United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   FORM 10-QSB

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

                     For the Quarter Ended December 31, 1998


|_|  Transition  report  pursuant  to  Section  13 or  15(d)  of the  Securities
     Exchange Act of 1934

                          Commission File Number 06425

             Utah                                             87-0284979
 (State or other Jurisdiction of                         (I.R.S. Employer
 Incorporation or Organization)                          Identification No.)
                                   
                                SENTO CORPORATION
                     Exact Name of Small Business Issuer as
                            Specified in its Charter
                    (Address of Principal Executive Offices)
                           808 East Utah Valley Drive
                            American Fork, Utah 84003

          Issuers telephone number, including area code: (801) 492-2000


Indicate by check mark whether the issuer (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 issuer was required
to file such reports),  and (2) has been subject to such filing requirements for
the past 90 days.

                            Yes |X| No |_|

State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date:

               Class                                 Outstanding at
     ------------------------                       December 31, 1998
       Common capital stock                        ------------------
     $.25 par value per share                           5,968,439

Transitional Small Business Disclosure Format (check one):

                                             Yes |_| No |X|

<PAGE>

                                SENTO CORPORATION
                         Quarterly Report on Form 10-QSB
                         Quarter ended December 31, 1998


                                      INDEX


PART I.  FINANCIAL INFORMATION                                              Page

         Item 1.  Financial Statements

                  Condensed Consolidated Balance Sheets
                  December 31, 1998 and March 31, 1998                      3

                  Condensed Consolidated Statements of
                  Operations Three Months and nine Months
                  ended December 31, 1998 and 1997                          4

                  Condensed Consolidated Statements of
                  Cash Flows nine Months ended December 31,
                  1998 and 1997                                             5

                  Notes to Condensed Consolidated Financial
                  Statements                                                6

         Item 2.  Management's Discussion and Analysis of
                  Financial condition and results of Operations             9



PART II. OTHER INFORMATION

         Item 1.  Legal Proceedings                                         13

         Item 2.  Changes in Securities                                     14

         Item 3.  Defaults of Senior Securities                             14

         Item 4.  Submission of Matters to Vote of Security Holders         14

         Item 5.  Other Information                                         14

         Item 6.  Exhibits and Reports on Form 8-K                          15

         Signatures                                                         15

                                        2
<PAGE>

PART I   FINANCIAL INFORMATION
Item 1.  Financial Statements

                                SENTO CORPORATION
                                AND SUBSIDIARIES

                      Condensed Consolidated Balance Sheets

                                     ASSETS

<TABLE>
<CAPTION>
                                                             Dec. 31, 1998    March 31, 1998
                                                              (Unaudited)     --------------
                                                             -------------
<S>                                                          <C>             <C>         
Current assets:
        Cash                                                 $    830,494    $  5,807,014
        Accounts receivable (net)                               3,424,135       4,076,715
        Inventories                                               218,118         302,172
        Income taxes receivable                                   327,170         322,112
        Deferred income taxes                                      63,231         218,540
        Other current assets                                    1,266,849       1,474,407
                                                             ------------    ------------
                Total current assets                            6,129,997      12,200,960

Property and equipment (net)                                    3,025,687       1,274,902
Intangible assets (net)                                         1,712,762       1,513,758
Other assets                                                      111,028         871,032
                                                             ------------    ------------
                Total Assets                                 $ 10,979,474    $ 15,860,652
                                                             ============    ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
        Current portion of long-term debt                    $    388,102    $    131,774
        Accounts payable                                        3,493,658       2,720,562
        Accrued liabilities                                     1,848,689       1,399,197
        Deferred revenue                                        1,306,967       2,280,510
                                                             ------------    ------------
                Total current liabilities                       7,037,416       6,532,043
                                                             ------------    ------------
Long-term liabilities:
        Deferred revenue                                             --           175,000
        Convertible bonds                                         844,533         944,533
        Long-term debt, excluding current portion                 464,653         362,959
        Deferred tax liability                                     63,231         271,539
                                                             ------------    ------------
                Total long-term liabilities                     1,372,417       1,754,031
                                                             ------------    ------------
Minority interest                                                  10,149            --
                                                             ------------    ------------
Stockholders' equity:
        Common stock                                            1,506,344       1,435,268
        Additional paid-in capital                              6,715,483       5,950,290
        Treasury stock                                           (174,000)           --
        Accumulated other comprehensive loss - foreign
           currency translation                                   (65,074)        (49,889)
        Deferred compensation                                    (249,656)       (338,357)
        Retained earnings (deficit)                            (5,173,605)        577,266
                                                             ------------    ------------
                Total stockholders' equity                      2,559,492       7,574,578
                                                             ------------    ------------

                Total liabilities and stockholders' equity   $ 10,979,474    $ 15,860,652
                                                             ============    ============
</TABLE>

                                        3
<PAGE>

                                SENTO CORPORATION
                                AND SUBSIDIARIES

                 Condensed Consolidated Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>
                                               Three months     Three months    Nine months     Nine months
                                                   ended           ended           Ended           Ended
                                               Dec. 31, 1998    Dec. 31 1997   Dec. 31, 1998   Dec. 31, 1997
                                              -----------------------------------------------------------------
<S>                                            <C>             <C>             <C>             <C>         
Revenues:                                  
        Product sales and maintenance          $  3,008,649    $  5,657,199    $ 10,652,426    $ 14,324,079
        Training                                    850,590            --         2,430,141            --
        Consulting                                  686,795         212,174       1,632,672         212,174
        Technical services                          685,881            --         1,267,803            --
                                               -------------   -------------   -------------   -------------
            Total revenues                        5,231,915       5,869,373      15,983,042      14,536,253

Cost of sales                                     4,048,522       4,360,183      11,497,176      10,217,500
                                               -------------   -------------   -------------   -------------

        Gross profit                              1,183,393       1,509,190       4,485,866       4,318,753
                                               -------------   -------------   -------------   -------------

Costs and expenses:
        Selling general and administrative        3,988,421       2,580,179      10,413,540       6,366,974
        Amortization of intangible assets           270,956            --           595,688            --
        Restructuring charges                       229,829            --           229,829            --
        Asset impairment                            426,296            --           426,296            --
        Write off of in-process research and
         development costs                           92,095            --            92,095            --
        Research and development                     49,748            --           146,336          78,875
                                               -------------   -------------   -------------   -------------

                Total costs and expenses          5,057,345       2,580,179      11,903,784       6,445,849
                                               -------------   -------------   -------------   -------------
        Operating loss                           (3,873,952)     (1,070,989)     (7,417,918)     (2,127,096)

Other income (net)                                  263,826         322,380       1,212,173       2,913,185
                                               -------------   -------------   -------------   -------------
Income (loss) before taxes                       (3,610,126)       (748,609)     (6,205,745)        786,089

Income tax (expense) benefit                        154,874         676,452         454,874        (276,702)
                                               -------------   -------------   -------------   -------------

Net income (loss)                              $ (3,455,252)   $    (72,157)   $ (5,750,871)   $    509,387
                                               =============   =============   =============   =============

Basic net income (loss) per share              $      (0.58)   $      (0.01)   $      (0.98)   $       0.11

Diluted net income (loss) per share            $      (0.58)   $      (0.01)   $      (0.98)   $       0.09

Weighted average number of common and
Common equivalent shares outstanding:

Basic                                             5,955,871       5,417,386       5,839,236       4,813,452
Diluted                                           5,955,871       5,417,386       5,839,236       5,760,659
</TABLE>

                                        4
<PAGE>

<TABLE>
<CAPTION>
                                SENTO CORPORATION
                                AND SUBSIDIARIES

                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)
                                                                Nine months      Nine months
                                                                   Ended            Ended
                                                               Dec. 31, 1998    Dec. 31, 1997
                                                           -------------------------------------
<S>                                                            <C>            <C>        
CASH FLOWS FROM OPERATING ACTIVITIES:                                                    
   Net income (loss)                                           $(5,750,871)   $   509,387
Adjustments  to  reconcile  net  income  (loss)  to net cash
Used by operating activities:
   Gain on sale of assets                                         (127,640)    (2,655,110)
   Minority interest                                               (31,136)          --
   Stock issued for compensation and/or services                     7,854        233,000
   Amortization of prepaid and deferred compensation               140,659         37,500
   Restructuring charges and asset impairment                      633,894           --
   Write-off of in-process research and development costs           92,095           --
   Deferred income taxes                                           (52,999)          --
   Depreciation & amortization                                   1,063,504         99,729
Decrease (increase) in assets:
   Accounts receivable                                             652,580       (381,365)
   Inventory                                                        84,054       (196,384)
   Other assets                                                    987,778       (781,868)
Increase (decrease) in liabilities:
   Accounts payable                                                773,096        630,840
   Accrued liabilities                                             432,033        238,293
   Deferred revenue                                             (1,148,543)      (205,702)
                                                               -----------    -----------
Net cash used in operating activities                           (2,243,642)    (2,471,680)
                                                               -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Business acquisitions                                          (693,529)    (1,374,440)
   Proceeds from sale of assets                                    200,781      5,600,000
   Purchase of furniture and equipment                          (2,388,942)      (162,232)
                                                               -----------    -----------
   Net cash provided by (used in) investing activities          (2,881,690)     4,063,328
                                                               -----------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from issuance of stock                                 305,975      2,973,915
   Issuance of long-term debt                                      146,219        281,648
   Principal payments of long-term debt                           (288,197)      (756,833)
   Proceeds from issuance of convertible bonds                        --        1,000,000
                                                               -----------    -----------
   Net cash provided by financing activities                       163,997      3,498,730
                                                               -----------    -----------
Effect of foreign exchange rates on cash                           (15,185)          --
                                                               -----------    -----------
   Net increase (decrease) in cash                              (4,976,520)     5,090,378
   Cash at beginning of period                                   5,807,014      2,225,338
                                                               -----------    -----------
   Cash at end of period                                       $   830,494    $ 7,315,716
                                                               ===========    ===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
   Cash paid for interest                                      $    15,300    $    28,640
   Cash paid for income taxes                                  $    25,152    $   776,702
</TABLE>

                                        5
<PAGE>

                                SENTO CORPORATION
                                AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                December 31, 1998
                                   (Unaudited)


A.       BASIS OF PRESENTATION

         The accompanying  unaudited condensed consolidated financial statements
         are stated in accordance with the instructions to Form 10QSB and do not
         include all of the  information  and  footnotes  required by  generally
         accepted accounting  principles for complete financial  statements.  In
         the  opinion  of  management,  all  adjustments  (consisting  of normal
         recurring accruals)  considered  necessary for a fair presentation have
         been included.

         Operating results for the three and nine months ended December 31, 1998
         are not necessarily  indicative of the results that may be expected for
         the  full  year.  The  unaudited   condensed   consolidated   financial
         statements   should  be  read  in  conjunction  with  the  consolidated
         financial  statements and footnotes  thereto  included in the Company's
         Annual Report on Form 10-KSB for the year ended March 31, 1998.

         Certain  balances  in the  financial  statements  for the three and six
         month periods ended December 31, 1997 have been reclassified to conform
         with the current presentation.

B.       INVENTORIES

         Inventories  at December 31, 1998 and March 31, 1998 consist  primarily
         of computer hardware and software available for sale.

C.       COMPREHENSIVE LOSS

         The Company adopted Statement of Financial Accounting Standards No. 130
         (SFAS 130), "Reporting  Comprehensive Income," effective April 1, 1998.
         SFAS  130   establishes   standards  for   reporting   and   displaying
         comprehensive   earnings   (loss)  and  its   components  in  financial
         statements.  The  components  of the Company's  comprehensive  earnings
         (loss) are as follows:

                                           Nine Months Ended   Nine Months Ended
                                             Dec. 31, 1998       Dec. 31, 1997
                                          --------------------------------------
         Net income (loss)                   $(5,750,871)            $509,387
         Foreign currency translation
         Adjustment                              (15,185)                --
                                             ------------          -----------
         Comprehensive income (loss)         $(5,766,056)          $  509,387
                                             ============          ===========


                                          Three Months Ended  Three Months Ended
                                            Dec. 31, 1998       Dec. 31, 1997
                                          --------------------------------------
         Net loss                            $(3,455,252)            $(72,157)
         Foreign currency translation
         adjustment                               (3,263)                --
                                             ------------          -----------
         Comprehensive loss                  ($3,458,515)          $  (72,157)
                                             ============          ===========

                                        6
<PAGE>


D.       COMMON STOCK

         During the nine months  ended  December 31,  1998,  the Company  issued
         73,894  shares of its common stock upon the  exercise of warrants.  The
         warrants were issued in conjunction  with a private  offering of common
         stock during  1997.  Proceeds  received  from the exercise of the above
         warrants totaled $258,630.

         During the nine months ended  December 31, 1998,  the Company  received
         $37,688 from  issuing  11,455  shares of common  stock  pursuant to the
         Company's  employee  stock  purchase  plan.  In  addition,  $9,657  was
         received  during  the  nine  months  ended  December  31,  1998 for the
         issuance of 7,788  shares of common  stock  pursuant  to the  Company's
         qualified employee stock option plan.

E.       LOSS PER COMMON SHARE

         Basic  earnings  (loss)  per  share  is  computed  in  accordance  with
         Financial  Accounting  Standards Board Standard No. 128, " Earnings Per
         Share".  Basic  earnings  (loss)  per share is  computed  as net income
         (loss)  divided  by  the  weighted  average  number  of  common  shares
         outstanding for the period.  Diluted earnings (loss) per share reflects
         the potential  dilution  that could occur from common  shares  issuable
         through  stock  options,  warrants  and other  convertible  securities.
         Common stock equivalent shares are excluded from the computation of net
         loss per share, as their effect is antidilutive.

         A reconciliation between the basic and diluted  weighted-average number
         of common  shares for the three months and nine months  ended  December
         31, 1998 and 1997 is summarized as follows:
<TABLE>
<CAPTION>
                                                           Three Months Ended              Nine Months Ended
                                                        Dec. 31         Dec. 31         Dec. 31         Dec. 31
                                                         1998            1997            1998            1997
                                                    --------------- --------------- --------------- ---------------
<S>                                                    <C>             <C>             <C>             <C>      
         Basic weighted-average number of common
         shares outstanding during the period          5,955,871       5,417,386       5,839,236       4,813,452

         Weighted-average number of common stock
         options outstanding during the period             --              --              --            947,207
                                                       ---------       ---------       ---------       ---------
         Diluted weighted-average number of
         common shares outstanding during the
         period                                        5,955,871       5,417,386       5,839,236       5,760,659
                                                       =========       =========       =========       =========
</TABLE>

F.       BUSINESS ACQUISITIONS

         In August 1998 the Company  acquired all marketing rights to certain IT
         training courses from Educational  Systems,  Inc. for $100,000 cash and
         $500,000 in future royalties to be paid out over a 33 month period. The
         acquisition  has  been  accounted  for  by  the  purchase  method  and,
         accordingly,  the results of operations of  Educational  Systems,  Inc.
         have been included in the Company's  consolidated  financial statements
         from August 1998. The  intellectual  property and marketing  rights are
         being amortized on a straight-line  basis over 33 months.  The purchase
         agreement  also  provides  for  additional  payments  over the 33-month
         period contingent on future sales of certain IT training  courses.  The
         additional  payments,  if any,  will be  accounted  for as goodwill and
         amortized over the life of the contract.

         In October  1998,  the  Company  acquired  equipment  and  intellectual
         property  from  Functional  Software  Pty.,  Ltd.   ("Functional")  for
         $450,000 in cash and 129,656  restricted shares of the Company's common
         stock.  The  Company  also  incurred  acquisition  costs of $98,878 and
         assumed   approximately  $50,000  of  Functional's   liabilities.   The
         transaction  was accounted for under the purchase method of accounting.

                                        7
<PAGE>

         Therefore, the amount of the purchase price in excess of the fair value
         of the assets acquired has been allocated to goodwill. The following is
         a summary of the acquisition:

         Consideration:
           Cash                                                        $450,000
           Value of common stock (129,656 shares at $2.71 per share)    351,692
           Acquisition costs incurred                                    98,878
                                                                       ---------
           Total  consideration                                         900,570
                                                                       ---------
         Assets acquired and liabilities assumed:
           Equipment                                                     76,800
           Intellectual property                                        571,421
           Accrued liabilities                                          (50,000)
                                                                       ---------
             Total assets acquired and liabilities assumed              598,221
             Purchase price in excess of fair value                     302,349
         In-process research and development costs                      (92,095)
                                                                       ---------
             Goodwill                                                  $210,254
                                                                       =========

G.       RESTRUCTURING CHARGES

         In an  effort  to  improve  productivity,  the  Company  implemented  a
         restructuring  plan that included the closing of the Company's  network
         consulting  operations  in Southern  California.  The Company  recorded
         restructuring  charges  of  $229,829  in  December  1998 as a result of
         closing the above mentioned  operations.  Restructuring charges include
         severance   costs  of  terminated   employees,   future   minimum  rent
         obligations  for  the  vacated  facilities  and  the  write-off  of the
         unamortized  balance of intangible assets ($202,179) that were recorded
         with the purchase of these operations in 1997.

H.       ASSET IMPAIRMENT

         During  December  1998,  the  Company  recorded  impairment  of  assets
         totaling  $426,296.   The  impairment   represents  the  write-down  of
         unamortized  goodwill and  non-compete  agreements  purchased with it's
         acquisition of Astron, Inc., a provider of IT classroom based training,
         during the year ended March 31,  1998.  The  decision to write down the
         assets was based on incurred  losses and  projected  negative cash flow
         from operations  relating to classroom  based training.  The Company is
         focusing on seminar based and customized  corporate  training  products
         for future  revenue  growth in its  training  division.  There  remains
         $509,000 of unamortized intangible marketing rights for classroom based
         training  related to the acquisition of Educational  Systems,  Inc. The
         Company  continues  to  evaluate  this asset and may in the near future
         write it off if current and expected future cash flows are insufficient
         to assure its realizabilty.

                                        8
<PAGE>

Item 2.  Management's Discussion and Analysis of Financial Condition and results
         of Operations. 

General
-------

Sento Corporation  ("Sento" or the "Company")  provides  integrated  information
technology  ("IT") solutions for Windows NT, UNIX, Open VMS,  Internet/Intranet,
and networked  computing  environments.  Through its wholly owned  subsidiaries,
Sento delivers outsourced training,  consulting,  technical support services and
hardware and software solutions.

Sento  Training  Corporation  ("Sento  Training")  provides  classroom  training
courses, seminar training workshops,  customized corporate training programs and
multi-media  presentations,  all of which are  designed  to teach and  reinforce
skills  required  to  make  IT  systems  work   effectively.   Sento  Consulting
Corporation  ("Sento  Consulting")  delivers  customized IT consulting  services
intended to help Sento  customers  realize the benefits of advanced IT solutions
in the areas of network,  systems and  financial  information.  Sento  Technical
Services   Corporation  ("Sento  Technical  Services")  offers  a  range  of  IT
outsourcing  services  consisting of "call  center",  "helpdesk",  and technical
support  services.  The  Company  conducts  substantially  all  of  its  foreign
operations  through Sento  Australia  Pty. Ltd.  based in Sydney,  Australia and
Sento Limited,  located near London,  England.  DewPoint  Distributed  Solutions
Corporation, a majority owned (67%) subsidiary, provides distribution, reseller,
and channel management for leading software and hardware manufacturers.


Three Months Ended December 31, 1998 Compared to Three Months Ended December 31,
1997.
--------------------------------------------------------------------------------

Revenues

Revenues  decreased 11% or $637,458 from  $5,869,373  for the three months ended
December 31, 1997 to  $5,231,915  for the three months ended  December 31, 1998.
These revenues were generated from the following four areas:

Product  sales and  maintenance  include both  computer  hardware and  software.
Revenues from this product line decreased 47% or $2,648,550  from $5,657,199 for
the three months ended  December 31, 1997 to  $3,008,649  for the same period in
1998. This decrease is representative of the Company's strategic transition from
reselling third party products to marketing the Company's own product line of IT
outsourced  services.  In  addition,   two  of  the  Company's  major  suppliers
experienced  significant  market share  deterioration.  The Company expects that
revenues from product sales and maintenance will represent a smaller  percentage
of the Company's revenues in the future as the Company continues to focus on its
other sources of revenue.

Training revenues of $850,590 were generated  through Sento Training,  which was
acquired in January 1998.  The Company had no training  revenues for the quarter
ended December 31, 1997.

Consulting  revenues increased $474,621 from $212,174 for the three months ended
December  31,  1997 to  $686,795  for the same  period  in 1998.  This  increase
reflects the Company's strategic focus on providing IT services.

Technical  services  revenues of $685,881 were generated through Sento Technical
Services,  which was created in April of 1998.  The  Company had no  comparative
technical  services  revenues for the quarter  ended  December  31,  1997.  This
revenue reflects the Company's strategic focus on providing IT services.

Cost of Sales

Costs of Sales  consists  primarily of salaries  and  employee  benefits for the
Company's full and part-time  consultants,  engineers,  agents, and instructors;
travel  expenses  relating to consulting and training  activities;  the costs to
third party manufacturers for software and hardware products;  facilities costs;
and depreciation on property and equipment used in providing  technical  support
services.

Cost of sales  decreased  7% or $311,661  from  $4,360,183  for the three months
ended December 31, 1997 to $4,048,522 for the same period in 1998.  Gross profit
as a percentage  of revenues  decreased  by 3%, from 26% of revenues  during the

                                        9
<PAGE>

three months ended  December 31, 1997 to 23% of revenue for the same three month
period in 1998.  There have been general  decreases in the margins  allowed from
manufacturers  to resellers in both  hardware and software  products.  In August
1998, the Company  completed and moved into a new technical support call center.
Excess  capacity in the  Company's  new call center  also  contributed  to lower
margins.

Selling General and Administrative Expenses

Selling  general and  administrative  expenses  increased 55% or $1,408,242 from
$2,580,179  for the three months ended  December 31, 1997 to $3,988,421 for same
three month period in 1998.  Marketing costs increased  dramatically  during the
three  months ended  December 31, 1998 in an effort to increase  classroom-based
training  enrollment.  Based on the results  achieved,  the Company  changed its
focus of future  revenue  growth in its training  division from  classroom-based
training to seminar-based  training and customized  corporate training,  both of
which require  substantially less marketing  expenditures.  Start-up  activities
associated  with the Company's  training and technical  services  divisions also
contributed to the large increase in general and administrative  expenses during
the three-month period ended December 31, 1998.

The Company  recorded  $270,956 of amortization  expense  relating to intangible
assets during the three months ended December 31, 1998.  The  intangible  assets
being  amortized are from  business  acquisitions  completed  during the current
fiscal year and the latter portion of the Company's  fiscal year ended March 31,
1998.  Therefore,  no amortization of intangible  assets was recorded during the
three-month period ended December 31, 1997.

The Company took measures to improve  productivity  in its  consulting  division
during  the  three  months  ended  December  31,  1998  when  it  implemented  a
restructuring plan that included the closing of the Company's network consulting
operations in Southern  California.  The Company recorded a restructuring charge
of $229,829  including  the  write-off of $202,179 of  unamortized  goodwill and
non-compete agreements relating to the Company's network consulting operations.

During the three months ended December 31, 1998, the Company recorded impairment
of assets totaling $426,296.  The impairment represents a write-down of goodwill
and non-compete agreements relating to the Company's acquisition of Astron, Inc.
in January 1998.  The decision to write down these assets was based on continued
losses in the  classroom-based  training  department of the  Company's  training
division,  which was  acquired  through  the  acquisition  of  Astron,  Inc.  In
addition,  the  Company  expects to incur  continued  losses in  classroom-based
training  and,  therefore,  is focusing its continued  efforts on  seminar-based
training  and  customized   corporate   training.   There  remains  $509,000  of
unamortized  intangible marketing rights for classroom based training related to
the acquisition of Educational  Systems,  Inc. The Company continues to evaluate
this  asset and may in the near  future  write it off if  current  and  expected
future cash flows are insufficient to assure its realizabilty.

Other  income  decreased  18% or $58,554,  from  $322,380  to  $263,826  for the
three-month  periods ended December 31, 1997 and 1998 respectively.  The primary
cause of the  decrease  in other  income  during the three  month  period  ended
December  31, 1998 when  compared to the same three month period in 1997 relates
to a  decrease  in  interest  income  caused by a  substantial  decrease  in the
Company's cash balances over the same periods.


Nine Months Ended  December 31, 1997 Compared to Nine Months Ended  December 31,
1998.
--------------------------------------------------------------------------------

Revenues

Revenues increased 10% or $1,446,789; from $14,536,253 for the nine months ended
December 31, 1997 to  $15,983,042  for the nine months ended  December 31, 1998.
These revenues were generated from the following four areas:

Product  sales and  maintenance  include both  computer  hardware and  software.
Revenues from this product line decreased 26% or $3,671,653 from  $14,324,079 in
1997 to $10,652,426  for the same  nine-month  period in 1998.  This decrease is
representative of the Company's strategic  transition from reselling third party
products  to the  Company's  own  product  line of IT  outsourced  services.  In

                                       10
<PAGE>

addition two of the Company's major  suppliers  experienced  significant  market
share  deterioration.  Sento's  management  intends  to  continue  to  focus  on
providing IT outsourcing activities.

Training  revenues of  $2,430,141  were  generated  during the nine months ended
December 31,  1998,  primarily  through  Sento  Training,  which was acquired in
January  1998.  The Company had no training  revenues  for the nine months ended
December 31, 1997.

Consulting revenues increased $1,420,498 from $212,174 for the nine months ended
December 31, 1997 to  $1,632,672  for the same  nine-month  period in 1998.  The
Company began operations in this area during October 1997. The revenue growth in
this area reflects the Company's strategic focus on providing IT services.

Technical  services revenues of $1,267,803 were generated during the nine months
ended December 31, 1998, primarily through Sento Technical Services, which began
operations  in April  1998.  The  Company  had no  technical  services  revenues
comparable to revenues  generated  through Sento  Technical  Services during the
nine-month period ended December 31, 1997.

Cost of Sales

Cost of sales increased 13% or $1,279,676  from  $10,217,500 for the nine months
ended December 31, 1997 to $11,497,176 for the same period in 1998. Gross profit
as a percentage  of revenues  decreased  by 2%, from 30% of revenues  during the
nine months  ended  December  31, 1997 to 28% of revenue for the same nine month
period in 1998.  There have been general  decreases in the margins  allowed from
manufacturers  to resellers in both  hardware and software  products.  In August
1998, the Company  completed and moved into a new technical  support call center
as part of its strategic focus on providing IT services.  Excess capacity in the
Company's new call center also contributed to lower margins.

Selling, General and Administrative Expenses

Selling  general and  administrative  expenses  increased 64% or $4,046,566 from
$6,366,974 for the nine months ended  December 31, 1997 to $10,413,540  for same
nine month period in 1998.  Marketing costs increased  dramatically in an effort
to increase classroom based training enrollment.  Based on the results achieved,
the Company changed its focus of future revenue growth in its training  division
from classroom based training to seminar based training and customized corporate
training,  both of which  require  substantially  less  marketing  expenditures.
Start-up  activities  associated  with  the  Company's  training  and  technical
services  divisions  also  contributed  to the large  increase  in  general  and
administrative expenses during the nine-month period ended December 31, 1998.

The Company  recorded  $595,688 of amortization  expense  relating to intangible
assets during the nine months ended  December 31, 1998.  The  intangible  assets
being  amortized are from  business  acquisitions  completed  during the current
fiscal year and the latter portion of the Company's  fiscal year ended March 31,
1998.  Therefore,  no amortization of intangible  assets was recorded during the
nine-month period ended December 31, 1998.

The Company took measures to improve  productivity  in its  consulting  division
during  the   nine-months   ended  December  31,  1998  when  it  implemented  a
restructuring plan that included the closing of the Company's network consulting
operations in Southern  California.  The Company recorded a restructuring charge
of $229,829  including  the  write-off of $202,179 of  unamortized  goodwill and
non-compete agreements relating to the Company's network consulting operations.

During the nine months ended December 31, 1998, the Company recorded  impairment
of assets totaling $426,296.  The impairment represents a write-down of goodwill
and non-compete agreements relating to the Company's acquisition of Astron, Inc.
in January 1998.  The decision to write down these assets was based on continued
losses in the  classroom-based  training  department of the  Company's  training
division,  which was  acquired  through  the  acquisition  of  Astron,  Inc.  In
addition,  the  Company  expects to incur  continued  losses in  classroom-based
training  and,  therefore,  is focusing its continued  efforts on  seminar-based
training  and  customized   corporate   training.   There  remains  $509,000  of
unamortized  intangible marketing rights for classroom based training related to
the acquisition of Educational  Systems,  Inc. The Company continues to evaluate
this  asset and may in the near  future  write it off if  current  and  expected
future cash flows are insufficient to assure its realizabilty.

                                       11
<PAGE>

Other income  decreased 58% or $1,701,012  from $2,913,185 to $1,212,173 for the
nine-month periods ended December 31, 1997 and 1998  respectively.  Other income
for the nine-month  period ended December 31, 1997 related to a one-time sale of
the Company's Open Aviator software product to BMC Software,  Inc. in July 1997.
Other income  during the  nine-month  period ended  December 31, 1998  consisted
primarily of amortization of deferred  revenue related to that sale, gain on the
sale of assets, and interest income.

Liquidity and Capital Resources

At December 1998, the Company had a $907,419 deficit in working capital and cash
balances had decreased 86% or  $4,976,520  from  $5,807,014 at March 31, 1998 to
$830,494 at December 31, 1998. The  deterioration  in liquidity is primarily due
to  $2,243,642 of net cash used by operating  activities  during the nine months
ended December 31, 1998,  and $2,388,942 of cash used to purchase  furniture and
equipment.

The Company's primary sources of liquidity have been cash received from sales of
assets  and cash  provided  through  private  sales of  equity  as well as being
generated by its operations.  In addition,  the Company has financed some of its
equipment utilized in its business through long-term leasing  arrangements.  The
Company's expansion and continuing  operating losses will require the Company to
find additional  sources of funding in future periods.  In the event the Company
is not able to find such alternate sources of funding, its ability to pursue its
planned  business  strategy  will be  limited  and it may be forced to reduce or
suspend its operations.  There can be no assurance that the Company will be able
to obtain  necessary  capital funding on terms  favorable to the Company,  or at
all.


Year 2000

Sento  Corporation  has  organized  a Year  2000  oversight  committee  that  is
conducting an analysis of the Company's  internal  compliance  and  implementing
necessary  changes to ensure  compliance.  An overall  five-phase  plan has been
implemented to coordinate the efforts of all offices worldwide.

The five-phase plan is outlined below:

         Discovery:   Creation  of  Year  2000  Project  Plan,  Organization  of
         Oversight  Committee  consisting of Site  Coordinators  for each of the
         Sento Sites,  Members of IT Management and Sr. Management,  and Project
         Manager. Communication with Board of Directors.

         Risk  Assessment:  Identify  and document  critical  path items for all
         departments  throughout  Sento  worldwide.  Assess  risk on each  item.
         Determine current Year 2000 Compliance Status for each at risk item.

         Equipment and Products:  Inventory of internal systems and software and
         embedded logic equipment. Contacting all suppliers and manufacturers of
         equipment  and  products  for Year 2000  status on  products as well as
         their internal company Year 2000 readiness.

         Testing:  Conduct  internal  testing on all mission critical systems to
         assure no disruption of service or date-logic concerns.

         Reporting and Contingency  Plans:  Reporting of results of above phases
         and proposed contingency plans for all high-risk items.

To date, the Company has completed the Discovery, Risk Assessment, Equipment and
Products, and Testing phases. The Company is currently accumulating  information
for the Reporting and Contingency  Plan phase.  The Company's  mission  critical
systems  primarily  consist of newly purchased  computers with Intel  processors
running Microsoft  NT/Windows  software.  The Company's primary mission critical
applications  have been  purchased with  documented  Year 2000  compliance.  The
telephone  system  and  security  system  for the  corporate  office  are  newly
purchased and Year 2000 certification verification is underway.

                                       12
<PAGE>

While the costs to address  the  Company's  Year 2000 issues  cannot  readily be
determined  until the above five  phases have been  completed  the nature of the
systems  and  software  that are  implemented  in the  Company's  critical  path
processes,  the  Company  does not  anticipate  the  costs  associated  with any
corrective  procedures will be material.  The preceding statements regarding the
Company's  anticipated  costs are  forward-looking.  Actual results could differ
materially  from those  identified in the  forward-looking  statements.  Factors
affecting  these results include the timing and cost of completing the Company's
year 2000 assessment,  the costs of any required remedial measures, the costs of
failing to  anticipate  year 2000  issues  that arise and the  existence  of any
liability  to third  parties  for  failure  by the  Company  to have  adequately
addressed its year 2000 issues.

In the near term,  Year 2000  compliance is creating  significant  demand for IT
products and services such as those provided by the Company.  The passage of the
Year 2000 may have a material  adverse effect on the demand for these  services.
In addition,  while the Company is not aware of any existing  potential  claims,
the occurrence of Year 2000 related system failures in the  information  systems
of clients of the Company could have a material  adverse effect on the Company's
business,  financial  condition  and  results of  operation,  whether or not the
Company  bears any  responsibility,  legal or otherwise,  for the  occurrence of
those problems.

Recently issued Financial Accounting Standards

In June 1997,  the FASB issued SFAS No. 131,  "Disclosure  about  Segments of an
Enterprise and Related  Information." SFAS No. 131 establishes new standards for
reporting  information about operating  segments in interim and annual financial
statements.  This statement is effective for annual  financial  statements  with
fiscal  years  beginning  after  December  15,  1997.  This  statement   expands
disclosure  requirements and, accordingly,  will have no impact on the Company's
reported financial condition, results of operations, or cash flows.

Safe Harbor Provision

This Form 10-QSB  contains  certain  forward-looking  statements  (as defined in
Section 21E of the  Securities  Exchange Act of 1934,  as amended)  that involve
substantial risks and  uncertainties.  When used in this Form 10-QSB,  the words
"anticipate" and "expect" and similar  expressions as they relate to the Company
or its management is intended to identify such forward-looking  statements.  The
Company's actual results,  performance or achievements  could differ  materially
from the results, performance or achievements expressed in, or implied by, these
forward-looking statements. Risks and uncertainties and other factors that could
cause or contribute  to such  differences  include,  but are not limited to, the
Company's  ability to obtain  capital  funding  necessary to pursue its business
strategy; difficulties in attracting and retaining highly skilled employees; the
Company's ability to manage rapid growth and expansion into new geographic areas
and service lines;  the Company's  ability to manage the risks  associated  with
client projects and risks related to recently  completed;  the Company's ability
to develop IT solutions  that keep pace with  continuing  changes in technology,
evolving industry standards and changing client  preferences;  and risks related
to Year 2000 failures in client's  information  systems.  These and other risks,
uncertainties and other factors are more fully described in the Company's Annual
Report on Form 10-KSB.


PART II. OTHER INFORMATION


Item 1.  Legal Proceedings

a.       None


Item 2.  Changes in Securities

                                       13
<PAGE>

a.                         Pursuant to a Convertible  Bond and Warrant  Purchase
                           Agreement dated as of July 8, 1997,  between Canadian
                           Imperial Holdings, Inc. ("CIHI") and the Company, the
                           Company  sold  to  CIHI a  Convertible  Bond  with an
                           "issue price" of $1,000,000  and bearing  interest at
                           the rate of six percent (the "Convertible Bond"). The
                           Convertible Bond, including interest on the principal
                           thereof,  is  convertible  by CIHI into shares of the
                           Company's   Common  Stock  (the  "Common  Stock")  in
                           accordance  with the conversion rate set forth in the
                           Convertible  Bond upon the earlier of (a) at any time
                           after  October 6, 1997 in the  discretion  of CIHI or
                           (b) automatically on July 8, 1999.

                           On  September  16,  1998,  CIHI  elected  to  convert
                           $100,000  principal  value of the  Convertible  Bond,
                           together with accrued interest  thereon,  into shares
                           of Common Stock. In exchange for the  cancellation of
                           the converted portion of the Convertible Bond, on the
                           Company issued to CIHI 33,393 shares of Common Stock.

                           The sale of the convertible bonds and the issuance of
                           the  shares  of  common  stock  upon  the  conversion
                           thereof,  were effected in reliance upon an exemption
                           for sales of  securities  not  involving  any  public
                           offering,  as  set  forth  in  Section  4(2)  of  the
                           Securities  Act of 1993, as amended (the  "Securities
                           Act"). The Company's reliance upon such exemption was
                           based upon  representations  and  warranties  of CIHI
                           contained in transaction  documents  submitted to the
                           Company by CIHI.

                           On July 10, 1998, 10,707 shares of Common Stocks were
                           issued upon the satisfaction of performance  criteria
                           outlined in employment agreements between the Company
                           and  two of  its  employees,  Jim  Rogers  and  Saiid
                           Ghobadian.  The value of the  shares of Common  Stock
                           ($35,750  in the  aggregate)  issued  pursuant to the
                           employment  agreements  was  recorded,  for financial
                           accounting purposes,  as of March 31, 1998 and, prior
                           to the issuance of such shares of Common  Stock,  was
                           reflected as an accrual  liability  on the  Company's
                           financial statements.

                           The issuance of shares of Common  Stock  contemplated
                           by the foregoing  employment  agreements was effected
                           in reliance upon an exemption for sales of securities
                           not  involving any public  offering,  as set forth in
                           Section 4(2) of the  Securities  Act.  The  Company's
                           reliance upon such exemption was based, in part, upon
                           the employment  relationship  between the Company and
                           its  employees,  the  access  of  such  employees  to
                           material  information  regarding  the Company and its
                           business   and   financial   condition   and  certain
                           representations  and  warranties   delivered  to  the
                           Company by such employees.


Item 3.  Defaults on Senior Securities

                  a.       None


Item 4.  Submission of Matters to Vote of Security Holders

                  a.       None

Item 5.  Other Information

                  a.       In connection with recent revisions to Rule 14a-8 and
                           related  rules   promulgated   under  the  Securities
                           Exchange  Act of 1934,  as  amended,  the company has
                           elected  to   provide   the   following   information
                           regarding discretionary proxy voting at the Company's
                           1999  annual  meeting  of  shareholders   (the  "1999
                           Meeting").  If a  shareholder  desiring  to advance a
                           proposal  for  consideration  at the  Company's  1999
                           Meeting  fails to notify the company of the  proposal

                                       14
<PAGE>

                           at  least  45  days  prior  to the  month  and day of
                           mailing the Company's proxy statement relating to the
                           1999 annual meeting of shareholders,  then management
                           proxies  will be allowed  to use their  discretionary
                           voting  authority  when the proposal is raised at the
                           1999 Meeting, without any discussion of the matter in
                           the Company's proxy statement

Item 6.  Exhibits and Reports on Form 8K

                  a.  See Exhibit Index attached hereto.

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.

                             SENTO CORPORATION
                             (Registrant)


                             By:      ______________________________
                                      Kieth E. Sorenson
                                      President and Chief Executive Officer



                             By:      ______________________________
                                      Robert K. Bench
                                      Executive Vice President and
                                      Chief Financial Officer

                                       15
<PAGE>

                                  EXHIBIT INDEX



     Reg. S-K Item                  Exhibit                    Exhibit No.
------------------------ ------------------------------ ------------------------

          10                    Building Lease                     1



          10                    Equipment Lease                    2