SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q


               Quarterly Report Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934


        For Quarter Ended:                          Commission File Number:
        September 30, 2003                                  O-14741
        ------------------                                  -------



                             ASA International Ltd.
             ------------------------------------------------------
             (Exact name of Registrant as specified in its Charter)




              Delaware                                      02-0398205
   -------------------------------                    ----------------------
   (State or other jurisdiction of                       (I.R.S. Employer
    incorporation or organization)                    Identification Number)



   10 Speen Street, Framingham, MA                            01701
----------------------------------------                    ----------
(Address of Principal Executive Offices)                    (Zip Code)


Registrant's Telephone Number, including Area Code:  (508) 626-2727
                                                     --------------

         Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes:  X      No:    .
     ---        ---

         Indicate by check mark whether the Registrant is an accelerated filer
(as defined in Rule 12b-2 of the Exchange Act).

Yes:         No: X .
     ---        ---

As of September 30, 2003 there were 1,960,820 shares of Common Stock of the
Registrant outstanding.

<PAGE>
                                     PART I
                              FINANCIAL INFORMATION
Item 1.  Financial Statements
         --------------------

                     ASA INTERNATIONAL LTD. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                         September 30,      December 31,
                                                             2003               2002
                                                        --------------      ------------
                                                         (Unaudited)
<S>                                                      <C>                <C>
      ASSETS

CURRENT ASSETS:
     Cash and cash equivalents                           $ 3,373,047        $ 4,509,686
     Marketable securities                                      --               22,780
     Receivables:
          Trade-net of allowance for doubtful accounts
             of $206,000 in 2003 and $189,000 in 2002      1,487,024          2,042,798
          Related parties                                     42,694             31,239
          Other                                                2,046            166,840
     Current portion of note receivable                      446,478            293,163
     Other current assets                                    715,971            443,075
                                                         -----------        -----------

TOTAL CURRENT ASSETS                                       6,067,260          7,509,581
                                                         -----------        -----------

PROPERTY AND EQUIPMENT:
     Land and buildings                                    5,020,628          4,990,823
     Computer equipment                                    2,376,897          2,342,072
     Office furniture and equipment                        1,027,713          1,027,713
     Leasehold improvements                                  115,846            115,846
     Vehicles and other                                    1,142,374            574,138
     Capital leases                                           93,146             85,266
                                                         -----------        -----------

                                                           9,776,604          9,135,858

    Accumulated depreciation and amortization              4,434,026          4,132,869
                                                         -----------        -----------

NET PROPERTY AND EQUIPMENT                                 5,342,578          5,002,989
                                                         -----------        -----------

SOFTWARE
    (less cumulative amortization
    of $6,385,258 in 2003 and $5,701,690 in 2002)          1,480,484          2,164,053

RECEIVABLES FROM RELATED PARTIES -
   net of current portion                                    259,505            338,931

NOTES RECEIVABLE - net of current portion                  1,823,468          2,192,791

NOTE RECEIVABLE - related party                                 --              175,000

GOODWILL                                                   1,113,795          1,257,686

MARKETABLE SECURITIES                                        902,500               --

OTHER ASSETS                                               1,170,770          1,255,034
                                                         -----------        -----------

                                                         $18,160,360        $19,896,065
                                                         ===========        ===========
</TABLE>

 See notes to condensed consolidated financial statements.

                                       1
<PAGE>
                     ASA INTERNATIONAL LTD. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                        September 30,         December 31,
                                                             2003                 2002
                                                       --------------         ------------
     LIABILITIES AND SHAREHOLDERS' EQUITY                (Unaudited)

<S>                                                     <C>                   <C>
CURRENT LIABILITIES:
     Notes payable - other                              $       --            $     90,000
     Current maturities of long-term obligations             158,993               105,402
     Accounts payable                                        531,013               402,566
     Accrued expenses                                      1,630,368             2,093,120
     Accrued commissions                                     138,369               385,621
     Customer deposits                                       226,865               297,301
     Deferred revenue                                        879,153             1,179,563
                                                        ------------          ------------

TOTAL CURRENT LIABILITIES                                  3,564,761             4,553,573
                                                        ------------          ------------

LONG-TERM OBLIGATIONS,
   NET OF CURRENT MATURITIES                               3,902,019             3,596,237
                                                        ------------          ------------

DEFERRED INCOME TAXES                                        466,000               466,000
                                                        ------------          ------------
COMMITMENTS AND CONTINGENCIES

COMMON STOCK SUBJECT TO REPURCHASE                           420,538               533,031
                                                        ------------          ------------

SHAREHOLDERS' EQUITY:
   Preferred stock, par value
        $.01 per share: Authorized and unissued,
       1,000,000 shares, 60,000 shares of which are
        designated as Series A Junior Participating
        Preferred Stock                                         --                    --
   Common stock, par value
        $.01 per share: Authorized, 8,000,000 shares;
        issued 2,485,477 and 2,921,280 shares;
        outstanding, 1,960,820 and 2,150,386 shares           24,855                29,213
   Additional paid-in capital                              6,957,059             8,830,972
   Retained earnings                                       4,474,955             5,260,095
   Accumulated other comprehensive loss:
   Unrealized gain (loss) on marketable securities           225,625                (6,120)
                                                        ------------          ------------

                                                          11,682,494            14,114,160

   Less treasury stock, at cost                            1,875,452             3,366,936
                                                        ------------          ------------

TOTAL SHAREHOLDERS' EQUITY                                 9,807,042            10,747,224
                                                        ------------          ------------

                                                        $ 18,160,360          $ 19,896,065
                                                        ============          ============
</TABLE>

 See notes to condensed consolidated financial statements.

                                       2
<PAGE>
                     ASA INTERNATIONAL LTD. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                         Three Months Ended
                                            September 30,
                                      --------------------------
                                          2003           2002
                                      --------------------------
                                      (Unaudited)
REVENUES
  Services                            $ 2,847,917    $ 2,821,426
  Product licenses                        580,303      1,006,204
  Computer and add-on hardware            237,601        390,381
                                      -----------    -----------

NET REVENUE                             3,665,821      4,218,011
                                      -----------    -----------

COST OF REVENUE
  Services                              1,598,993      1,436,438
  Product licenses and development        869,489        896,986
  Computer and add-on hardware            192,129        293,609
                                      -----------    -----------

TOTAL COST OF REVENUE                   2,660,611      2,627,033
                                      -----------    -----------

EXPENSES
  Marketing and sales                     726,053        747,816
  General and administrative              864,515        746,511
                                      -----------    -----------

TOTAL EXPENSES                          1,590,568      1,494,327
                                      -----------    -----------

EARNINGS (LOSS) FROM OPERATIONS          (585,358)        96,651

INTEREST EXPENSE                         (108,188)       (72,009)
INTEREST INCOME                            68,303         88,125
OTHER INCOME (EXPENSE), NET                 2,868         25,405
                                      -----------    -----------

EARNINGS (LOSS) BEFORE INCOME TAXES      (622,375)       138,172

INCOME TAXES                             (194,000)        63,000
                                      -----------    -----------

NET EARNINGS (LOSS)                   $  (428,375)   $    75,172
                                      ===========    ===========

BASIC EARNINGS (LOSS) PER
  COMMON SHARE
   NET EARNINGS (LOSS)                $     (0.22)   $      0.02
                                      ===========    ===========

DILUTED EARNINGS (LOSS) PER
  COMMON SHARE
   NET EARNINGS (LOSS)                $     (0.22)   $      0.02
                                      ===========    ===========

See notes to condensed consolidated financial statements.

                                       3
<PAGE>
                     ASA INTERNATIONAL LTD. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                            Nine Months Ended
                                              September 30,
                                      ----------------------------
                                           2003            2002
                                      ----------------------------
                                       (Unaudited)
REVENUES
  Services                            $  9,258,387    $  7,743,315
  Product licenses                       2,057,536       2,943,607
  Computer and add-on hardware             741,257       1,225,186
                                      ------------    ------------

NET REVENUE                             12,057,180      11,912,108
                                      ------------    ------------

COST OF REVENUE
  Services                               4,884,526       3,815,737
  Product licenses and development       2,634,405       2,175,592
  Computer and add-on hardware             583,885         938,207
                                      ------------    ------------

TOTAL COST OF REVENUE                    8,102,816       6,929,536
                                      ------------    ------------

EXPENSES
  Marketing and sales                    2,416,159       2,137,297
  General and administrative             2,740,830       2,285,995
                                      ------------    ------------

TOTAL EXPENSES                           5,156,989       4,423,292
                                      ------------    ------------

EARNINGS (LOSS) FROM OPERATIONS         (1,202,625)        559,280

INTEREST EXPENSE                          (262,315)       (248,465)
INTEREST INCOME                            258,569         348,341
LICENSE FEE - DIVESTITURE                     --           100,000
MANAGEMENT FEE                                --           149,125
OTHER INCOME (EXPENSE), NET                 65,231          13,118
                                      ------------    ------------

EARNINGS (LOSS) BEFORE INCOME TAXES     (1,141,140)        921,399

INCOME TAXES                              (356,000)        415,000
                                      ------------    ------------

NET EARNINGS (LOSS)                   $   (785,140)   $    506,399
                                      ============    ============

BASIC EARNINGS (LOSS) PER
  COMMON SHARE
   NET EARNINGS (LOSS)                $      (0.38)   $       0.16
                                      ============    ============

DILUTED EARNINGS (LOSS) PER
  COMMON SHARE
   NET EARNINGS (LOSS)                $      (0.38)   $       0.15
                                      ============    ============

See notes to condensed consolidated financial statements.

                                       4
<PAGE>
                     ASA INTERNATIONAL LTD. AND SUBSIDIARIES
             CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

<TABLE>
<CAPTION>
                                        Three Months Ended      Nine Months Ended
                                          September 30,           September 30,
                                    ----------------------    ----------------------
                                       2003         2002         2003         2002
                                    ----------------------    ----------------------
                                          (Unaudited)               (Unaudited)

<S>                                 <C>          <C>          <C>          <C>
NET EARNINGS (LOSS)                 $(428,375)   $  75,172    $(785,140)   $ 506,399
OTHER COMPREHENSIVE INCOME (LOSS)
   NET OF INCOME TAX:
      Unrealized gain (loss) on
           marketable securities      175,874       (2,074)     231,745       (1,666)
                                    ---------    ---------    ---------    ---------

COMPREHENSIVE EARNINGS (LOSS)       $(252,501)   $  73,098    $(553,395)   $ 504,733
                                    =========    =========    =========    =========
</TABLE>

See notes to condensed consolidated financial statements.

                                       5
<PAGE>
                     ASA INTERNATIONAL LTD. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                     Nine Months Ended
                                                                        September 30,
                                                                  -------------------------
                                                                      2003           2002
                                                                  -------------------------
                                                                         (Unaudited)
<S>                                                              <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net earnings (loss)                                             $  (785,140)   $   506,399
 Adjustments to reconcile net earnings (loss)
      to net cash provided by (used for) operating activities:
          Depreciation and amortization                              985,360        918,659
          Changes in assets and liabilities, net
          of effects of acquisitions:
             Receivables                                             664,845       (129,117)
             Other current assets                                   (315,437)       175,318
             Accounts payable                                        128,447         26,836
             Accrued expenses and commissions                       (710,004)      (270,676)
             Customer deposits                                       (70,436)        98,545
             Deferred revenue                                       (300,410)      (160,168)
                                                                 -----------    -----------

 Total adjustments                                                   382,365        659,397
                                                                 -----------    -----------

 Net cash provided by (used for) operating activities               (402,775)     1,165,796
                                                                 -----------    -----------

 CASH FLOWS FROM INVESTING ACTIVITIES:
   Additions to property and equipment-net                          (641,378)      (185,692)
   Additions to marketable securities-net                           (647,975)          --
   Payments on (additions to) notes receivable                       433,549       (827,253)
   Decrease in sales-types leases                                     44,269         26,760
   Cash received in acquisition of CompuTrac                            --        1,956,812
   Cash paid for CompuTrac merger expenses                              --         (257,338)
   Other Assets                                                      307,580        787,305
                                                                 -----------    -----------

Net cash provided by (used for) investing activities                (503,955)     1,500,594
                                                                 -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase (decrease) in long-term debt                             446,500         64,367
   Payments of long-term obligations                                 (87,127)       (71,154)
   Cash paid to CompuTrac Shareholders                                  --       (1,425,408)
   Purchase of treasury stock                                       (340,665)          --
   Decrease in notes payable other                                   (90,000)          --
   Cash paid in reverse split                                       (158,617)          --
                                                                 -----------    -----------

 Net cash provided by (used for) financing activities               (229,909)    (1,432,195)
                                                                 -----------    -----------

CASH AND CASH EQUIVALENTS:
   Net increase (decrease)                                        (1,136,639)     1,234,195
   Balance, beginning of period                                    4,509,686      4,024,254
                                                                 -----------    -----------

   Balance, end of period                                        $ 3,373,047    $ 5,258,449
                                                                 ===========    ===========
</TABLE>

See notes to condensed consolidated financial statements.

                                       6
<PAGE>
                     ASA INTERNATIONAL LTD. AND SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements

                                   (Unaudited)


Note 1.  Basis of Presentation
         ---------------------

As permitted by the rules of the Securities and Exchange Commission applicable
to quarterly reports on Form 10-Q, these notes are condensed and do not contain
all disclosures required by accounting principles generally accepted in the
United States. Reference should be made to the financial statements and related
notes included in the Company's Annual Report on Form 10-K.

In the opinion of management, the accompanying financial statements reflect all
adjustments, all of which were of a normal recurring nature, necessary for a
fair presentation of the Company's results of operations for the three and nine
months ended September 30, 2003 and September 30, 2002, respectively.

The results disclosed in the Condensed Consolidated Statement of Operations for
the three and nine months ended September 30, 2003 are not necessarily
indicative of the results expected for the full year.

For further information, refer to the consolidated financial statements and
footnotes thereto included in the Registrant's Annual Report on Form 10-K for
the year ended December 31, 2002.


Note 2.  Forward Reverse Stock Split
         ---------------------------

On May 16, 2003, the stockholders of the Company approved a reverse/forward
split of the Company's common stock which resulted in a one-for-two reverse
split and a cash out of stockholders who owned fewer than 200 shares before the
reverse/forward split. A total of approximately $159,000 was paid out for cashed
out fractional shares held which totaled approximately 71,600 post-split shares.
All share and per share data appearing in the Company's Condensed Consolidated
Financial Statements and Notes thereto have been retroactively restated to
reflect the reverse stock split. Other than the $159,000 noted above, the
statement of cash flow excludes non-cash financing activities related to the
forward reverse stock split.

                                       7
<PAGE>
Note 3.  Earnings (Loss) per Share

The weighted average number of common shares outstanding used in the computation
of earnings (loss) per share is summarized as follows:

<TABLE>
<CAPTION>
                                                         Three Months Ended          Nine Months Ended
                                                            September 30,              September 30,
                                                   --------------------------   ---------------------------
                                                        2003           2002          2003           2002
                                                   -------------  -----------   ------------   ------------
<S>                                                <C>            <C>           <C>            <C>
Numerator:
  Net earnings (loss)                              $  (428,375)   $    75,172   $  (785,140)   $   506,399

Numerator for diluted earnings (loss per share -
  income available to common shareholders          $  (428,375)   $    75,172   $  (785,140)   $   506,399

Denominator:
  Denominator for basic and diluted loss
  per share - Weighted average shares                1,982,407      3,795,644     2,053,010      3,255,480

Effect of dilutive securities:
  Employee stock options                                  --           18,854          --           36,195
                                                   -----------    -----------   -----------    -----------

Dilutive potential common shares
  Denominator for diluted earnings per share -
     adjusted weighted average shares and
     assumed conversions                             1,982,407      3,814,498     2,053,010      3,291,675
                                                   ===========    ===========   ===========    ===========

Basic earnings (loss) per share                    $     (0.22)   $      0.02   $     (0.38)   $      0.16
                                                   ===========    ===========   ===========    ===========

Diluted earnings (loss) per share                  $     (0.22)   $      0.02   $     (0.38)   $      0.15
                                                   ===========    ===========   ===========    ===========
</TABLE>

Earnings (loss) per share for prior years have been restated to reflect the
forward/reverse stock split as discussed in Note 2.

The following table summarizes securities which were outstanding as of September
30, 2003 and 2002 but not included in the calculation of diluted loss per share
because such shares are antidilutive:

                                           As of September 30,
                                         -----------------------
                                            2003          2002
                                         ---------     ---------

Employee Stock Options                    146,890          -

                                       8
<PAGE>
Note 4.  Stock Options
         -------------

At September 30, 2003, the Company has four stock based compensation plans. The
Company applies APB Opinion 25, "Accounting for Stock Issued to Employees", and
related Interpretations in accounting for its plans. Accordingly, no
compensation cost has been recognized for its stock option plans. Had
compensation cost for the Company's four stock option plans been determined
based on the fair value at the grant dates for awards under those plans
consistent with the method of FASB Statement No. 123, "Accounting for
Stock-Based Compensation", the Company's net earnings (loss) and earnings (loss)
per share would have been adjusted to the pro forma amounts indicated below:

<TABLE>
<CAPTION>
                                                   Three Months Ended           Nine Months Endedd
                                                      September 30,                September 30,
                                               -------------------------    ---------------------------

                                                    2003          2002           2003          2002
                                                    ----          ----           ----          ----
<S>                           <C>              <C>            <C>           <C>            <C>
Net earnings (loss)           As reported      $  (428,375)   $   75,172    $  (785,140)   $   506,399
                              Pro forma           (452,949)       66,429       (850,764)       480,025
Basic earnings (loss)
  per share                   As reported      $     (0.22)   $     0.02    $     (0.38)   $      0.16
                              Pro forma              (0.23)         0.02          (0.41)          0.15
Diluted earnings (loss)
  per share                   As reported      $     (0.22)   $     0.02    $     (0.38)   $      0.16
                              Pro forma              (0.23)         0.02          (0.41)          0.15
</TABLE>

Earnings (loss) per share for prior years have been restated to reflect the
forward/reverse stock split as discussed in Note 2.

Note 5.  Purchase of Omtool Shares
         -------------------------

On May 23, 2003, the Company purchased 225,625 shares of common stock of Omtool
Ltd. The aggregate purchase price of the shares was $676,875. The shares were
purchased under a Stock Purchase Agreement with two third parties which requires
that the Company pay, under certain conditions, an additional amount under a
formula to the third parties should the Company subsequently purchase additional
shares of Omtool stock. At the current time, no additional purchases of Omtool
Ltd.'s common stock by the Company are contemplated. Mr. Robert Voelk, who is
Chairman and CEO of Omtool Ltd., is a member of the Company's Board of
Directors.

Note 6.  Employee Stock Ownership Plan
         -----------------------------

During the quarter ended June 30, 2003, the Company established an Employee
Stock Ownership Plan ("ESOP") effective January 1, 2003. The ESOP is designed to
enable Company employees to accumulate ownership of Company stock. All employees
on the payroll of the Company over the age of 21 and with at least 1,000 hours
of Company service during a plan year are eligible to participate in the ESOP.
The ESOP has a five-year cliff vesting, with credit given for service prior to
the ESOP effective date. Benefits may be paid in a lump sum or installments, in
Company stock, cash or a combination of both.

The Company may, but is not required to, make contributions to the ESOP in cash
or Company stock. The ESOP may borrow money to purchase Company stock. Employee
contributions are not permitted. Company contributions may be used by the ESOP
to repay any current loan obligation incurred to purchase Company stock, to
purchase Company stock from existing shareholders, or to purchase Company stock
directly from the Company. The ESOP may also invest in assets other than Company
stock, or may hold ESOP assets in cash. As of September 30, 2003, no
contributions have been made to the ESOP.

Note 7.  Sale of Office Building - Subsequent Event
         ------------------------------------------

On October 24, 2003, the Company completed the sale of its office facility at
615 Amherst Street, Nashua, NH. The 25,600 square foot building was sold for
$2,300,000 in cash. Outstanding debt on the building including a prepayment
penalty of approximately $960,000 was paid from the cash proceeds at the time of
closing. The sale will result in a pretax gain for the Company of approximately
$600,000, net of the prepayment penalty. The Company also signed a five-year
lease for approximately 10,000 square feet of the facility currently occupied by
its Tire Systems Group for annual lease expense of $153,000.

                                       9
<PAGE>
Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         -----------------------------------------------------------------------
         of Operations
         -------------

This Quarterly report on Form 10-Q contains forward-looking information about
the Company. In addition to the historical information contained herein, the
discussions in this document include statements that constitute forward-looking
statements under the provisions of the Private Securities Litigation Reform Act
of 1995, including with respect to the Company's revenues, gross margins,
acquisitions and expected cash flow. Important factors that may cause the
Company's actual results to differ materially from those set forth in any
forward-looking statements include: the risks associated with acquisitions; the
ability of the Company to adapt to the rapid changes in the software industry
and compete with companies with significantly greater financial and technical
resources; the loss of executive officers and key personnel who are critical to
the Company's business; the volume and timing of orders received during the
period, which are difficult to forecast; the successful completion and sale of
new products and enhancements to existing products; the availability of
additional capital in the future and financial market volatility; and general
economic and business conditions. Management believes these forward-looking
statements are reasonable. However, caution should be taken not to place undue
reliance on any such forward-looking statements. Such statements speak only as
of the date when made. There can be no assurance that any anticipated future
results will be achieved. The forward-looking statements contained herein should
not be relied upon as predictions of future results. Furthermore, the Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.

                                       10
<PAGE>
                              Results of Operations

                              Third Quarter of 2003
                                   compared to
                              Third Quarter of 2002


                               -------------------------------------------------
(000's omitted)                       Revenue            Increase / (Decrease)
                               --------------------     ------------------------
                                2003          2002      Amount        Percentage
                               ------        ------     -------       ----------
Services                       $2,848        $2,821     $   27              1%
Product licenses                  580         1,006       (426)           (42%)
Computer and add-on hardware      238           391       (153)           (39%)
                               ------        ------     ------

   Net revenue                 $3,666        $4,218     $ (552)           (13%)
                               ======        ======     ======         ======

During 2002, the Company completed the acquisition of two product lines. The
revenues related to these product lines for the three and nine months ended
September 30, 2003 are as follows:

<TABLE>
<CAPTION>
(000's omitted)                                                         Revenue
                                                          -----------------------------------

                                                            Three Months        Nine Months
     Line Acquired           ASA           Acquisition     ended Sept. 30,    ended Sept. 30,
         From            Product Line         Date              2003              2003
------------------------------------------------------          ----              ----

<S>                     <C>                 <C>              <C>                <C>
   CompuTrac, Inc.           Legal           August          $   602            $  1,806
                                              2002

      PowerCerv         Manufacturing &     November             436               1,451
     Corporation         Distribution         2002
                                                            ---------           --------

                                              Total          $ 1,038            $  3,257
                                                             =======            ========
</TABLE>

The product line acquired from CompuTrac, Inc. has been combined as part of the
Company's Legal Systems product line which has been renamed Rainmaker Software.
The product line acquired from PowerCerv Corporation remains as a separate
manufacturing and distribution software product line operating under the name of
Verticent.

REVENUE
-------

Net revenue. The Company designs and develops proprietary enterprise software
for the tire dealer, legal, e-Business management, and manufacturing and
distribution software markets. The Company's revenues are derived from the
licensing of the Company's software products, from client service and support,
and from the sale of third party computer and add-on hardware. The Company's
total revenues decreased by approximately $552,000, or 13%, for the three months
ended September 30, 2003, compared to the three months ended September 30, 2002.
Revenue from existing businesses decreased by approximately $1,590,000, or 38%,
for the period ended September 30, 2003, when approximately $1,038,000 in
revenue from the products acquired from CompuTrac and PowerCerv is excluded.

                                       11
<PAGE>
Services. The Company's services are comprised of fees generated from training,
consulting, software modifications, and ongoing client support provided under
maintenance agreements that renew automatically unless either party gives prior
notice as specified in the agreements. Service revenues increased by
approximately $27,000 or 1%, for the three months ended September 30, 2003,
compared to the three months ended September 30, 2002. Services revenue from
existing businesses decreased approximately $913,000, or 32% for the period when
approximately $940,000 in services revenue from the products acquired from
CompuTrac and PowerCerv is excluded. Service revenues decreased for all the
Company's product lines for the third quarter of 2003 when compared to the third
quarter of 2002. The decrease in service revenues from the Company's existing
businesses was due primarily to decreases in software license revenues which
were accompanied by reduced client requirements for training and consulting
services.

Product licenses. The Company's software license revenues are derived primarily
from the licensing of the Company's enterprise products. Software license
revenues decreased by approximately $426,000 or 42%, for the three months ended
September 30, 2003, compared to the three months ended September 30, 2002.
Product license revenues decreased for all product lines for the third quarter
of 2003 when compared to the third quarter of 2002. Product license revenue from
existing businesses decreased by approximately $524,000, or 52% for the period
when approximately $98,000 in product license revenue from the products acquired
from CompuTrac and PowerCerv is excluded. The decrease in license revenue from
the third quarter of 2003 to the third quarter of 2002 was primarily
attributable to overall continuing economic uncertainty and a persisting delay
in decisions by customers to make expenditures on information technology.

Computer and add-on hardware. The Company's hardware revenues are derived from
the resale of third-party hardware products to the Company's clients in
conjunction with the licensing of the Company's software. Hardware revenues
decreased by approximately $153,000, or 39%, for the three months ended
September 30, 2003, compared to the same three months ended September 30, 2002.
The decrease in hardware revenues was due to decreased hardware sales by the
tire systems product line.


COST OF REVENUE
---------------

Services. The Company's cost of services consists of the costs incurred in
providing client training, consulting, and ongoing support as well as other
client service-related expenses. Cost of services increased by approximately
$163,000, or 11%, for the three months ended September 30, 2003, compared to the
three months ended September 30, 2002. The increase includes approximately
$257,000 in cost of services from the newly acquired manufacturing and
distribution software product line. The gross margin percentage for services for
the period decreased from approximately 49% in 2002 to 44% in 2003. The
Company's revenue and margin from services fluctuate from period to period due
to changes in the mix of contracts and projects.

Product licenses and development. The Company's cost of software license
revenues consists of the costs of amortization of capitalized software costs,
and the costs of sublicensing third-party software products. The amount also
includes the expenses associated with the development of new products and the
enhancement of existing products (net of capitalized software costs), which
consist primarily of employee salaries, benefits, and associated overhead costs.
Cost of software license revenues and development decreased by approximately
$27,000, or 3%, for the three months ended September 30, 2003, compared to the
three months ended September 30, 2002. The cost of product licenses and
development decreased for all existing product lines except for the legal
systems product from the third quarter of 2002 when compared to the third
quarter of 2003. The change in product license and development costs includes
approximately $92,000 in cost from the newly acquired manufacturing and
distribution software product line for which there is no comparable amount in
the period September 30, 2002. In addition, the cost of product licenses as a
percentage of product license revenue may fluctuate from period to period due to
the mix of sales of third-party software products in each period contrasted with
certain fixed expenses such as the amortization of capitalized software.

                                       12
<PAGE>
Computer and add-on hardware. The Company's cost of hardware revenues consists
primarily of the costs of third-party hardware products for the Company's tire
dealer product line. Cost of hardware revenues decreased by approximately
$101,000, or 35%, for the three months ended September 30, 2003, compared to the
three months ended September 30, 2002. The gross margin percentage for hardware
sales decreased to 19% for the three months ended September 30, 2003, from 25%
for the three months ended September 30, 2002. Margins on computer and add-on
hardware can fluctuate based on the mix of computer and ancillary hardware
products sold. Accordingly, the Company expects hardware gross margins to
continue to fluctuate in the future.


EXPENSES
--------

Marketing and sales. The Company's marketing and sales expenses consist
primarily of employee salaries, benefits, commissions and associated overhead
costs, and the cost of marketing programs such as direct mailings, trade shows,
seminars, and related communication costs. Marketing and sales expenses
decreased by approximately $22,000, or 3%, for the three months ended September
30, 2003, compared to the three months ended September 30, 2002. The change in
marketing and sales expenses is comprised of an decrease in expense of
approximately $145,000 from the newly acquired manufacturing and distribution
software product line for which there is no comparable amount in 2002 period.
This change was offset by a decrease in such expenses from all of the Company's
other product lines for the three months ended September 30, 2003 compared to
the similar period ended September 30, 2002.

General and administrative. The Company's general and administrative expenses
consist primarily of employee salaries and benefits for administrative,
executive, and finance personnel and associated overhead costs, as well as
consulting, accounting, and legal expenses. General and administrative expenses
increased by approximately $118,000, or 16%, for the three months ended
September 30, 2003, compared to the three months ended September 30, 2002. The
change primarily reflects the general and administrative expenses from the newly
acquired manufacturing and distribution software produce line, and increased
expenses related to corporate overhead.

The net loss for the three months ended September 30, 2003 was approximately
$428,000, compared to net earnings of approximately $75,000 for the three months
ended September 30, 2002. The change results from a decrease in earnings from
operations of approximately $682,000, and a decrease in interest income-net and
other income-net of approximately $78,000, which were partially offset by a
decrease in income tax expense of approximately $257,000.

                             Results of Operations

                      Nine Months Ended September 30, 2003
                                   compared to
                      Nine Months Ended September 30, 2002

                                 -----------------------------------------
(000's omitted)                        Revenue       Increase / (Decrease)
                                 -----------------   ---------------------
                                   2003      2002    Amount     Percentage
                                 -------   -------   -------    ----------
Services                         $ 9,258   $ 7,743   $ 1,515         19%
Product licenses                   2,058     2,944      (886)       (30%)
Computer and add-on hardware         741     1,225      (484)       (40%)
                                 -------   -------    -------

   Net revenue                   $12,057   $11,912   $   145          0%
                                 =======   =======   =======    ========

                                       13
<PAGE>
REVENUE
-------

Net revenue. The Company's total revenues increased by approximately $145,000
for the nine months ended September 30, 2003, compared to the nine months ended
September 30, 2002. Revenue from existing businesses decreased by approximately
$3,112,000 or 27% for the nine months ended September 30, 2003, when compared to
the same period in 2002 and approximately $3,257,000 in revenue from the
products acquired from CompuTrac and PowerCerv is excluded.

Services. Service revenues increased by approximately $1,515,000, or 19%, for
the nine months ended September 30, 2003 compared to the nine months ended
September 30, 2002. Services revenue from existing businesses decreased
approximately $1,555,000, or 20% for the period when approximately $2,907,000 in
service revenue from the products acquired from CompuTrac and PowerCerv is
excluded. Service revenue decreased for the Company's existing legal product
lines. The decrease in service revenues was due primarily to reduced client
requirements for training and consulting services.

Product licenses. Product license revenues decreased by approximately $886,000,
or 30%, for the nine months ended September 30, 2003, compared to the nine
months ended September 30, 2002. Product license revenues increased for all
product lines except for e-business management systems from the first nine
months of 2003 when compared to the first nine months of 2002. Product license
revenue from existing businesses decreased by approximately $1,236,000, or 42%
for the period when approximately $350,000 in product license revenue from the
products acquired from CompuTrac and PowerCerv is excluded. The decrease in
license revenue for the nine months ended September 30, 2003 compared to the
same period in 2002 was primarily attributable to overall continuing economic
uncertainty and a persisting delay in decisions by customers to make
expenditures on information technology.

Computer and add-on hardware. Hardware revenues decreased by approximately
$484,000, or 40%, for the nine months ended September 30, 2003, compared to the
same nine months ended September 30, 2002. The decrease in hardware revenues
from existing businesses was due to decreased hardware sales by the tire systems
product line.


COST OF REVENUE
---------------

Services. The Company's cost of services consists of the costs incurred in
providing client training, consulting, and ongoing support as well as other
client service-related expenses. Cost of services increased by approximately
$1,069,000, or 28%, for the nine months ended September 30, 2003, compared to
the nine months ended September 30, 2002. The increase includes approximately
$738,000 in cost of services from the newly acquired manufacturing and
distribution software product line. The gross margin percentage for services for
the period decreased to approximately 47% from 51% of revenue from services for
the same period in 2002. The Company's revenue and margin from services
fluctuate from period to period due to changes in the mix of contracts and
projects.

Product licenses and development. Cost of software license revenues and
development increased by approximately $459,000, or 21%, for the nine months
ended September 30, 2003, compared to the nine months ended September 30, 2002.
The increase includes approximately $271,000 in product license and development
cost from the newly acquired manufacturing and distribution software product
line for which there is no comparable amount in the period ended September 30,
2002. The cost of product licenses as a percentage of product license revenue
may fluctuate from period to period due to the mix of sales of third-party
software products in each period contrasted with certain fixed expenses such as
the amortization of capitalized software.

Computer and add-on hardware. Cost of hardware revenues decreased by
approximately $354,000, or 38%, for the nine months ended September 30, 2003,
compared to the nine months ended September 30, 2002. The decrease was due to
decreased sales of hardware products by the Company's tire systems product line.
The gross margin percentage for hardware sales decreased to 21% for the nine
months ended September 30, 2003,
                                       14
<PAGE>
from 23% for the nine months ended September 30, 2002. Margins on computer and
add-on hardware can fluctuate based on the mix of computer and ancillary
hardware products sold. Accordingly, the Company expects hardware gross margins
to continue to fluctuate in the future.


EXPENSES
--------

Marketing and sales. Marketing and sales expenses increased by approximately
$279,000, or 13%, for the nine months ended September 30, 2003, compared to the
nine months ended September 30, 2002. The change in marketing and sales expenses
is comprised of an increase in expense of approximately $507,000 from the newly
acquired manufacturing and distribution software product line for which there is
no comparable amount in 2002 period. This change, along with an increase in
sales and marketing expenses for the legal product line was partially offset by
a decrease in such expenses from the Company's tire systems and e-Business
Management product lines for the nine months ended September 30, 2003 compared
to the similar period ended September 30, 2002.

General and administrative. General and administrative expenses increased
approximately $455,000, or 20%, for the nine months ended September 30, 2003,
compared to the nine months ended September 30, 2002. The change primarily
reflects the general and administrative expenses from the newly acquired
manufacturing and distribution software product line, and increased expenses
related to corporate overhead and the legal systems product line.

The net loss for the nine months ended September 30, 2003 was approximately
$785,000, as compared to net earnings of approximately $506,000 for the nine
months ended September 30, 2002. The change results from a decrease in earnings
from operations of approximately $1,762,000, a decrease in license and
management fees and other income-net of approximately $197,000 and a decrease in
interest income-net of approximately $104,000, partially offset by a decrease in
income tax expense of approximately $771,000.

LIQUIDITY AND CAPITAL RESOURCES

The Company had total cash and cash equivalents at September 30, 2003 of
approximately $3,373,000, a decrease of approximately $1,137,000 from December
31, 2002. The Company and its subsidiaries had a maximum line of credit totaling
$1,500,000 which was available at September 30, 2003.

On October 24, 2003, the Company completed the sale of its office facility at
615 Amherst Street, Nashua, NH. The 25,600 square foot building was sold for
$2,300,000 in cash with outstanding debt on the building including a prepayment
penalty of approximately $960,000 paid from the cash proceeds at the time of
closing. The sale will result in a pretax gain for the Company of approximately
$600,000. The Company also signed a five-year lease for approximately 10,000
square feet of the facility currently occupied by its Tire Systems Group.

On May 23, 2003, the Company purchased 225,625 shares of common stock of Omtool
Ltd. The aggregate purchase price of the shares was $676,875. The shares were
purchased under a Stock Purchase Agreement with two third parties which requires
that the Company pay, under certain conditions, an additional amount under a
formula to the third parties should the Company subsequently purchase additional
shares of Omtool stock. At the current time, no additional purchases of Omtool
Ltd.'s common stock by the Company are contemplated. Mr. Robert Voelk, who is
Chairman and CEO of Omtool Ltd., is a member of the Company's Board of
Directors.

On May 16, 2003, the Company's stockholders approved a reverse/forward split of
the Company's common stock which resulted in a one-for-two reverse split and a
cash out of stockholders who own fewer than 200 shares. A total of approximately
$159,000 was paid out for cashed out and fractional shares, which totaled
approximately 71,600 post-split shares.

                                       15
<PAGE>
In January 2003, the Company co-signed and guaranteed a Promissory Note on
behalf of a newly -formed 100% owned subsidiary, ASA Aircraft, LLC. The note for
$893,000 was signed under a Demand Loan and Security Agreement with a bank for
the purchase of a 50% interest in an aircraft. The total purchase price of the
aircraft was $900,000. The Company is obligated for 50% of the $893,000 note,
and is a guarantor on the remaining 50%. The co-borrower on the note is an
unrelated party that is liable for 50% of the note and is also a guarantor of
the Company's liability. The 5-year note with interest at prime (4.00% at
September 30, 2003) plus .25% calls for monthly principal and interest payments
of $6,861 through December 2007 with a final payment of approximately $666,869
plus interest due in December 2007. The Promissory Note is collateralized by the
aircraft with cross guarantees by each of the borrowers. Under the provisions of
FASB Interpretation No. 45, "Guarantor's Accounting and Disclosure Requirements
for Guarantees, Including Guarantees of Indebtedness of Others", management of
the Company has determined that the fair value of the guarantee related to the
note is nominal and not material to the Company's financial statements.

On December 1, 2002, the Company completed the purchase of substantially all of
the assets of PowerCerv Corporation. Under the terms of an Asset Purchase
Agreement (the "PowerCerv Purchase Agreement"), in addition to assuming certain
PowerCerv liabilities, the Company paid PowerCerv $500,000 cash ($100,000 of
which had been advanced to PowerCerv as a loan) and issued a $90,000 note at
1.81% per annum. The total amount due on this Note of approximately $90,800 was
paid in June 2003. The purchase price was also increased by approximately
$16,000 for adjustments specified under the terms of the PowerCerv Purchase
Agreement which was paid in the first quarter of 2003.

The Company expects to continue to pursue strategic acquisitions. These
acquisitions have been, and are expected to continue to be, financed in a number
of ways. Management believes, subject to the conditions of the financial
markets, that it should be able to continue its program of acquisitions. These
acquisitions could present challenges to the Company's management, such as
integrating and incorporating new operations, product lines, technologies and
personnel. If the Company's management is unable to manage these challenges, the
Company's business, financial condition or results of operations could be
materially adversely affected. Any acquisition, depending on its size, could
result in significant dilution to the Company's stockholders. Furthermore, there
can be no assurance that any acquired products will gain acceptance in the
Company's markets.

The Company has experienced significant fluctuations in its quarterly operating
results and anticipates such fluctuations in the future. Quarterly revenues and
operating results depend on the volume and timing of orders received during the
quarter which are difficult to forecast. Large orders for the Company's products
often have a lengthy sales cycle while the customer evaluates and receives
approvals for the purchase of the products. Accurately predicting the sales
cycle of any large order may be difficult. If one or more large orders fail to
close as forecasted in a fiscal quarter, the Company's revenues and operating
results could be materially adversely affected. In addition, the Company
typically receives a substantial portion of its product orders in the last month
of the quarter. Orders are shipped as received and, as a result, the Company
often has little or no backlog except for support and service revenue. The
Company acknowledges the potential adverse impact that such fluctuations and
general economic uncertainty could have on its ability to maintain liquidity and
raise additional capital.

The Company's future financial performance is also dependent in large part on
the successful development, introduction, and customer acceptance of new and
enhanced versions of its software products. Due to the rapid change in vendor
hardware platforms, operating systems, and updated versions, the complexity and
expense of developing, testing, and maintaining the Company's products have
increased. The Company intends, as it has in the past, to fund this development
primarily from its cash from operations and bank debt. There can be no assurance
that these efforts will be successful or result in significant product
enhancements.

Subject to the foregoing, the Company believes that based on the level of
operating revenue, cash on hand, and available bank debt, it has sufficient
capital to finance its ongoing business.

                                       16
<PAGE>
CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management's discussion and analysis of the Company's financial condition and
results of operations are based upon the consolidated financial statements,
which have been prepared in accordance with accounting principles generally
accepted in the United States. The preparation of these financial statements
requires management to make estimates and judgments that affect the reported
amounts of assets, liabilities, revenues and expenses, and related disclosures
of contingent assets and liabilities. On an on-going basis, management evaluates
estimates, including those related to the allowance for doubtful accounts,
software, acquired software and other acquired intangibles, the likelihood of
the utilization of certain tax loss carry-backs and carry-forwards for certain
of the transactions completed by the Company, and the valuation allowance on
deferred tax assets. The Company bases its estimates on historical experience
and on various other assumptions that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates under different
assumptions or conditions. The Company believes the following critical
accounting policies affect its more significant judgments and estimates used in
the preparation of its consolidated financial statements. For a detailed
discussion on the application of these and other accounting policies, see Note A
in the notes to the consolidated financial statements included in the Company's
annual report on Form 10-K for the year ended December 31, 2002.

Accounts Receivable. Accounts receivable balances are evaluated on a continual
basis and allowances are provided for potentially uncollectible accounts based
on management's estimate of the collectability of customer accounts. If the
financial condition of a customer were to deteriorate, resulting in an
impairment of its ability to make payments, an additional allowance may be
required. Allowance adjustments are charged to operations in the period in which
the facts that give rise to the adjustments become known. The accounts
receivable balance at September 30, 2003 was $1,531,764 net of an allowance of
$205,506 and at December 31, 2002 was $2,240,877 net of an allowance for
doubtful accounts of $188,949.

Revenue Recognition. The Company recognizes revenue in accordance with the
American Institute of Certified Public Accountants (AICPA) Statement of Position
("SOP") 97-2, "Software Revenue Recognition," and SOP 98-9 "Modification of SOP
97-2, Software Revenue Recognition, With Respect to Certain Transactions".
Revenue is recognized when all of the following are met: pervasive evidence of
an arrangement exists; delivery has occurred; the vendor's fee is fixed and
determinable; and collectibility is probable. For multiple-element license
arrangements, the license fee is allocated to the various elements based on fair
value. When a multiple-element arrangement includes rights to a post-contract
customer support, the portion of the license fee allocated to such support is
recognized ratably over the term of the arrangement. For arrangements to deliver
software that requires significant modification or customization, revenue is
recognized on the percentage-of-completion method. Currently, the Company enters
into very few such arrangements that require significant modifications or
customization of its software.

Computer hardware revenue is recognized upon shipment of product to the client.

Service revenues include post-contract client support, consulting, and training
support. Post-contract client support is generally provided under self-renewing
maintenance agreements. Revenue on these maintenance agreements is recognized
ratably over the contract term. Consulting and training services revenue is
recognized in the period the service is rendered.

Based on the Company's reading and interpretation of these SOPs, the Company
believes that its current sales contract terms and business arrangements have
been properly reported. However, the AICPA and its Software Revenue Recognition
Task Force continue to issue interpretations and guidance for applying the
relevant standards to a wide range of sales contract terms and business
arrangements that are prevalent in the software industry. Also, the Securities
and Exchange Commission (SEC) has issued Staff Accounting Bulletin No. 101,
"Revenue Recognition in Financial Statements," which provides guidance related
to revenue recognition based on interpretations and practices followed by the
SEC. Future interpretations of existing accounting standards or changes in the
Company's business practices could result in future changes in its revenue
accounting policies that could have a material adverse effect on its business,
financial condition and results of operations.

                                       17
<PAGE>
The Company's revenue recognition policy is significant because the Company's
revenue is a key component of its results of operations. In addition, the
Company's revenue recognition determines the timing of certain expenses, such as
commissions and license costs. The Company follows very specific and detailed
guidelines in measuring revenue; however, certain judgments affect the
application of the Company's revenue policy. Revenue results are difficult to
predict, and any shortfall in revenue or delay in recognizing revenue could
cause the Company's operating results to vary significantly from quarter to
quarter and could result in future operating losses.

Software. The Company accounts for the costs of computer software developed in
accordance with Statement of Financial Accounting Standard No. 86. Accordingly,
the costs of purchased software, and of that software developed internally (once
technological feasibility is established) associated with coding new
applications or modules and enhancing and porting existing applications
software, are capitalized. Amortization of these costs is based on the greater
of the charge resulting from the application of either the straight-line method
over five years or the proportion of current sales to estimated future revenues
of each product. The Company periodically reviews the carrying value of its
software to determine whether an impairment exists. Relevant cash flow and
profitability information, including estimated future operating results, trends,
and other available information are considered in assessing whether the carrying
value of the software can be recovered. If it is determined that the carrying
value of the software will not be recovered from the undiscounted cash flows,
the carrying value of the software would be considered impaired and reduced by a
charge to operations in the amount of the impairment. An impairment charge is
measured as any deficiency in the amount of undiscounted future cash flows
available to recover the carrying value related to the software. Future adverse
changes in market conditions could result in an inability of the Company to
recover the carrying value of the software, thereby possibly requiring an
impairment charge in the future.

Goodwill and other acquired intangibles. The determination of the value of such
intangible assets requires management to make estimates and assumptions that
affect the Company's consolidated financial statements. As a result of the
adoption of Statement of Financial Accounting Standards No. 142 "Goodwill and
Other Intangible Assets" ("SFAS 142"), the Company monitors, on a continuous
basis, goodwill and other intangible assets that have indefinite lives for
impairment and when events or changes in circumstances indicate the carrying
value of these assets might exceed their current fair values. Fair value is
determined using discounted cash flow analysis, which requires the Company to
make certain assumptions and estimates regarding industry economic factors and
future profitability of acquired businesses. If actual results are not
consistent with these assumptions and judgments, the Company could be exposed to
a material impairment charge.

Long-Lived Assets. The Company accounts for long-lived assets in accordance with
SFAS 144, and accordingly, reviews its long-lived assets and identifiable
intangibles for impairment whenever events or changes in circumstances indicate
that the carrying amount of the asset may not be recoverable. In performing the
review for recoverability, the Company estimates the future cash flows expected
to result from the use of the asset and its eventual disposition. If the sum of
the undiscounted expected future cash flows is less than the carrying amount of
the asset, an impairment loss is recognized. Otherwise, an impairment loss is
not recognized. Measurement of an impairment loss for long-lived assets and
identifiable intangibles would be based on the fair value of the asset.

The Company has identified the policies below as critical to the Company's
business operations and the understanding of the Company's results of
operations. The impact and any associated risks related to these policies on the
Company's business operations is discussed in Management's Discussion and
Analysis of Financial Condition and Results of Operations where such policies
affect the Company's reported and expected financial results. For a detailed
discussion on the application of these and other accounting policies, see Note A
in the Notes to the Consolidated Financial Statements in Item 14 of the
Company's Annual Report on Form 10-K. Note that the Company's preparation of the
Annual Report on Form 10-K requires us to make estimates and assumptions that
affect the reported amount of assets and liabilities, disclosure of contingent
assets and liabilities at the date of the Company's financial statements, and
the reported amounts of revenue and expenses during the reporting period. There
can be no assurance that actual results will not differ from those estimates.

                                       18
<PAGE>
CERTAIN FACTORS THAT MAY AFFECT FUTURE RESULTS

ASA is heavily dependent on the software industry and changes in the industry
could harm ASA's business and operating results.

The software industry is subject to economic cycles and has in the past
experienced, and is likely in the future to experience, recessionary periods. In
particular, many sectors of the software industry are currently experiencing the
effects of a downturn in economic conditions. This downturn is leading to
reduced demand for the services provided by software companies like ASA. These
changes in demand and in economic conditions have resulted and may continue to
result in customer cancellation or rescheduling of orders, which could affect
ASA's results of operations. In addition, a protracted general recession in the
software industry could have a material adverse effect on ASA's business,
financial condition and results of operations.

ASA's operating results may fluctuate substantially, which may cause its stock
price to fall.

ASA's quarterly and annual results of operations have varied in the past, and
ASA's operating results may vary significantly in the future due to a number of
factors including, but not limited to, the following:

o    timing of orders from major customers;

o    mix of products and services;

o    pricing and other competitive pressures;

o    delays in new product development, which could cause ASA to be unable to
     meet customer delivery schedules;

o    economic conditions in the software industry; and

o    ASA's ability to time expenditures in anticipation of future revenues.

ASA is subject to risks associated with acquisitions, and these risks could harm
ASA's operating results and cause its stock price to decline.

ASA has historically pursued a strategy of growth through acquisitions. These
acquisitions have primarily involved acquisitions of entire companies.
Acquisitions of companies and businesses and expansion of operations involve
certain risks, including the following:

o    the potential inability to successfully integrate acquired operations,
     product lines, technologies, personnel and businesses or to realize
     anticipated synergies, economies of scale or other value;

o    diversion of management's attention;

o    difficulties in coordinating management of operations at new sites;

o    difficulties associated with managing and integrating operations in distant
     geographic locations;

o    the possible need to restructure, modify or terminate customer
     relationships of the acquired company; and

o    loss of key employees of acquired operations.

ASA may experience problems in integrating operations previously acquired by ASA
or operations associated with any future acquisition. ASA cannot assure you that
any recent or future acquisition will result in a positive contribution to ASA's
results of operations. In particular, the successful combination of ASA with any
business ASA acquires in the future will require substantial effort for each
company, including the integration and coordination of marketing and sales
efforts. The diversion of the attention of management and any difficulties
encountered in the transition process, including the interruption of, or a loss
of momentum in, the activities of any future acquisition, problems associated
with integration of management information and reporting systems, and delays in
implementation of consolidation plans, could harm ASA's ability to realize the
anticipated benefits of any future acquisition. Any failure by ASA to realize
the anticipated benefits of its acquisitions could harm its business, financial
condition and operating results, and could cause the price of

                                       19
<PAGE>
ASA's common stock to decline. In addition, future acquisitions may result in
significantly dilutive issuances of equity securities, the incurrence of
additional debt, large one-time write-offs and the creation of goodwill or other
intangible assets that could result in amortization expense or impairment
charges. These factors could harm ASA's business, financial condition and
operating results and cause the price of ASA's common stock to decline.

Some executive officers and key personnel are critical to ASA's business and
these officers and key personnel may not remain with ASA in the future.

ASA's success depends upon the continued service of some executive officers and
other key personnel. Generally, ASA's employees are not bound by employment or
non-competition agreements, and there can be no assurance that ASA will retain
its officers and key employees. If ASA loses the services of Alfred C. Angelone,
chairman and chief executive officer of ASA, or one or more of its other
executive officers or key employees, or if one or more of these individuals
decides to join a competitor or otherwise compete with ASA, ASA's business,
operating results and financial condition could be seriously harmed.

ASA may need additional capital in the future, which may not be available.

ASA has entered into a revolving demand loan agreement with a bank for up to
$1,500,000 (which cannot exceed 80% of qualified accounts receivables), bearing
interest at a rate approximating prime plus .5%, which extends through September
30, 2004. The revolving demand loan is subject to certain terms and conditions,
including maintenance of a stated tangible net worth, stated debt service
coverage and debt to tangible net worth ratios. Payment of dividends is
prohibited under the terms of the agreement. Borrowings are secured by the
personal property of ASA. Although ASA has no indebtedness under the revolving
demand loan agreement, ASA may need to borrow money in the future. If ASA is
unable to borrow under the agreement, ASA may be unable to raise sufficient
additional capital when needed, on favorable terms, or at all. If ASA's
borrowings under the agreement are insufficient, the agreement includes
provisions and covenants that would restrict ASA's ability to incur further
indebtedness. If ASA's capital resources are insufficient to meet future capital
requirements, ASA will have to raise additional funds. The sale of equity or
convertible debt securities in the future may be dilutive to ASA's stockholders.
If ASA is unable to obtain adequate funds on reasonable terms, ASA may be
required to curtail operations significantly or to obtain funds by entering into
financing agreements on unattractive terms.

ASA may need to refinance its headquarters in the future, which may not be
possible.

ASA has a mortgage related to its corporate headquarters in Framingham,
Massachusetts. The mortgage note, in the original amount of $3,000,000 with
interest at 7.24% for 10 years, provides for monthly principal and interest
payments of $20,445 through October 2008 with a final payment of approximately
$2,638,000 plus interest. If ASA's capital resources are insufficient to meet
the monthly or final payment obligations, ASA will have to raise additional
funds or relocate its headquarters, which may not be possible on attractive or
reasonable terms.

ASA's operating results are subject to fluctuations.

ASA has historically experienced significant fluctuations in its quarterly
operating results and anticipates such fluctuations in the future. ASA's
quarterly revenues and operating results depend on the volume and timing of
orders received during the quarter, which are difficult to forecast. Large
orders for ASA's products often have a lengthy sales cycle while the customer
evaluates and receives approvals for the purchase of the products. Accurately
predicting the sales cycle of any large order may be difficult. If one or more
large orders fail to close as forecasted in a fiscal quarter, ASA's revenues and
operating results could be materially adversely affected. In addition, ASA
typically receives a substantial portion of its product orders in the last month
of a quarter. Orders are shipped as received and, as a result, ASA often has
little or no backlog except for support and service revenue. Such fluctuations
and general economic uncertainty could have a material adverse impact on ASA's
ability to maintain liquidity and raise additional capital.

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<PAGE>
Failure to manage ASA's growth may seriously harm its business.

ASA's business has grown in recent years through both internal expansion and
acquisitions, and continued growth may cause a significant strain on ASA's
infrastructure and internal systems. To manage ASA's growth effectively, ASA
must continue to improve and expand its management information systems. Future
acquisitions could place additional strains on ASA's management infrastructure.
If ASA is unable to manage growth effectively, its results of operations could
be harmed.

The trading price of ASA's common stock may be volatile.

The trading prices of ASA's common stock has been and could in the future be
subject to significant fluctuations in response to variations in quarterly
operating results, developments in the software industry, changes in general
economic conditions and economic conditions in the software industry changes in
securities analysts' recommendations regarding ASA's securities, and other
factors. In addition, the stock market in recent years has experienced
significant price and volume fluctuations which have affected the market prices
of technology companies and which have been unrelated to or disproportionately
impacted by the operating performance of those companies. These broad market
fluctuations may cause the market price of ASA's common stock to decline.

Item 3.  Quantitative And Qualitative Disclosure About Market Risk
         ---------------------------------------------------------

The Company is exposed to the impact of interest rate changes and investment
changes.

Interest Rate Risk. The Company's exposure to market rate risk for changes in
interest rates relates primarily to the Company's cash equivalent investments.
The Company has not used derivative financial instruments. The Company invests
certain of its excess cash in short-term floating rate instruments and senior
secured floating rate loan funds which carry a degree of interest rate risk.
These instruments may produce less income than expected if interest rates fall.

Investment Risk. The Company has invested, and may invest in the future, in
equity instruments of privately held companies for business and strategic
purposes. These investments are included in other long-term assets and are
accounted for under the cost method when ownership is less than 20%. For these
non-quoted investments, the Company's policy is to regularly review the
assumptions underlying the operating performance and cash flow forecasts in
assessing the carrying values. The Company identifies and records impairment
losses on long-lived assets when events or circumstances indicate that such
assets might be impaired.

                                       21
<PAGE>
Item 4.  Controls and Procedures
         -----------------------

Within the 90 days prior to the date of this report, the company carried out an
evaluation, under the supervision and with the participation of the company's
management, including the company's chief executive officer and chief financial
officer, of the effectiveness of the design and operation of the company's
disclosure controls and procedures pursuant to Rule 13a-14 of the Securities
Exchange Act of 1934. Based upon that evaluation, the chief executive officer
and chief financial officer concluded that the company's disclosure controls and
procedures are effective in timely alerting them to material information
relating to the company (including its consolidated subsidiaries) required to be
included in the company's periodic SEC filings. There have been no significant
changes in the company's internal controls or in other factors that could
significantly affect internal controls subsequent to the date the company
carried out its evaluation.


                                     PART II

                                OTHER INFORMATION


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

     (a) Exhibits
         --------
         31.1     Section 302 Certification of Chief Executive officer.
         31.2     Section 302 Certification of Chief Financial Officer.
         32.1     Section 906 Certification of Chief Executive Officer.
         32.2     Section 906 Certification of Chief Financial Officer.

     (b) Reports on Form 8-K
         -------------------
         The Registrant filed one Current Report on Form 8-K during the three
         months ended September 30, 2003. On November 5, 2003, the Registrant
         filed a Form 8-K reporting under Item 2, the sale of its office
         facility in Nashua, NH.

                                       22

<PAGE>
                                   SIGNATURES



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



                                        ASA International Ltd.
                                        ----------------------
                                            (Registrant)




11/14/03                                /s/Alfred C. Angelone
--------                                ---------------------
                                        Alfred C. Angelone
                                        Chief Executive Officer





11/14/03                                /s/Terrence C. McCarthy
--------                                -----------------------
                                        Terrence C. McCarthy
                                        Vice President, Secretary, and Treasurer


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