UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                                   (MARK ONE)

[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2002

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

      FOR THE TRANSITION PERIOD FROM ________TO__________

                         Commission File Number: 022597

                                  CIMNET, INC.
               (Exact name of registrant as specified in charter)


          DE                                                 52-2075851
--------------------------------------------------------------------------------
 State or other jurisdiction of                          (I.R.S. Employer
 incorporation or organization                         Identification Number)


946 W. Penn Avenue, Robesonia, Pennsylvania                     19551
--------------------------------------------------------------------------------
(Address of principal executive offices)                      (Zip Code)

                                 (610) 693-3114
                                 --------------
                (Issuer's telephone number, including area code)

Check whether the Issuer (1) filed all reports required to be filed by section
13 or 15(d) of the Exchange Act during the past 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 [ ]

As of November 13, 2002, there were 6,292,321 shares of common stock, par value
$.0001 per share, issued and outstanding.

<PAGE>

                                  CIMNET, INC.
                                   FORM 10-QSB
                                QUARTERLY REPORT
                               SEPTEMBER 30, 2002

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
PART I - FINANCIAL INFORMATION
------------------------------

Item 1   Financial Statements
           Balance Sheets                                                     1
           Statements of Operations                                           2
           Statements of Cash Flows                                           3
           Notes to Financial Statements                                      4

Item 2   Management's Discussion and Analysis of Financial Condition
         and Results of Operations                                            7

Item 3   Controls and Procedures                                             12

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

Item 1   Legal Proceedings                                                   13

Item 2   Changes in Securities and Use of Proceeds                           13

Item 3   Defaults Upon Senior Securities                                     13

Item 4   Submission of Matters to Vote of Securities Holders                 13

Item 5   Other Information                                                   13

Item 6   Exhibits and Reports on Form 8-K                                    13

Signatures                                                                   14


<PAGE>

                                  CIMNET, INC.
                                 BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                                 September 30,  December 31,
                                                                                     2002           2001
                                                                                 ------------   ------------
                                                                                 (Unaudited)
<S>                                                                              <C>            <C>
CURRENT ASSETS
  Cash and cash equivalents                                                      $    384,905   $  1,093,153
  Available for sale securities                                                       170,526        475,015
  Accounts receivable, net of allowance of $26,016 and $60,000 at
    September 30, 2002 and December 31, 2001, respectively                            494,401      2,222,716
  Inventories                                                                         134,683        135,987
  Prepaid expenses                                                                     73,529        108,023
  Prepaid income taxes                                                                  8,204              0
  Deferred tax assets                                                                 784,908        223,002
                                                                                 ------------   ------------

    Total Current Assets                                                            2,051,156      4,257,896

PROPERTY AND EQUIPMENT, NET                                                           722,397        578,986
GOODWILL                                                                            2,364,145      2,364,145
OTHER ASSETS                                                                           52,500         27,500
                                                                                 ------------   ------------

                                                                                 $  5,190,198   $  7,228,527
                                                                                 ============   ============
                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Current portion of long-term debt                                              $     41,000   $     42,913
  Accounts payable                                                                    161,078        332,799
  Accrued expenses                                                                    156,673         98,623
  Accrued income taxes                                                                      0        242,077
  Deferred income                                                                     719,699      1,101,134
                                                                                 ------------   ------------

    Total Current Liabilities                                                       1,078,450      1,817,546

LONG-TERM DEBT, NET OF CURRENT PORTION                                                189,644        216,254
DEFERRED INCOME TAX LIABILITY                                                          55,228         16,968
                                                                                 ------------   ------------

                                                                                    1,323,322      2,050,768
                                                                                 ------------   ------------
STOCKHOLDERS' EQUITY
  Common stock, 15,000,000 shares authorized at $.0001 par value; 6,292,321
    and 6,282,321 shares issued and outstanding at September 30, 2002 and
    December 31, 2001, respectively                                                       629            628
  Preferred stock, $.0001 8% cumulative convertible; 5,000,000 shares
    authorized; 746,965 shares issued and outstanding at September 30, 2002
    and December 31, 2001                                                                  75             75
  Paid-in capital                                                                   5,393,190      5,321,764
  Retained earnings (deficit)                                                        (912,234)        88,269
  Accumulated other comprehensive loss                                               (454,437)       (13,605)
  Deferred compensation                                                              (160,347)      (219,372)
                                                                                 ------------   ------------

                                                                                    3,866,876      5,177,759
                                                                                 ------------   ------------

                                                                                 $  5,190,198   $  7,228,527
                                                                                 ============   ============
</TABLE>

The accompanying notes are an integral part of these statements.

                                       1
<PAGE>

                                  CIMNET, INC.
                            STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                               Three Months Ended             Nine Months Ended
                                                                  September 30,                 September 30,
                                                           --------------------------    --------------------------
                                                               2002           2001           2002           2001
                                                           -----------    -----------    -----------    -----------
                                                                   (Unaudited)                   (Unaudited)
<S>                                                        <C>            <C>            <C>            <C>
NET SALES                                                  $   643,818    $ 1,871,498    $ 2,964,435    $ 6,160,700

COST OF GOODS SOLD                                             149,757        146,778        421,493        905,048
                                                           -----------    -----------    -----------    -----------

      Gross Profit                                             494,061      1,724,720      2,542,942      5,255,652
                                                           -----------    -----------    -----------    -----------
OPERATING EXPENSES
  Selling, general and administrative                          793,622        736,598      2,552,325      1,953,133
  Research and development                                     508,710        573,366      1,668,088      1,347,079
  Amortization of goodwill                                           0         44,606              0        133,818
                                                           -----------    -----------    -----------    -----------

      Total Operating Expenses                               1,302,332      1,354,570      4,220,413      3,434,030
                                                           -----------    -----------    -----------    -----------

      Operating Income (Loss)                                 (808,271)       370,150     (1,677,471)     1,821,622
                                                           -----------    -----------    -----------    -----------
NONOPERATING INCOME (EXPENSES)
  Interest expense, net                                          2,599           (560)       (13,284)       (13,815)
  Other income                                                   7,328         12,758        135,126         12,758
                                                           -----------    -----------    -----------    -----------

      Total Nonoperating Income (Expenses)                       9,927         12,198        121,842         (1,057)
                                                           -----------    -----------    -----------    -----------

      Income (Loss) before Income Tax (Benefit) Expense       (798,344)       382,348     (1,555,629)     1,820,565

INCOME TAX (BENEFIT) EXPENSE                                  (395,484)       108,122       (648,633)       606,040
                                                           -----------    -----------    -----------    -----------

      Net Income (Loss)                                    $  (402,860)   $   274,226    $  (906,996)   $ 1,214,525
                                                           ===========    ===========    ===========    ===========
NET INCOME (LOSS) PER COMMON SHARE
  Basic                                                    $     (0.07)   $      0.04    $     (0.16)   $      0.20
                                                           ===========    ===========    ===========    ===========

  Diluted                                                  $     (0.07)   $      0.04    $     (0.16)   $      0.19
                                                           ===========    ===========    ===========    ===========
</TABLE>

The accompanying notes are an integral part of these statements.

                                       2
<PAGE>

                                  CIMNET, INC.
                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>

                                   (Unaudited)


                                                                               Nine Months Ended
                                                                                 September 30,
                                                                          --------------------------
                                                                              2002           2001
                                                                          -----------    -----------
<S>                                                                       <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net income (loss)                                                      $  (906,996)   $ 1,214,525
   Adjustments to reconcile net income (loss) to net cash provided by
     (used in) operating activities:
     Depreciation and amortization                                             98,816        171,845
     Realized gain on sale of securities                                      (83,387)             0
     Deferred income tax benefit                                             (532,492)       (94,622)
     Stock warrants - sales commitments                                       (27,500)             0
     Stock options - employees                                                 60,203        268,199
     Stock options and warrants - consulting and legal services                63,742              0
     (Increase) decrease in assets:
          Accounts receivable                                               1,728,315     (1,019,386)
          Inventories                                                           1,304        (54,080)
          Prepaid expenses                                                     26,290         53,549
     Increase (decrease) in liabilities:
          Accounts payable                                                   (171,721)        56,279
          Accrued expenses                                                   (244,027)        26,526
          Deferred income                                                    (381,435)       (43,795)
          Due to related party                                                      0        (10,000)
                                                                          -----------    -----------

     Net Cash Provided by (Used in) Operating Activities                     (368,888)       569,040
                                                                          -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES
   Investment in limited partnership                                          (25,000)             0
   Purchase of property and equipment                                        (242,227)       (68,774)
   Purchase of available for sale securities                               (1,288,268)             0
   Proceeds from the sale of available for sale securities                  1,244,158              0
                                                                          -----------    -----------

     Net Cash Used in Investing Activities                                   (311,337)       (68,774)
                                                                          -----------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES
   Proceeds from issuance of preferred stock and warrants                           0      1,000,000
   Net proceeds from (payments on) line of credit                                   0       (208,500)
   Principal payments on long-term borrowings                                 (28,523)        (7,898)
   Proceeds on exercise of stock options and stock warrants                       500        135,391
                                                                          -----------    -----------

      Net Cash Provided by (Used in) Financing Activities                     (28,023)       918,993
                                                                          -----------    -----------

      Net Increase (Decrease) in Cash and Cash Equivalents                   (708,248)     1,419,259

CASH AND CASH EQUIVALENTS - BEGINNING                                       1,093,153          7,951
                                                                          -----------    -----------

CASH AND CASH EQUIVALENTS - ENDING                                        $   384,905    $ 1,427,210
                                                                          ===========    ===========
</TABLE>

The accompanying notes are an integral part of these statements.

                                       3
<PAGE>

                                  CIMNET, INC.
                          NOTES TO FINANCIAL STATEMENTS

                                   (Unaudited)

NOTE 1 - BASIS OF PRESENTATION

               The accompanying unaudited financial statements have been
         prepared in accordance with accounting principles generally accepted in
         the United States of America. Certain information and footnote
         disclosures normally included in financial statements under accounting
         principles generally accepted in the United States of America have been
         condensed or omitted pursuant to the Securities and Exchange Commission
         rules and regulations. These financial statements should be read in
         conjunction with the financial statements and notes thereto included in
         Form 10-KSB for the fiscal year ended December 31, 2001. In the opinion
         of management, all adjustments (consisting only of normal recurring
         adjustments) necessary for a fair presentation of the financial
         statements have been included. The results of operations for the three
         and nine months ended September 30, 2002 are not necessarily indicative
         of the results which may be expected for the entire fiscal year.

NOTE 2 - RECENT ACCOUNTING PRONOUNCEMENTS

               Effective as of January 1, 2002, the Company adopted Statement of
         Financial Accounting Standards ("SFAS") No. 142, "Goodwill and Other
         Intangible Assets." Under SFAS No. 142, goodwill and other intangible
         assets with indefinite lives are no longer amortized but are reviewed
         annually, or more frequently if impairment indicators arise. It also
         required the Company to complete a transitional impairment test by six
         months from the date of adoption. During the second quarter of 2002,
         the Company completed the transitional impairment test. The estimated
         value of the Company exceeded its book value. As a result, no
         write-down of goodwill was required as of January 1, 2002.

               The following table reflects unaudited pro forma results of
         operations of the Company, giving effect to SFAS No. 142, as if it were
         adopted on January 1, 2001:

                                                          Nine Months Ended
                                                            September 30,
                                                      -------------------------
                                                         2002           2001
                                                      ----------     ----------
               Net income (loss), as reported         $ (906,966)    $1,214,525
               Add back amortization expense                   0        133,818
                                                      ----------     ----------

                   Pro Forma Net Income (Loss)        $ (906,996)    $1,348,343
                                                      ==========     ==========
               Basic earnings per common share:
                   As reported                        $    (0.16)    $     0.20
                   Pro forma                          $    (0.16)    $     0.22

                                       4
<PAGE>

                                  CIMNET, INC.
                          NOTES TO FINANCIAL STATEMENTS

                                   (Unaudited)

NOTE 2 - RECENT ACCOUNTING PRONOUNCEMENTS (CONTINUED)

               In April 2002, the Financial Accounting Standards Board issued
         Statement No. 145, "Rescission of Statements No. 4, 44 and 64,
         Amendment of Statement No. 13." This statement requires that debt
         extinguishment no longer be classified as an extraordinary item since
         debt extinguishment has become a risk management strategy for many
         companies. It also eliminates the inconsistent accounting treatment for
         sale-leaseback transactions and certain lease modifications that have
         economic effects similar to sale-leaseback transactions. This statement
         became effective May 15, 2002 and did not have a significant impact on
         the Company's financial condition or results of operations.

               In June 2002, the Financial Accounting Standards Board issued
         Statement No. 146, "Accounting for Costs Associated with Exit or
         Disposal Activities," which nullifies EITF Issue 94-3, "Liability
         Recognition for Certain Employee Termination Benefits and Other Costs
         to Exit an Activity (including certain costs incurred in a
         restructuring)." This statement delays recognition of these costs until
         liabilities are incurred and requires fair value measurement. It does
         not impact the recognition of liabilities incurred in connection with a
         business combination or the disposal of long-lived assets. The
         provisions of this statement are effective for exit or disposal
         activities initiated after December 31, 2002 and are not expected to
         have a significant impact on the Company's financial condition or
         results of operations.

NOTE 3 - NET INCOME PER COMMON SHARE

               Basic net income (loss) per common share is calculated by
         dividing net income (loss) less preferred stock dividends and the
         accretion of the discount on preferred stock by the weighted average
         number of shares of common stock outstanding. Diluted net income per
         share is calculated by adjusting the weighted average number of shares
         of common stock outstanding to include the effect of stock options and
         warrants, if dilutive, using the treasury stock method and the effect
         of convertible preferred shares outstanding, using the if-converted
         method.

                                       5
<PAGE>

                                  CIMNET, INC.
                          NOTES TO FINANCIAL STATEMENTS

                                   (Unaudited)

NOTE 3 - NET INCOME PER COMMON SHARE (CONTINUED)

               The Company's calculation of net income per common share in
         accordance with SFAS No. 128 for the nine months ended September 30,
         2002 is as follows:
<TABLE>
<CAPTION>

                                                                    Weighted Average
                                                        Income            Shares       Per Share
                                                      (Numerator)     (Denominator)     Amount
                                                     ------------     ------------   ------------
<S>                                                  <C>                 <C>         <C>
         Basic and diluted earnings per share:
            Net loss                                 $   (906,996)

            Preferred stock dividends                     (60,000)
            Accretion of preferred stock discount         (33,507)
                                                     ------------
            Net loss available to common
               stockholders                          $ (1,000,503)       6,290,062   $      (0.16)
                                                     ============     ============   ============
</TABLE>

               A total of 1,402,500 common stock options and warrants and
         746,965 shares of convertible preferred stock were not included in the
         computation of diluted earnings per share because of their
         anti-dilutive effect.

NOTE 4 - COMPREHENSIVE INCOME

               Total comprehensive income (loss) was $(1,347,828) and $1,214,525
         for the nine months ended September 30, 2002 and 2001, respectively.
         Comprehensive income differed from net income for the nine months ended
         September 30, 2002 as a result of changes in the unrealized gains and
         losses on the Company's available for sale securities.

               Total comprehensive income (loss) was $(669,276) and $274,226 for
         the three months ended September 30, 2002 and 2001, respectively.
         Comprehensive income differed from net income for the three months
         ended September 30, 2002 as a result of changes in unrealized gains and
         losses on the Company's available for sale securities.

Note 5. - INCOME TAXES

               The income tax benefit for the three months ended September 30,
         2002 differs from that which would be attributable to US Federal
         statutary income tax rates due primarily to the effect of benefits
         recorded for research and development credits.

                                       6
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

               This section presents a review of the Company's financial
         condition and results of operations and is intended to assist in the
         understanding and evaluating of major changes in the Company's
         financial position and earnings.

               In addition to historical information, this discussion and
         analysis contains forward-looking statements. The forward-looking
         statements contained herein are subject to certain risks and
         uncertainties that could cause actual results to differ materially from
         those projected in the forward-looking statements. Readers are
         cautioned not to place undue reliance on these forward-looking
         statements, which reflect management's analysis only as of the date
         hereof. The Company undertakes no obligation to publicly revise or
         update these forward-looking statements to reflect events or
         circumstances that arise after the date hereof.

RESULTS OF OPERATIONS - NINE MONTHS ENDED SEPTEMBER 30, 2002

               Net sales for the nine months ended September 30, 2002 decreased
         by 51.9% to $2,964,435 or $3,196,265 below net sales for the nine
         months ended September 30, 2001. This decrease is the result of reduced
         orders for its Manufacturing Execution System (MES) software from one
         major customer. Sales to this customer were $1,239,933 and $4,501,923
         for the nine months ended September 30, 2002 and 2001, respectively

               Costs of goods sold for the first nine months of 2002 were
         $421,493 compared to $905,048 for the same period in 2001, a decrease
         of $483,555 or 53.4%. This decrease in costs of goods sold is related
         to the decrease in sales and the related decrease in the need for third
         party field engineers for implementation of the Company's software
         products.

               Gross profit for the first nine months of 2002 was $2,542,942
         compared to $5,255,652 for the first nine months of 2001, a decrease of
         $2,712,710 or 51.6%. This decrease is primarily due to the decrease in
         sales. The percentage of cost of goods sold was 14.2% of net sales in
         2002 as compared to 14.7% of net sales in 2001. This decrease is due to
         the related substantial decrease for the need of third party field
         engineers for implementation of the Company's software products.

               Selling, general and administrative expenses for the first nine
         months of 2002 were $2,552,325 or 86.1% of net sales compared to
         $1,953,133 or 31.7% of net sales in 2001. Specifically the changes in
         the following categories were primarily attributable to this increase:
         Salaries increased by $281,663 due to an increase in the number of
         employees, and commission expense decreased by $113,501 due to the
         decrease in gross revenue. Advertising cost increased by $156,428 due
         to the Company's marketing efforts for its new product,
         "Factelligence". Travel and entertainment costs increased by $146,876
         due to the Company being unable to recover certain costs from customers
         on certain of its installation and maintenance contracts. Trade show
         expenses increased by $85,737 as a result of the Company attending
         several trade shows and the associated expenses for these trade shows
         during the first nine months of the year. Independent contractor fees
         decreased by $165,134 due to the fair value of stock options and
         warrants granted to a certain consultant decreasing during 2002.
         Depreciation expense increased by $60,789 as a result of the Company's
         purchase of a partial ownership interest in an aircraft at the end of
         2001 and other property and equipment acquired during 2002.

               Research and development costs for the first nine months of 2002
         were $1,668,088 or 56.3% of net sales compared to $1,347,079 or 21.9%
         of net sales in 2001. The primary reason for this increase is due to
         salaries increasing by $409,337. This is due to an increase in the
         number of software developers engaged in the design of the Company's
         new product, "Factelligence". Other research and development expenses
         decreased by $173,163 as compared to 2001. This decrease is due to
         certain independent contractors previously being engaged through an
         agency being directly employed by the Company.

               Starting in 2002, the Company is no longer amortizing goodwill.
         Amortization for the nine months ended June 30, 2001 was $133,818. This
         change was attributable to the Company's adoption of Statement of
         Financial Accounting Standards No. 142, "Goodwill and Other Intangible

                                       7
<PAGE>

         Assets," under which the Company no longer amortizes goodwill. For a
         further discussion of this change, see Note 2 to the Company's
         financial statements.

               Loss from operations for the nine months ended September 30, 2002
         was $(1,677,471) compared to income of $1,821,622 for the nine months
         ended September 30, 2001, a decrease of $3,499,093. This decrease is
         predominantly due to the previously discussed increase in operating
         expenses along with the decrease in net sales.

               Interest expense for the first six months of 2002 was $13,284 or
         0.4% of net sales, compared to $13,815 or 0.2% of net sales for the
         first nine months of 2001. In the first nine months of 2002, other
         income included realized gains on the sale of securities of $83,387 or
         2.8% of net sales and rental revenue of $39,424 or 1.3% of net sales in
         addition to interest earned on cash balances with the bank. There were
         no such sales of securities or rental income during the first nine
         months of 2001.

               Provision (benefit) for income taxes for the nine months ended
         September 30, 2002 was $(648,633) compared to $606,040 for the nine
         months ended September 30, 2001 due primarily to the fact the Company
         had a net loss for the nine months ended September 30, 2002.

               Net loss for the nine months ended September 30, 2002 was
         $(906,996) or $(0.16) per basic and diluted share as compared to a net
         income of $1,214,525 or $0.20 per basic share and $0.19 per diluted
         share for the nine months ended September 30, 2001.

                                       8
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (CONTINUED)

RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 2002

               Net sales for the three months ended September 30, 2002 decreased
         by 65.6% to $643,818 or $1,227,680 below net sales for the three months
         ended September 30, 2001. This decrease is the result of reduced orders
         for its Manufacturing Execution System (MES) software from one major
         customer. Sales to this customer were $207,045 and $1,266,403 for the
         three months ended September 30, 2002 and 2001, respectively.

               Costs of goods sold for the third quarter of 2002 were $149,757
         compared to $146,778 for the similar quarter of 2001, an increase of
         $2,979 or 2.0%.

               Gross profit for the three months ended September 30, 2002 was
         $494,061 compared to $1,724,720 for the three months ended September 30
         2001, a decrease of $1,230,659 or 71.4%. This decrease is primarily due
         to the decrease in sales. The percentage of cost of goods sold was
         23.3% of net sales for the 2002 period as compared to 7.8% for the same
         period in 2001. This change is due to an increase of 4.8% in hardware
         sales in the three months ended September 30, 2002 as compared to the
         same period in 2001.

               Selling, general and administrative expenses for the three months
         ended September 30, 2002 were $793,622 or 123.3% of net sales compared
         to $736,598 or 39.4% of net sales in the same period of 2001.
         Specifically, the changes in the following categories were primarily
         attributable to this increase; salaries increased by $75,935 due to an
         increase in the number of employees; commission expense decreased by
         $41,009 due to the decrease in net sales. Advertising cost increased by
         $48,216 due to the Company's marketing efforts for its new product,
         "Factelligence". Travel and entertainment costs increased by $26,770
         due to increase in travel for sale and promotion of the new product,
         "Factelligence". Trade show expenses increased by $32,322 as a result
         of the Company attending several trade shows during the third quarter
         of 2002 and the associated expenses for these trade shows. Independent
         contractor fees decreased by $132,253 due to the fair value of stock
         options and warrants granted to a certain consultant decreasing during
         2002. Depreciation expense increased by $33,157 as a result of the
         Company's purchase of a partial ownership interest in an aircraft at
         the end of 2001 and other property and equipment acquired during 2002.

               Research and development costs for the three months ended
         September 30, 2002 were $508,710 or 79.0% of net sales compared to
         $573,366 or 30.6% of net sales in 2001. Salaries increased by $83,611
         due to an increase in the number of software developers engaged in the
         design of the new product, "Factelligence." Other research and
         development expenses decreased by $165,749 as compared to 2001 due to
         certain independent contractors previously engaged through an agency
         being directly employed by the Company.

               Starting in 2002, the Company is no longer amortizing goodwill.
         Amortization for the three months ended September 30, 2001 was $44,606.
         This change was attributable to the Company's adoption of Statement of
         Financial Accounting Standards No. 142, "Goodwill and Other Intangible
         Assets," under which the Company no longer amortizes goodwill. For a
         further discussion of this change, see Note 2 to the Company's
         financial statements.

                                       9
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (CONTINUED)

RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 2002 (CONTINUED)

               Loss from operations for the three months ended September 30,
         2002 was $(808,271) compared to income of $370,150 for the three months
         ended September 30, 2001, a decrease of $1,178,421. This decrease is
         predominantly due to the previously discussed decrease in net sales.

               Provision (benefit) for income taxes for the three months ended
         September 30, 2002 was $(402,860) compared to $108,122 for the three
         months ended September 30, 2001. This is due to the Company's net loss
         during the second quarter of 2002.

               Net loss for the three months ended September 30, 2002 was
         $(402,860) or $(0.07) per basic and diluted share as compared to a net
         income of $274,226 or $0.04 per basic and diluted share for the three
         months ended September 30, 2001.

LIQUIDITY AND CAPITAL RESOURCES

               At September 30, 2002, the Company had current assets of
         $2,051,156 as compared to $4,257,896 at December 31, 2001. This
         decrease is primarily due to a decrease of $708,248 in cash to
         subsidize the increase in operating costs, a decrease of $304,489 in
         the value of available for sale securities as a result of the decrease
         in market value, and a decrease of $1,728,315 in accounts receivable
         primarily as a result of the reduced sales to one customer in 2002.
         Current liabilities decreased $739,096 at September 30, 2002 from
         amounts at December 31, 2001. This decrease is due to the paying down
         of accounts payable with cash provided from collections on accounts
         receivable, the decrease in deferred income due to a significant
         contract not being present at September 30, 2002 that was ongoing at
         December 31, 2001, and the decrease in income tax liability due to the
         tax payments made during 2002 and the expected benefits of research and
         development tax credits to be received.

OPERATING ACTIVITIES

               Cash provided by (used in) operations for the nine months ended
         September 30, 2002 and 2001 was $(368,888) and $569,040, respectively.
         The decrease in cash provided by operations in 2002 was due primarily
         to a decrease in net income of $2,121,521 for the nine months ended
         September 30, 2002 over the same period for 2001 and the collection of
         $2,747,701 more in accounts receivable than the same period for 2001.
         The Company utilized this additional cash to pay off vendors and fund
         expenditures necessary to earn the income deferred at December 31,
         2001.

INVESTING ACTIVITIES

               Investing activities consumed $311,337 and $68,774 for the nine
         months ended September 30, 2002 and 2001, respectively. In 2002, the
         Company purchased and constructed $242,227 of property and equipment as
         compared to only $68,774 in 2001. The Company increased its investment
         in a limited partnership by $25,000 during 2002, and also consumed
         $44,110 in cash related to net transactions in available for sale
         securities.

                                       10
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (CONTINUED)

FINANCING ACTIVITIES

               Financing activities consumed $28,523 in cash for the nine months
         ended September 30, 2002 compared to providing $918,993 for the same
         period in 2001, a decrease of $947,016. This decrease is due to the
         Company's obtaining proceeds from the issuance of preferred stock for
         $1,000,000 during September 2001. This did not occur during 2002.

CAPITAL RESOURCES

               The Company has a line of credit with its bank. As of September
         30, 2002, the Company had approximately $300,000 of unused credit
         available on its line of credit, subject to a borrowing base formula.
         The Company has met all financial covenants in its loan documents.

               The Company has no material commitments for capital expenditures
         and believes that its cash from operations, existing balances and its
         available credit line will be sufficient to satisfy the needs of its
         operations and its capital commitments for the foreseeable future.
         However, if the need arose, the Company would seek to obtain capital
         from such sources as continuing debt financing or equity financing.

                                       11
<PAGE>

ITEM 3.  CONTROLS AND PROCEDURES

               Within the 90 days prior to the date of this report, the Company
         carried out an evaluation, under the supervision and with the
         participation of the Company's management, including the Company's
         Chief Executive Officer and Principal Accounting Officer, of the
         effectiveness of the design and operation of the Company's disclosure
         controls and procedures, as defined in Exchange Act Rules 13a-14(c) and
         15d-14(c). Based upon that evaluation, the Company's Chief Executive
         Officer and Principal Accounting Officer concluded that the Company's
         disclosure controls and procedures are effective in enabling the
         Company to record, process, summarize and report information required
         to be included in the Company's periodic SEC filings within the
         required time period.

               There have been no significant changes in the Company's internal
         controls or in other factors that could significantly affect internal
         controls subsequent to the date the Company carried out its evaluation.

                                       12
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS - None

ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS - None

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES - None

ITEM 4 - SUBMISSION OF MATTERS TO VOTE OF SECURITIES HOLDERS - None

ITEM 5 - OTHER INFORMATION - None

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

         a.    Exhibits

               99.1 Certificate of Officer Pursuant to the Sarbanes-Oxley Act
               of 2002

         b.    Reports on Form 8-K - None

                                      13
<PAGE>

                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, this report has been signed below by the following person on behalf of
the Registrant and in the capacities and on the dates indicated:


Dated:   November 13, 2002
         Robesonia, Pennsylvania


                                       CIMNET, INC.

                                       BY: /s/ JOHN D. RICHARDSON
                                           -------------------------------------
                                           John D. Richardson
                                           Chairman of the Board,
                                           Chief Executive Officer and
                                           Chief Accounting Officer


                                       14
<PAGE>

                                  CERTIFICATION
            Pursuant to Section 302 of the Sarbanes Oxley Act of 2002

I, John D. Richardson, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of Cimnet, Inc.;

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   I am responsible for establishing and maintaining disclosure controls and
     procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the
     registrant and I have:

     a)  designed such internal controls to ensure that material information
         relating to the registrant (the "Company") is made known to me by
         others within the Company, particularly during the period in which this
         quarterly report is being prepared;

     b)  evaluated the effectiveness of the registrant's internal controls as of
         a date within 90 days prior to the filing date of this quarterly report
         (the "Evaluation Date"); and

     c)  presented in this quarterly report my conclusions about the
         effectiveness of the disclosure controls and procedures based on my
         evaluation as of the Evaluation Date;

5.   I have disclosed, based on our most recent evaluation, to the registrant's
     auditors and the audit committee of the registrant's board of directors:

     a)  all significant deficiencies (if any) in the design or operation of
         internal controls which could adversely affect the registrant's ability
         to record, process, summarize and report financial data and have
         identified for the registrant's auditors any material weaknesses in
         internal controls; and

     b)  any fraud, whether or not material, that involves management or other
         employees who have a significant role in the registrant's internal
         controls; and

6.   I have indicated in this quarterly report whether or not there were
     significant changes in internal controls or in other factors that could
     significantly affect internal controls subsequent to the date of our most
     recent evaluation, including any corrective actions with regard to
     significant deficiencies and material weaknesses.

Date: November 13, 2002

/s/ JOHN D. RICHARDSON
----------------------------------
John D. Richardson
Chief Executive Officer and Principal Accounting Officer

                                       15