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UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

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FORM 10-Q

(Mark One)

|/x/ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|--- | ---------------------------------------------------------------------------------------

For the Quarterly Period Ended November 30, 2000

or

|/ / | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from  to .
|--- | -----------------------------------------------------------------------------------------------------------------------------

Commission File Number: 0-12395

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ALCIDE CORPORATION

DelawareState or other jurisdiction of
incorporation or organization

22-2445061(I.R.S. Employer Identification No.)8561 154th Avenue North East, Redmond WA(Address of principal executive offices)

98052(Zip Code)


(425) 882-2555Registrant's telephone number, including area code

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

Indicate
the number of shares outstanding of each of the issuer's classes of common stock, as of November 30, 2000: 2,560,300, net of Treasury Stock.

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ALCIDE CORPORATION    INDEX

PART
I.  FINANCIAL INFORMATION

|          |  |                                                                                                                                           |  | Page
|--------- |  | ----------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Item 1.   |  | Financial Statements                                                                                                                      |  |     
|          |  | Consolidated Condensed Balance SheetsNovember 30, 2000 (Unaudited)
  and May 31, 2000                                                    |  | 3   
|          |  | Unaudited Consolidated Condensed Statements of Operations
  for the three and six months ended November 30, 2000
  and November 30, 1999 |  | 4   
|          |  | Consolidated Condensed Statements of Changes in Shareholders' Equity                                                                      |  | 5   
|          |  | Unaudited Consolidated Condensed Statements of Cash Flowsfor the six
  months ended November 30, 2000 and November 30, 1999              |  | 6   
|          |  | Notes to Unaudited Consolidated Condensed Financial Statements                                                                            |  | 7   
|Item 2.   |  | Management's Discussion and Analysis of Financial Condition and
  Results of Operations                                                   |  | 10  
|Item 3.   |  | Legal Proceeding                                                                                                                          |  | 12  
|Item 4.   |  | Submission of Matters to a Vote of Security Holders                                                                                       |  | 12  
|PART II.  |  | OTHER INFORMATION                                                                                                                         |  |     
|Item 6.   |  | Exhibits and Reports on Form 8K                                                                                                          |  | 13  
|SIGNATURE |  | 14                                                                                                                                       

2

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ALCIDE CORPORATION    CONSOLIDATED CONDENSED BALANCE SHEETS

|                                           |                                        | November 30, 2000                                                                                                                                                                        |                                                 | May 31, 2000 |           
|------------------------------------------ | -------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------- | ------------ | ----------
|
|Assets:                                    |                                        |                                                                                                                                                                                          |                                                 |              |           
|                                           | Current assets:                        |                                                                                                                                                                                          |                                                 |              |           
|                                           |                                        | Cash and cash equivalents                                                                                                                                                                |                                                 | $            | 2,054,118 
|                                           |                                        | Accounts receivabletrade                                                                                                                                                                |                                                 |              | 2,761,398 
|                                           |                                        | Inventory                                                                                                                                                                                |                                                 |              | 1,345,136 
|                                           |                                        | Deferred and prepaid income taxes                                                                                                                                                        |                                                 |              | 589,481   
|                                           |                                        | Components and spare parts                                                                                                                                                               |                                                 |              | 595,301   
|                                           |                                        | Prepaid expenses and other current assets                                                                                                                                                |                                                 |              | 128,011   
|                                           |                                        |                                                                                                                                                                                          |                                                 |              |           
|                                           |                                        |                                                                                                                                                                                          | Total current assets                            |              |           
|                                           |                                        |                                                                                                                                                                                          |                                                 |              |           
|                                           | Equipment and leasehold improvements:  |                                                                                                                                                                                          |                                                 |              |           
|                                           |                                        | Sanova plant assets                                                                                                                                                                      |                                                 |              | 9,829,539 
|                                           |                                        | Office equipment                                                                                                                                                                         |                                                 |              | 353,875   
|                                           |                                        | Laboratory and manufacturing equipment                                                                                                                                                   |                                                 |              | 207,752   
|                                           |                                        | Leasehold improvements                                                                                                                                                                   |                                                 |              | 73,483    
|                                           |                                        | Less: Accumulated depreciation and amortization                                                                                                                                          |                                                 |              | (2,290,028
|                                           |                                        |                                                                                                                                                                                          |                                                 |              |           
|                                           |                                        |                                                                                                                                                                                          | Total equipment and leasehold improvements, net |              |           
|                                           | Deferred income tax asset              |                                                                                                                                                                                          |                                                 | 193,131      |           
|                                           | Long term investments and other assets |                                                                                                                                                                                          |                                                 | 592,743      |           
|                                           |                                        |                                                                                                                                                                                          |                                                 |              |           
|Total Assets                               |                                        | $                                                                                                                                                                                        | 16,433,940                                      |              | $         
|                                           |                                        |                                                                                                                                                                                          |                                                 |              |           
|Liabilities and Shareholders' Equity:      |                                        |                                                                                                                                                                                          |                                                 |              |           
|                                           | Current liabilities:                   |                                                                                                                                                                                          |                                                 |              |           
|                                           |                                        | Accounts payable                                                                                                                                                                         |                                                 | $            | 380,648   
|                                           |                                        | Accrued expenses                                                                                                                                                                         |                                                 |              | 766,787   
|                                           |                                        | Unearned revenue                                                                                                                                                                         |                                                 |              | 344,992   
|                                           |                                        |                                                                                                                                                                                          |                                                 |              |           
|                                           |                                        |                                                                                                                                                                                          | Total current liabilities                       |              |           
|                                           | Long term payable to Novus             |                                                                                                                                                                                          |                                                 |             |           
|                                           |                                        |                                                                                                                                                                                          |                                                 |              |           
|Total Liabilities                          |                                        |                                                                                                                                                                                          | 1,492,427                                       |              |           
|                                           |                                        |                                                                                                                                                                                          |                                                 |              |           
|                                           | Commitments and Contingencies:         |                                                                                                                                                                                          |                                                 |              |           
|                                           |                                        | Redeemable Class "B" Preferred Stock
noncumulative convertible $.01 par value:
authorized 10,000,000 shares; issued and outstanding:
   May 31, 200072,525
   November 30, 200072,525 |                                                 |              | 190,377   
|                                           |                                        |                                                                                                                                                                                          |                                                 |              |           
|                                           | Shareholders' equity:                  |                                                                                                                                                                                          |                                                 |              |           
|                                           |                                        | Class "A" Preferred Stockno par value: authorized 1,000 shares; issued and outstanding:
   May 31, 2000138
   November 30, 2000138                                                    |                                                 |              | 18,636    
|                                           |                                        | Common Stock $.01 par value: authorized 100,000,000 shares;
issued and outstanding:
   May 31, 20002,904,068
   November 30, 20002,944,725                                             |                                                 |              | 29,447    
|                                           |                                        | Treasury stock at cost                                                                                                                                                                   |                                                 |              | (7,254,248
|                                           |                                        | Additional paid-in capital                                                                                                                                                               |                                                 |              | 20,384,741
|                                           |                                        | Retained earnings                                                                                                                                                                        |                                                 |              | 1,572,560 
|                                           |                                        |                                                                                                                                                                                          |                                                 |              |           
|                                           |                                        |                                                                                                                                                                                          | Total Shareholders' Equity                      |              |           
|                                           |                                        |                                                                                                                                                                                          |                                                 |              |           
|Total Liabilities and Shareholders' Equity |                                        | $                                                                                                                                                                                        | 16,433,940                                      |              | $         
|                                           |                                        |                                                                                                                                                                                          |                                                 |              |           

See notes to Unaudited Consolidated Condensed Financial Statements.

3

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ALCIDE CORPORATION    UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

|                                                          |                                       | For the Three Months Ended
November 30, |                    | For the Six Months Ended
November 30 |  
|--------------------------------------------------------- | ------------------------------------- | --------------------------------------- | ------------------ | ------------------------------------ | -
|
|NET SALES                                                 |                                       | $                                       | 4,692,638          |                                      | $
|Expenditures                                              |                                       |                                         |                    |                                      |  
|                                                          | Cost of goods sold                    |                                         |                    | 2,141,622                            |  
|                                                          | Research and development expense      |                                         |                    | 457,934                              |  
|                                                          | Consulting expense to related parties |                                         |                    | 24,000                               |  
|                                                          | Other selling, general/administrative |                                         |                    | 1,151,629                            |  
|                                                          |                                       |                                         |                    |                                      |  
|                                                          |                                       |                                         | Total Expenditures |                                      |  
|                                                          |                                       |                                         |                    |                                      |  
|Operating income (loss)                                   |                                       |                                         | 917,453            |                                      |  
|Interest income                                           |                                       |                                         | 34,638             |                                      |  
|Other income                                              |                                       |                                         |                   |                                      |  
|                                                          |                                       |                                         |                    |                                      |  
|Income (loss) before provision (benefit) for income taxes |                                       |                                         | 952,091            |                                      |  
|Provision (benefit) for income taxes                      |                                       |                                         | 345,610            |                                      |  
|                                                          |                                       |                                         |                    |                                      |  
|Net income (loss)                                         |                                       | $                                       | 606,481            |                                      | $
|                                                          |                                       |                                         |                    |                                      |  
|Basic earnings (loss) per common share                    |                                       | $                                       | .24                |                                      | $
|Diluted earnings (loss) per common share and equivalents  |                                       | $                                       | .23                |                                      | $
|Weighted average common shares outstanding                |                                       |                                         | 2,552,887          |                                      |  
|Weighted average common shares & common share equivalents |                                       |                                         | 2,676,327          |                                      |  

See
Notes to Unaudited Consolidated Condensed Financial Statements.

4

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ALCIDE CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

|                                           |  | Class "A" Preferred Stock |  |   |        |  |           |  |   | Common Stock Treasury |  |   |            | 
|------------------------------------------ |  | ------------------------- |  | - | ------ |  | --------- |  | - | --------------------- |  | - | ---------- | 
|
|
|
|Balance May 31, 2000                       |  | 138                       |  | $ | 18,636 |  | 2,904,068 |  | $ | 29,040                |  | $ | 19,832,668 | 
|Exercise of stock options                  |  |                           |  |   |        |  | 15,027    |  |   | 150                   |  |   | 93,600     | 
|Stock issued for officers' bonuses         |  |                           |  |   |        |  | 13,488    |  |   | 135                   |  |   | 225,265    | 
|Tax benefit from exercise of stock options |  |                           |  |   |        |  |           |  |   |                       |  |   | 56,406     | 
|Net Income                                 |  |                           |  |   |        |  |           |  |   |                       |  |   |            | 
|                                           |  |                           |  |   |        |  |           |  |   |                       |  |   |            | 
|Balance August 31, 2000                    |  | 138                       |  | $ | 18,636 |  | 2,932,583 |  | $ | 29,325                |  | $ | 20,207,939 | 
|Exercise of stock options                  |  |                           |  |   |        |  | 12,142    |  |   | 122                   |  |   | 80,755     | 
|Tax benefit from exercise of stock options |  |                           |  |   |        |  |           |  |   |                       |  |   | 96,047     | 
|Net Income                                 |  |                           |  |   |        |  |           |  |   |                       |  |   |            | 
|                                           |  |                           |  |   |        |  |           |  |   |                       |  |   |            | 
|Balance November 30, 2000                  |  | 138                       |  | $ | 18,636 |  | 2,944,725 |  | $ | 29,447                |  | $ | 20,384,741 | 
|                                           |  |                           |  |   |        |  |           |  |   |                       |  |   |            | 

5

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ALCIDE CORPORATION    UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

|                                                   |                                                                                          | For the Six Months Ended November 30,                                       |                                          
|-------------------------------------------------- | ---------------------------------------------------------------------------------------- | --------------------------------------------------------------------------- | -----------------------------------------
|
|Operating Activities:                              |                                                                                          |                                                                             |                                          
|                                                   | Net income (loss)                                                                        |                                                                             | $                                        
|                                                   | Adjustments to reconcile net income (loss) to net cash provided by operating activities: |                                                                             |                                          
|                                                   |                                                                                          | Depreciation                                                                |                                          
|                                                   |                                                                                          | Amortization of investment premiums                                         |                                          
|                                                   |                                                                                          | Stock bonus to officers                                                     |                                          
|                                                   |                                                                                          | Deferred income taxes                                                       |                                          
|                                                   |                                                                                          | Decrease (increase) in assets:                                              |                                          
|                                                   |                                                                                          |                                                                             | Inventory                                
|                                                   |                                                                                          |                                                                             | Accounts receivabletrade                
|                                                   |                                                                                          |                                                                             | Prepaid income taxes                     
|                                                   |                                                                                          |                                                                             | Prepaid expenses and other current assets
|                                                   |                                                                                          |                                                                             | Long term investments and other assets   
|                                                   |                                                                                          | Increase (decrease) in liabilities:                                         |                                          
|                                                   |                                                                                          |                                                                             | Accounts payable                         
|                                                   |                                                                                          |                                                                             | Accrued expenses                         
|                                                   |                                                                                          |                                                                             | Unearned revenue                         
|                                                   |                                                                                          |                                                                             | Other liabilities                        
|                                                   |                                                                                          |                                                                             |                                          
|                                                   | Net cash provided by operating activities                                                |                                                                             |                                          
|                                                   |                                                                                          |                                                                             |                                          
|Cash Flows from Investing Activities:              |                                                                                          |                                                                             |                                          
|                                                   |                                                                                          | Acquisition of equipment                                                    |                                          
|                                                   |                                                                                          |                                                                             |                                          
|Cash Flows from Financing Activities:              |                                                                                          |                                                                             |                                          
|                                                   |                                                                                          | Purchase of Alcide Common Stock and redemption of Class "A" Preferred Stock |                                          
|                                                   |                                                                                          | Stock Options exercised                                                     |                                          
|                                                   |                                                                                          |                                                                             |                                          
|                                                   |                                                                                          | Net cash provided by (used) in financing activities                         |                                          
|                                                   |                                                                                          |                                                                             |                                          
|                                                   | Net increase (decrease) in cash and cash equivalents                                     |                                                                             |                                          
|                                                   | Cash and cash equivalents at beginning of period                                         |                                                                             |                                          
|                                                   |                                                                                          |                                                                             |                                          
|                                                   | Cash and cash equivalents at end of period                                               |                                                                             | $                                        
|                                                   |                                                                                          |                                                                             |                                          
|Supplemental Disclosures of Cash Flow Information: |                                                                                          |                                                                             |                                          
|                                                   | Cash paid during the period for income taxes                                             |                                                                             |                                          

See
notes to Unaudited Consolidated Condensed Financial Statements.

6

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ALCIDE CORPORATION    NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

1.  Basis of Presentation

In the opinion of management, the accompanying unaudited financial statements of Alcide Corporation (the "Company") as of and for the three and six month
periods ended November 30, 2000 and 1999 have been prepared in accordance with the instructions to Form 10-Q. Certain information and disclosures normally included in notes
to financial statements have been condensed or omitted according to the rules and regulations of the Securities and Exchange Commission, although the Company believes that the disclosures are adequate
to make the information presented not misleading. The accompanying unaudited condensed financial statements should be read in conjunction with the financial statements contained in the Company's
Annual Report on Form 10-K for the year ended May 31, 2000. In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments (consisting of
only normal recurring accruals) considered necessary for a fair presentation. The results of operations for the six month periods are not necessarily indicative of the results to be expected for the
full year.

2.  Inventory consisted of the following:

November 30, 2000

May 31, 2000Finished products

$
242,454

$
212,047Raw materials


529,074


681,049Sanova inventory at customer sites


573,608


510,994Total

$
1,345,136

$
1,404,090


3.  Accounts ReceivableTrade consisted of the following:

November 30, 2000

May 31, 2000IBA, Inc.

$
359,998

$
209,048UMS, Inc.


806,369


472,403International Distributors


476,355


641,021Sanova Customers


1,035,128


1,092,443Other Receivables


83,548


71,131Total Accounts Receivable

$
2,761,398

$
2,486,046


4.  Unearned Revenue

In November, 2000, Alcide agreed to terminate a distribution contract with its animal health distributor in France. The contract contained a
take-or-pay arrangement for fiscal year 2001. In exchange for eliminating this arrangement the distributor paid Alcide $517,489. One-third of the amount was
recognized as revenue in the second quarter. The balance was recorded as unearned revenue and will be recognized over the next two quarters, at which point the distribution agreement ends.

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5.  Taxes

The income tax provision for the six month period ended November 30, 2000 consisted of:

Federal income taxes

$
508,925State income taxes


54,048Total taxes

$
562,973


6.  Earnings Per Share

The Company has adopted Statement of Financial Accounting Standards 128 ("SFAS 128"), "Earnings Per Share" which replaced the calculation of primary and
fully diluted earnings per share with basic and diluted earnings per share. Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding
during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares and common stock equivalents outstanding during the period. Common
stock equivalents of the Company include the dilutive effect of outstanding stock options.

Basic
and Diluted earnings per share were calculated as follows:

|                                                                                                                                                                 |  | Three Months Ended
November 30, |           | Six Months Ended
November 30, |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------- | --------- | ----------------------------- | -
|
|Net income (loss)                                                                                                                                                |  | $                               | 606,481   |                               | $
|Weighted average number of Common Shares outstanding                                                                                                             |  |                                 | 2,552,887 |                               |  
|Basic earnings (loss) per share                                                                                                                                  |  | $                               | .24       |                               | $
|Assuming exercise of options reduced by the number of shares which could have been purchased with the proceeds from exercise of such options (Ø if antidilutive) |  |                                 | 123,440   |                               |  
|                                                                                                                                                                 |  |                                 |           |                               |  
|Weighted average Common Shares outstanding and Common Share equivalents                                                                                          |  |                                 | 2,676,327 |                               |  
|                                                                                                                                                                 |  |                                 |           |                               |  
|Diluted earnings (loss) per share                                                                                                                                |  | $                               | .23       |                               | $

7.  Orders for Future Delivery

At November 30, 2000 and 1999 the Company had orders for future delivery of $886,395 and $1,105,036. The $886,395 in orders for future delivery are
scheduled for shipment during the period December, 2000 through January, 2001. Data for both years excludes expected sales of Sanova to the poultry industry because contracts with Sanova customers do
not require placement of purchase orders for future delivery. Sanova sales are based on product usage reported by the customers after the fact. The 24 customers using the System on November 30,
2000 purchase roughly $735,000 per month.

8.  Segment Information

The Company adopted Statement of Financial Accounting Standards No. 131 (SFAS 131) "Disclosures about Segments of an Enterprise and Related
Information," during 1998. Following the provisions of SFAS 131, the Company is reporting segment information in the same format as reviewed by the Company's management (the "Management
Approach"), which is organized around differences in products and services. During fiscal 2001, management determined that due to the growth of the

8

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Company's Sanova business, the Company now has two reportable segments, Animal Health and Surface Disinfectants and Sanova Food Antimicrobial Products.

The
Company's reportable segments are strategic business units that offer distinct and different products and services. These segments are managed separately because each business
requires different production, management and marketing strategies.

The
accounting policies of the segments are the same as those described in Note 2Summary of Significant Accounting Policies, in the Company's
Form 10-K. The Company evaluates performance based on profit or loss from the sale of each segment's products and does not allocate expenses beyond gross margin to the two segments.

Segment
net sales, gross margin and assets are as follows:

|                                |              | Animal Health and
Surface Disinfectants |           | Sanova Food
Antimicrobial |   | Not Segment
Related |           | Total Company
|------------------------------- | ------------ | --------------------------------------- | --------- | ------------------------- | - | ------------------- | --------- | -------------
|For three months ended 11/30/00 |              |                                         |           |                           |   |                     |           |              
|                                | Net Sales    |                                         | $         | 2,761,044                 |   | $                   | 1,931,594 |              
|                                | Gross Margin |                                         | $         | 1,732,063                 |   | $                   | 818,953   |              
|For six months ended 11/30/00   |              |                                         |           |                           |   |                     |           |              
|                                | Net Sales    |                                         | $         | 5,270,232                 |   | $                   | 3,668,976 |              
|                                | Gross Margin |                                         | $         | 3,362,267                 |   | $                   | 1,416,059 |              
|Total Assets as of 11/30/00     |              | $                                       | 2,480,176 |                           | $ | 10,223,433          |           | $            

Assets
assigned to the business segments include accounts receivable, inventories, fixed assets, and spare parts and components related thereto.

9

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PART I.

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

Introduction

Alcide Corporation (the "Company") is a Delaware Corporation organized in 1983 which has its executive offices and research laboratories at 8561 154th Avenue
N.E., Redmond, Washington 98052.

Alcide
is engaged in the research, development and commercialization of unique chemical compounds having intense microbiocidal activity. The Company holds substantial worldwide rights
to its discoveries through various patents, patent applications, trademarks and other intellectual property, technology, and know-how.

This
report includes forward-looking statements which involve risk and uncertainty including, without limitation, risk of dependence on patents and trademarks, third party suppliers,
market acceptance of and demand for the Company's products, distribution capabilities, development of technology and regulatory approval thereof. Sentences or phrases that use the words such as
"believes," "anticipates," "hopes," "plans," "may," "can," "will," "expects," and others, are often used to flag such forward-looking statements, but their absence does not mean a statement is not
forward-looking. Such statements reflect management's current opinion and are designed to help readers understand management's thinking. By their very nature, however, such statements are subject to
certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements which
speak only as of the date hereof. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after
the date hereof, or to reflect the occurrence of unanticipated events.

Financial Condition and Results of Operations

Net sales for the three month and six month periods ended November 30, 2000, and November 30, 1999 are expressed in the table below:

|                                        |  | Three Months Ended
November 30, |           | Six Months Ended
November 30,
|--------------------------------------- |  | ------------------------------- | --------- | -----------------------------
|
|Animal Health and Surface Disinfectants |  | $                               | 2,761,044 |                              
|Sanova Food Antimicrobial               |  |                                 | 1,931,594 |                              
|                                        |  |                                 |           |                              
|Total                                   |  | $                               | 4,692,638 |                              
|                                        |  |                                 |           |                              

Net
sales of $4,692,638 for the quarter and $8,939,208 for the six month period ending November 30, 2000 were the highest for any quarter or six month period in Alcide's
history, and were 58% and 59% higher than for the respective periods last year.

The
Company's animal health and surface disinfectant sales for the quarter ended November 30, 2000 were $2,761,044, an increase of $646,245, 31%, when compared to the second
quarter sales last year. Sales to U.S. distributors were up 29% for the quarter, while sales to international distributors gained 38%. Animal health and surface disinfectant sales for the six month
period totaled $5,270,232, an improvement of $968,176, 23%, when compared to six month performance a year ago. It is believed that at least a portion of the increase for both the quarter and six month
periods is attributable to
replenishment of distributor inventories, and therefore the six month improvements vs. last year may not be projectable for the entire year.

Two
animal health distributors had sales greater than 10% of total sales for both the quarter and half year periods ended November 30, 2000. Their combined sales for the three
month period were

10

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$1,963,509 as compared to $1,431,790 for the equivalent period last year. Combined first half sales for the two distributors were $3,681,388, a 23% increase over the $2,993,132 sales to the same
distributors during the first half of last year.

Sales
of Sanova food antimicrobial to the poultry industry totaled $1,931,594 for the quarter, an increase of $1,085,572 compared to the second fiscal quarter last year, and $194,212,
11% higher than this year's first quarter sales, as this new Alcide business continued to expand rapidly. At the end of the quarter 24 plants, processing approximately 4.3 billion pounds of
poultry annually and representing roughly 14% of the total U.S. poultry market, were utilizing the Sanova System to improve the quality of their product. One additional plant has started since the end
of the quarter, and Alcide has contracts for future installations at four plants, bringing the total to 29 poultry plants under contract. Sanova sales for the six month period ended
November 30, 2000 were $3,668,976, an increase of $2,335,813 compared to the equivalent six month period last year.

Cost
of goods sold were 46% of net sales for the quarter and 47% of net sales for the six month period ended November 30, 2000. This is a substantial reduction from the 63% of
net sales during the quarter and half year last year, and reflects primarily a reduction in Sanova cost of goods.

Research
and development expenses for the quarter ended November 30, 2000 were $457,934 as compared to $498,204 for the same period last year. First half research and
development expenses were $794,531, 17% lower than expenses of $952,642 for the first half last year. This decrease is primarily due to reduced testing to support Sanova validation trials in
commercial slaughter plants.

Other
selling, general and administrative expenses were $1,151,629 for the quarter ended November 30, 2000, a 22% increase from the $944,567 for the first quarter last year.
Six month expenses of $2,464,981 were 16% higher than first half expenses last year. The increase reflects costs incurred to establish Alcide Food Safety's operations and engineering office and to
recruit staff to replace engineering, design and startup services which were previously purchased from outside consultants.

Interest
income was $34,638 for the quarter and $71,307 for the six month period ended November 30, 2000, as compared to $63,370 and $141,370 for the respective periods a year
ago. The decreased amounts of interest income result essentially from lower investible cash resources as compared to the equivalent periods a year ago.

Liquidity and Capital Resources

The Company's cash, cash equivalents and U.S. Treasury investments (included in long term investments and other assets) totaled $2,555,872 on
November 30, 2000, an amount $258,893 higher than at the end of the previous fiscal year. Net cash provided by operating activities during the six month period was $2,658,667, offsetting a
$2,573,899 investment in equipment to support the Company's growing food safety business. In addition, $174,627 cash was realized from the exercise of stock options.

Alcide
has negotiated a $10 million unrestricted line of credit from US Bank as a backup source of capital, if needed, to support Alcide's growing food safety business. The
Company has not drawn on the credit line.

Outlook



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ITEM 3.Legal Proceeding

On November 30, 2000 the Company was notified by the United States Court of Appeals for the Federal Circuit that the Company's appeal of the District
Court decision in Alcide's patent infringement suit against ABS Global, Inc., Ecolab, Inc. and others, was decided in favor of the defendants. The original lawsuit dates back over two
years and involved a patent which has since expired in May, 1999. As the patent expired during the legal review process, the Court of Appeals decision has no competitive or strategic impact on Alcide.
The Company was suing for damages which occurred during a seven month period prior to patent expiration. All of the Company's legal fees in bringing this lawsuit were expensed in prior periods.

ITEM 4.Submission of Matters to a Vote of Security Holders

Shareholders voted on two proposals at the Annual Meeting of stockholders on October 19, 2000, as described in the Company's proxy statement.



For

Withheld
AuthorityThomas L. Kempner

2,248,388

18,977Kenneth N. May, Ph.D.

2,251,734

15,631Joseph A. Sasenick

2,054,209

213,156William G. Spears

2,251,314

16,051




For

Against

Abstain2,149,243

7,683

110,439


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PART II.    OTHER INFORMATION

ITEM 6.Exhibits and Reports on Form 8-K

None.

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SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) 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.

|                       |  | ALCIDE CORPORATION The Registrant
|---------------------- |  | ---------------------------------
|Date: January 11, 2001 |  | By                               

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