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 August 31, 1999


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

For the transition period from            to

Commission file number 0-14401

                                  SANDATA, INC.
                 (Name of Small Business Issuer 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) (Zip Code)

                                   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 REGISTRANTS INVOLVED IN BANKRUPTCY PROCEEDINGS
                           DURING THE PAST FIVE YEARS

         Check whether the issuer 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 October 11, 1999 was 2,481,480 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 August 31, 1999 (unaudited)
                  and May 31, 1999                                            4

                  UNAUDITED CONSOLIDATED CONDENSED
                  STATEMENTS OF OPERATIONS for the three
                    months ended August 31, 1999 and  August 31, 1998         6

                  UNAUDITED CONSOLIDATED CONDENSED
                  STATEMENTS OF CASH FLOWS for the three
                  months ended August 31, 1999 and August 31, 1998            7

                  NOTES TO CONSOLIDATED CONDENSED
                  FINANCIAL STATEMENTS                                        8

Item 2        -   MANAGEMENT'S DISCUSSION AND
                  ANALYSIS OR PLAN OF OPERATION                              11

PART II       -   OTHER INFORMATION                                          14

Item 1        -   LEGAL PROCEEDINGS                                          14

Item 2        -   CHANGES IN SECURITIES                                      14


Item 4        -   SUBMISSION OF MATTERS TO A VOTE OF SECURITY                14
                  HOLDERS
Item 5        -   OTHER INFORMATION                                          14

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


<PAGE>



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



                         SANDATA, INC. AND SUBSIDIARIES


                      CONSOLIDATED CONDENSED BALANCE SHEET




                                                                                    UNAUDITED              AUDITED
                                                                                    August 31,              May 31,
ASSETS:                                                                                1999                  1999
CURRENT ASSETS
       Cash and cash equivalents                                                $   814,516               $1,533,576
       Accounts receivable, net of allowance for doubtful
           accounts of $452,000 at August 31, 1999 and
           $533,000 at May 31, 1999                                               2,091,752                2,034,248
       Receivables from affiliates                                                  485,168                  924,426
       Other receivables                                                                ---                1,100,000
       Inventories                                                                   38,119                   29,307
       Prepaid expenses and other current assets                                    306,668                  485,455


TOTAL CURRENT ASSETS                                                              3,736,223                6,107,012

FIXED ASSETS, NET                                                                 8,432,759                7,169,002

OTHER ASSETS
       Notes receivable                                                             139,093                  169,608
       Cash surrender value of officer's life insurance,
           security deposits and other                                              777,471                  775,557


TOTAL ASSETS                                                                    $13,085,546              $14,221,179









            See notes to consolidated condensed financial statements




</TABLE>
<PAGE>
<TABLE>
<S>                                                                             <C>                    <C>



                         SANDATA, INC. AND SUBSIDIARIES

                      CONSOLIDATED CONDENSED BALANCE SHEET




                                                                                    UNAUDITED               AUDITED
                                                                                    August 31,              May 31,
                                                                                       1999                  1999
LIABILITIES AND SHAREHOLDERS' EQUITY:
CURRENT LIABILITIES
       Accounts payable and accrued expenses                                    $ 1,930,080             $  3,022,395
       Current portion of long-term debt                                                ---                2,500,000
       Deferred/unearned revenue                                                    125,128                   13,633
       Deferred income                                                              308,887                  335,385


TOTAL CURRENT LIABILITIES                                                         2,364,095                5,871,413

LONG TERM DEBT                                                                    2,400,000                      ---
DEFERRED INCOME                                                                     266,747                  324,096
DEFERRED INCOME TAXES                                                               535,000                  535,000


TOTAL LIABILITIES                                                                 5,655,842                6,730,509


SHAREHOLDERS' EQUITY
       Common stock                                                                   2,481                    2,481
       Additional paid in capital                                                 5,772,079                5,772,079
       Retained earnings                                                          3,264,803                3,235,769
       Notes receivable - officers                                               (1,519,659)              (1,519,659)


TOTAL SHAREHOLDERS' EQUITY                                                        7,519,704                7,490,670


TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                      $13,085,546              $14,221,179








            See notes to consolidated condensed financial statements

</TABLE>



<PAGE>
<TABLE>
<S>                                                                             <C>               <C>






                         SANDATA, INC. AND SUBSIDIARIES

            UNAUDITED CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS


                                                                                       THREE MONTHS ENDED
                                                                                  AUGUST 31,         AUGUST 31,
                                                                                    1999                1998
REVENUES:
       Service fees                                                             $ 4,074,124        $ 3,223,510
       Other income                                                                  88,016            253,328
       Interest income                                                               40,329             24,398
                                                                                  4,202,469          3,501,236

COSTS AND EXPENSES:
       Service Fees:
       Operating                                                                  2,593,738          2,117,828
       Selling, general and administrative                                          938,359            892,823
       Depreciation and amortization                                                572,703            439,360
       Interest expense                                                              48,120              5,730


TOTAL COSTS AND EXPENSES                                                        $ 4,152,920          3,455,741


Earnings from operations before income taxes                                         49,549             45,495

       Income tax expense                                                            20,515             16,287


NET EARNINGS                                                                    $    29,034         $   29,208


BASIC EARNINGS PER SHARE                                                        $       .01         $       .01


DILUTED EARNINGS PER SHARE                                                      $       .01         $       .01






            See notes to consolidated condensed financial statements


</TABLE>







<PAGE>

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





                         SANDATA, INC. AND SUBSIDIARIES

            UNAUDITED CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS

                                                                                       THREE MONTHS ENDED
                                                                                  AUGUST 31,       AUGUST 31,
                                                                                     1999             1998
Cash flows from operating activities:
Net earnings                                                                    $    29,034       $    29,208
Adjustments to reconcile net earnings to net cash
    provided by (used in) operating activities:
       Depreciation and amortization                                                572,703           439,360
(Decrease) increase in allowance for doubtful accounts                              (81,235)            2,315
       (Decrease) in deferred income                                                (83,847)          (53,204)
       Increase in deferred revenue                                                 111,495            38,248
Decrease in operating assets                                                      1,322,307           131,607
(Decrease) in operating liabilities                                              (1,092,315)         (809,148)

Net cash provided by (used in) operating activities                                 778,142          (221,614)


Cash flows from investing activities:
       Purchases of fixed assets                                                 (1,836,460)       (1,122,559)
       Decrease in receivables from affiliates                                      439,258            63,851


Net cash (used in) investing activities                                          (1,397,202)       (1,058,708)


Cash flows from financing activities:
       Proceeds from stock transactions                                                ---              1,609
       Principal payments on term loan                                                 ---            (22,296)
       Proceeds from line of credit                                                600,000            250,000
       Principal payments on line of credit                                       (700,000)          (250,000)


Net cash (used in) financing activities                                           (100,000)           (20,687)

       (Decrease) in cash and cash equivalents                                    (719,060)        (1,301,009)
       Cash and cash equivalents at beginning of period                           1,533,576         1,794,947

       Cash and cash equivalents at end of period                               $   814,516       $   493,938



            See notes to consolidated condensed financial statements



</TABLE>


<PAGE>





                      SANDATA, INC. AND SUBSIDIARIES

          NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                              (Unaudited)


1.       CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

The Consolidated Condensed Balance Sheet as of August 31, 1999, the Consolidated
Condensed  Statements of Operations  for the three month period ended August 31,
1999 and 1998 and the  Consolidated  Condensed  Statement  of Cash Flows for the
three month period ended August 31, 1999 and 1998 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 August 31, 1999 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 August 31, 1999
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 allof 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 $170,190  and $162,090 for  the  three months ended August
31, 1999 and 1998, respectively.

The  Company  makes  various  lease  payments  to  affiliates  of the  Company's
Chairman.  The payments for equipment rental amounted to $98,316 and $93,483 for
the three months ended August 31, 1999 and 1998,  respectively.

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 this  company
amounted to $444,165  and  $321,066 for  the  three months ended August 31, 1999
and 1998, respectively.

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 $31,000 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.  For the three  months ended
August 31, 1999 and 1998,  the total  payments  made by the Company to MAOS were
$59,034 and $49,763, respectively.


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 2,481,481 at August 31, 1999 and 2,050,860
at August 31, 1998. 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:
2,491,498 at August 31, 1999 and 2,243,866 at August 31, 1998.

Options to purchase  564,156 shares of common stock in 1999 were  outstanding at
August 31,1999 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.       SHAREHOLDERS' EQUITY

The Company has stock options  outstanding under three stock option plans. As of
August 31, 1999, 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 August 31, 1999, 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  shares of
common stock 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  August  31,  1999,  an
aggregate of 397,620  incentive  stock options were granted under the plan at an
exercise  price of $3.00 and vest over a  three-year  period.  Additionally,  in
October 1998, the Company granted certain directors of the Company non-statutory
stock options to purchase an aggregate of 20,000 shares of the Company's  common
stock at an exercise  price of $3.00.  These  options vest  immediately  and are
exercisable over a five-year period.



                        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 $4,202,469 for the  three months ended August 31, 1999 as compared
to  $3,501,236  for  the  three  months  ended  August 31, 1998,  an increase of
$703,233 or 20.0%.

Service fee revenue for the three months ended August 31, 1999 was $4,074,124 as
compared to  $3,223,510  for the three months ended August 31, 1998, an increase
of $850,614 or 26.4%. The increase is primarily attributable to revenues derived
from SanTrax(R) and SandataNET(R).

Other income for the three months ended August 31, 1999 was $88,016, as compared
to  $253,328  for the  three  months  ended  August  31,  1998 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 $2,593,738 for the three months ended August 31, 1999 as
compared  to $2,117,828 for the  three months ended August 31, 1998, an increase
of  $475,910  or 22.5%.  Costs  associated  with   SandataNET  and other product
lines, including  payroll  and  related  expenses and equipment rental payments,
were the primary factors for the increase in operating expenses.

Selling,  general and administrative expenses were $938,359 for the three months
ended August 31, 1999, as compared to $892,823 for the three months ended August
31, 1998, an increase  of $45,536 or 5.1%. The  increase  was  primarily  due to
increases in consulting,  payroll and commission  expenses relative to increased
efforts to increase  sales in the SanTrax  product line,  and certain  royalties
payable to MCI  Telecommunication  Corporation,  offset by a  decrease  in legal
expenses.

Depreciation and  amortization  expense  increased  $133,343 to $572,703 for the
three  months ended August 31, 1999 as compared to $439,360 for the three months
ended August 31, 1998. The increase was  primarily  attributable  to fixed asset
additions,  including  computer  hardware and software  capitalization  costs in
connection with ongoing computer system upgrades.

Interest  expense  was  $48,120 for the three  months  ended  August 31, 1999 as
compared to $5,730 for the three months ended August 31, 1998.  The increase was
a result of increased borrowings on the Company's Credit Agreement.


Income Tax Expenses

Income tax  expense  for  the  three  months  ended  August 31, 1999 was $20,515
as compared to $16,287 for the three months ended August 31, 1998.


Liquidity and Capital Resources

The Company's  working  capital  increased  as of August 31, 1999 to $1,372,128,
as compared with $235,599 at May 31, 1999.

For the  three  months ended August 31, 1999, the  Company  spent  approximately
$1,836,000 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 will expire on March 1,
2000.  The Bank has approved an increase in the Credit  Agreement to  $4,500,000
and  extended  the  term  of  the  Facility  an  additional   three  years.  The
Company recorded  the  debt  as  a  long  term liability at August 31, 1999 as a
result of the Bank extending  the  repayment  date  of the 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 August 31, 1999, the outstanding balance on the
Credit Agreement with the Bank was $2,400,000.

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  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 $31,000 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  believes   that  its  computer  systems  and  those of  its major
customers and  suppliers  are  substantially  Year 2000  compliant.  The Company
upgrades  its  computer  systems  from  time to  time  as  part  of its  ongoing
operations.   Accordingly,  it  is  anticipated  that  the  Company  will  incur
significant expenditures in connection with such upgrades.  However, the Company
does not expect any material  effect on its results of  operations  or financial
position solely as a result of Year 2000 compliance issues.


<PAGE>


                        SANDATA, INC. AND SUBSIDIARIES


                         PART II - OTHER INFORMATION


Item 1 - LEGAL PROCEEDINGS:

None

Item 2 - CHANGES IN SECURITIES:

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: October 15, 1999                   By: /s/ Bert E. Brodsky

                                             Bert E. Brodsky
                                             Chairman of the Board, President
                                             Chief Executive Officer,
                                             Chief Financial Officer





<PAGE>


                                            October 15, 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  August 31, 1999 for Sandata Inc. If you have any  questions or comments,
please contact me at (516)484-4400, extension 303.

                                            Very truly yours,




                                            Barbara E. Dale
                                            Paralegal