FORM 10-Q
                           _________

              SECURITIES AND EXCHANGE COMMISSION
                   Washington, D.C.  20549
          ____________________________________________


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


For Quarter Ended:                        Commission File Number:

August 31, 2000                                                    0-15583



              CANTERBURY INFORMATION TECHNOLOGY, INC.
              _______________________________________

      (Exact name of registrant as specified in its charter)



     Pennsylvania                         23-217505
(State of Incorporation)     (I.R.S. Employer Identification No.)


                         1600 Medford Plaza
                      Route 70 & Hartford Road
                      Medford, New Jersey 08055
               (Address of principal executive office)

                  Telephone Number:  (609) 953-0044


     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.

         X        Yes                              No
        _____                           _____

     The number of shares outstanding of the registrant's common
stock as of the date of the filing of this report 10,735,707
shares.


FORM 10-Q

                    PART 1 - FINANCIAL INFORMATION
                    ------------------------------


Item 1.  Financial Statements
-----------------------------



              CANTERBURY INFORMATION TECHNOLOGY, INC.

                    CONSOLIDATED BALANCE SHEET
                    --------------------------


ASSETS
------
                                     August 31,
                                        2000      November 30,
                                    (Unaudited)       1999
                                    -----------   ------------


Current Assets:
  Cash and cash equivalents         $  767,296    $ 1,060,434
  Accounts receivable, net           5,160,749      2,676,889
  Notes receivable-current portion     387,149        363,805
  Prepaid expenses and
     other assets                      766,375        849,107
  Inventory, principally finished
     goods, at cost                    534,002        101,533
  Deferred income tax benefit           99,448         99,448
                                      ---------     ---------

          Total Current Assets       7,715,019      5,151,216


  Property and equipment
     at cost, net of accumulated
     depreciation and amortization
     of $4,997,000 and $4,593,000    2,093,516      2,383,829
  Goodwill net of accumulated
     Amortization of $2,688,000
     and $2,348,000                  9,142,101      8,885,170
  Deferred income tax benefit        2,024,997      2,706,888
  Notes receivable                   7,337,340      7,630,836
  Other assets                       1,186,877      1,054,033
                                     ----------    ----------

          Total Assets             $29,499,850    $27,811,972
                                   ===========    ===========




                        See Accompanying Notes

FORM 10-Q

                 CANTERBURY INFORMATION TECHNOLOGY, INC.
                       CONSOLIDATED BALANCE SHEET


LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------

                                     August 31,
                                        2000          November 30,
                                    (Unaudited)            1999
                                    -----------      ------------

Current Liabilities:
 Accounts payable - trade          $ 3,064,306       $  1,144,922
 Accrued expenses                      511,916            387,660
 Unearned revenue                      913,917          1,111,330
 Current portion, long-term debt     1,372,334          1,246,997
                                      ---------         ---------

  Total Current Liabilities          5,862,473          3,890,909

 Long-term debt                        959,620          1,989,031

 Deferred income tax liability       2,993,846          3,059,219

Stockholder's Equity:
 Common stock, $.001 par value,
  50,000,000 shares authorized;
  10,735,000 and 9,508,000 issued       10,735              9,508

  Additional paid in capital        22,102,193         19,946,848

 Accumulated other comprehensive
  income                            (1,188,261)          (472,215)

 Retained earnings                   1,135,761            184,668

 Notes receivable for capital stock (1,972,072)          (388,696)

 Less treasury shares, at cost        (407,300)          (407,300)
                                     ---------         ----------

  Total Shareholders' Equity        19,681,056         18,872,813
                                     ----------        ----------

    Total Liabilities and
     Shareholders' Equity          $29,496,995        $27,811,972
                                   ===========        ===========






                        See Accompanying Notes

FORM 10-Q

                CANTERBURY INFORMATION TECHNOLOGY, INC.
                  CONSOLIDATED STATEMENTS OF INCOME



                       Three months ended      Nine months ended
                           August 31,                   August 31,
                          (Unaudited)             (Unaudited)
                       ------------------      -----------------
                        2000       1999         2000        1999
                        ----       ----         ----        ----

Service revenue    $ 3,375,756 $3,067,023   $ 9,069,430 $8,927,322
Product revenue      6,136,621    160,007    12,405,672    620,644
                    ----------  ---------    ----------  ---------
 Total net
  revenue            9,512,377  3,227,030    21,475,102  9,547,966

Service cost
 and expenses      $ 1,876,288 $1,709,146   $ 5,233,960 $4,935,194
Product cost
 and expenses        5,228,184     50,560    10,540,526    242,694
                    ----------  ---------    ----------  ---------
 Total cost
  and expenses       7,104,472  1,759,706    15,774,486  5,177,888

Gross profit         2,407,905  1,467,324     5,700,616  4,370,078

Selling                641,890    430,376     1,673,705  1,306,790
General and
 administrative      1,202,810    841,522     3,255,416  2,753,525
                    ----------  ---------    ----------  ---------
Total operating
 expenses            1,844,700  1,271,898     4,929,121  4,060,315

Other income/(expenses)
 Interest income       194,941    169,348       526,209    509,770
 Interest expense      (69,363)   (91,832)     (231,637)  (275,330)
 Other                   9,317      6,229       497,881     35,096
                     ---------  ---------     ---------  ---------
Income before
 income taxes          698,100    279,171     1,563,948    579,299

Provision for
 income taxes          272,000     30,000       610,000     60,720
                    ----------  ---------     ---------  ---------
Net income         $   426,100 $  249,171   $   953,948 $  518,579
                   =========== ==========   =========== ==========

Net income per share
 and common share
 equivalents:
  Basic net income
   per share       $       .04 $      .03   $       .10 $      .07
                   =========== ==========   =========== ==========
  Diluted net income
   per share       $       .04 $      .03   $       .09 $      .07
                   =========== ==========   =========== ==========

  Weighted average
   number of common
   shares - basic   10,345,400  8,819,700     9,840,000  7,773,500
                   =========== ==========   =========== ==========
  Weighted average
   number of common
   shares - diluted 11,320,800  8,942,200    10,800,700  7,893,500
                   =========== ==========   =========== ==========

                      See Accompanying Notes

FORM 10-Q

          CANTERBURY INFORMATION TECHNOLOGY, INC.
           CONSOLIDATED STATEMENTS OF CASH FLOWS
  FOR THE NINE-MONTHS ENDED AUGUST 31, 2000 AND AUGUST 31, 1999

                                       August 31,      August 31,
                                          2000            1999
                                       ---------       ---------
                                      (Unaudited)     (Unaudited)

Operating activities:
 Net income                            $  953,948     $  518,579
 Adjustments to reconcile net income
  to net cash provided by operating
  activities:
   Depreciation and amortization          766,867        771,566
   Provision for losses on accounts
    receivable                             47,674         13,256
   Deferred income taxes                  616,517       (151,432)
   401(k) contributions                    59,498         48,192
   Other assets                          (785,160)      (247,940)
   Changes in operating assets, net
    of acquisitions
     Accounts receivable               (2,322,529)      (204,841)
     Inventory                           (432,469)          --
     Prepaid expenses and other assets     86,140       (323,317)
     Income taxes                           --           (36,298)
     Accounts payable                   1,801,881       (140,136)
     Accrued expenses                    (107,716)       (17,075)
     Unearned revenue                    (197,413)       (16,620)
                                       ----------       ---------
 Net cash provided by operating
  activities                              487,238        213,934
                                       ----------       ---------
Investing activities:
  Capital expenditures, net               (96,453)      (121,481)
                                       ----------       ---------
 Net cash used in investing activities    (96,453)      (121,481)
                                       ----------       ---------
Financing activities:
  Proceeds from issuance of common
   stock, net                               --         1,112,091
  Principal payments on long term debt   (942,374)    (1,007,123)
  Other                                   (50,001)         --
  Proceeds from long term debt             38,300          --
  Proceeds from payments on notes
   receivable                             270,152        249,704
                                       ----------     ----------

 Net cash provided by/(used in)
  financing activities                   (683,923)       354,672
                                       ----------     ----------
Net increase/(decrease) in cash          (293,138)       447,125
Cash, beginning of period               1,060,434        287,274
                                       ----------     ----------
Cash, end of period                    $  767,296      $ 734,399
                                       ==========     ==========


                         See Accompanying Notes


FORM 10-Q
            CANTERBURY INFORMATION TECHNOLOGY, INC.

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
     ------------------------------------------------------
                         (continued)

1.  Operations and Summary of Significant Accounting Policies
    ---------------------------------------------------------

     Basis of Presentation
     ---------------------
     The accompanying unaudited consolidated financial statements
have been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission.  Certain information and note
disclosures normally included in annual financial statements
prepared in accordance with accounting principles generally
accepted in the United States have been condensed or omitted
pursuant to those rules and regulations.  It is suggested that
these unaudited consolidated financial statements be read in
conjunction with the financial statements and the notes thereto
included in the Company's 10-K for the year ended November 30.
1999.  In the opinion of management, all adjustments (which consist
only of normal recurring accruals) necessary to present fairly the
financial position, results of operations and cash flows of all
periods presented have been made.  Quarterly results are not
necessarily indicative of results for the full year.

     Description of Business
     -----------------------
     The Canterbury Companies, wholly-owned subsidiaries of
Canterbury Information Technology, Inc., provide a wide variety of
computer and management training programs and technology
consulting services to Fortune 1000 companies.  CALC/Canterbury is
a Microsoft Solutions Provider and a Microsoft Certified Technical
Education Center (CTEC), as well as a Lotus Authorized Education
Center (LAEC). CALC/Canterbury provides application and technical
computer training, technical services and staffing and both
instructor led and on-line course development.  CALC Web
University, an online training portal, developed and hosted by
CALC/Canterbury, focuses on design and delivery of online training
in both Internet and Intranet environments. USC/Canterbury, a CTEC
in the Mid-Atlantic area, provides technical training and network
development and design.  USC/Canterbury is also a value added
reseller of hardware and software.  MSI/Canterbury offers sales
and management training and consulting to corporations.
ATM/Canterbury is a software consulting and development company
that specializes in document imaging, tracking and retrieval.
DataMosaic/Canterbury Corp. and Canterbury Consulting Group are
management and system consulting companies that provide staffing
augmentation solutions and consulting services to the information
technology industry.

FORM 10-Q
            CANTERBURY INFORMATION TECHNOLOGY, INC.

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
     ------------------------------------------------------
                         (continued)


     Principles of Consolidation
     ---------------------------
     The consolidated financial statements include the accounts of
the Company and all of its subsidiaries.  All material intercompany
transactions have been eliminated.

     Stock Based Compensation
     ------------------------
     The Company accounts for stock options under Accounting
Principles Board (APB) Opinion No. 25- Accounting for Stock Issued
to Employees.  The Company discloses the pro forma net income and
earnings per share effect as if the Company had used the fair value
method prescribed under SFAS No.123-Accounting for Stock Based
Compensation.

     Use of Estimates
     ----------------
     The preparation of financial statements in conformity with
accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect
the amounts reported in the financial statements and accompanying
notes.  The ultimate outcome and actual results could differ from
the estimates and assumptions used.

     Revenue Recognition
     -------------------
     The Company records training and consulting revenue at the
time the class is completed or the consulting services are
performed.  Hardware revenue is recorded when the goods are shipped
to the customer.  Revenue for software is recognized when the
software is shipped to the customer.

     Statement of Cash Flows
     -----------------------
     For purposes of the Statement of Cash Flows, cash refers
solely to demand deposits with banks and cash on hand.

FORM 10-Q
            CANTERBURY INFORMATION TECHNOLOGY, INC.

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
     ------------------------------------------------------
                         (continued)


     Depreciation and Amortization
     -----------------------------
     The Company depreciates and amortizes its property and
equipment for financial statement purposes using the straight-line
method over the estimated useful lives of the property and
equipment (useful lives of leases or lives of leasehold
improvements and leased property under capital leases, whichever is
shorter).  For income tax purposes, the Company uses accelerated
methods of depreciation.

     The following estimated useful lives are used:

     Building and improvements               7 years
     Equipment                               5 years
     Furniture and fixture              5 to 7 years

     Intangible Assets
     -----------------
     Goodwill is being amortized over periods ranging from twenty
to twenty-five years using the straight-line method.

     The Company periodically evaluates whether the remaining
estimated useful life of intangibles may warrant revision or the
remaining balance of intangibles may require adjustment generally
based upon expectations of nondiscounted cash flows and operating
income.

     Inventories
     -----------
     Inventories are stated at the lower of cost or market
utilizing a first-in, first-out method of determining cost.

     Earnings Per Share
     ------------------
     Basic earnings per share is computed using the weighted
average common shares outstanding during the year. Diluted earnings
per share considers the dilutive effect, if any, of common stock
equivalents (options).

FORM 10-Q
            CANTERBURY INFORMATION TECHNOLOGY, INC.

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
     ------------------------------------------------------
                         (continued)


     Recent Accounting Pronouncements
     --------------------------------
     The Company plans to adopt Statement of Financial Accounting
Standards "(SFAS)" No. 133, Accounting for Derivative Instruments
and Hedging Activities, as amended, effective at the beginning of
fiscal 2001. This statement will require derivative positions to be
recognized in the balance sheet at fair value. The Company believes
that there will be no impact upon adoption on results of operations
or financial position.

     Concentration of Risk
     ---------------------
     As previously discussed, the Company is in the business of
providing information technology services.  These services are
provided to a large number of customers in various industries in
the United States.  The Company's trade accounts receivable are
exposed to credit risk, but the risk is limited due to the
diversity of the customer base and the customers wide geographic
dispersion.  The Company performs ongoing credit evaluations of its
customer's financial condition. The Company maintains reserves for
potential bad debt losses and such bad debt losses have been within
the Company's expectations.

     The Company maintains cash balances at several large
creditworthy banks located in the United States.  Accounts at each
institution are insured by the Federal Deposit Insurance
Corporation up to $100,000.  The Company does not believe that it
has significant credit risk related to its cash balance.

     Comprehensive Income
     --------------------
     During the three months ended August 31, 2000 and August 31,
1999, total comprehensive income/(loss) amounted to ($98,000) and
$0 respectively.  For the nine months ended August 31, 2000 and
August 31, 1999, total comprehensive income/(loss) amounted to
($716,000) and ($200,000) respectively.  Comprehensive income
consists of net income and unrealized gains and losses on
securities available for sale, and is adjusted quarterly to reflect
current market value of these securities.

FORM 10-Q
            CANTERBURY INFORMATION TECHNOLOGY, INC.

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
     ------------------------------------------------------
                         (continued)


2.  Acquisitions
    ------------

     On August 1, 2000 the Company purchased all of the outstanding
common stock of DataMosaic International, Inc. ("DataMosaic") for
221,420 restricted shares of Canterbury common stock valued at
$558,000.  DataMosaic, an Atlanta, Georgia company, is a management
and systems consulting business which provides staffing
augmentation solutions and consulting services to the information
technology industry.  The acquisition was recorded under the
purchase method of accounting.  The consolidated results of
operations include DataMosaic since the date of acquisition.
Proforma results of operations for 2000 and 1999 are deemed
immaterial, and are not presented.

     After the acquisition DataMosaic changed its name to
DataMosaic/Canterbury Corp.  The purchase price was preliminarily
allocated as follows:  Cash - $114,000; receivables - $209,000;
other assets - $23,000; liabilities - $349,000.  The excess cost
over the fair value of net assets acquired was approximately
$561,000.

     On October 20, 1999, the Company acquired certain assets and
assumed certain liabilities of U.S. Communications, Inc. (USC) from
Condor Technology Solutions, Inc. for 292,000 shares of Canterbury
restricted common stock valued at $850,000.  USC, based in
Maryland, is a reseller of desktop and server computer systems to
state and local governments, as well as commercial private sector
companies in the Mid-Atlantic market.  USC provides a wide range of
information technology services as well.  They include training,
software, consulting and network design.  After the acquisition,
the Company changed the name of U.S. Communications to
USC/Canterbury Corp.  The acquisition was accounted for using the
purchase method of accounting.  The purchase price was allocated as
follows:  receivables - $308,000; inventory - $209,000; other
current assets - $21,000; non-current assets - $49,000; and current
liabilities - $66,000.  The excess cost over the fair value of net
assets acquired was approximately $362,000.  Goodwill is being
amortized over 20 years on a straight line basis.  The consolidated
results of operations for 1999 include USC since the date of the
acquisition.

FORM 10-Q
            CANTERBURY INFORMATION TECHNOLOGY, INC.

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
     ------------------------------------------------------
                         (continued)

3.  Segment Reporting
    -----------------

     The Company is organized into three operating segments and the
corporate office.  The operating segments are:  training and
consulting, hardware sales and software sales.  Summarized
financial information for the three months ended August 31, 2000
and August 31, 1999, for each segment, is as follows:

For the nine months ended August 31,

                Training and
2000             Consulting    Hardware     Software    Corporate      Total
----            ------------   --------     --------    ---------      -----
Revenues         $9,061,087   $12,110,847   $303,168    $   --     $21,475,102
Income before
  taxes             999,746       984,071      9,165    (429,034)    1,563,948
Interest income        --            --         --       526,209       526,209
Interest expense       --              37       --       231,600       231,637
Depreciation and
 amortization       376,049        29,252     14,920     346,646       766,867

                Training and
1999             Consulting    Hardware     Software    Corporate      Total
----            ------------   --------     --------    ---------      -----
Revenues         $8,927,320   $ 377,267     $243,379    $   --      $9,547,966
Income before
 taxes            1,124,947      55,674       36,766    (638,088)      579,299
Interest income        --          --           --       509,770       509,770
Interest expense       --          --           --       275,330       275,330
Depreciation and
 amortization       420,999      15,483       10,225     324,859       771,566

For the three months ended August 31,

                Training and
2000             Consulting    Hardware     Software    Corporate      Total
----            ------------   --------     --------    ---------      -----
Revenues         $3,367,413    $5,956,361   $188,603    $   --      $9,512,377
Income before
 Taxes              453,288       556,386      6,811    (318,385)      698,100
Interest income       --             --         --       194,941       194,941
Interest expense      --             --         --        69,363        69,363
Depreciation and
 amortization       103,418         8,520      4,187     121,997       238,122


FORM 10-Q
            CANTERBURY INFORMATION TECHNOLOGY, INC.

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
     ------------------------------------------------------
                         (continued)


                Training and
1999             Consulting    Hardware     Software    Corporate      Total
----            ------------   --------     --------    ---------      -----
Revenues         $3,067,021    $ 78,373     $ 81,636    $   --      $3,227,030
Income before
 Taxes              428,664       3,577        8,921    (161,991)      279,171
Interest income        --          --           --       169,348       169,348
Interest expense       --          --           --        91,832        91,832
Depreciation and
 amortization       134,609       4,149        4,167     106,753       249,678


4.  Property and Equipment
    ----------------------

     Property and equipment consists of the following:

                                        August 31,    November 30,
                                           2000           1999
                                        ---------     -----------
  Land, buildings and improvements    $   725,910     $   725,910
  Machinery and equipment               4,219,542       4,116,383
  Furniture and fixtures                1,413,287       1,401,696
  Leased property under capital leases
   and leasehold improvements             732,197         732,197
                                      -----------     -----------
                                        7,090,936       6,976,186

  Less: accumulated depreciation       (4,997,420)     (4,592,357)
                                      -----------     -----------
  Net property and equipment          $ 2,093,516     $ 2,383,829
                                      ===========     ===========

     Depreciation expense for 2000 and 1999 was $426,000 and
$302,000, respectively.

FORM 10-Q
            CANTERBURY INFORMATION TECHNOLOGY, INC.

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
     ------------------------------------------------------
                         (continued)


5.  Long-Term Debt
    --------------
                                        August 31,   November 30,
                                           2000          1999
                                        ---------    -----------

  Long-term obligations consist of:
   Term loan                          $     --       $   200,436
   Revolving credit line                2,159,620      2,774,620
  Capital lease obligations               172,334        260,972
                                      -----------    -----------
                                        2,331,954      3,236,028

  Less:  Current maturities            (1,372,334)    (1,246,997)
                                      -----------    -----------
                                      $   959,620    $ 1,989,031
                                      ===========    ===========

     The Company's outstanding amounts owed under the term loan and
credit line with Chase Bank were refinanced in December, 1999.
Under the new agreement, the Company paid off the remaining term
debt of $200,436 and agreed to term out the $2,774,620 credit line.
Monthly payments began in March of 2000, and continue until
December of 2001 when the final balloon payment of $640,000 is due
and payable.  At August 31, 2000, the Company was in technical
violation of a debt to equity ratio covenant contained in its bank
agreement by 0.06, due to a change in accounting policies.  The
Company is in the process of resolving this issue.

   The long term debt is secured by substantially all of the
assets of the Company and requires compliance with covenants which
include:  limits on capital expenditures, certain prepayments from
excess cash flow as defined and the maintenance of certain
financial ratios and amounts.  The Company is restricted by its
primary lender from paying cash dividends on its common stock.

   Aggregate maturities on long-term debt, exclusive of
obligations under capital leases, are approximately $300,000 in
2000, $1,220,000 in 2001, and $639,620 thereafter.

   The carrying value of the long-term debt approximates its fair
value.

FORM 10-Q
            CANTERBURY INFORMATION TECHNOLOGY, INC.

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
     ------------------------------------------------------
                         (continued)


6.  Capital Leases
    --------------

     Capital lease obligations are for certain equipment leases
which expire through fiscal year 2003.  Future required payments
under capitalized leases together with the present value,
calculated at the respective leases' implicit interest rate of
approximately 10.5% to 14.3% at their inception.

  Year ending November 30, 2000       $  54,597
  Year ending November 30, 2001          80,764
  Year ending November 30, 2002          44,560
  Year ending November 30, 2003           8,934
                                       --------
  Total minimum lease payments          188,855
  Less amount representing interest     (16,521)
                                       --------
  Present value of long-term
   obligations under capital leases    $172,334
                                       ========


7.  Securities Available for Sale
    -----------------------------

     At August 31, 2000 and November 30, 1999, the Company held
investment securities in public companies. For one of the public
companies certain officers and directors of the Company have an
ownership interest in the aggregate of approximately 15%.
Management has estimated the fair value of this investment at
August 31, 2000 and November 30, 1999 at $822,840 and $26,437,
respectively, based on discounted market values due to the stock
being thinly traded and volatile. Other equity securities have a
fair value of $81,081 and $202,355 at August 31, 2000 and November
30, 1999, respectively.  Management has classified these
investments as "available for sale" and are included in non-current
other assets in the accompanying balance sheet.  The Company did
not sell any available for sale securities during 2000 or 1999.

FORM 10-Q
            CANTERBURY INFORMATION TECHNOLOGY, INC.

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
     ------------------------------------------------------
                         (continued)


8. Related Party Transactions
   --------------------------

    During 1999, the Company performed consulting and web
development services for a start-up, non-public company,
e*machinery, inc. in which certain officers are members of the
Board of Directors and shareholders.  The services billed during
the year totaled $521,500.  The receivable for these services is
included in other assets on the accompanying balance sheet at May
31, 2000 and November 30, 1999.  In March 2000 the Company received
approximately 278,000 shares of restricted common stock in
e*machinery.net, inc., the publicly traded parent company, in
satisfaction of the receivable.

   During 2000, the Company also assisted in raising capital for
e*machinery, inc., which is now e*machinery.net, inc., a public
company.  For these services, the Company earned 250,000 shares of
restricted common stock.  The discounted value of these shares was
$461,250.  This amount has been recorded in Other Income on the
income statement during the quarter ended May 31, 2000.   In the
third quarter of Fiscal 2000 the Company billed $275,000 for
services and will receive restricted common stock as payment, as a
subsequent event.

9.  Stockholders' Equity
    --------------------

     In June, 2000 the Board of Directors voted to allow officers,
directors, certain advisors and individuals valuable to Canterbury
the opportunity to increase their equity positions in the Company,
as an incentive to continue and increase their efforts on behalf
of the Company.  A total of 800,000 shares of restricted common
stock were purchased at market with interest bearing, non-recourse
notes to the Company.  The notes carry an interest rate of 6.5%
and are due and payable on or before June, 2004.  The notes and
accrued interest are collateralized by the shares being issued.
Each recipient also has granted the Company or its designees a 15-
day right of first refusal, in any sale of these shares.

FORM 10-Q
            CANTERBURY INFORMATION TECHNOLOGY, INC.

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
     ------------------------------------------------------
                         (continued)

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

Liquidity and Capital Resources
-------------------------------

     Working capital at August 31, 2000 was $1,853,000.  This was
an increase of $592,000 over November 30, 1999.  The increase was
caused by an increase in receivables and inventory, offset by an
increase in accounts payable of USC/Canterbury.

     The Company's outstanding amounts owed under the term loan and
credit line with Chase Bank were refinanced in December, 1999.
Under the new agreement, the Company paid off the remaining term
debt of $200,436 and agreed to term out the $2,774,620 credit line.
Monthly payments began in March of 2000, and continue until
December of 2001 when the final balloon payment of $640,000 is due
and payable.  As of September 1, 2000 the Company has made $715,000
in principal payments to Chase Bank.  At August 31, 2000, the
Company was in technical violation of a debt to equity ratio
covenant contained in its bank agreement by 0.06, due to a change
in accounting policies.  The Company is in the process of resolving
this issue.

     The long term debt is secured by substantially all of the
assets of the Company and requires compliance with covenants which
include:  limits on capital expenditures, certain prepayments from
excess cash flow as defined and the maintenance of certain
financial ratios and amounts.  The Company is restricted by its
primary lender from paying cash dividends on its common stock.

     Management believes that positive cash flow contributions from
the Company's operating subsidiaries will be sufficient to cover
cash flow requirements for fiscal 2000.  There was no material
commitment for capital expenditures as of August 31, 2000.
Inflation was not a significant factor in the Company's financial
statements.

     Cash flow from continuing operations for the nine months ended
August 31, 2000 was $487,000.  This represents an increase of
$273,000 over the prior year.  The increase is mainly attributable
to the additional cash flow provided by the  USC/Canterbury
acquisition, as well as an overall improvement from existing
subsidiaries.

FORM 10-Q
            CANTERBURY INFORMATION TECHNOLOGY, INC.

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
     ------------------------------------------------------
                         (continued)


Results of Operations
---------------------

     Revenues
     --------

     Revenues for the three months ended August 31, 2000 increased
by $6,285,000 (195%) over the comparable three-month period in
fiscal 1999, due primarily to the revenue contribution of USC/
Canterbury in fiscal 2000.  For the nine months ended August 31,
2000, revenues increased by $11,927,000 (125%) due again to the
USC/Canterbury acquisition.

     Costs and Expenses
     ------------------

     Costs and expenses for the three months ended August 31, 2000
increased by $5,344,000 in conjunction with the $6,285,000 revenue
increase due again to the costs associated with the USC/Canterbury
operations.  The $10,596,000 increase for the nine months ended
August 31, 2000 was also due to the USC/Canterbury operations.

     Gross margins percentages for both the quarter and nine months
ended August 31, 2000 decreased from 45% to 26% due to the increase
in sales contribution from USC/Canterbury.  As a VAR, USC's margins
are typically lower than in the pre-existing services businesses
within Canterbury.  However, it is management's belief that the
additional dollar contribution to gross and pretax profit, as well as
the additional goods and services made available to the client base
will enhance the overall revenue contribution from all subsidiaries.

     Selling expenses for the quarter and nine months ended August
31, 2000 increased by $212,000 (49%) and $366,000 (28%) respectively,
over the same period in fiscal 1999.  The increase was due primarily
to the selling costs associated with USC/Canterbury for the three
months ended August 31, 2000.

     Other Income
     ------------

     Other income for the nine months ended August 31, 2000 increased
by $463,000 due to the receipt of stock for assisting in raising
capital for a related party during the second quarter.

FORM 10-Q
            CANTERBURY INFORMATION TECHNOLOGY, INC.

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
     ------------------------------------------------------
                         (continued)


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

Item 1     Legal Proceedings
------

     None

Item 2     Changes in Securities
------

     None

Item 3     Defaults Upon Senior Securities
------

     None

Item 4     Submission of Matters to a Vote of Stock Holders
------

     None

Item 5     Other Information
------

     None

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

     (a)  Exhibits:  None
     (b)  Reports on Form 8-K:  None

FORM 10-Q

            CANTERBURY INFORMATION TECHNOLOGY, INC.



                        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.


          CANTERBURY INFORMATION TECHNOLOGY, INC.
          ---------------------------------------
          (Registrant)


          By/s/ Stanton M. Pikus
          Stanton M. Pikus
          President
          (Chief Executive Officer and duly authorized signer)


          By/s/ Kevin J. McAndrew
          Kevin J. McAndrew, C.P.A.
          Chief Operating Officer, Executive Vice President
          (Chief Financial Officer and duly authorized signer)








October 13, 2000