 1999 and net tangible assets of
$7,000,000 as of September 30, 1999. These SEC filings were made and on November
5, 1999, the Company  received notice from Nasdaq stating that all  requirements
for the  Company to continue  its  listing  had been met and that the  delisting
hearing file had been closed.

       As of November 9, 1999 all of the  Convertible  Preferred  Stock had been
converted into common stock. The total amount of common stock issued pursuant to
conversion, including accrued dividends, was 4,792,843 shares.
<PAGE>

Year 2000

General

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

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

Project
-------

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

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

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

         Corporate business systems activities  including,  hardware and systems
software, networks and telecommunications, were completed by September 30, 1999.

         Local software  systems  include  process  control and  instrumentation
systems and building systems.  Operational improvement projects already underway
address some of the Year 2000 concerns.  Necessary replacements or upgrades with
minor exceptions were completed by September 30, 1999.

<PAGE>

         The third party suppliers phase includes the process of identifying and
prioritizing  critical  suppliers of goods and services,  and communicating with
them about their plans and progress in addressing  the Year 2000  concerns.  The
Company completed the identification phase and evaluated the most critical third
parties. These evaluations were followed by the development of contingency plans
as  necessary,  including  plans to use  alternative  third  party  vendors,  if
necessary. This Project phase was completed by mid-1999, with monitoring planned
through the remainder of 1999.

         The   Company   has   contingency   plans  for  some   mission-critical
applications and is working on plans for others. For example,  contingency plans
for the  payroll  system  have been in place  since the second  quarter of 1998,
while detailed plans for other business processes will be completed by year-end.
A steering  committee is closely  monitoring  the  progress of business  process
contingency  plans  involving,  among  other  actions,  manual  workarounds  and
additional staffing.

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

Costs
-----

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

Risks
-----

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

systems and completion of the Project as scheduled,  the possibility of material
interruptions of normal operations should be reduced significantly.


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

         The  above  information  includes   forward-looking   statements,   the
realization  of which  may be  impacted  by the  factors  discussed  below.  The
forward-looking  statements  are made pursuant to the safe harbor  provisions of
the Private  Securities  Litigation Reform Act of 1995 (the "Act").  This report
contains forward looking statements that are subject to risks and uncertainties,
including,  but not  limited  to, the impact of  competitive  products,  pricing
pressure,  product  demand and market  acceptance  risks,  year 2000  compliance
issues, reliance on resellers, pace of consumer acceptance of home banking, bank
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,  limited  proprietary  protection  of the
Company's intellectual  property,  reliance on key strategic alliances and newly
emerging  technologies,  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 growth,  reliance on Caller ID leasing
revenues and billing  operations,  product  obsolescence,  the ability to reduce
product costs,  fluctuations in operating  results,  ability to continue funding
operating losses,  delays in development of highly complex products,  InteliData
common stock owned by WorldCorp,  the Company's  ability to continue its listing
on the Nasdaq  national  market,  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, 1998. These risks could cause the Company's actual results for 1999
and beyond to differ  materially  from those  expressed  in any forward  looking
statements made by, or on behalf of,  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.

<PAGE>

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

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

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

         None


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

         On July 26,1999 (as amended on July 28, 1999) the Company  filed a Form
8-K with the Securities and Exchange Commission  announcing that the Company had
closed a private  placement of 600 shares of 4% Convertible  Preferred stock for
an aggregate purchase price of approximately $6.0 million.

         On September 28, 1999, the Company filed a Form 8-K with the Securities
and Exchange Commission with an attached August 31, 1999 unaudited balance sheet
solely at the request of the Nasdaq Listing Qualification Panel.

<PAGE>

                                   SIGNATURES


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


                                 INTELIDATA TECHNOLOGIES CORPORATION



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