UNITED STATES
                         SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, D. C. 20549

FORM 10QSB

(X)      Quarterly report pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934 for the quarterly period ended June 30, 2000

( )      Transition report pursuant of Section 13 or 15(d) of the Securities
         Exchange Act of 1939 for the transition period ____ to______


                        COMMISSION FILE NUMBER 000-1084133
                                    -----------

                                MERCURY SOFTWARE
                    ------------------------------------------
              (Exact name of registrant as specified in its charter)


          California                                     52-1146119
----------------------------------           ----------------------------------
(State or other jurisdiction of              (IRS Employer Identification No.)
)incorporation or organization)


827 State Street, Suite 26, Santa Barbara, CA 95682     Telephone 805 899 1299
-------------------------------------------------------------------------------
(Address of Principal Executive Offices, including Registrant's zip code
 and telephone number)

                                      NONE
         --------------------------------------------------------------
        Former name, former address and former fiscal year, if changed


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports,), and (2) has been subject to
such filing requirements for the past 90 days. Yes X    No
                                                  ---       ---

The number of shares of the registrant's common stock as of September 30, 2000:
1,177,100 shares.

Transitional Small Business Disclosure Format (check one):   Yes   No X
                                                                ---  ---

[CAPTION]
                             TABLE OF CONTENTS
                             -----------------

PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

(a)      Balance Sheet
(b)      Statement of Operations
(c)      Statement of Changes in Financial Position
(d)      Statement of Shareholders' Equity
(e)      Notes to Financial Statements

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

Item 3.  Risks

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

Item 2.  Changes in Securities and Use of Proceeds

Item 3.  Defaults On Senior Securities

Item 4.  Submission of Items to a Vote

Item 5.  Other Information

Item 6
(a)      Exhibits
(b)      Reports on Form 8K

SIGNATURES

FINANCIAL DATA SCHEDULE

[CAPTION]
                               MERCURY SOFTWARE
                          (A Development Stage Company)
                                 BALANCE SHEET
                   AS OF DECEMBER 30, 1999 AND SEPTEMBER 30, 2000
                                   (unaudited)

                                  December 30, 1999          September 30, 2000
                                  ------------------         ------------------
ASSETS
     Current assets
Cash                             $    1,000                   $       -
                                   -----------------          -----------------

     Total current assets        $    1,000                   $       -
                                   -----------------          -----------------
     Total assets                $    1,000                   $       -
                                   =================          =================

LIABILITIES AND SHAREHOLDERS' EQUITY

     Shareholders' equity

Common stock (no par value)
20,000,000 shares authorized
1,77,100 outstanding at
December 30, 1999
                                  $     709                     $      1,077
Paid in capital                          -                               -

Deficit accumulated during
development stage                   (   894)                         ( 1,262)
                                    --------                         --------
Total shareholders' equity        $     285                     $      ( 185)
Total liabilities and
shareholders' equity              $       -                      $       -
                                  ================             ================

[CAPTION]

                                MERCURY SOFTWARE
                           (A Development Stage Company)
                             STATEMENT OF OPERATIONS
                     FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000
               AND FOR THE PERIOD FROM INCEPTION MAY 27, 1998 TO
                                   (unaudited)

                                           From inception
                      Three months ended          May 27, 1998 to
                      March 31, 2000              March 31, 2000
                      ------------------          -----------------
Sales                $             -0-            $         -0-


                      ------------------          -----------------

Total income:        $             -0-            $          -0-

Expenses

Administrative                    102            $    (    894)

                      ------------------          -----------------
    Total expenses               (102)            $    (    894)


Loss from operations             (102)            $     (   894)

                      ------------------          -----------------
Net loss             $           (102)            $     (   894)
                      ==================          ==================


































<TABLE>
<CAPTION>
<S>                                                   <C>                     <C>
                                            MERCURY SOFTWARE
                                     (A Development Stage Company)
                             STATEMENT OF CHANGES IN FINANCIAL POSITION
                             FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000
                   AND THE PERIOD FROM INCEPTION MAY 27, 1998 TO SEPTEMBER 30, 2000
                                             (unaudited)

                                                                            From inception
                                                 Six months ended           May 27, 1998 to
                                                 March 31, 2000             September 31, 2000
                                                 ------------------      ------------------
Funds provided from (used for)operations
     Net (loss) during development stage         $        (   102)       $        (   894)
     Accounts payable                                         --                  --
     Stocks issued for services                                 -                     709
Funds provided by (used for) operating activities               -                      -


Funds provided from (used for) financing activities

     Proceeds from sale of stock                            2,200                       -
                                                 ------------------      ------------------

Net funds provided from (used for) all activities              -         $              -

Cash balance at beginning of period                           1,000                       -
                                                 ------------------      ------------------

Cash balance at end of period                    $            -         $               -

                                                 ==================      ==================
</TABLE>


<TABLE>
<CAPTION>
                                          MERCURY SOFTWARE
                                     (A Development Stage Company)
                                 STATEMENT OF SHAREHOLDERS' EQUITY
                            FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000
                                            (unaudited)


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

                                                           Common stock
                                            -------------------------------------------
                                                  Number
                                                of shares       Amount     Deficiency
                                                ----------      ------     ----------

Balance December 31, 1998                        1,177,100      1,177      (  1,162)

Net (loss) during development stage
                                                ----------      ------     ----------
Balance March 31, 2000                           1,177,100      1,177      (  1,162)
                                              ============     =========  =============

</TABLE>











[CAPTION]
                                MERCURY SOFTWARE
                         (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                    FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000
                                 (unaudited)
1.   GENERAL

The financial statements have been prepared by management without audit and
should be read in conjunction with the financial statements and notes thereto
for the six months ended September 30, 2000. The Company is still in the
development stage and the results of interim periods are not indicative of the
results for the year. The accompanying financial statements reflect, in the
opinion of management, all adjustments necessary for the fair presentation of
the interim financial statements. In the opinion of management, all such
adjustments are of a normal and recurring nature.

The Company has been in the development stage since inception. The Company's
activities have consisted of developing its plan of operations.

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A.  The Company uses the accrual method of accounting.

B.  Revenues and directly related expenses are recognized in the period when
the goods are shipped to the customers.

C.  The Company considers all short term, highly liquid investments that are
readily convertible, within three months, to known amounts as cash equivalents.
The Company currently has no cash equivalents.

D.  Primary Earnings Per Share amounts are based on the weighted average number
of shares outstanding at the dates of the financial statements. Fully Diluted
Earnings Per Shares shall be shown on stock options and other convertible
issues that may be exercised within ten years of the financial statement dates.

E.  Depreciation: The cost of property and equipment is depreciated over the
estimated useful lives of the related assets. The cost of leasehold
improvements is depreciated (amortized) over the lesser of the length of the
related assets or the estimated lives of the assets. Depreciation is computed
on the straight-line method for reporting purposes and for tax purposes.

F.  Estimates: The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results could differ from those estimates.


PART I. FINANCIAL INFORMATION

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

THIS ANALYSIS CONTAINS FORWARD-LOOKING COMMENTS WHICH ARE BASED ON CURRENT
INFORMATION. ACTUAL RESULTS IN THE FUTURE MAY DIFFER MATERIALLY.

The Company is engaged in the business of providing sales of computer related
software and related services.  The Company has not yet commenced operations,
but is in the process of developing its web site at
www.internetsoftwaresales.com.

PART II. OTHER INFORMATION

Item 1.  Legal proceedings                                    NONE

Item 2.  Changes in securities and use of proceeds            NONE

Item 3.  Defaults on senior securities                        NONE

Item 4.  Submission of items to a vote                        NONE

Item 5.  Other information                                    NONE

Item 6.

 a)      Exhibits                                             NONE
 b)      Reports on 8K                                        NONE


SIGNATURES

In accordance with the requirements of the Securities and Exchange Act of 1934,
the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                         Mercury Software


   Dated: September 30, 2000          By:    Jeffrey Volpe
                                        ---------------------------
                                          Jeffrey Volpe, President



   Dated: September 30, 2000          By:    Agata Gotova
                                        -------------------------------------
                                        Agata Gotova, Chief Financial Officer

[CAPTION]
[TYPE]EX-27
<SEQUENCE>2
[DESCRIPTION]FINANCIAL DATA SCHEDULE
[ARTICLE] 5
[MULTIPLIER] 1
[PERIOD-TYPE]                              6-MOS
[FISCAL-YEAR-END]                          DEC-31-1999
[PERIOD-START]                             JAN-01-2000
[PERIOD-END]                               SEP-30-2000
[CASH]                                               0
[SECURITIES]                                         0
[RECEIVABLES]                                        0
[ALLOWANCES]                                         0
[INVENTORY]                                          0
[CURRENT-ASSETS]                                  1000
[PP&E]                                            1000
[DEPRECIATION]                                       0
[TOTAL-ASSETS]                                    1000
[CURRENT-LIABILITIES]                             1000
[BONDS]                                              0
[PREFERRED-MANDATORY]                                0
[PREFERRED]                                          0
[COMMON]                                          1177
[OTHER-SE]                                           0
[TOTAL-LIABILITY-AND-EQUITY]                      1000
[SALES]                                              0
[TOTAL-REVENUES]                                     0
[CGS]                                                0
[TOTAL-COSTS]                                        0
[OTHER-EXPENSES]                                     0
[LOSS-PROVISION]                                  (894)
[INTEREST-EXPENSE]                                   0
[INCOME-PRETAX]                                   (894)
[INCOME-TAX]                                         0
[INCOME-CONTINUING]                               (894)
[DISCONTINUED]                                       0
[EXTRAORDINARY]                                      0
[CHANGES]                                            0
[NET-INCOME]                                      (894)
[EPS-BASIC]                                       (.00)
[EPS-DILUTED]                                     (.00)