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 ended          November 30, 2001
                               ----------------------------------------

[  ] 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 TECHNOLOGIES, INC.
--------------------------------------------------------------------------------
                 (Name of Small Business Issuer in Its Charter)
                            (Formerly Sandata, Inc.)

               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)

                             Formerly Sandata, Inc.
--------------------------------------------------------------------------------
 (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 January 8, 2002 was 2,506,473 shares.

     Transitional  Small  Business  Disclosure  Format  (check  one):

Yes                        No    X
    ----------------           -------------


<PAGE>
                                      INDEX


                                                                         Page

PART I        -   FINANCIAL INFORMATION

Item 1        -   FINANCIAL STATEMENTS:

                  CONDENSED CONSOLIDATED BALANCE                          3-4
                  SHEETS as of November 30, 2001 (Unaudited)
                  and May 31, 2001 (Audited)

                  UNAUDITED CONDENSED CONSOLIDATED                        5
                  STATEMENTS OF OPERATIONS for the three and six
                  months ended November 30, 2001 and  November 30, 2000

                  UNAUDITED  CONDENSED CONSOLIDATED                       6
                  STATEMENTS OF CASH FLOWS for the six
                  months ended November 30, 2001 and November 30, 2000

                  NOTES TO  CONDENSED CONSOLIDATED                        7-12
                  FINANCIAL STATEMENTS

Item 2        -   MANAGEMENT'S DISCUSSION AND                             13-16
                  ANALYSIS OR PLAN OF OPERATION

PART II       -   OTHER INFORMATION                                       17

Item 1        -   LEGAL PROCEEDINGS                                       17

Item 2        -   CHANGES IN SECURITIES                                   17

Item 3        -   DEFAULTS UPON SENIOR SECURITIES                         17

Item 4        -   SUBMISSION OF MATTERS TO A VOTE OF SECURITY
                  HOLDERS                                                 17

Item 5        -   OTHER INFORMATION                                       18

Item 6        -   EXHIBITS AND REPORTS ON FORM 8-K                        18

<PAGE>


                   SANDATA TECHNOLOGIES, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<S>                                                                             <C>                    <C>
                                                                                UNAUDITED             UNAUDITED
                                                                                November 30,          May 31,
                                                                                   2001                 2001
                                                                                   ----                 ----
ASSETS:
CURRENT ASSETS
       Cash and cash equivalents                                                $   752,566               $   475,578
       Accounts receivable, net of allowance for doubtful
           accounts of $389,000 at November 30, 2001 and
           $347,000 at May 31, 2001                                               2,052,054                 2,160,675
       Receivables from affiliates                                                  414,782                   802,787
       Inventories                                                                   33,758                    35,993
       Prepaid expenses and other current assets                                    290,061                   416,056
       Deferred Income Taxes                                                        279,101                   274,470
                                                                                ------------               ----------

TOTAL CURRENT ASSETS                                                              3,822,322                 4,165,559

FIXED ASSETS, NET                                                                 6,717,281                 6,036,203

DEFERRED INCOME TAXES                                                               419,585                   335,773

OTHER ASSETS
       Notes receivable                                                             114,982                   117,262
       Cash surrender value of officer's life insurance,
           security deposits and other                                            1,029,513                   866,774
                                                                                -----------                ----------
Total Assets                                                                    $12,103,683               $11,521,571
                                                                                ===========               ===========

</TABLE>

            See notes to condensed consolidated financial statements

<PAGE>


                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<S>                                                                             <C>                 <C>
                                                                                 UNAUDITED          AUDITED
                                                                                November 30,        May 31,
                                                                                    2001             2001
                                                                                    ----             ----
LIABILITIES AND SHAREHOLDERS' EQUITY:
CURRENT LIABILITIES
       Accounts payable and accrued expenses                                    $ 2,064,966         $ 1,881,269
       Deferred/unearned revenue                                                     33,681              31,069
       Deferred income                                                              205,418             296,560
                                                                                ----------            ---------

TOTAL CURRENT LIABILITIES                                                         2,304,065           2,208,898

LONG TERM DEBT                                                                    4,500,000           3,850,000
DEFERRED INCOME                                                                      52,265             124,401
                                                                                -----------             -------

TOTAL LIABILITIES                                                                 6,856,330           6,183,299
                                                                                  ---------           ---------

COMMITMENTS AND CONTINGENCIES:

SHAREHOLDERS' EQUITY
       Common stock                                                                   2,506               2,506
       Additional paid in capital                                                 5,803,704           5,803,704
       Retained earnings                                                            960,802           1,051,721
       Notes receivable - officers                                               (1,519,659)         (1,519,659)
                                                                                 ----------           ----------

TOTAL SHAREHOLDERS' EQUITY                                                        5,247,353           5,338,272
                                                                                  ---------           ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                      $12,103,683         $11,521,571
                                                                                ===========         ===========

</TABLE>
            See notes to condensed consolidated financial statements
<PAGE>


            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<S>                                                     <C>              <C>           <C>         <C>

                                                              THREE MONTHS ENDED        SIX MONTHS ENDED
                                                                 NOVEMBER 30,             NOVEMBER 30,
                                                               2001        2000         2001        2000
                                                               ----        ----         ----        ----
REVENUES:
       Service fees                                      $  4,137,580     $4,523,115    $8,529,906  $8,952,255
       Other income                                           168,467         90,724       267,209     184,392
       Interest income                                         44,843         46,911        78,439      95,519
                                                          --------------  ----------    ----------  ----------
                                                            4,350,890      4,660,750     8,875,554   9,232,166
                                                            ---------     ----------     ---------   ---------
COSTS AND EXPENSES:
       Operating                                            2,328,035      2,732,176     5,042,118   5,349,576
       Selling, general and administrative                  1,329,139      1,111,536     2,979,309   2,290,066
       Depreciation and amortization                          455,875        695,262       883,737   1,359,217
       Interest expense                                        72,068         77,725       149,747     128,990
                                                            ---------      ---------     ---------   ---------

TOTAL COSTS AND EXPENSES                                    4,185,117      4,616,699     9,054,911   9,127,849
                                                            ---------      ---------     ---------   ---------

EARNINGS (LOSS) FROM OPERATIONS
BEFORE INCOME TAXES                                           165,773         44,051      (179,357)    104,317

       Income tax expense (benefit)                            81,741         36,221       (88,438)     87,219
                                                            ---------         ------       --------    -------

NET EARNINGS (LOSS)                                         $  84,032      $   7,830     $ (90,919)   $ 17,098
                                                            =========      =========     ==========   ========

BASIC AND DILUTED EARNINGS (LOSS)                           $     .03      $     .00      $   (.04)   $    .01
PER SHARE                                                   =========      =========      =========   =========

BASIC WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING                                   2,506,475      2,506,475     2,506,475   2,506,475
                                                            =========      =========     =========   =========

DILUTED WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING                                   2,506,475      2,506,475     2,506,475   2,607,075
                                                            ==========     =========     =========   =========
</TABLE>
            See notes to condensed consolidated financial statements

<PAGE>


            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<S>                                                                             <C>                    <C>
                                                                                      SIX MONTHS ENDED
                                                                                        NOVEMBER 30,
                                                                                     2001            2000
                                                                                     ----            ----
Cash flows from operating activities:
Net (loss) earnings                                                             $   (90,919)        $   17,098
Adjustments to reconcile net (loss) earnings to net cash
        provided by operating activities:
        Depreciation and amortization                                               883,737          1,359,217
        Gain on the disposal of fixed assets                                         (4,309)          (122,956)
        Change in allowance for doubtful accounts                                    41,719            (36,964)
        Change in deferred income                                                  (163,278)           (48,563)
        Change in deferred revenue                                                    2,612              3,240
        Change in operating assets                                                   34,668            523,431
        Change in operating liabilities                                              95,259           (460,747)
                                                                                     ------           ---------

Net cash provided by operating activities                                           799,489          1,233,756
                                                                                    -------          ---------

Cash flows from investing activities:
        Purchases of fixed assets                                                (1,560,506)        (1,944,208)
        Proceeds in receivables from affiliates                                     388,005                ---
                                                                                 -----------        -----------

Net cash used in investing activities                                            (1,172,501)        (1,944,208)
                                                                                 -----------        ----------

Cash flows from financing activities:
        Proceeds from note payable                                                  500,000            300,000
        Principal payments on note payable                                         (500,000)          (317,475)
        Proceeds from line of credit                                              1,800,000                ---
        Principal payments on line of credit                                     (1,150,000)          (100,000)
                                                                                 -----------          ---------

Net cash provided by (used in) financing activities                                 650,000           (117,475)
                                                                                    -------           ---------

        Change in cash and cash equivalents                                         276,988           (827,927)
        Cash and cash equivalents at beginning of period                            475,578          1,229,718
                                                                                    -------          ----------
        Cash and cash equivalents at end of period                                 $752,566         $  401,791
                                                                                   ========         ==========
</TABLE>
            See notes to condensed consolidated financial statements
<PAGE>

                   SANDATA TECHNOLOGIES, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


1.       CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

     The  Condensed  Consolidated  Balance  Sheet as of November 30,  2001,  the
Condensed  Consolidated  Statements  of  Operations  for the three and six month
periods  ended  November  30,  2001  and  2000  and the  Condensed  Consolidated
Statements of Cash Flows for the six month  periods ended  November 30, 2001 and
2000 have been  prepared by Sandata  Technologies,  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 November 30, 2001 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, 2001. Results of Operations for the period ended November 30, 2001
are not necessarily  indicative of the operating  results  expected for the full
year.

CHANGE OF COMPANY'S NAME

     Sandata's  Board  of  Directors  determined  that it  would  be in the best
interest of Sandata  and its  stockholders  to amend  Sandata's  Certificate  of
Incorporation to change Sandata's name to "Sandata Technologies, Inc." The Board
of Directors  believes that the new name is more  identifiable with the business
activities of Sandata and its Subsidiaries and that,  accordingly,  its adoption
will enhance  Sandata's  competitive  position in its business.  The proposal to
change  Sandata's  name  to  Sandata  Technologies,  Inc.  was  approved  by the
shareholders of the Company at the Annual  Shareholders  Meeting on November 20,
2001 (see Item 4 of Part II, below).  The  Certificate of Amendment was filed on
November 21, 2001.

     New Accounting Pronouncements

     In  October  2001,  the FASB  issued  SFAS  No.  144,  "Accounting  for the
Impairment  or  Disposal  of  Long-Lived  Assets".  SFAS No. 144  addresses  the
Accounting  model for long-lived  assets to be disposed of by sale and resulting
implementation  issues.  This statement requires that those long-lived assets be
measured  at the  lower of  carrying  amount  or fair  value  less cost to sell,
whether  reported  in  continuing  operations  or  in  discontinued  operations.
Therefore,  discontinued operations will no longer be measured at net realizable
value or include  amounts for operating  losses that have not yet  occurred.  It
also broadens the reporting of discontinued operations to include all components
of an entity  with  operations  that can be  distinguished  from the rest of the
entity and that will be eliminated from the ongoing  operations of the entity in
a disposal transaction.  The Company will adopt SFAS No. 144 in the beginning of
fiscal  year  ending  May 31,  2003 and is still  evaluating  the  effect on the
Company's financial position.

2.       RELATED PARTY TRANSACTIONS

     a. Pursuant to an agreement (the "Agreement") involving the Company, Nassau
County  Industrial   Development   Agency  ("NCIDA"),   BFS  Realty,   LLC  (the
"Affiliate") HSBC Bank USA (successor to Marine Midland Bank) and the U.S. Small
Business Administration ("SBA"), the Affiliate borrowed $3,350,000 in Industrial
Development  Revenue  Bonds (the  "Bonds")  to finance  the  acquisition  of the
Company's facility (the "Facility").

     Under the terms of the  Agreement,  the Company is jointly  and  separately
liable to the NCIDA for all obligations owed by the Affiliate to the NCIDA under
the lease  agreement  between NCIDA, as landlord,  and the Affiliate,  as Tenant
(the "Lease");  however,  the Affiliate has indemnified the Company with respect
to certain  obligations  relative  to the Lease and the  Agreement.  The Company
subleases  space  from the  Affiliate  (see  below).  The Bonds  currently  bear
interest at the rate of 9%, and the  outstanding  balance due on the Bonds as of
November 30, 2001 was $1,531,111.

     The Company has also entered into a $750,000 loan  agreement  with the Long
Island Development Corporation ("LIDC"),  under a guarantee by the SBA (the "SBA
Loan").  The SBA Loan was assigned to the Affiliate in November  1996;  however,
repayment of the SBA Loan is guaranteed by the Company and various  subsidiaries
of the Company.  The SBA Loan is payable in 240 monthly  installments of $6,255,
which  includes  principal and interest at a rate of 7.015%.  The balance of the
SBA Loan as of November 30, 2001 was $612,640.

     b. The Company derived  revenue from National  Medical Health Card Systems,
Inc.  ("Health  Card")  a  company  affiliated  with  the  Company's   Chairman,
principally  for data  base and  operating  system  support,  hardware  leasing,
maintenance and related  administrative  services.  The revenues  generated from
Health Card amounted to  approximately  $581,000 and $948,000 and $1,211,000 and
$1,808,000  for the three and six months  periods  ended  November  30, 2001 and
2000,  respectively,  for various services.  In addition the Company resells its
telephone  services to Health Card.  The billings  for such  telephone  services
amounted to approximately $121,000 and $46,000 for the six months ended November
30, 2001 and 2000  respectively  and are  recorded as a reduction  of  operating
expense.  The Company was owed  $138,750  from Health Card at November 30, 2001.
Subsequent to November 30, 2001, the Company received approximately $27,000 from
Health Card.

     c. The Company makes lease and rent payments to affiliates of the Company's
Chairman.  The payments for leased equipment were made to P.W. Capital Corp. and
P.W. Medical  Management,  Inc., and were $71,140 and $166,326 for the three and
six months  ended  November 30, 2001 as compared to $105,807 and 204,397 for the
three and six months ended November 30, 2000. The payments for the Facility were
made to the  Affiliate,  and were  $137,869  and  $280,812 for the three and six
months  ended  November  30, 2001 as compared to $140,612  and  $281,224 for the
three and six months ended November 30, 2000.

     As of November 1, 2001,  the  Company and the  Affiliate  amended the Lease
Agreement (as amended,  the "Lease").  The Lease provides that, effective August
1, 2001,  the rent payable by the Company  shall be an aggregate  annual rent of
$280,604.  While  formerly the Company made  estimated  monthly real estate tax,
utility and maintenance-expense payments to the Landlord, the Lease now provides
that the Company will pay its pro-rata share of such expenses  directly,  to the
entities to whom payment must be made.  The Company  estimates that such monthly
expenses  will  approximate  an aggregate of $280,800 per year.  The annual rent
will increase by 5% per year during the term of the Lease.  The annual  expenses
are also expected to increase, although the Company cannot estimate by how much.
The Lease expires July, 2010.

     d. Medical Arts Office  Services,  Inc.  ("MAOS"),  of which the  Company's
Chairman  is  the  sole  shareholder,  provided  the  Company  with  accounting,
bookkeeping and paralegal services.  For the three and six months ended November
30, 2001 and 2000 the total  payments  made by the Company to MAOS were $134,942
and $224,212, as compared to $84,141 and $143,574, respectively.

     e. The Company paid an aggregate of $16,241 and $28,867,  for the three and
six months  ended  November  30, 2001 as compared to $18,364 and $37,348 for the
three and six months ended  November 30, 2000, on behalf of certain  officers to
companies  affiliated  with the  Company's  Chairman  for payment of  automobile
leases.

3.       DEBT NOTE

     Pursuant to the revolving credit agreement dated April 18, 1997, as amended
(the "Credit Agreement"),  between Sandsport, Inc., a wholly owned subsidiary of
the  Company  ("Sandsport"),  and  HSBC  Bank  USA (the  "Bank"),  the  Company,
Sandsport and its sister subsidiaries  (collectively,  the "Group") are required
to maintain  certain  levels of net worth and meet certain  financial  ratios in
addition to various other affirmative and negative covenants.  As of October 23,
2001 the Credit  Agreement  was  amended  with  respect to one of the  financial
ratios, at the Company's request.  As of November 30, 2001 the Group met the net
worth and financial ratios  requirements of the Credit  Agreement.  In the past,
the Group has failed to meet certain of the financial  ratios,  and the Bank has
granted  the  Group a  waiver.  There  can be no  assurance  that the Bank  will
continue to grant waivers if the Group fails to meet the net worth and financial
ratios in the future.  If such  waivers are not granted,  any loans  outstanding
under the Credit Agreement become immediately due and payable, which may have an
adverse effect on the Company's business,  operations or financial condition. As
of November  30,  2001,  the  outstanding  balance on the Credit  Agreement  was
$4,500,000;  on January 8, the outstanding  balance on the Credit  Agreement was
$4,350,000.

4.       NET EARNINGS PER COMMON SHARE

     The Company  computes  earnings per share in accordance  with  Statement of
Financial  Accounting Standards No. 128 "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 adjusted for the dilutive effect
of outstanding stock options.

     Options  and  warrants to purchase  1,468,438  shares of common  stock were
outstanding  at November  30, 2001 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. For
the three and six months ended  November 30, 2001,  no options and warrants were
included in the diluted earnings per share calculation.

5.       SHAREHOLDERS' EQUITY

     Stock Options

     On July 14, 1998, the Chairman,  certain officers,  directors and, a former
director  and the  spouse  of an  officer  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  acquired.  On July 14, 2001,  the Company agreed to extend
the due dates of such notes for one hundred twenty days until November 11, 2001.
On November 9, 2001,  the Company agreed to substitute  full recourse  unsecured
Notes for the Notes it had previously  accepted in connection  with these option
and warrant  exercises.  Such notes will bear  interest at the rate of eight and
one-half percent (8 1/2%) per annum, payable annually, with the principal amount
of each such Note,  plus any  accrued  and unpaid  interest,  due and payable on
November 9, 2004. As of November 30, 2001 and 2000, the  outstanding  balance on
such notes,  including principal and accrued but unpaid interest, was $1,660,001
and $1,653,493, respectively.

6.       COMMITMENTS AND CONTINGENCIES

     On April 2, 2001,  the Company was served  with a First  Amended  Complaint
filed by Dataline,  Inc.  against MCI WorldCom and the Company for alleged trade
libel and related  counts,  in the United States  District Court of the Southern
District of New York,  Civil Action No.  00-CV-1578.  On September 27, 2001, the
Court dismissed the case with prejudice.

     In August of 1999,  the Company's  wholly-owned  subsidiary,  Sandsport was
named as a defendant in Greater Bright Light Home Care Services,  Inc. et al. v.
Joseph Jeffries-El, El Equity Corporation,  Sandsport Data Services, Inc. et al.
(Supreme Court of the State of New York, Kings County).  Sandsport's contractual
obligation  to  Greater   Bright  Light   involved  the  depositing  of  certain
government-issued  checks into a specific bank account.  Upon receiving  written
notification  from the agency issuing the checks to stop depositing them in that
account,  Sandsport  ceased  depositing  them. The plaintiff  brought the action
against Joseph Jeffries-El and El Equity, and El Equity  counterclaimed  against
the plaintiff,  each basing its claims on the financing  agreement between them.
El  Equity  also  cross-claimed  against  Sandsport,  asserting  that  Sandsport
converted the  government-issued  checks to its own use.  Although  Sandsport is
named  as a  defendant,  the  Complaint  seeks  no  affirmative  relief  against
Sandsport.  Co-defendant  Citibank has asserted  indemnification  claims against
Sandsport and all of the other  defendants.  Sandsport  disputes all  liability.
However,  the  Company is unable to  predict  the  outcome  of these  claims and
accordingly,  no  adjustments  have  been  made  in the  consolidated  financial
statements in response to these claims.

     An action has been  commenced  against  the  Company  and Health  Card by a
former executive of Health Card, Mary Casale, who alleges that employees of both
Health Card and the Company engaged in sex  discrimination as to Ms. Casale, and
thus,  violated  Title  VII of the  Civil  Rights  Act of 1964.  The  matter  is
presently   pending  before  New  York  City  office  of  the  Equal  Employment
Opportunity  Commission  (`EEOC").  The  EEOC  has  made no  findings  or  other
determinations as to the merits of the parties' claims or defenses.  The Company
is being  defended  pursuant  to an  employment  practices  liability  insurance
policy,  the  coverage  of which is subject to various  terms,  conditions,  and
exclusions.  In the  opinion of the  Company's  management,  this  complaint  is
entirely  without  merit as against the  Company and is very  unlikely to have a
material adverse effect on the financial condition of the Company.

7.       REVENUE BY PRODUCT LINE

     The Company derives its revenue from several product lines that are similar
in nature. The following table provides the service fee revenues for the product
lines earned for the three and  six-month  periods  ended  November 30, 2001 and
2000:
<TABLE>
<S>                                         <C>          <C>               <C>              <C>


                                            For the three months ended        For the six months ended
                                                     November 30,                       November 30,
                                                 2001           2000              2001             2000
                                                 ----           ----              ----             ----
Computerized information processing         1,484,952      1,465,613        $3,007,199       $2,939,843
Telephone-based data collection             1,854,195      1,912,520         3,746,346        3,846,862
Technology infrastructure and outsourcing     213,553        486,516           615,845        1,003,050
Information technology                        581,883        657,704         1,145,958        1,161,185
Other                                           2,997            762            14,560            1,315
                                            ---------      ---------        ----------       ----------

                                           $4,137,580     $4,523,115        $8,529,908       $8,952,255
                                           ==========     ==========         =========        =========
</TABLE>
8.       ECONOMIC DEPENDENCE

     A  significant  number of the  Company's  customers  (both  for-profit  and
not-for-profit  companies) receive some or all of their funding from Federal and
State  agencies.  These  customers'  contracts  with the  Company are subject to
review and approval by a New York City  governmental  agency.  For the three and
six-months  ended  November 30, 2001, the Company  received  revenues from these
customers amounting to approximately  $2,619,000,  as compared to $2,555,000 and
$5,286,000  as  compared  to  $5,309,000,  for the  three and six  months  ended
November 30, 2000. The Company was owed approximately  $1,508,090 and $1,315,700
from the customers at November 30, 2001 and 2000, respectively.

<PAGE>

                   SANDATA TECHNOLOGIES, 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  $4,350,890 and $8,875,554 for the three and six months ended
November 30, 2001 as compared to $4,660,750 and $9,232,166 for the three and six
months  ended   November  30,  2000,  a  decrease  of  $309,860  and   $356,610,
respectively.

     Service fee revenue for the three and six months  ended  November  30, 2001
was  $4,137,580  and $8,529,906 as compared to $4,523,115 and $8,952,255 for the
three and six months  ended  November  30,  2000,  a decrease  of  $385,535  and
$422,347  respectively.  The  decrease  for the  six-month  period is  primarily
attributable to a decrease in revenues derived from Sharp of $6,306,  Santrax of
$100,516 outsourcing of $387,205,  and SandataNET of $1,982, offset by increases
in Pro-Health of $73,662 .

     Other  income  for the three and six months  ended  November  30,  2001 was
$168,467 and $267,209, as compared to $90,724 and $184,392 for the three and six
months ended November 30, 2000,  respectively.  The increase is  attributable to
the sale of  certain  customer  accounts  from  SandataNet  to a  non-affiliated
company in the amount of $79,000.

     Expenses Related to Services

     Operating  expenses were  $2,328,035  and  $5,042,118 for the three and six
months ended  November 30, 2001 as compared to $2,732,176 and $5,349,576 for the
three and six months  ended  November  30,  2000,  a decrease  of  $404,141  and
307,458,  respectively.  Costs  associated with payroll and related  expenses of
$304,375  decreased,  office supplies  decreased $19,000 and telephone  expenses
decreased  $186,230.  These  decreases were  partially  offset by an increase in
maintenance  contracts  of  $18,700,   equipment  rental  payments  of  $66,000,
equipment purchases of $73,811 and postage of $43,636.

     Selling, general and administrative expenses were $1,329,139 and $2,979,309
for the three and six months ended  November 30, 2001, as compared to $1,111,536
and 2,290,066 for the three and six months ended  November 30, 2000, an increase
of $217,603 and $689,243,  respectively.  The increase for the six-month  period
was  primarily  due to increases in sales staff of $276,610,  legal  expenses of
$140,000,  in addition to payroll and related  expenses of $272,633  relative to
the  increased  efforts  to  increase  sales  in the  SanTrax,  Outsourcing  and
Information Technology product lines.

     Depreciation and amortization  expense  decreased  $239,387 and $475,480 to
$455,875 and  $883,737  for the three and six months ended  November 30, 2001 as
compared to $695,262 and  $1,359,217 for the three and six months ended November
30, 2000, respectively. The decrease was primarily attributable to the reduction
in the assets base due to the impairment of developed  software that occurred in
the year ended May 31, 2001.

     Interest  expense  was $72,068  and  $148,747  for the three and six months
ended  November  30, 2001 as compared to $77,725 and  $128,990 for the three and
six months  ended  November  30,  2000.  The decrease for the quarter was due to
lower interest rates.  The increase for the six months was a result of increased
borrowings on the Company's Credit Agreement.

     On  August  9,  2001  the  Company  announced  that it had  terminated  the
employment  of  Stephen  Davies  as  President  of the  Company,  and  would  be
terminating  approximately  30 other  employees.  Under the terms of Mr. Davies'
Employment  Agreement,  he is entitled to a severance  payment  equal to six (6)
months' base salary,  or $100,000;  the 66,673  options that were vested on that
date have since  expired.  The  elimination of  approximately  30 positions from
within the Company and its  subsidiaries  is expected to generate  between  $1.7
million and $2 million in reduced expenses.

     Income Tax (Benefit) Expenses

     Income  tax  expense  and  (benefit)  for the  three and six  months  ended
November 30, 2001 was $81,741 and ($88,438) as compared to income tax expense of
$36,221 and $87,219 for the three and six months ended  November  30, 2000.  The
increase  in income tax  expense  for the three  months is due to an increase in
pretax  income,  the  recognition of a deferred tax asset for net operating loss
carryforwards,  and a reduction of a deferred tax liability  associated with the
different  recognition  of  software  development  costs  for tax and  financial
statement purposes.

     Liquidity and Capital Resources

     The  Company's  working  capital  decreased  as of  November  30,  2001  to
$1,518,257, as compared with $1,956,661 at May 31, 2001. The primary factor that
contributed  to the  decrease  was an increase in accounts  payable of $183,697,
decreases in accounts  receivable  of $108,621,  receivable  from  affiliates of
$388,055  and  prepaid  expenses of  $125,990,  offset by an increase in cash of
$276,988.

     For the three and six months ended  November 30,  2001,  the Company  spent
approximately  $801,000  and  $1,561,000  in  fixed  asset  additions,  of which
$603,000 and $1,278,000  respectively was for 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, the Chairman,  certain  officers,  directors and a former
director  and the  spouse  of an  officer  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 July 14, 2001, the Company agreed to extend
the due dates of such notes for one hundred twenty days until November 11, 2001.
On November 9, 2001,  the Company agreed to substitute  full recourse  unsecured
Notes for the Notes it had previously  accepted in connection  with these option
and warrant  exercises.  Such notes will bear  interest at the rate of eight and
one-half percent (8 1/2%) per annum, payable annually, with the principal amount
of each such Note,  plus any  accrued  and unpaid  interest,  due and payable on
November 9, 2004. As of November 30, 2001 and 2000, the  outstanding  balance on
such notes,  including principal and accrued but unpaid interest, was $1,660,001
and $1,653,493, respectively.

     On April 18,  1997,  the  Company's  wholly  owned  subsidiary,  Sandsport,
entered into a revolving  credit  agreement (the "Credit  Agreement")  with HSBC
Bank USA, which allows  Sandsport to 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 requires Sandsport to pay 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 has been amended by the
Bank to permit  Sandsport to borrow 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").  All of the Group's assets are
pledged to the Bank as  collateral  for amounts due under the Credit  Agreement,
which pledge is secured by 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.  The Group's guaranty to the Bank
was  modified to include  all  indebtedness  incurred  by the Company  under 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.  As of August 24,
2001,  Sandsport,  the Company and the other members of the Group, and the Bank,
entered  into the Third  Amendment  and Waiver  (the "Third  Amendment")  to the
Credit Agreement. Pursuant to the Third Amendment,  Sandsport's covenants to the
Bank to maintain a certain net worth and to maintain  certain  financial  ratios
were revised, on a going-forward  basis, and the noncompliance with the existing
covenants  was waived by the Bank.  In addition,  in  connection  with the Third
Amendment,  Sandsport and each member of the Group executed and delivered to the
Bank a Collective Amended and Restated Security Agreement, pursuant to which the
Bank's security  interest was extended to include a security  interest in all of
the personal and fixture  property of Sandsport,  the Company and the members of
the Group. On October 23, 2001 the Credit  Agreement was amended with respect to
one of the financial ratios, at the Company's  request.  As of November 30, 2001
the Group met the net worth and  financial  ratios  requirements  of the  Credit
Agreement.  In the past,  the Group has failed to meet certain of the  financial
ratios,  and the Bank has granted the Group a waiver.  There can be no assurance
that the Bank will  continue to grant waivers if the Group fails to meet the net
worth and financial ratios in the future.  If such waivers are not granted,  any
loans outstanding under the Credit Agreement become immediately due and payable,
which  may have an  adverse  effect on the  Company's  business,  operations  or
financial  condition.  As of November 30, 2001, the  outstanding  balance on the
Credit  Agreement  with the Bank was  $4,500,000.  As of January  8,  2002,  the
outstanding balance on the Credit Agreement was $4,350,000.

     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.

<PAGE>

                   SANDATA TECHNOLOGIES, INC. AND SUBSIDIARIES



                           PART II - OTHER INFORMATION


Item 1 - LEGAL PROCEEDINGS:

Reference is made to Note 6 to the Financial Statements comprising Part I, Item
1 of this Form 10-QSB.

Item 2 - CHANGES IN SECURITIES:

None

Item 3  - DEFAULTS UPON SENIOR SECURITIES:

None

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

     A. The Registrant  held its Annual Meeting of  Shareholders on November 20,
2001.

     B. Five (5) directors were elected at the Annual Meeting to serve until the
next Annual Meeting of Shareholders  and until their  respective  successors are
duly elected and qualified,  or until their earlier resignation or removal.  The
names of these  directors  and votes cast in favor of their  election  and votes
withheld are as follows:


Name                     Votes For       Votes Withheld

Bert E. Brodsky          1,589,641            0
Hugh Freund              1,589,641            0
Gary Stoller             1,589,641            0
Ronald L. Fish           1,589,641            0
Martin Bernard           1,589,641            0

     C. An amendment to the Certificate of Incorporation, which would change the
Company's corporate name, was approved as set forth below:

                         Votes For       Votes Against

                         1,586,993          2,819



Item 5 - OTHER INFORMATION:

None

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

     (a) Exhibit Index

         10.27  Lease Agreement dated November 1, 2001, between the Company and
                BFS Sibling Realty, Inc. for premises at 26 Harbor Park Drive,
                Port Washington, New York.

     (b) Reports on Form 8-K

         None.

<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 TECHNOLOGIES, INC. AND SUBSIDIARIES
                   -------------------------------------------
                                  (Registrant)



Date:    January 14, 2002                   By:     /s/ Bert E. Brodsky
     -------------------------------            --------------------------------
                                                        Bert E. Brodsky
                                                        Chairman of the Board,
                                                        Chief Executive Officer,
                                                        Chief Financial Officer