<PAGE>
 
--------------------------------------------------------------------------------

                                UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549
                               --------------

                                  FORM 10-Q

          [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
              OF THE SECURITIES EXCHANGE ACT OF 1934
              For the Quarterly Period Ended September 30, 1997

          [_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
              OF THE SECURITIES EXCHANGE ACT OF 1934
                 For the Transition Period From ____ to ____

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

                      Commission File Number 000-22649

                              ARIS CORPORATION
           (Exact name of registrant as specified in its charter)

          WASHINGTON                                     91-1497147
(State or other jurisdiction of                       (I.R.S. Employer 
 incorporation or organization)                   Identification Number)

        FORT DENT ONE, SUITE 250
          6720 FORT DENT WAY
    SEATTLE, WASHINGTON 98188-2555                    (206) 433-2081
(Address of principal executive office)       (Registrant's telephone number,
                                                    including area code)

         Indicate by check mark whether the registrant:

         (1) Has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file for such reports),
and

         (2) Has been subject to such filing requirements for the past 90
days. Yes [X]   No  [_]

         The number of shares outstanding of the registrant's common stock as of
September 30, 1997 was 9,757,736.

--------------------------------------------------------------------------------
<PAGE>
 
<TABLE>
<CAPTION>
                              ARIS CORPORATION
                                  FORM 10-Q


INDEX                                                                                 PAGE
<C>        <S>                                                                        <C> 
PART I.    FINANCIAL INFORMATION
Item 1                 Financial Statements
                       a)   Condensed Consolidated Balance Sheets as of                 3
                            September 30, 1997 and December 31, 1996
                       b)   Condensed Consolidated Statements of Income                 4
                            for the Quarters and Nine Months Ended
                            September 30, 1997 and 1996.
                       c)   Condensed Consolidated Statements of Cash                   5
                            Flows for the Nine Months Ended September
                            30, 1997 and 1996
                       d)   Condensed Consolidated Statement of Changes                 6
                            in Shareholders' Equity as of September 30,
                            1997
                       e)   Notes to Condensed Consolidated Financial                 6-7
                            Statements
Item 2                 Management's Discussion and Analysis of Financial             8-14
                       Condition and Results of Operations
PART II.   OTHER INFORMATION
Item 1                 Legal Proceedings                                               15
Item 2                 Changes in Securities                                           15
Item 3                 Defaults Upon Senior Securities                                 15
Item 4                 Submission of Matters to a Vote of Security                     16
                       Holders
Item 5                 Other Information                                               16
Item 6                 Exhibits and Reports on Form 8-K                                16

--------------------------------------------------------------------------------------------
</TABLE> 

                                     Page 2
<PAGE>
 
                                    PART I
                             FINANCIAL INFORMATION
<TABLE> 
<CAPTION> 

ITEM 1.     FINANCIAL STATEMENTS

ARIS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share data)
------------------------------------------------------------------------------------------------------------

                                                                                   SEPTEMBER 30,  DECEMBER 31,
                                                                                       1997          1996
                                                                                   -----------    ----------
<S>                                                                               <C>           <C>     
Assets
Current assets:
       Cash ....................................................................     $    886      $    177
       Cash equivalents and investments in marketable
       securities ..............................................................       27,492         1,396
       Accounts receivable, net of allowance for
       doubtful accounts of  $543 and $300 .....................................       10,558         5,169
       Other  current  assets ..................................................        1,759         1,052
                                                                                     --------      --------
            Total current assets ...............................................       40,695         7,794

       Property and equipment, net .............................................        4,293         2,517
       Intangible and other assets, net ........................................        3,430         2,645
                                                                                     --------      --------
            Total assets .......................................................     $ 48,418      $ 12,956
                                                                                     ========      ========
Liabilities and Shareholders' Equity
Current liabilities:
       Accounts payable ........................................................     $  2,694      $    787
       Accrued liabilities .....................................................        2,729         1,196
       Notes payable ...........................................................                      1,500
       Other current liabilities ...............................................        1,829           550
                                                                                     --------      --------
            Total current  liabilities .........................................     $  7,252      $  4,033
                                                                                     --------      --------
Deferred income taxes ..........................................................          605           713
                                                                                     --------      --------
Commitments and contingencies
Shareholder's equity:
       Preferred stock, 5,000,000 shares authorized, none issued and outstanding
       Common stock, no par value; 100,000,000 shares authorized; 9,757,736 and
       7,555,900 shares outstanding ............................................       34,522         1,943
       Retained earnings .......................................................        6,070         6,042
       Net unrealized holding gain on investments ..............................            1           225
       Cumulative foreign currency translation
       adjustment ..............................................................          (32)
                                                                                     --------      --------
            Total shareholders' equity .........................................       40,561         8,210
                                                                                     --------      --------
            Total liabilities and shareholders' equity                               $ 48,418      $ 12,956
                                                                                     ========      ========

                            See accompanying notes
------------------------------------------------------------------------------------------------------------
</TABLE> 

                                     Page 3
<PAGE>
 
<TABLE>
<CAPTION>

ARIS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for share data)
------------------------------------------------------------------------------------------------------

                                          ------------------------------------------------------------
                                              FOR THE QUARTER ENDED        FOR THE NINE MONTHS ENDED
                                          ------------------------------------------------------------

                                          SEPTEMBER 30,   SEPTEMBER 30,   SEPTEMBER 30,  SEPTEMBER 30,
                                             1997             1996            1997           1996
                                          -----------     -----------     -----------     -----------
<S>                                     <C>             <C>             <C>             <C>        
Revenue, net:
   Consulting .......................     $     7,979     $     4,532     $    21,969     $    10,572
   Training .........................           5,528           2,217          14,144           6,596
   Software .........................           1,075             386           2,386             668
                                          -----------     -----------     -----------     -----------
      Total revenue .................          14,582           7,135          38,499          17,836
Cost of sales: ......................           6,739           3,702          17,948           8,897
                                          -----------     -----------     -----------     -----------
      Gross profit ..................           7,843           3,433          20,551           8,939
Selling, general and administrative .           5,637           2,462          14,742           5,971
                                          -----------     -----------     -----------     -----------
      Income from operations ........           2,206             971           5,809           2,968
Other income, net ...................             442              21             626              67
                                          -----------     -----------     -----------     -----------
      Income before income tax ......           2,648             992           6,435           3,035
Income tax expense ..................           1,061             362           2,500           1,110
                                          -----------     -----------     -----------     -----------
Net income ..........................     $     1,587     $       630     $     3,935     $     1,925
                                          ===========     ===========     ===========     ===========
Net income per share ................     $      0.15     $      0.07     $      0.43     $      0.22
                                          ===========     ===========     ===========     ===========
Weighted average number of common and
common equivalent shares outstanding       10,653,995       8,627,122       9,180,445       8,615,351
                                          ===========     ===========     ===========     ===========

-----------------------------------------------------------------------------------------------------
</TABLE> 
                            See accompanying notes

                                     Page 4
<PAGE>
 
<TABLE>
<CAPTION>

ARIS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
-----------------------------------------------------------------------------------------------

                                                               FOR THE NINE MONTHS ENDED
                                                       ----------------------------------------
                                                       SEPTEMBER 30, 1997    SEPTEMBER 30, 1996
                                                       --------------------  ------------------
<S>                                                    <C>              <C>  
Net cash provided by operating activities .........           $  2,671              $  1,219 
                                                              --------              -------- 
Cash flows from investing activities:                                                        
Purchases of investments in marketable securities .            (21,130)                 (271)
Sales of investments in marketable securities .....              8,790                   221 
Acquisition of businesses, net of cash acquired ...                (93)                      
Purchases of property and equipment ...............             (1,289)                 (746)
                                                              --------              -------- 
Net cash provided by (used in) investing activities            (13,722)                 (796)
                                                              --------              -------- 
Cash flows from financing activities:                                                        
Proceeds from initial public offering, net of 
offering costs ....................................             31,245                                            
Repurchase of common stock ........................             (4,028)                 (100)
Payments on notes payable .........................            (10,075)                   (1)
Proceeds from long-term debt ......................              8,575                   441 
Proceeds from exercise of stock options ...........                 55                     2 
Other, net ........................................                                        8
                                                              --------              -------- 
Net cash provided by financing activities .........             25,772                   350 
                                                              --------              -------- 
Net increase in cash ..............................             14,721                   773 
Effect of exchange rate changes on cash and cash                                             
equivalents .......................................                (32)                      
Cash and cash equivalents at beginning of period ..                177                 1,241 
                                                              ========              ======== 
Cash and cash equivalents at end of period ........           $ 14,866              $  2,014 
                                                              ========              ========  

-----------------------------------------------------------------------------------------------
</TABLE> 
                            See accompanying notes

                                     Page 5
<PAGE>
 
<TABLE>
<CAPTION>

ARIS CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (In
thousands, except for share data)
---------------------------------------------------------------------------------------------------------------------------------- 

                                             COMMON STOCK
                                       --------------------------
                                                                                                     CUMULATIVE
                                                                                                      FOREIGN               
                                                                                  NET UNREALIZED      CURRENCY          TOTAL 
                                                                       RETAINED    HOLDING GAIN      TRANSLATION     SHAREHOLDERS' 
                                     SHARES ISSUED        AMOUNT       EARNINGS    ON INVESTMENTS    ADJUSTMENT         EQUITY 
                                     -------------      -----------    --------    --------------    -----------      -----------
<S>                                 <C>                 <C>         <C>            <C>              <C>               <C> 
Balance at December 31, 1996 ...       7,555,900        $   1,943      $  6,042      $    225                         $    8,210
Shares issued in initial public        2,300,000           31,245                                                         31,245
offering, net of offering costs
Shares issued in acquisitions ..         280,000            1,400                                                          1,400
Stock redemption ...............        (415,000)            (121)       (3,907)                                          (4,028)
Stock options exercised ........          36,836               55                                                             55
Unrealized holding loss on .....                                                          (15)                              (15)
investments
Realization of holding gain upon                                                         (209)                             (209)
sale of  investments
Foreign currency translation ...                                                                    $      (32)             (32)
adjustment
Net income .....................                                          3,935                                           3,935
                                     ===========      ===========      ========      ========      ===========      ===========
Balance at September 30, 1997 ..       9,757,736      $    34,522      $  6,070      $      1      $       (32)     $    40,561
                                     ===========      ===========      ========      ========      ===========      ===========

---------------------------------------------------------------------------------------------------------------------------------- 
</TABLE>

ARIS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
----------------------------------------------------------------

     1.  The unaudited financial information furnished herein, in the opinion of
         management, reflects all adjustments consisting only of normal,
         recurring adjustments which are necessary to state fairly the condensed
         consolidated balance sheets, and condensed consolidated statements of
         income, statements of cash flows and statement of changes in
         shareholders' equity of ARIS Corporation ("ARIS" or the "Company") as
         of and for the periods indicated. ARIS presumes that users of the
         interim financial information herein have read or have access to the
         Company's audited consolidated financial statements and Management's
         Discussion and Analysis of Financial Condition and Results of
         Operations for the preceding fiscal year and that the adequacy of
         additional disclosure needed for a fair presentation, except in regard
         to material contingencies or recent significant events, may be
         determined in that context. Accordingly, footnote and other disclosures
         which would substantially duplicate the disclosures contained in the
         Company's Form S-1 Registration Statement ("Registration Statement")
         filed on May 29, 1997, as amended, have been omitted.

     2.  The Registration Statement contained the final prospectus with respect
         to 2,320,080 shares of the Company's common stock offered therein. The
         initial public offering price was $15.00 per share. Of the total shares
         sold, 20,800 shares were sold by selling shareholders. The net proceeds
         received by the Company were $31,245,000 after the deduction of
         underwriting discounts and commissions and other offering expenses.
         From such net proceeds the Company repaid a revolving bank loan in
         accordance with repayment terms of the lending agreement in the amount
         of $4 million plus accrued interest. The remainder of the net proceeds
         (approximately $27,245,000) will be used for general corporate
         purposes, acquisitions of businesses and capital expenditures
         associated with the expansion of the Company's operations. Prior to the
         offering made pursuant to the Registration Statement, there had been no
         public market for the Company's common stock.

                                     Page 6
<PAGE>
 
     3.  In February 1997, the Company repurchased 415,000 shares of its common
         stock at $8.50 and $9.75 per share from certain shareholders of the
         Company. The stock repurchase was financed by the Company's revolving
         line of credit.

     4.  In February 1997, the Company acquired the stock of Oxford Computer
         Group Limited ("Oxford"), a company that provides information
         technology consulting and training services with offices in Oxford,
         London and Birmingham, England. The shareholders of Oxford exchanged
         all of their issued and outstanding shares of Oxford for 280,000 shares
         of the Company's common stock. The acquisition has been accounted for
         using the purchase method. Accordingly, the results of operations of
         Oxford are included with the results of operations for the Company for
         periods subsequent to the date of acquisition. Subsequent to the
         acquisition of Oxford, 207,891 stock options were granted to employees
         of Oxford. Terms of the option agreements include an exercise price of
         $9.40 and vesting over four years. Oxford had revenues of approximately
         $7,384,000 and net income of approximately $170,000 for the year ended
         December 31, 1996.

         The unaudited pro forma combined results of operations of the Company
and Oxford are as follows:
<TABLE> 
<CAPTION> 
                                                          For the Nine Months Ended
                                                      ----------------------------------
                                                      September 30,        September 30,
                                                          1997                 1996
                                                      -------------        -------------
          <S>                                         <C>                  <C> 
           Revenue                                     $40,085,000          $ 23,160,000
           Net income                                  $ 4,030,000          $  2,155,000
           Net income per share                        $      0.44          $       0.25

</TABLE> 
         Subsequent to September 30, 1997, the Company acquired Enterprise
         Computing Inc., Agiliti, Inc. and Absolute!, Inc. in transactions
         accounted for as purchase transactions.

     5.  In February, 1997, Statement of Financial Accounting Standards No. 128,
         Earnings per Share (SFAS 128), was issued. This pronouncement modifies
         the calculation and disclosure of earnings per share (EPS) and will be
         adopted by the Company in its financial statements for the year ended
         December 31, 1997. Although early adoption is not permitted, proforma
         disclosure is permitted (Exhibit 11). After the adoption date, EPS data
         for all periods presented, including quarterly financial data, are
         required to be restated to conform with the provisions of SFAS 128.

     6.  Cash equivalents are comprised primarily of money market funds and
         marketable debt securities with maturity dates of 90 days or less.
         Investments in marketable equity securities are comprised primarily of
         mutual fund shares. A summary of cash equivalents and investments in
         marketable securities follows:

<TABLE> 
<CAPTION> 
                                                           September 30,       December 31,
                                                               1997                1996
                                                           -------------       ------------
           <S>                                            <C>                  <C> 
           Cash equivalents                                $13,980,000
           Investments in marketable debt securities       $13,512,000
           Investments in marketable equity securities                          $1,396,000
                                                           -----------          ----------
                                                           $27,492,000          $1,396,000
                                                           ===========          ==========
                                                         

</TABLE> 

                                     Page 7
<PAGE>
 
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

OVERVIEW

         ARIS provides an integrated information technology ("IT") solution
consisting of consulting and training services primarily focused on Oracle
Corporation ("Oracle") and Microsoft Corporation ("Microsoft") technologies.
ARIS currently focuses on three core consulting competencies: packaged
application implementation, custom application development and systems
architecture planning and deployment. The Company offers instructor-led training
for IT professionals conducted at ARIS' training centers and at client
facilities. The Company also develops, markets and supports proprietary software
products that enhance Oracle database management and Oracle packaged
applications. The Company believes that its ability to provide clients with an
integrated IT solution, coupled with its focus on leading-edge technologies,
provide it with a unique competitive advantage.

         This commentary should be read in conjunction with the sections of the
following documents for a full understanding of the Company's financial
condition and results of operations: from the Company's Registration Statement
filed May 29, 1997, as amended, and its Prospectus dated June 18, 1997, the Risk
Factors, pages 3 to 10, Management's Discussion and Analysis of Financial
Condition and Results of Operations, pages 15 to 25, and the Consolidated
Financial Statements and Notes to Consolidated Financial Statements on pages F-1
to F-31; and from the Company's Quarterly Report on Form 10-Q for the period
ending June 30, 1997; from the Company's Quarterly Report on Form 10-Q for the
period ending September 30, 1997, of which this commentary is a part, the
Consolidated Financial Statements and Notes to Consolidated Financial
Statements, pages 3 through 8 and the Company's Form 8-K filed September 26,
1997 in connection with the Company's acquisition of Enterprise Computing Inc.
(doing business as Buller Owens & Associates).

         All statements, trend analysis and other information contained herein
relative to markets for the Company's services and products and trends in
revenue, gross margin and anticipated expense levels, as well as other
statements including words such as "seek," "anticipate," "believe," "plan,"
"estimate," "expect," "intend," and other similar expressions, constitute
forward-looking statements. These forward-looking statements are subject to
business and economic risks, and the Company's actual results of operations may
differ materially from those contained in the forward-looking statements.

         THIRD QUARTER 1997 COMPARED TO THIRD QUARTER 1996

         TOTAL REVENUE

         Total revenues increased $7,447,000 to $14,582,000 for the quarter
ended September 30, 1997 from $7,135,000 for the quarter ended September 30,
1996, representing a 104% increase. On a pro forma basis (assuming all companies
acquired by ARIS subsequent to January 1, 1996 had been owned throughout the
comparison periods), total revenues increased approximately 48%. As discussed
below, increases in revenues were reflected in all three lines of business.

                                     Page 8
<PAGE>
 
         CONSULTING REVENUE

         Consulting revenue increased as a result of an overall increase in the
level of consulting activity. The Company employed or contracted for the
services of 164 full-time consultants and project managers at September 30, 1997
compared to 98 at September 30, 1996. Consulting revenues increased $3,447,000
to $7,979,000 for the quarter ended September 30, 1997 from $4,532,000 for the
quarter ended September 30, 1996 representing a 76% increase. Consulting
operations were conducted from seven consulting offices in the United States and
the United Kingdom including three offices which were either newly opened or
which initiated consulting revenue producing activities after September 30,
1996. On a proforma basis, assuming all companies acquired by ARIS subsequent to
January 1, 1996 had been owned throughout the comparison period, total
consulting revenues increased 58%.

         TRAINING REVENUE

         Training revenue increased $3,311,000 to $5,528,000 for the quarter
ended September 30, 1997 from $2,217,000 for the quarter ended September 30,
1996, representing a 149% increase. A significant portion of the increase in
training revenues for the third quarter of 1997 is attributable to business
units acquired subsequent to January 1, 1996. ARIS acquired SQLSoft Corporation
in May 1996, SofTeach Corporation in October 1996, and Oxford Computer Group,
Ltd. in February 1997. On a pro forma basis (assuming the companies acquired by
ARIS subsequent to January 1996 had been owned throughout the comparison
periods), total revenues increased approximately 33%. In addition, revenues
increased in the comparison period as a result of a significant increase in the
number of classes and class training days offered. The Company offered 961
classes and 2553 training days in the quarter ended September 30, 1997 as
compared to 168 classes and 776 training days in the quarter ended September 30,
1996.

         SOFTWARE REVENUE

         Software revenue increased $689,000 to $1,075,000 for the quarter ended
September 30, 1997 from $386,000 in the quarter ended September 30, 1996,
representing an increase of 178%. The increase in revenue is primarily
attributable to sales of the NoetixViews suite of products developed by Noetix
Corporation ("Noetix"). ARIS acquired Noetix in October 1996. On a proforma
basis, assuming Noetix had been owned by ARIS throughout the comparison period,
software revenues increased 68%.

         COST OF SALES

         Cost of sales consists primarily of salaries and employee benefits for
consultants, project managers and instructors; subcontractor fees; and
non-reimbursable travel expenses related to consulting and training activities
as well as cost of production of software modules and amortization of
capitalized software costs. Cost of sales increased $3,037,000 to $6,739,000 in
the quarter ended September 30, 1997 from $3,702,000 in the quarter ended
September 30, 1996. The increase in cost of sales is primarily a reflection of
the increase in sales. Cost of sales as a percentage of sales decreased from 51%
for the quarter ended September 30, 1996 to 46% for the quarter ended September
30, 1997. The reduction in percentage of sales is a result of the relative
increase in proportion of training and software revenues to total revenue.
Training and software 

                                     Page 9
<PAGE>
 
operations typically have lower cost of sales and higher
selling, general and administrative ("SG&A") expenses when compared to
consulting operations. Training operations utilize a lower proportion of
professional labor and benefits, which are included in cost of sales, and higher
proportions of marketing, facilities and general office administration costs
which are included in SG&A expense. The percentage reduction in cost of sales in
the quarter ended September 30, 1997 is also attributable to the inclusion of
Oxford which derives its principal revenues from training operations and
therefore contributes a lower proportion of cost of sales and higher SG&A
expenses.

         SELLING, GENERAL AND ADMINISTRATIVE EXPENSE

         Selling, general and administrative (SG&A) expense consists of salaries
and employee benefits for executive, managerial, administrative and sales
personnel; facility leases; amortization of capitalized computer hardware and
equipment costs; software license fees, travel and business development costs.
SG&A expense increased $3,175,000 to $5,637,000 for the quarter ended September
30, 1997 from $2,462,000 for the quarter ended September 30, 1996, representing
an increase of 128%. This increase is attributable primarily to growth in the
number of management, sales and administrative staff from 86 at September 30,
1996 to 182 at September 30, 1997. SG&A expense as a percentage of total revenue
increased from 34% for the quarter ended September 30, 1996 to 38% for the
quarter ended September 30, 1997. Whereas the growth of SG&A expense is
primarily attributable to increases in the number of staff members employed, the
increase in SG&A expenses as a percentage of revenue is primarily attributable
to the addition of Oxford, which has relatively higher SG&A expenses as a
percentage of revenues than do similar operations in the United States.
Professional information technology wages in the United Kingdom, which are
included in cost of sales, are relatively lower than in the United States while
the cost of facilities and the Company's administration costs are relatively
higher than comparable costs in the Company's United States operations. SG&A
expenses as a percentage of revenues also increased because the Company's
revenues from training and software as a percentage of all revenues increased.
These business lines typically have higher SG&A costs and lower cost of sales
when compared to consulting operations.

         OTHER INCOME, NET

         Other income, net, consists primarily of interest income on cash and
cash equivalents and gain on sale of equity investments which is partially
offset by interest associated with short term borrowings. Other income
(expense), net, increased $421,000 from $21,000 for the quarter ended September
30, 1996 to $442,000 for the quarter ended September 30, 1997. The increase is
primarily attributable to the Company's investment yield on approximately
$28,000,000 of proceeds from the companies initial public stock offering
completed on June 19, 1997.

         INCOME TAX EXPENSE

         Income tax expense increased $699,000 to $1,061,000 in the quarter
ended September 30, 1997 from $362,000 for the quarter ended September 30, 1996
as a result of increased revenues and net income before tax. As a percentage of
revenues, income tax expense increased from 5.0% to 7.2% and the effective tax
rate increased from 36.4% to 40%. The effective tax rate is 

                                    Page 10
<PAGE>
 
influenced by the mix of United Kingdom and United States tax rates, as well as
the tax rates of the various states in which the Company conducts its
operations. The higher effective tax rate is principally the result of the
Company conducting operations in an increasing number of states with income
taxes, amortization of non-deductible goodwill associated with companies
acquired and expenditure of certain  non-deductible leasing costs in the
United Kingdom. From October 1, 1996, through September 30, 1997, the Company
has opened offices or acquired operating companies in Oregon, Florida, Colorado,
Washington DC and United Kingdom; each of which has caused the Company to pay
incremental taxes based on revenues in those locations.

         NET INCOME

         Net income increased $957,000 to $1,587,000 for the quarter ended
September 30, 1997 from $630,000 for the quarter ended September 30, 1996. Net
income as a percentage of sales increased from 8.8% to 10.8% as a result of
increasing maturity and profitability of offices opened or acquired in the
comparison period, increases in revenues attributable to software operations,
increases in gross profit from all operations, and interest income earned on
proceeds from the Company's initial public stock offering.

         NINE MONTHS  ENDED SEPTEMBER 30, 1997 COMPARED TO NINE MONTHS ENDED 
SEPTEMBER 30, 1996

         TOTAL REVENUE

         Total revenues increased $20,663,000 to $38,499,000 for the nine months
ended September 30, 1997 from $17,836,000 for the nine months ended September
30, 1996, representing a 116% increase. On a pro forma basis (assuming all
companies acquired by ARIS subsequent to January 1, 1996 had been owned
throughout the comparison periods), total revenues increased approximately 51%.
As discussed below, increases in revenues were reflected in all three lines of
business.

         CONSULTING REVENUE

         Consulting revenue increased as a result of an overall increase in the
level of consulting activity. The Company employed or contracted for the
services of 164 full-time consultants and project managers at September 30, 1997
compared to 98 at September 30, 1996. Consulting revenues increased $11,397,000
to $21,969,000 for the nine months ended September 30, 1997 from $10,572,000 for
the nine months ended September 30, 1996 representing a 108% increase.
Consulting operations were conducted from seven consulting offices in the United
States and United Kingdom including three offices which were either newly opened
or which initiated consulting revenue producing activities after September 30,
1996. On a proforma basis, assuming all companies acquired by ARIS subsequent to
January 1, 1996 had been owned throughout the comparison period, total
consulting revenues increased 88%.

         TRAINING REVENUE

         Training revenue increased $7,547,000 to $14,143,000 for the nine
months ended September 30, 1997 from $6,596,000 for the nine months ended
September 30, 1996, representing a 114% increase. A significant portion of the
increase in training revenues for the 

                                    Page 11
<PAGE>
 
nine months ended September 30, 1997 is attributable to business units acquired
subsequent to May 1, 1996. ARIS acquired SQLSoft Inc. in May 1996, SofTeach
Corporation in October 1996, and Oxford in February 1997. On a pro forma basis
(assuming the companies acquired by ARIS subsequent to January 1, 1996 had been
owned throughout the comparison periods), total revenues increased approximately
16%. In addition, revenues increased in the current period as a result of a
significant increase in the number of classes and class training days offered.
The Company offered 2767 classes and 7319 training days in the nine months ended
September 30, 1997 as compared to 622 classes and 2581 training days in the nine
months ended September 30, 1996.

         SOFTWARE REVENUE

         Software revenue increased $1,718,000 to $2,386,000 for the nine months
ended September 30, 1997 from $668,000 for the nine months ended September 30,
1996, representing an increase of 257%. The increase in revenue is primarily
attributable to sales of the NoetixViews suite of products developed by Noetix
Corporation ("Noetix"). ARIS acquired Noetix in October 1996. On a proforma
basis, assuming Noetix had been owned by ARIS throughout the comparison period,
software revenues increased 60%.

         COST OF SALES

         Cost of sales increased $9,051,000 to $17,948,000 in the nine months
ended September 30, 1997 from $8,897,000 in the nine months ended September 30,
1996. The increase in cost of sales is primarily a reflection of the increase in
sales. Cost of sales as a percentage of sales decreased from 50% for the nine
months ended September 30, 1996 to 47% for the nine months ended September 30,
1997. The reduction in cost of sales as a percentage of sales is a result of the
relative increase in proportion of training and software revenues to total
revenue and the maturity of the Company's recent office openings and
improvements in operating margins of acquired companies or operations. The
percentage reduction in cost of sales is also attributable to inclusion of
Oxford in the nine months ended September 30, 1997.

         SELLING, GENERAL AND ADMINISTRATIVE EXPENSE

         Selling, general and administrative (SG&A) expense increased $8,771,000
to $14,742,000 for the nine months ended September 30, 1997 from $5,971,000 for
the nine months ended September 30, 1996, representing an increase of 147%. This
increase is attributable primarily to growth in the number of management, sales
and administrative staff from 86 at September 30, 1996 to 182 at September 30,
1997. SG&A expense as a percentage of total revenue increased from 33% for the
nine months ended September 30, 1996 to 38% for the quarter ended September 30,
1997. The increase is primarily attributable to the addition of Oxford, which
has relatively higher SG&A expenses as a percentage of revenues than do similar
operations in the United States.

         OTHER INCOME, NET

         Other income, net, increased $559,000 from $67,000 for the nine months
ended September 30, 1996 to $626,000 for the nine months ended September 30,
1997. The increase is 

                                    Page 12
<PAGE>
 
primarily attributable to the Company's investment yield on approximately
$28,000,000 of proceeds from the companies initial public stock offering
completed on June 19, 1997 and a gain amounting to $282,000 realized on the sale
of $1,337,000 of equity securities immediately prior to the Company's stock
offering.

         INCOME TAX EXPENSE

         Income tax expense increased $1,390,000 to $2,500,000 in the nine
months ended September 30, 1997 from $1,110,000 for the nine months ended
September 30, 1996 as a result of increased revenues and net income before tax.
As a percentage of revenues, income tax expense increased from 6.2% to 6.4% and
the effective tax rate increased from 36.6% to 39%. The effective tax rate is
influenced by the mix of United Kingdom and United States tax rates, as well as
the tax rates of the various states in which the Company conducts its
operations. The higher effective tax rate is principally the result of the
Company conducting operations in an increasing number of states with income
taxes, the increase in federal taxes attributable to non-deductible amortization
of goodwill associated with companies acquired and expenditure of certain
non-deductible leasing costs in the United Kingdom. From October 1, 1996
and through September 30, 1997, the Company has opened offices or acquired
operating companies in Oregon, Florida, Colorado, Washington DC and United
Kingdom; each of which has caused the Company to pay incremental taxes based on
revenues in those locations.

         NET INCOME

         Net income increased $2,010,000 to $3,935,000 for the nine months ended
September 30, 1997 from $1,925,000 for the nine months ended September 30, 1996.
Net income as a percentage of sales decreased from 10.7% to 10.2% primarily as a
result of higher selling, general and administrative costs as a percentage of
sales and lower net income of United Kingdom operations compared to net income
of United States operations and expenditure of acquisition and integration
charges incurred in connection with the Company's acquisition of three
businesses and two office openings in the comparison period. These cost
increases were substantially offset by increasing gross margins within the
comparison period and interest income earned on proceeds from the Company's
initial public stock offering.

LIQUIDITY AND CAPITAL RESOURCES

         As of September 30, 1997 the Company had working capital of $33,443,000
including cash or cash equivalents and marketable debt securities of
$28,378,000. The Company intends to finance its working capital needs, as well
as purchases of additional property and equipment for its operations, from cash
generated by operations and available cash.

         Net cash provided by operating activities was $2,671,000 for the nine
months ended September 30, 1997. Cash was also provided by the sale of equity
securities in the net amount of $1,337,000 while cash was utilized for the
purchase of property and equipment in the amount of $1,289,000 and the
acquisition of a business in the amount of $93,000. The Company's primary
financing activity in the nine months ended September 30, 1997 was the
completion of its initial public offering which provided $31,391,000 of cash
proceeds net of costs of the offering. The Company utilized $4,028,000 to
repurchase 415,000 of its common stock. Additionally, 

                                    Page 13
<PAGE>
 
$10,075,000 was utilized to repay debt of which $8,575,000 had been initially
borrowed in the same period. As a result, cash and cash equivalents increased
$28,099,000 in the nine months ended September 30, 1997.

         The Company has financed its acquisitions of businesses through cash
generated by operating activities, offering debt instruments to sellers and by
exchange of its common stock. The Company believes that it will be able to
continue to fund all capital required to acquire new businesses with cash
generated from operations, cash currently on hand and a bank borrowing facility
in the amount of $8,000,000. To continue its growth strategy, however, the
Company may need to issue additional debt or equity securities.

SUBSEQUENT EVENTS:

           On September 13, 1997, the Company entered into an Agreement and Plan
of Merger to acquire Enterprise Computing Inc. (doing business as Buller Owens &
Associates), an information technology training company located in New York, New
York. The transaction, which was effective October 1, 1997, will be accounted
for as a purchase transaction. In a transaction valued at $2,812,000, the
Company issued 62,531 shares of its restricted common stock, 20,844 warrants to
purchase the Company's common stock at $23.99 per share and $1,500,000 in cash
for all outstanding shares of Enterprise Computing Inc. The Company filed Form
8-K on September 26, 1997 in connection with this transaction. The Company did
not file any financial statements with that initial report on Form 8-K. The
Company will provide the required financial statements by filing a Form 8-K/A
within the time prescribed by Item 7(a)(4) of the instructions to Form 8-K.

           On October 21, 1997 the Company entered into an Agreement and Plan of
Merger to acquire Absolute!, Inc., an information technology training company
located in Dallas, Texas. The Company issued 40,909 shares of its restricted
common stock and $100,000 in cash for all outstanding shares of Absolute!, Inc.
The merger, which was effective November 4, 1997, will be accounted for as a
purchase transaction.

           On October 22, 1997 the Company entered into a Stock Purchase
Agreement to purchase all of the outstanding shares of capital stock of Agiliti,
Inc., an information technology training company located in Bloomington,
Minnesota. The Company issued 50,941 shares of its restricted common stock for
all outstanding shares of Agiliti, Inc. The transaction, which was effective
November 3, 1997, will be accounted for as a purchase transaction.

                                    Page 14
<PAGE>
 
                                    PART II
                               OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

         The Company is involved from time to time in routine legal proceedings
incidental to its business. As of September 30, 1997, the Company was not
involved in any material legal proceedings.


ITEM 2.  CHANGES IN SECURITIES

         In connection with the Company's initial public offering (the
"Offering") of its common stock, without par value (the "Common Stock"), the
Company filed a Registration Statement on Form S-1 on April 18, 1997
(Registration No. 333-25409), as amended (the "Registration Statement"),
pursuant to which the Company registered 2,320,800 shares of its Common Stock,
of which 2,300,000 shares were sold by the Company, and the remaining 20,800
shares were sold by certain selling shareholders. The Registration Statement was
declared effective by the Securities and Exchange Commission on June 17, 1997.
Deutsche Morgan Grenfell was the managing underwriter of the Offering. The
Offering commenced on June 18, 1997, and terminated following the sale of all of
the securities registered under the Registration Statement. The Common Stock was
offered, and sold, to the public at $15.00 per share, for aggregate
consideration of $34,812,000, of which the Company received gross proceeds of
$32,085,000, the selling shareholders received gross proceeds of $290,160, and
the remaining $2,436,840 was allocated as the underwriting discount.

         From the effective date of the Registration Statement through September
30, 1997, the Company has incurred an estimated $3,255,000 in expenses for the
Company's account in connection with the issuance and distribution of the Common
Stock, including underwriting discounts and commissions ($2,415,000) and other
expenses ($840,000). No finders' fees or expenses were paid to or for the
underwriters. The Company believes that none of these payments were made,
directly or indirectly, to: (i) directors or officers of the Company, or their
associates; (ii) persons owning ten percent or more of any class of equity
securities of the Company; or (iii) affiliates of the Company.

         From the effective date of the Registration Statement through September
30, 1997, the Company has applied $4,000,000 of the Offering proceeds to the
repayment of the Company's revolving bank loan. The Company believes that none 
of these payments were made, directly or indirectly, to: (i) directors or 
officers of the Company, or their associates; (ii) persons owning ten percent or
more of any class of equity securities of the Company; or (iii) affiliates of 
the Company. To date, the Company believes that it has used the Offering
proceeds in a manner consistent with the use of proceeds described in the
Registration Statement. The remaining $27,245,000 of the Offering proceeds is
invested in short term marketable debt securities and money market funds.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         Not applicable.

                                    Page 15
<PAGE>
 
ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         Not applicable.

ITEM 5.  OTHER INFORMATION

         Not applicable.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (A)      EXHIBITS

                  See Exhibit Table on page 18.

         (B)      REPORTS ON FORM 8-K

                  The Company filed a Form 8-K on September 26, 1997, reporting
its merger with Enterprise Computing Inc. dba Buller Owens & Associates, which
is incorporated by reference herein. The Company did not file any financial
statements with that initial report on Form 8-K. The Company will provide the
required financial statements by filing a Form 8-K/A within the time prescribed
by Item 7(a)(4) of the instructions to Form 8-K.

                                    Page 16
<PAGE>
 
                                   SIGNATURE


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

         Dated this 13th day of         ARIS Corporation 
         November 1997.


                                        By:  /s/ Thomas W. Averill      
                                           ---------------------------------
                                            Thomas W. Averill
                                            Vice President, Finance;
                                            Chief Financial Officer
                                            (Principal Financial and    
                                             Accounting Officer and 
                                            Duly Authorized Officer)

                                    Page 17
<PAGE>
 
                                   EXHIBITS


      PAGE     EXHIBIT NUMBER      EXHIBIT NAME
      ----     --------------      ------------
                     2.1           Plan of Acquisition, Reorganization, 
                                   Arrangement, Liquidation
                                   or Succession

                    10.1           Form of Indemnification Agreement

                    11.1           Computation of Earnings Per Share

                    27.1           Financial Data Schedule

                                    Page 18