U.S. SECURITIES AND EXCHANGE COMMISSION
                                         Washington, DC 20549

                                         FORM 10-QSB
(Mark One)

[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act
    of 1934

For the quarterly period year ended February 29, 2000

[  ] Transition report under Section 13 or 15(d) of the Exchange Act

For the transition period from      to

Commission file number              0-14401

                                    SANDATA, INC.
            (Exact Name of Small Business Issuer as Specified in Its Charter)

             Delaware                                 11-2841799
   (State or Other Jurisdiction of                  (IRS Employer
    Incorporation or Organization)                   Identification No.)

                       26 Harbor Park Drive, Port Washington, NY 11050
                           (Address of Principal Executive Offices)

                                            516-484-9060
                          (Issuer's Telephone Number, Including Area Code)

                    (Former Name, Former Address and Former Fiscal Year,
                                if Changed Since Last Report)

     Check  whether  the issuer:  (1) filed all reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 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

          APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
                         DURING THE PRECEDING FIVE YEARS

     Check whether the registrant  has filed all documents and reports  required
to be  filed  by  Section  12,  13 or  15(d)  of  the  Exchange  Act  after  the
distribution of securities under a plan confirmed by a court.

Yes                        No

                      APPLICABLE ONLY TO CORPORATE ISSUERS

     The number of shares  outstanding of each of the issuer's classes of common
equity, as of April 13, 2000 was 2,481,478 shares.

         Transitional Small Business Disclosure Format  (check one):

Yes                        No       X


 <PAGE>
                                    INDEX

                                                                        Page

PART I        -       FINANCIAL INFORMATION

Item 1        -       FINANCIAL STATEMENTS:

                      CONSOLIDATED CONDENSED BALANCE
                      SHEETS as of February 29, 2000 (unaudited)
                      and May 31, 1999                                     3

                      UNAUDITED CONSOLIDATED CONDENSED
                      STATEMENTS OF OPERATIONS for the nine months
                      ended February 29, 2000 and February 28, 1999        5

                      UNAUDITED CONSOLIDATED CONDENSED
                      STATEMENTS OF CASH FLOWS for the nine months
                      ended February 29, 2000 and February 28, 1999        6

                      NOTES TO CONSOLIDATED CONDENSED
                      FINANCIAL STATEMENTS                                 7

Item 2        -       MANAGEMENT'S DISCUSSION AND
                      ANALYSIS OR PLAN OF OPERATION                       12

PART II       -       OTHER INFORMATION                                   14

Item 1        -       LEGAL PROCEEDINGS                                   14

Item 2        -       CHANGES IN SECURITIES AND USE OF PROCEEDS           14

Item 3        -       DEFAULTS UPON SENIOR SECURITIES                     14

Item 4        -       SUBMISSION OF MATTERS TO A VOTE OF SECURITY
                      HOLDERS                                             14

Item 5        -       OTHER INFORMATION                                   14

Item 6        -       EXHIBITS AND REPORTS ON FORM 8-K                    14



<PAGE>

<TABLE>

                       Sandata, Inc. and Subsidiaries

                  CONSOLIDATED CONDENSED BALANCE SHEETS

<S>                                                                               <C>                      <C>

                                                                                     UNAUDITED               AUDITED
                                                                                   February 29,               May 31,
                                                                                       2000                     1999

ASSETS:
CURRENT ASSETS
         Cash and cash equivalents                                                    $   197,870           $   1,533,576
         Accounts receivable, net of allowance for doubtful
            accounts of $603,000 and $533,000 respectively                              2,660,504               2,034,248
         Receivables from affiliates                                                      510,191                 924,426
         Other receivables                                                                277,330               1,100,000
         Inventories                                                                       32,728                  29,307
         Prepaid expenses and other current assets                                        490,335                 485,455

TOTAL CURRENT ASSETS                                                                    4,168,958               6,107,012

FIXED ASSETS, NET                                                                       8,272,142               7,169,002

OTHER ASSETS
         Notes receivable                                                                 132,614                 169,608
         Cash surrender value of officer's life insurance,
            security deposits and other                                                   803,743                 775,557

TOTAL ASSETS                                                                         $ 13,377,457           $  14,221,179













                                       See notes to consolidated condensed financial statements

</TABLE>

<PAGE>

<TABLE>

                       Sandata, Inc. and Subsidiaries

                  CONSOLIDATED CONDENSED BALANCE SHEETS

<S>                                                                               <C>                      <C>

                                                                                      UNAUDITED                 AUDITED
                                                                                     February 29,               May 31,
                                                                                        2000                     1999

LIABILITIES AND SHAREHOLDERS' EQUITY:
CURRENT LIABILITIES
         Accounts payable and accrued expenses                                    $   1,764,050            $    3,022,395
         Current portion of long-term debt                                                    -                 2,500,000
         Deferred/unearned revenue                                                        8,498                    13,633
         Deferred income                                                                367,063                   335,385

TOTAL CURRENT LIABILITIES                                                             2,139,611                 5,871,413

LONG TERM DEBT                                                                        2,700,000                         -
DEFERRED INCOME                                                                         386,321                   324,096
DEFERRED INCOME TAXES                                                                   535,000                   535,000

TOTAL LIABILITIES                                                                     5,760,932                 6,730,509

SHAREHOLDERS' EQUITY
         Common stock                                                                     2,481                     2,481
         Additional paid in capital                                                   5,772,075                 5,772,079
         Retained earnings                                                            3,361,628                 3,235,769
         Notes receivable-officers                                                   (1,519,659)               (1,519,659)

TOTAL SHAREHOLDERS' EQUITY                                                            7,616,525                 7,490,670

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                        $  13,377,457             $  14,221,179









           See notes to consolidated condensed financial statements
</TABLE>


<PAGE>

<TABLE>

                       Sandata, Inc. and Subsidiaries

           UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

<S>                                                          <C>                <C>             <C>             <C>



                                                                     THREE MONTHS ENDED                NINE  MONTHS ENDED
                                                                 Feb. 29,           Feb. 28,        Feb. 29,         Feb. 28,
                                                                   2000               1999            2000             1999
REVENUES:
       Service fees                                          $  4,499,917       $  3,597,042    $ 13,006,062    $  10,155,602
       Other income                                               114,563             55,118         301,183          352,832
       Interest income                                             38,523             38,723         118,781          102,207
                                                                4,653,003          3,690,883      13,426,026       10,610,641

COSTS AND EXPENSES:
       Operating                                                2,917,330          2,124,860       8,387,617        6,211,423
       Selling, general and administrative                        971,580            925,287       2,880,890        2,675,168
       Depreciation and amortization                              581,022            521,887       1,767,897        1,460,438
       Interest expense                                            64,250             48,264         176,302           64,809

TOTAL COSTS AND EXPENSES                                        4,534,182          3,620,298      13,212,706       10,411,838

Earnings from operations before income taxes                      118,821             70,585         213,320          198,803

       Income tax expense                                          48,716             31,304          87,461           79,629

NET EARNINGS                                                       70,105       $     39,281    $    125,859    $     119,174

BASIC EARNINGS PER SHARE                                     $       0.03       $       0.02    $       0.05    $        0.05

DILUTED EARNINGS PER SHARE                                   $       0.03       $       0.02    $       0.05    $        0.05







                   See notes to consolidated condensed financial statements
</TABLE>


<PAGE>

<TABLE>

                       Sandata, Inc. and Subsidiaries

           UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

<S>                                                                                    <C>                      <C>



                                                                                               NINE  MONTHS ENDED
                                                                                         Feb. 28                 Feb. 29
                                                                                           2000                    1999
Cash flows from operating activities:
Net earnings                                                                           $  125,859               $   119,174
Adjustments to reconcile net earnings to net cash
  provided by (used in) operating activities:
     Depreciation and amortization                                                      1,767,897                 1,460,438
     (Gain) on disposal of fixed assets                                                  (379,290)                 (269,948)
     Increase (decrease) in allowance for doubtful accounts receivable                     70,388                   (21,258)
     Increase in deferred income                                                           93,903                   120,475
     (Decrease) increase in deferred revenue                                               (5,135)                   12,213
     (Decrease) increase in operating assets                                              126,533                  (977,902)
     (Decrease) in operating liabilities                                               (1,258,349)                 (779,767)

Net cash provided by operating activities                                                 541,806                  (336,575)

Cash flows from investing activities:
     Purchases of fixed assets                                                         (4,445,001)               (3,595,298)
     Decreases in receivables from affiliates                                             414,235                    35,538
     Proceeds from sale/leaseback transaction                                           1,953,254                 1,100,000

Net cash (used in) investing activities                                                (2,077,512)               (2,459,760)

Cash flows from financing activities:
     Proceeds from stock transactions                                                         ---                     1,609
     Principal payments on term loan                                                          ---                   (22,296)
     Proceeds from line of credit                                                       2,000,000                 3,150,000
     Principal payments on line of credit                                              (1,800,000)               (1,850,000)

Net cash provided by financing activities                                                 200,000                 1,279,313

     (Decrease) in cash and cash equivalents                                           (1,335,706)               (1,517,022)
     Cash and cash equivalents at beginning of period                                   1,533,576                 1,797,947
     Cash and cash equivalents at end of period                                        $  197,870                $  277,925




                                       See notes to consolidated condensed financial statements
</TABLE>

<PAGE>
                                Sandata, Inc. and Subsidiaries


                   NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS



1.       CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

The  Consolidated   Condensed  Balance  Sheet  as  of  February  29,  2000,  the
Consolidated  Condensed  Statements of  Operations  for the three and nine month
periods  ended  February  29, 2000 and  February  28, 1999 and the  Consolidated
Condensed  Statement of Cash Flows for the nine month period ended  February 29,
2000 and February 28, 1999 have been prepared by Sandata,  Inc. and subsidiaries
(the  "Company")  without audit.  In the opinion of Management,  all adjustments
(which include only normal,  recurring  adjustments) necessary to present fairly
the  financial  position as of February  29, 2000 and for all periods  presented
have been made.

For  information  concerning  the  Company's  significant  accounting  policies,
reference  is made to the  Company's  Annual  Report on Form 10-KSB for the year
ended May 31, 1999. Results of Operations for the period ended February 29, 2000
are not necessarily  indicative of the operating  results  expected for the full
year.

2. RELATED PARTY TRANSACTIONS

The Company entered into an agreement in November, 1996 with an affiliate of the
Company's  Chairman,  the Nassau County Industrial  Development Agency ("NCIDA")
and a bank (the  "Agreement").  In connection with the Agreement,  the affiliate
assumed  all of the  Company's  obligations  under a lease  with the  NCIDA  and
entered into a sublease with the Company for its facility.  The Company conveyed
to the affiliate  the right to become owner of the facility  upon  expiration of
the lease. In addition,  pursuant to a sublease, the Company has assumed certain
obligations  owed by the  affiliate to the NCIDA under the lease.  The affiliate
has indemnified the Company with respect to certain obligations  relative to the
lease and the  Agreement.  The  Company  made  rent  payments  for its  facility
amounting to $175,863 and $516,243 for the three and nine months ended  February
29,  2000 as compared to  $167,490  and  $491,670  for the three and nine months
ended  February 28, 1999.

The  Company  makes  various  lease  payments  to  affiliates  of the  Company's
Chairman. The payments for equipment rental amounted to $98,590 and $295,313 for
the three and nine  months  ended  February  29, 2000 as compared to $98,316 and
$289,031  for the three and nine months ended  February  28,  1999.

The Company  derives  revenue from National  Medical  Health Card Systems,  Inc.
("Health Card"), a company  affiliated with the Company's Chairman of the Board,
for data base and operating system support,  hardware  leasing,  maintenance and
related  administrative  services.  The  revenues  generated  from  Health  Card
amounted to $415,788 and $1,342,938 for the three and nine months ended February
29, 2000 as compared to $473,896  and  $1,157,150  for the three and nine months
ended February 28, 1999.

As of June 1, 1998,  Health Card hired 11  employees  of the Company in order to
provide  development,   enhancement,   modification  and  maintenance  services,
previously   provided  by  the  Company.   The  Company  was  paid  $208,000  in
consideration  of  the  Company's   waiving  certain  rights  relative  to  such
employees.  In addition, the Company leases certain computer equipment to Health
Card at a monthly  cost of $2,000 in addition to computer  hardware for its data
processing center at a monthly cost of $38,000 pursuant to a verbal agreement.

Medical Arts Office  Services,  Inc.  ("MAOS"),  a company  which the  Company's
Chairman  of the  Board is the  sole  shareholder,  provided  the  Company  with
accounting, bookkeeping and paralegal services. The payments made by the Company
to MAOS  amounted to $74,859 and  $207,990  for the three and nine months  ended
February  29, 2000 as compared  to $39,231 and  $148,588  for the three and nine
months ended February 28, 1999.

3.       NET EARNINGS PER COMMON SHARE

In 1997, the Financial Accounting Standards Board issued Standard No. 128 ("SFAS
No. 128"),  "Earnings per Share".  SFAS No. 128 replaced  calculation of primary
and fully diluted  earnings per share with basic and diluted earnings per share.
Basic earnings per share has been computed using the weighted  average number of
shares of common stock outstanding. Diluted earnings per share has been computed
using the basic weighted  average shares of common stock issued plus outstanding
stock options, in accordance with Staff Accounting Bulletin No. 98.

Basic earnings per share are based on the  weighted-average  number of shares of
common  stock  outstanding,  which  were  2,481,480  at  February  29,  2000 and
2,336,364  at February  28,  1999.  Diluted  earnings per share are based on the
weighted-average  number of shares of common  stock  adjusted for the effects of
assumed exercise of options and warrants under the treasury stock method,  which
were as follows:  2,562,598 at February  29, 2000 and  2,544,282 at February 28,
1999.

Options to purchase  581,788 shares of common stock were outstanding at February
29, 2000 and were not included in the computation of diluted  earnings per share
because the exercise  price of the options was greater  than the average  market
price of the common stock for the respective period.

4.       SALE/LEASEBACK TRANSACTION

In October  1999,  the Company  consummated  a  Sale/Leaseback  of certain fixed
assets  (principally  computer  hardware,  software  and  equipment).  The fixed
assets,  which  had a net book  value of  approximately  $895,000  were sold for
$1,115,000.  The  resulting  gain of  approximately  $220,000  was  recorded  as
deferred  income and is being  recognized  over the life of the lease,  which is
thirty-six (36) months.  Approximately  $18,000 and $31,000 of deferred gain was
recognized   for  the  three  and  nine  months  ended  February  29,  2000.  An
unaffiliated third party purchased the residual rights in such lease.

In January  2000,  the Company  consummated  a  Sale/Leaseback  of certain fixed
assets (principally computer hardware and software). The fixed assets, which had
a net book value of approximately $442,000 were sold for $561,000. The resulting
gain of  approximately  $119,000  was  recorded as deferred  income and is being
recognized  over  the  life of the  lease,  which  is  thirty-six  (36)  months.
Approximately  $3,000 of deferred gain was recognized for the three months ended
February 29, 2000. An unaffiliated  third party purchased the residual rights in
such lease.

In February  2000,  the Company  consummated a  Sale/Leaseback  of certain fixed
assets (principally computer hardware and software). The fixed assets, which had
a net book value of approximately $237,000 were sold for $277,000. The resulting
gain of  approximately  $40,000 was  recorded  as  deferred  income and is being
recognized  over  the  life of the  lease,  which  is  thirty-six  (36)  months.
Approximately  $0 of deferred  gain was  recognized  for the three  months ended
February 29, 2000.  The sale proceeds,  which are shown as Other  receivables in
the financial  statements,  were received in March 2000. An  unaffiliated  third
party purchased the residual rights in such lease.

5.       STOCKHOLDERS' EQUITY

The Company has stock options  outstanding under three stock option plans. As of
February 29, 2000, there were 2,536 options outstanding under an incentive stock
option plan adopted in October 1984 and  subsequently  amended.  Options granted
under this plan were granted at exercise  prices not less than fair market value
on the date of grant.  Options  outstanding  under this plan expire in 2001.  No
additional options may be granted under this plan.

As of February 29, 2000, there were 590,500 incentive options  outstanding under
a stock option plan adopted in January 1995,  which  provides for both incentive
and nonqualified stock options and reserves 1,000,000 shares of common stock for
grant  under the plan.  The plan  requires  that  options be granted at exercise
prices not less than the fair market value at the date of grant, over a ten-year
period.  All options  outstanding  under this plan are currently  exercisable at
prices  ranging  from  $1.41 to $2.61 per share over a period of five years from
date of grant.

On July 14, 1998, Messrs. Bert E. Brodsky, Hugh Freund, Gary Stoller and Paul J.
Konigsberg,  officers and  directors of the Company,  Gerald  Shapiro,  a former
director  of the  Company  and Carol  Freund,  the spouse of Hugh  Freund and an
employee of Sandsport Data Services,  Inc.  ("Sandsport"),  the Company's wholly
owned subsidiary, exercised their respective options and warrants to purchase an
aggregate  of 921,334  shares of common  stock at exercise  prices  ranging from
$1.38 to $2.61 per share for an aggregate cost of  $1,608,861.  Payment for such
shares was made to the Company in the amount of $921  representing the par value
of the shares, and a portion in the form of non-recourse promissory notes due in
July 2001,  with  interest at eight and  one-half  percent  (8-1/2%)  per annum,
payable annually, and secured by the number of shares exercised.

In October 1998,  the Board of Directors  approved an amendment to the Company's
Certificate of Incorporation to increase the number of authorized  common shares
from 3,000,000 to 6,000,000.

In October 1998, the Company  adopted a stock option plan,  reserving  1,000,000
shares of common stock for grant under the plan. Stock options granted under the
plan may be either  incentive or  non-statutory.  As of February  29,  2000,  an
aggregate of 416,452  incentive  stock options were granted under the plan at an
exercise price of $3.00 and vest over a three-year period.  Additionally,  as of
February 29, 2000, an aggregate of 20,000 shares of non-statutory  stock options
were granted to certain  directors of the Company at an exercise price of $3.00.
These options vest immediately and are exercisable over a five-year  period.  In
February  2000,  the Company  granted  350,000  incentive  stock  options to the
Company's Chairman at an exercise price of $1.31. These options vest immediately
and are exercisable over a five-year period.


 <PAGE>
                                  Sandata, Inc. and Subsidiaries


         Item 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


Management's Discussion and Analysis of Financial Condition and
Results of Operations

Results of Operations

Revenues were  $4,653,003  and  $13,426,026  for the three and nine months ended
February 29, 2000 as compared to $3,690,883  and  $10,610,641  for the three and
nine  months  ended  February  28,  1999,  increasing  $962,120  and  $2,815,385
respectively.

Service fee revenues  were  $4,499,917  and  $13,006,062  for the three and nine
months ended February 29, 2000 as compared to $3,597,042 and $10,155,602 for the
three  and  nine  months  ended  February  28,  1999,  increasing  $902,875  and
$2,850,460 respectively. The increases are attributable to revenues derived from
the SanTrax(R), SandataNET(R) and SHARP product lines.

Other  income was  $114,563  and  $301,183  for the three and nine months  ended
February  29, 2000 as compared  to $55,118 and  $352,832  for the three and nine
months ended  February  28,  1999,  increasing  $59,445 and  decreasing  $51,649
respectively.  The decrease is  attributable  to an amount received in the prior
period from Health Card in connection with its hiring  employees of the Company,
offset by an increase in income recognized on sales/leaseback transactions.

Expenses Related to Services

Operating  expenses were $2,917,330 and $8,387,617 for the three and nine months
ended  February 29, 2000 as compared to $2,124,860  and $6,211,423 for the three
and nine months  ended  February 28, 1999,  increasing  $792,470 and  $2,176,194
respectively.  Costs  associated  with  SanTrax  and its  operations,  including
payroll,  telephone and equipment rental  expenses,  in addition to increases in
costs associated with SandataNET and its operations, primarily payroll, were the
primary factors for the increases in operating expenses.

Selling,  general and  administrative  expenses were $971,330 and $2,880,890 for
the three and nine months ended  February 29, 2000,  as compared to $925,287 and
$2,675,168 for the three and nine months ended February 28, 1999, an increase of
$46,293 and $205,722 respectively. The increases were primarily due to increases
in consulting,  payroll and commission expenses relative to increased efforts to
increase  sales  in the  SanTrax  and  SandataNET  product  lines,  and  certain
royalties payable to MCI Telecommunications Corporation.

Depreciation  and  amortization  expenses were $581,022 and  $1,767,897  for the
three and nine months  ended  February  29,  2000 as  compared  to $521,887  and
$1,460,438 for the three and nine months ended February 28, 1999, an increase of
$59,135 and $307,459 respectively.  The increases were primarily attributable to
fixed asset additions,  including computer hardware and software  capitalization
costs, in connection with ongoing computer system upgrades.

Interest  expenses were $64,250 and $176,302 for the three and nine months ended
February  29,  2000 as  compared  to $48,264  and $64,809 for the three and nine
months  ended   February   28,  1999,   an  increase  of  $15,986  and  $111,493
respectively.  The  increases  were a  result  of  increased  borrowings  on the
Company's revolving credit agreement.

Income Tax Expenses

Income tax expenses were $48,716 and $87,461 for the three and nine months ended
February  29,  2000 as  compared  to $31,304  and $79,629 for the three and nine
months  period  ended  February  28,  1999,  an  increase  of $17,412 and $7,832
respectively.

Liquidity and Capital Resources

The Company's working capital increased as of February 29, 2000 to $2,029,347 as
compared with $235,599 at May 31, 1999.

For the nine months ended February 29, 2000, the Company has spent approximately
$4,445,000 in fixed asset additions,  including  computer  hardware and software
capitalization   costs  in  connection  with  revenue  growth  and  new  product
development.  The Company expects the current levels of capital  expenditures to
continue.

On July 14, 1998 Messrs.  Bert E. Brodsky,  Hugh Freund, Gary Stoller
and Paul J. Konigsberg, officers and directors of the Company, Gerald Shapiro, a
former director of the Company,  and Carol Freund, the spouse of Hugh Freund and
an employee of Sandsport Data Services, Inc. ("Sandsport"), the Company's wholly
owned subsidiary, exercised their respective options and warrants to purchase an
aggregate  of 921,334  shares of common  stock at exercise  prices  ranging from
$1.38 to $2.61 per share for an aggregate cost of  $1,608,861.  Payment for such
shares was made to the Company in the amount of $921  representing the par value
of the shares, and a portion in the form of non-recourse promissory notes due in
July 2001,  with  interest at eight and  one-half  percent  (8-1/2%)  per annum,
payable annually, and secured by the number of shares exercised.

On April 18, 1997, the Company's  wholly owned  subsidiary,  Sandsport,  entered
into a revolving  credit  agreement  (the "Credit  Agreement")  with a bank (the
"Bank") which allows Sandsport to borrow and re-borrow amounts up to $3,000,000.
Interest  accrues on amounts  outstanding  under the Credit  Agreement at a rate
equal to the London Interbank Offered Rate plus 2% and will be paid quarterly in
arrears or, at Sandsport's option, interest may accrue at the Bank's prime rate.
The Credit Agreement required Sandsport to pay a commitment fee in the amount of
$30,000 and a fee equal to 1/4% per annum  payable on the unused  average  daily
balance of amounts under the Credit Agreement. In addition, there are other fees
and charges imposed based upon  Sandsport's  failure to maintain certain minimum
balances.  The Credit  Agreement which expired on March 1, 2000 has been amended
by the Bank to permit  Sandsport to borrow and reborrow amounts up to $4,500,000
until  February  14,  2003.  Interest  accrues at the same rate as the  original
Credit Agreement.  The indebtedness  under the Credit Agreement is guaranteed by
the Company and Sandsport's  sister  subsidiaries (the "Group").  The collateral
for the facility is a first lien on all equipment owned by members of the Group,
as well as a collateral  assignment of $2,000,000 of life  insurance  payable on
the life of the Company's Chairman. All of the Group's assets are pledged to the
Bank as collateral for the amounts due under the Credit  Agreement.  The Group's
guaranty to the Bank was  modified to conform  covenants to comply with those in
the Credit Agreement.

In addition, pursuant to the Credit Agreement, the Group is required to maintain
certain  levels of net worth and meet  certain  financial  ratios in addition to
various other  affirmative and negative  covenants.  The Group has, in the past,
failed to meet these net worth and  financial  ratios,  and the Bank has granted
the Group  waivers.  As of February 29,  2000,  the  outstanding  balance on the
Credit Agreement with the Bank was $2,700,000.

As of June 1, 1998,  Health Card hired 11  employees  of the Company in order to
provide  development,   enhancement,   modification  and  maintenance  services,
previously   provided  by  the  Company.   The  Company  was  paid  $208,000  in
consideration  of  the  Company's   waiving  certain  rights  relative  to  such
employees.  In addition, the Company leases certain computer equipment to Health
Card at a monthly  cost of $2,000 in addition to computer  hardware for its data
processing center at a monthly cost of $38,000 pursuant to a verbal agreement.

The Company believes the results of its continued operations,  together with the
available credit line should be adequate to fund presently  foreseeable  working
capital requirements.

Year 2000

The Company is Year 2000  compliant  as a result of its  conversion  from a Data
General  computer  platform to a Hewlett  Packard Unix System and the upgrade of
the application software.




<PAGE>
                                  Sandata, Inc. and Subsidiaries


                                  PART II - OTHER INFORMATION


Item 1  -  LEGAL PROCEEDINGS:

           Reference is made to Form 10-QSB for the period ended
           November 30, 1999.

Item 2  -  CHANGES IN SECURITIES AND USE OF PROCEEDS:

           None

Item 3  -  DEFAULTS UPON SENIOR SECURITIES:

           None

Item 4  -  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS:

           None

Item 5  -  OTHER INFORMATION:

           None

Item 6  -  EXHIBITS AND REPORTS ON FORM 8-K:

           Exhibit 27 - Financial Data Schedule (Electronic Filing Only)



<PAGE>
                             SIGNATURES


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.


                                           SANDATA, INC.
                                           (Registrant)



Date:    April 14, 2000              By:   /s/ Bert E. Brodsky
                                           Bert E. Brodsky
                                           Chairman of the Board
                                           President, Chief Executive Officer,
                                           Chief Financial Officer



<PAGE>

                                     SIGNATURES


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.


                                           SANDATA, INC.
                                           (Registrant)



Date:    April 14, 2000                    By:
                                           Bert E. Brodsky
                                           Chairman of the Board
                                           President, Chief Executive Officer,
                                           Chief Financial Officer



<PAGE>
                                                         April 14, 1999



Securities and Exchange Commission
450 5th Street, N.W.
Washington, D.C.  20549

                                    Re:   Sandata, Inc., File No. 0-14401

Dear Sir or Madam,

Transmitted  herewith  through  the EDGAR  system is Form 10-QSB for the quarter
ending February 29, 2000 for Sandata Inc. If you have any questions or comments,
please contact me at (516)484-4400, extension 215.

                                    Very truly yours,



                                    Linda Scarpantonio
                                    Legal Coordinator