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 ID No.)
 incorporation or organization)

827 State Street, Suite 26
Santa Barbara, CA 93101                     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 June
30, 2000: 3,492,520 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









































<TABLE>
<CAPTION>

                                   MERCURY SOFTWARE
                            (A Development Stage Company)
                                   BALANCE SHEET
                       AS OF JUNE 30, 2000 AND DECEMBER 31, 1999
                                     (unaudited)

<S>                                      <C>                       <C>


                                  March 31, 2000              March 31, 1999
                                  ------------------          -----------------
ASSETS


     Current assets

Cash                             $    -                       $       -
                                   -----------------          -----------------

     Total current assets        $    -                       $       -
                                   -----------------          -----------------
     Total assets                $    -                       $       -
                                   =================          =================


LIABILITIES AND SHAREHOLDERS' EQUITY

     Current Liabilities         $     553                   $         185
                                   -----------------          -----------------
     Shareholders' equity

Common stock (no par value)
20,000,000 shares authorized
708,648 outstanding at
June 30, 2000
and March 31, 1999               $     709                     $      1,077
Paid in capital                          -                               -

Deficit accumulated during
development stage                   ( 1,262)                         ( 1,262)
                                    --------                         --------
Total shareholders' equity        $    (553)                     $     ( 185)

Total liabilities and
shareholders' equity              $     --                      $      --
                                  ================             ================

</TABLE>


















<TABLE>
<CAPTION>

                                 MERCURY SOFTWARE
                           (A Development Stage Company)
                             STATEMENT OF OPERATIONS
                   FOR THE THREE MONTHS ENDED JUNE 30, 2000
                   AND THE THREE MONTHS ENDED MARCH 31, 1999
         AND FOR THE PERIOD FROM INCEPTION MAY 27, 1998 TO MARCH 31, 2000
                                   (unaudited)

<S>                      <C>                   <C>                 <C>
                                                         From inception
               Six months ended      Six months ended    May 27, 1998 to
               June 30, 2000         June 30, 1999       June 30, 2000
               ------------------  -------------------  -----------------
Sales         $             -0-    $           -0-      $             -0-


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

Total income: $             -0-    $           -0-      $             -0-

Expenses

Administrative              102    $          102       $       (    894)

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


Loss from operations      (102)    $         (102)      $        (   894)

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

               ==================   ===================  ==================

</TABLE>





























<TABLE>
<CAPTION>

                              INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
                                  (a development stage company)
                          STATEMENT OF CHANGES IN FINANCIAL POSITION
                          FOR THE SIX MONTHS ENDED MARCH 31, 2000
                   AND THE PERIOD FROM INCEPTION MAY 27, 1998 TO MARCH 31, 2000
                                          (unaudited)


<S>                                                     <C>                    <C>
                                                                         From inception
                                                 Six months ended        May 27, 1998 to
                                                 June 30, 2000           June 30, 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 SIX MONTHS ENDED JUNE 30, 2000
                                     (unaudited)

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

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

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

Balance December 31, 1998                         1,077,100      1,077      (  1,262)

Net (loss) during development stage
                                                ----------      ------     ----------
Balance June 30, 2000                              708,648        709          (894)
                                               ============    =========  =============

</TABLE>









[CAPTION]
                         MERCURY SOFTWARE
                   (a Development stage company)
                    NOTES TO FINANCIAL STATEMENTS
               FOR THE THREE MONTHS ENDED JUNE 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 June 31,
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.

  3.   OTHER MATTERS

AMENDMENT TO ARTICLES OF INCORPORATION: The Company originally
issued  1,077,000 common shares of stock, when the Company was
acting as its own  transfer agent.  However, the Company's new
transfer agent refused to recognize the issue of 77,000 of the
1,077,000 common shares of stock, due to the fact that the
Company's articles of incorporation had not been amended to
provide for an increase in capital. On March 1, 1999, the Company
amended its articles of incorporation to authorize capital of
20,000,000 common shares. Since the filing of this amendment was
delayed, this resulted in a  a difference between the shares
outstanding on March 31, 2000 as shown on the official share
register of the transfer agent and the Company's audited
financial statements.

On November 26, 1999, the Company effected an 8-1  forward split
of its common shares of stock, resulting in outstanding shares of
8,332,520.

SUBSEQUENT EVENTS: On March 31, 2000, the Company redeemed
455,000 common shares from Officer/Director Agata Gotova, at par
value.

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 14, 2000        By:    Jeffrey Volpe
                                      ---------------------------
                                     Jeffrey Volpe, President



   Dated: March 31, 2000       By:   Agata Gotova
                                -----------------------------
                                     Agata Gotova, CFO



















[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]                               JUN-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]                                          2084
[OTHER-SE]                                      (34592)
[TOTAL-LIABILITY-AND-EQUITY]                      1000
[SALES]                                              0
[TOTAL-REVENUES]                                     0
[CGS]                                                0
[TOTAL-COSTS]                                        0
[OTHER-EXPENSES]                                     0
[LOSS-PROVISION]                                  (391)
[INTEREST-EXPENSE]                                   0
[INCOME-PRETAX]                                   (391)
[INCOME-TAX]                                         0
[INCOME-CONTINUING]                               (391)
[DISCONTINUED]                                       0
[EXTRAORDINARY]                                      0
[CHANGES]                                            0
[NET-INCOME]                                      (391)
[EPS-BASIC]                                       (.00)
[EPS-DILUTED]                                     (.00)