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, 2003

[ ]      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 12, 2003, there were 6,292,321 shares of common stock, par value
$.0001 per share, issued and outstanding.

<PAGE>

                                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                               9

Item 3     Controls and Procedures                                           14


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

Item 1     Legal Proceedings                                                 15

Item 2     Change in Securities                                              15

Item 3     Default upon Senior Securities                                    15

Item 4     Submission of Matters to Vote of Security Holders                 15

Item 5     Other Information                                                 15

Item 6     Exhibits and Reports on Form 8-K                                  15

Signatures

Certification

Exhibit 99.1

<PAGE>

                                  CIMNET, INC.

                                 BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                                        September 30,  December 31,
                                                                                           2003           2002
                                                                                        -----------    -----------
                                                                                        (Unaudited)
                                     ASSETS

CURRENT ASSETS
<S>                                                                                     <C>            <C>
     Cash and cash equivalents                                                          $   192,223    $   117,825
     Available for sale securities                                                          148,851        209,598
     Accounts receivable, net of allowance of $25,468 at September 30, 2003
         and $53,493 at December 31, 2002                                                   485,079      1,049,345
     Inventories                                                                             98,812        107,030
     Prepaid expenses                                                                        60,933         60,853
     Income tax receivable                                                                   39,651        540,818
     Deferred income tax assets                                                             248,800        271,993
                                                                                        -----------    -----------

         Total Current Assets                                                             1,274,349      2,357,462

PROPERTY AND EQUIPMENT, NET                                                                 610,205        708,730
GOODWILL                                                                                  2,364,145      2,364,145
OTHER ASSETS                                                                                 77,500         52,500
                                                                                        -----------    -----------

                                                                                        $ 4,326,199    $ 5,482,837
                                                                                        ===========    ===========
                      LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES

     Notes payable, bank-demand                                                         $   270,000    $         0
     Current portion of long-term debt                                                       42,697         55,479
     Accounts payable                                                                        47,077         84,792
     Accrued expenses                                                                       243,874        180,838
     Deferred income                                                                        636,007        889,401
                                                                                        -----------    -----------

         Total Current Liabilities                                                        1,239,655      1,210,510

LONG-TERM DEBT, NET OF CURRENT PORTION                                                      154,108        187,233
DEFERRED INCOME TAX LIABILITY                                                                     0         74,565
                                                                                        -----------    -----------

                                                                                          1,393,763      1,472,308
                                                                                        -----------    -----------

STOCKHOLDERS' EQUITY

     Common stock, 15,000,000 shares authorized at $.0001 par value;                            629            629
         6,292,321 shares issued and outstanding
     Preferred stock, $.0001 8% cumulative convertible; 5,000,000 shares
         authorized; 746,965 shares issued and outstanding                                       75             75
     Paid-in capital                                                                      5,151,163      5,391,109
     Accumulated deficit                                                                 (1,912,809)      (825,663)
     Accumulated other comprehensive loss                                                  (226,647)      (415,366)
     Deferred stock compensation                                                            (79,975)      (140,255)
                                                                                        -----------    -----------

                                                                                          2,932,436      4,010,529
                                                                                        -----------    -----------

                                                                                        $ 4,326,199    $ 5,482,837
                                                                                        ===========    ===========
</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,
                                                          --------------------------    --------------------------
                                                             2003           2002           2003           2002
                                                          -----------    -----------    -----------    -----------
                                                                  (Unaudited)                   (Unaudited)

<S>                                                       <C>            <C>            <C>            <C>
NET SALES                                                 $   591,034    $   643,818    $ 2,036,474    $ 2,964,435

COST OF GOODS SOLD                                             73,862        149,757        197,807        421,493
                                                          -----------    -----------    -----------    -----------

         Gross Profit                                         517,172        494,061      1,838,667      2,542,942
                                                          -----------    -----------    -----------    -----------

OPERATING EXPENSES

     Selling, general and administrative                      571,666        793,622      1,739,260      2,552,325
     Research and development                                 412,894        508,710      1,303,070      1,668,088
                                                          -----------    -----------    -----------    -----------

         Total Operating Expenses                             984,560      1,302,332      3,042,330      4,220,413
                                                          -----------    -----------    -----------    -----------

         Operating Loss                                      (467,388)      (808,271)    (1,203,663)    (1,677,471)
                                                          -----------    -----------    -----------    -----------

NONOPERATING INCOME (EXPENSES)

     Interest income (expense), net                               223          2,599         (5,684)       (13,284)
     Realized gain (loss) on sale of available for sale
         securities                                                 0              0       (176,006)        83,387
     Other income                                              13,226          7,328         46,040         51,739
                                                          -----------    -----------    -----------    -----------

         Total Nonoperating Income (Expenses)                  13,449          9,927       (135,650)       121,842
                                                          -----------    -----------    -----------    -----------

         Loss before Income Tax Benefit                      (453,939)      (798,344)    (1,339,313)    (1,555,629)

INCOME TAX EXPENSE (BENEFIT)                                  174,677       (395,484)       (63,971)      (648,633)
                                                          -----------    -----------    -----------    -----------

         Net Loss                                         ($  628,616)   ($  402,860)   ($1,275,342)   ($  906,996)
                                                          ===========    ===========    ===========    ===========

NET LOSS PER COMMON SHARE
     Basic                                                ($     0.11)   ($     0.07)   ($     0.22)   ($     0.16)
                                                          ===========    ===========    ===========    ===========

     Diluted                                              ($     0.11)   ($     0.07)   ($     0.22)   ($     0.16)
                                                          ===========    ===========    ===========    ===========
</TABLE>

The accompanying notes are an integral part of these statements.

                                        2
<PAGE>

                                  CIMNET, INC.

                            STATEMENTS OF CASH FLOWS

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                        Nine Months Ended
                                                                                          September 30,
                                                                                   --------------------------
                                                                                      2003           2002
                                                                                   -----------    -----------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                                <C>            <C>
     Net loss                                                                      ($1,275,342)   ($  906,996)
     Adjustments to reconcile net loss to net cash used in operating activities:
         Depreciation and amortization                                                 105,490         98,816
         Realized (gain) loss on sale of securities                                    176,006        (83,387)
         Provision for doubtful accounts                                               (28,025)       (33,984)
         Deferred income tax benefit                                                   (51,372)      (532,492)
         Stock warrants - sales commitments                                                  0        (27,500)
         Stock options - employees                                                      60,280         60,203
         Stock options and warrants - consulting and legal services                      8,250         63,742
         (Increase) decrease in assets:
              Accounts receivable                                                      592,291      1,762,299
              Inventories                                                                8,218          1,304
              Prepaid expenses                                                             (80)        26,290
              Income tax receivable                                                    501,167              0
         Increase (decrease) in liabilities:
              Accounts payable                                                         (37,715)      (171,721)
              Accrued expenses                                                           3,036       (244,027)
              Deferred income                                                         (253,394)      (381,435)
                                                                                   -----------    -----------

         Net Cash Used in Operating Activities                                        (191,190)      (368,888)
                                                                                   -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES

     Investment in limited partnership                                                 (25,000)       (25,000)
     Purchase of property and equipment                                                 (6,965)      (242,227)
     Purchase of available for sale securities                                               0     (1,288,268)
     Proceeds from the sale of available for sale securities                            73,460      1,244,158
                                                                                   -----------    -----------

         Net Cash Provided by (Used in) Investing Activities                            41,495       (311,337)
                                                                                   -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES

     Net borrowings on line of credit                                                  270,000              0
     Principal payments on long-term borrowings                                        (45,907)       (28,523)
     Proceeds on exercise of stock options and stock warrants                                0            500
                                                                                   -----------    -----------

         Net Cash Provided by (Used in) Financing Activities                           224,093        (28,023)
                                                                                   -----------    -----------

         Net Increase (Decrease) in Cash                                                74,398       (708,248)

CASH AND CASH EQUIVALENTS- BEGINNING                                                   117,825      1,093,153
                                                                                   -----------    -----------

CASH AND CASH EQUIVALENTS - ENDING                                                 $   192,223    $   384,905
                                                                                   ===========    ===========
</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, 2002. 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, 2003 are not necessarily indicative
         of the results which may be expected for the entire fiscal year.


NOTE 2 - STOCK OPTION PLAN

              The Company accounts for its stock options under APB Opinion 25.
         Had compensation cost for the options been determined based on the fair
         value of the employee options at the grant dates consistent with the
         method of SFAS No. 123, the Company's net loss and net loss per share
         of common stock would have been increased to the pro forma amounts
         indicated below:

<TABLE>
<CAPTION>
                                                                             Nine Months Ended
                                                                               September 30,
                                                                        --------------------------
                                                                           2003           2002
                                                                        -----------    -----------
<S>                                                                     <C>            <C>
               Net loss available to common stockholders:
                    As reported                                         ($1,368,849)   ($1,000,503)
                    Add stock-based employee compensation
                        expense included in reported net loss, net
                        of related tax effects                               60,280         60,203
                    Deduct total stock-based employee
                        compensation expense determined under
                        fair value based method for all awards, net
                        of related tax effect                              (202,202)      (174,855)
                                                                        -----------    -----------

                      Pro Forma                                         ($1,510,771)   ($1,115,155)
                                                                        ===========    ===========

               Net loss per share of common stock, basic and diluted:
                    As reported                                         ($     0.22)   ($     0.16)
                                                                        ===========    ===========

                    Pro forma                                           ($     0.24)   ($     0.18)
                                                                        ===========    ===========
</TABLE>

                                       4
<PAGE>

                                  CIMNET, INC.

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                   (Unaudited)


NOTE 2 - STOCK OPTION PLAN (CONTINUED)

<TABLE>
<CAPTION>
                                                                           Three Months Ended
                                                                              September 30,
                                                                        ------------------------
                                                                           2003          2002
                                                                        ----------    ----------
<S>                                                                     <C>           <C>
               Net loss available to common stockholders :
                    As reported                                         ($ 659,785)   ($ 434,029)
                    Add stock-based employee compensation
                        expense included in reported net loss, net
                        of related tax effects                              20,069        20,092
                    Deduct total stock-based employee
                        compensation expense determined under
                        fair value based method for all awards, net
                        of related tax effect                              (65,812)      (58,285)
                                                                        ----------    ----------

                      Pro Forma                                         ($ 705,528)   ($ 472,222)
                                                                        ==========    ==========

               Net loss per share of common stock, basic and diluted:
                    As reported                                         ($    0.11)   ($    0.07)
                                                                        ==========    ==========

                    Pro forma                                           ($    0.11)   ($    0.08)
                                                                        ==========    ==========
</TABLE>

NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS

              In November 2002, the Financial Accounting Standards Board (FASB)
         issued FASB Interpretation No. 45 (FIN 45), "Guarantor's Accounting and
         Disclosure Requirements for Guarantees, Including Indirect Guarantees
         of Indebtedness of Others." This Interpretation expands the disclosures
         to be made by a guarantor in its financial statements about its
         obligations under certain guarantees and requires the guarantor to
         recognize a liability for the fair value of an obligation assumed under
         certain specified guarantees. FIN 45 clarifies the requirements of FASB
         Statement No. 5, "Accounting for Contingencies." In general, FIN 45
         applies to contracts or indemnification agreements that contingently
         require the guarantor to make payments to the guaranteed party based on
         changes in an underlying that is related to an asset, liability or
         equity security of the guaranteed party, which would include financial
         standby letters of credit. Certain guarantee contracts are excluded
         from both the disclosure and recognition requirements of this
         Interpretation including, among others, guarantees related to
         commercial letters of credit and loan commitments. The disclosure
         requirements of FIN 45 require disclosure of the guarantee, the maximum
         potential amount of future payments that the guarantor could be
         required to make under the guarantee and the current amount of
         liability, if any, for the guarantor's obligations under the guarantee.
         The accounting recognition requirements of FIN 45 are to be applied
         prospectively to guarantees issued or modified after December 31, 2002.
         Adoption of FIN 45 did not have a significant impact on the Company's
         financial condition or results of operations.

                                       5
<PAGE>

                                  CIMNET, INC.

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                   (Unaudited)


NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS (CONTINUED)

              In January 2003, the Financial Accounting Standards Board (FASB)
         issued FASB Interpretation No. 46 (FIN 46), "Consolidation of Variable
         Interest Entities, an Interpretation of ARB No. 51." FIN 46 provides
         guidance on identifying variable interest entities and assessing
         whether or not a variable interest entity should be consolidated. The
         provisions of FIN 46 are to be applied immediately to variable interest
         entities created after January 31, 2003. For variable interest entities
         created on or before January 31, 2003, the provision of FIN 46 are to
         be applied no later than the beginning of the first interim period
         beginning after June 15, 2003. Adoption of FIN 46 did not materially
         impact on the financial condition or operations of the Company.

              In April 2003, the Financial Accounting Standards Board issued
         Statement No. 149, "Amendment of Statement No. 133, Accounting for
         Derivative Instruments and Hedging Activities." This Statement
         clarifies the definition of a derivative and incorporates certain
         decisions made by the Board as part of the Derivatives Implementation
         Group process. This Statement is effective for contracts entered into
         or modified, and for hedging relationships designated after June 30,
         2003 and should be applied prospectively. The provisions of the
         Statement that relate to implementation issues addressed by the
         Derivatives Implementation Group that have been effective should
         continue to be applied in accordance with their respective effective
         dates. Adoption of this standard did not have a significant impact on
         the Company's financial condition or results of operations.

              In May 2003, the Financial Accounting Standards Board issued
         Statement No. 150, "Accounting for Certain Financial Instruments with
         Characteristics of both Liabilities and Equity." This Statement
         requires that an issuer classify a financial instrument that is within
         its scope as a liability. Many of these instruments were previously
         classified as equity. This Statement was effective for financial
         instruments entered into or modified after May 31, 2003 and otherwise
         was effective beginning July 1, 2003. The adoption of this standard did
         not have a significant impact on the Company's financial condition or
         results of operations.


NOTE 4 - NET LOSS PER COMMON SHARE

              Basic net loss per common share is calculated by dividing the net
         loss less preferred stock dividends and less 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 effects of
         convertible preferred shares outstanding, using the if-converted
         method.

                                       6
<PAGE>

                                  CIMNET, INC.

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                   (Unaudited)


NOTE 4 - NET LOSS 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,
         2003 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                                ($1,275,342)
                    Preferred stock dividends                   (60,000)
                    Accretion of preferred stock discount       (33,507)
                                                            -----------

                    Net loss available to common
                        stockholders                        ($1,368,849)     6,292,321   ($     0.22)
                                                            ===========    ===========   ===========
</TABLE>

              The Company's calculation of net income per common share in
         accordance with SFAS No. 128 for the three months ended September 30,
         2003 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                                ($  628,616)
                    Preferred stock dividends                   (20,000)
                    Accretion of preferred stock discount       (11,169)
                                                            -----------

                    Net loss available to common
                        stockholders                        ($  659,785)     6,292,321   ($     0.11)
                                                            ===========    ===========   ===========
</TABLE>

              A total of 1,777,500 common stock options and warrants and 746,965
         shares of convertible preferred stock were not included in the
         computation of diluted earnings per share for the nine months and three
         months ended September 30, 2003 because of their anti-dilutive effect.

                                       7
<PAGE>

                                  CIMNET, INC.

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                   (Unaudited)


NOTE 4 - NET LOSS 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>

              The Company's calculation of net income per common share in
         accordance with SFAS No. 128 for the three 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                                ($  402,860)
                    Preferred stock dividends                   (20,000)
                    Accretion of preferred stock discount       (11,169)
                                                            -----------

                    Net loss available to common
                        stockholders                        ($  434,029)     6,292,321   ($     0.07)
                                                            ===========    ===========   ===========
</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 for the nine months and three
         months ended September 30, 2002 because of their anti-dilutive effect.

                                       8
<PAGE>

                                  CIMNET, INC.

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                   (Unaudited)


NOTE 5 - COMPREHENSIVE LOSS

              Total comprehensive loss was ($1,086,623) and ($1,347,828) for the
         nine months ended September 30, 2003 and 2002, respectively.
         Comprehensive loss differed from net income for the nine months ended
         September 30, 2003 as a result of changes in the unrealized gains and
         losses on the Company's available for sale securities.

              Total comprehensive loss was ($688,876) and ($669,276) for the
         three months ended September 30, 2003 and 2002, respectively.
         Comprehensive loss differed from net income for the three months ended
         September 30, 2003 as a result of changes in unrealized gains and
         losses on the Company's available for sale securities.


NOTE 6 - COMMITMENTS AND CONTINGENCIES

              During 2001, the Company obtained and recorded a 25% interest in
         an aircraft and assumed and recorded 25% of the related outstanding
         debt. The Company is jointly and severably liable for the total
         outstanding debt should the other 75% of the aircraft ownership fail to
         honor their obligations. The total amount outstanding on this
         obligation was $740,947 at September 30, 2003. This loan is payable
         monthly with interest at 3.04% plus a variable per annum rate equal to
         the rate listed for "1- month" Commercial Paper, and matures in August
         2008.


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.

                                       9
<PAGE>

                                  CIMNET, INC.

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                   (Unaudited)


RESULTS OF OPERATIONS - NINE MONTHS ENDED SEPTEMBER 30, 2003

              Net sales for the nine months ended September 30, 2003 decreased
         by 31.3% or $927,961 compared to net sales for the nine months ended
         September 30, 2002. In the nine months ended September 30, 2002,
         $540,629 of deferred revenue from 2001 was recognized as income, as
         opposed to only $56,609 of deferred revenue from 2002 being recognized
         as income in the nine months ended September 30, 2003. This decrease is
         also due to a decrease in the sale of various product lines and a
         decrease in the amount of ongoing engineering fees being earned from
         various contracts.

               Costs of goods sold for the first nine months of 2003 were
         $197,807 or 9.7% of net sales compared to $421,493 or 14.2% of net
         sales for the same period in 2002, a decrease of $223,686 or 53.1%.
         This decrease in costs of goods sold is related to the decrease in net
         sales and the related decrease in the need for third party field
         engineers required for implementation of the Company's software
         products.

              Gross profit for the nine months ended September 30, 2003 was
         $1,838,667 compared to $ 2,542,942 for the nine months ended September
         30, 2002, a decrease of $704,275 or 27.7%. This decrease is primarily
         due to the overall decrease in net sales.

              Selling, general and administrative expenses for the nine months
         ended September 30, 2003 were $1,739,260, compared to $2,552,325 for
         the same period in 2002: a decrease of $813,065 or 31.9%. Specifically,
         the changes in the following categories were primarily attributable to
         this decrease: Salaries and commissions decreased by $209,981 due to a
         decrease in the number of employees; advertising decreased by $213,446
         due to the Company's marketing efforts for the roll-out of
         Factelligence being completed in 2002; independent contractor fees
         decreased by $45,662 due to the fact that common stock purchase
         warrants were not granted to a consultant during 2003 but were granted
         during 2002; travel and entertainment costs decreased by $107,070 due
         to the Company not incurring nonrecoverable expenses for installation
         and maintenance contracts; and trade show expense decreased by $110,529
         due to the Company participating in only one trade show during the nine
         months ended September 30, 2003 versus three trade shows during the
         nine months ended September 30, 2002.

              Research and development costs for the nine months ended September
         30, 2003 were $1,303,070 compared to $1,668,088 for the nine months
         ended September 30, 2002. This is primarily due to the completion of a
         majority of the research and development of the Factelligence product
         Version 1.5 the end of 2002. Research and development salaries
         decreased by $219,866 in 2003 due to a decrease in the number of
         employees. Other research and development expenses also decreased by
         $145,152 as compared to 2002, due to certain independent contractors
         that were previously engaged through an agency either being directly
         employed by the Company or no longer being necessary for continued
         research and development.

                                       10
<PAGE>

                                  CIMNET, INC.

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                   (Unaudited)


RESULTS OF OPERATIONS - NINE MONTHS ENDED SEPTEMBER 30, 2003 (CONTINUED)

              The operating loss for the nine months ended September 30, 2003
         was $1,203,663 compared to $1,677,471 for the nine months ended
         September 30, 2002, a decrease of $473,808. This decrease is
         predominantly due to the previously discussed net decrease in gross
         profit and operating expenses.

              Net interest expense for the nine months ended September 30, 2003
         was $5,684, compared to $13,284 for the nine months ended September 30,
         2002. This change is primarily attributable to interest income of
         approximately $6,000 that was received on a tax refund and a decrease
         in interest rate on the Company's long-term debt. In the nine months
         ended September 30, 2003, the Company recognized a realized loss on the
         sale of securities of $176,006 or 8.6% of net sales and rental revenue
         of $39,424 or 1.9% of net sales compared to 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 for the nine months ended September 30,
         2002.

              The income tax benefit for the nine months ended September 30,
         2003 was $63,971 compared to a benefit of $648,633 for the nine months
         ended September 30, 2002. The change in the effective tax rate is
         primarily due to the Company recording a valuation allowance for net
         operating loss carryforwards and the future tax benefits of the
         accumulated stock compensation expense.

              Net loss for the nine months ended September 30, 2003 was
         ($1,275,342) or ($0.22) per basic and diluted shares as compared to
         ($906,996) or ($0.16) per basic and diluted shares for the nine months
         ended September 30, 2002.


RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 2003

              Net sales for the three months ended September 30, 2003 decreased
         by 8.2% or $52,784 compared to net sales for the three months ended
         September 30, 2002. This decrease is predominantly due to a decrease in
         the sale of various product lines and a decrease in the amount of
         ongoing engineering fees being earned from previous contracts.

              Costs of goods sold for the three months ended September 30, 2003
         were $73,862 or 12.5% of net sales compared to $149,757 or 23.3% of net
         sales for the three months ended September 30, 2002, a decrease of
         $75,895 or 50.7%. This decrease in costs of goods sold is related to
         the decrease in net sales and the related decrease in the need for
         third party field engineers required for implementation of the
         Company's software products.

              Gross profit for the three months ended September 30, 2003 was
         $517,172 compared to $494,061 for the three months ended September 30,
         2002, an increase of $23,111 or 4.7%. This increase is primarily due to
         the 50.7% decrease in cost of goods sold.

                                       11
<PAGE>

                                  CIMNET, INC.

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                   (Unaudited)


RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 2003 (CONTINUED)

              Selling, general and administrative expenses for the three months
         ended September 30, 2003 were $571,666 compared to $793,622 for the
         same period in 2002, a decrease of $221,956 or 28.0%. Specifically, the
         changes in the following categories were primarily attributable to this
         decrease: Salaries and commissions decreased by $67,043 due to a
         decrease in the number of employees; advertising decreased by $70,382
         due to the Company's marketing efforts for the roll-out of
         Factelligence being completed in 2002; independent contractor fees
         decreased by $10,012 because the common stock purchase warrants were
         not granted to a consultant during 2003, but were granted during 2002;
         travel and entertainment costs decreased by $9,496 due to the Company
         not incurring nonrecoverable expenses for installation and maintenance
         contracts; and trade show expense decreased by $44,022 due to the
         Company participating in no trade shows during the three months ending
         September 30, 2003, versus one trade show during the same period of
         2002.

              Research and development costs for the three months ended
         September 30, 2003 were $412,894 compared to $508,710 for the three
         months ended September 30 2002, a decrease of $95,816 or 18.8%.
         Research and development salaries decreased by $77,179 in 2003 due to a
         decrease in the number of employees. Other research and development
         expenses also decreased by $18,637 as compared to 2002, due to research
         and development software license and update fees that were paid in
         2002, not being necessary during 2003.

              Loss from operations for the three months ended September 30, 2003
         was ($467,388) compared to a loss of ($808,271) for the three months
         ended June 30, 2002, a decrease of $340,883. This reduction is
         predominantly due to the previously discussed net decrease in gross
         profit and operating expenses.

              Expense for income taxes for the three months ended September 30,
         2003 was $174,677 compared to a benefit of $395,484 for the three
         months ended September 30, 2002. The change in the effective tax rate
         is primarily due to the Company recording a valuation allowance for net
         operating loss carryforwards and the future tax benefits of the
         accumulated stock compensation expense.

              Net loss for the three months ended September 30, 2003 was
         ($628,616) or ($0.11) per basic and diluted shares as compared to a net
         loss of ($402,860) or ($0.07) per basic and diluted shares for the
         three months ended September 30, 2002.


LIQUIDITY AND CAPITAL RESOURCES

              At September 30, 2003, the Company had current assets of
         $1,556,052 as compared to $2,357,462 at December 31, 2002. This
         decrease is largely due to a decrease of $564,266 in accounts
         receivable resulting from reduced sales. Current liabilities increased
         $29,145 from December 31, 2002 to September 30, 2003. This increase is
         largely due to the borrowed amount of $270,000 on a credit line
         offsetting the reduction of $253,394 in deferred income.

                                       12
<PAGE>

                                  CIMNET, INC.

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                   (Unaudited)


OPERATING ACTIVITIES

              Cash used in operations for the nine months ended September 30,
         2003 and 2002 was $191,190 and $368,888, respectively. The decrease in
         the cash used by operations was primarily attributable to the following
         changes: a decrease of $501,167 in income taxes receivable for the nine
         months ended September 30, 2003 and no such decrease as of December 31,
         2002, deferred income tax benefit of $51,372 for the nine months ended
         September 30, 2003 compared to a benefit of $532,492, a decrease of
         $253,394 in deferred income for the nine months ended September 30,
         2003 compared to a decrease of $381,435 during the nine months ended
         September 30, 2002, and an increase of $3,036 in accrued expenses for
         the nine months ended September 30, 2003 compared to a decrease of
         $244,027 during the nine months ended September 30, 2003. These items
         were sufficient to offset the decrease in collections from accounts
         receivables, which were $592,291 in the nine months ending September
         30, 2003 compared to $1,762,299 for the same period in 2002. This
         reduction in accounts receivable collections was because the Company
         had $2,222,716 outstanding receivables at December 31, 2001 as compared
         to $1,049,345 outstanding receivables at December 31, 2002.


INVESTING ACTIVITIES

              Cash provided by investing activities was $41,495 for the nine
         months ended September 30, 2003 as compared to a use of $311,337 for
         the nine months ended September 30, 2002.

              This change was primarily due to the Company finishing an office
         expansion during 2002 and an effort to limit capital expenses during
         the nine months ended September 30, 2003, resulting in a decrease in
         capital spending.


FINANCING ACTIVITIES

              Financing activities provided $224,093 in cash for the nine months
         ended September 30, 2003 compared to a use of $28,023 for the same
         period in 2002, an increase of $252,116. This increase is a result of
         the Company borrowing upon a line of credit to finance its operations.

                                       13
<PAGE>

                                  CIMNET, INC.

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                   (Unaudited)


CAPITAL RESOURCES

              The Company has a line of credit with a bank. In August 2003, the
         Company began borrowing under the line of credit to finance the
         operating expenses. As of September 30, 2003, the Company had $230,000
         of unused credit available on its line of credit. The Company has met
         all financial covenants in its loan documents. This line of credit
         expires April 30, 2004.

              The Company has no material commitments for capital expenditures
         and believes that its cash from operations, existing balances and
         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.


ITEM 3.  CONTROLS AND PROCEDURES

              We maintain disclosure controls and procedures that are designed
         to ensure that information required to be disclosed in our Exchange Act
         reports is recorded, processed, summarized and reported within the time
         periods specified in the Securities and Exchange Commission's rules and
         forms and that such information is accumulated and communicated to our
         management, including our Chief Executive Officer and Principal
         Accounting Officer, as appropriate, to allow for timely decisions
         regarding required disclosure. In designing and evaluating the
         disclosure controls and procedures, management recognizes that any
         controls and procedures, no matter how well designed and operated, can
         provide only reasonable assurance of achieving the desired control
         objectives, and management is required to apply its judgment in
         evaluating the cost-benefit relationship of possible controls and
         procedures.

              As required by SEC Rule 13a-15(b), we carried out an evaluation as
         of September 30, 2003, under the supervision and with the participation
         of our management, including our Chief Executive Officer and Principal
         Accounting Officer, of the effectiveness of the design and operation of
         our disclosure controls and procedures as of the end of the quarter
         covered by this report. Based on the foregoing, our Chief Executive
         Officer and Principal Accounting Officer concluded that our disclosure
         controls and procedures were effective at the reasonable assurance
         level.

              There has been no change in our internal controls over financial
         reporting during our most recent fiscal quarter ended September 30,
         2003 that has materially affected, or is reasonably likely to
         materially affect, our internal controls over financial reporting.

                                       14
<PAGE>

                           PART II - OTHER INFORMATION


ITEM 1 - LEGAL PROCEEDINGS

On or about December 26, 2001, a lawsuit was commenced in the United States
District Court for the Eastern District of Pennsylvania captioned Greenwood
Partners, L.P. v. Cimnet, Inc. and John Richardson 01-CV.6624 (JW). The
plaintiff sought unspecified damages arising from Cimnet's alleged breach of a
contract pursuant to which Cimnet allegedly agreed to pay the plaintiff
securities in exchange for consulting services. In addition, the plaintiff
sought unspecified compensatory and punitive damages on the theory that Cimnet's
conduct amounted to a violation of the Securities Exchange Act of 1934, as
amended. Upon the completion of discovery, Cimnet filed a motion for summary
judgment which the Court granted on September 26, 2003 dismissing the Complaint
in its entirety without prejudice.

We are not presently a party to any material legal proceedings nor are any
material legal proceedings presently threatened against us.


ITEM 2 - CHANGE IN SECURITIES - None

ITEM 3 - DEFAULT UPON SENIOR SECURITIES - None

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

ITEM 5 - OTHER INFORMATION - None

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

         a.    Exhibits

         31.   Certificate Pursuant to Section 302 of the Sarbanes-Oxley Act of
               2002

         32.   Certificate of Principal Executive Officer and Principal
               Accounting Officer Pursuant to Section 906 of the
               Sarbanes-Oxley Act of 2002.

         b.    Reports on Form 8-K. - None

                                       15
<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 14, 2003
         Robesonia, Pennsylvania


                                            CIMNET, INC.



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

                                       16