<PAGE>

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-Q
(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2001

                                       or

[_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND
     EXCHANGE ACT OF 1934
     FOR THE TRANSITION PERIOD FROM _________________ TO _________________

     Commission File Number:  000-24373

                         GLOBAL IMAGING SYSTEMS, INC.
-------------------------------------------------------------------------------
            (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

DELAWARE                                   59-3247752
----------------------------------------   ------------------------------------
(STATE OR OTHER JURISDICTION OF            (I.R.S. EMPLOYER IDENTIFICATION
INCORPORATION OR ORGANIZATION)             NO.)

3820 Northdale Boulevard, Suite 200A       33624
Tampa, Florida
----------------------------------------   ------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE            (ZIP CODE)
OFFICES)

REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:  813-960-5508


-------------------------------------------------------------------------------
         (FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)

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

The registrant had 18,175,380 shares of common stock, $.01 par value,
outstanding as of January 25, 2002.
<PAGE>

                                     INDEX

                                                                          Page
                                                                          ----

PART I - FINANCIAL INFORMATION

ITEM 1 - Consolidated Financial Statements

   Consolidated Balance Sheets as of December 31, 2001 (Unaudited)
   and March 31, 2001                                                       3

   Consolidated Statements of Operations for the three months ended
   December 31, 2001 and 2000 (Unaudited)                                   4

   Consolidated Statements of Operations for the nine months ended
   December 31, 2001 and 2000 (Unaudited)                                   5

   Consolidated Statements of Cash Flows for the nine months ended
   December 31, 2001 and 2000 (Unaudited)                                   6

   Consolidated Statement of Stockholders' Equity for the nine
   months ended December 31, 2001 (Unaudited)                               7

   Notes to Consolidated Financial Statements (Unaudited)                   8


ITEM 2 - Management's Discussion and Analysis of Financial
   Condition and Results of Operations                                     13

ITEM 3 - Quantitative and Qualitative Disclosures about Market Risk        19

PART II - OTHER INFORMATION

ITEM 6 - Exhibits and Reports on Form 8-K                                  19


SIGNATURE                                                                  20

EXHIBIT INDEX                                                              21
<PAGE>

PART I - FINANCIAL INFORMATION

ITEM 1.  Consolidated Financial Statements

GLOBAL IMAGING SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)

<TABLE>
<CAPTION>
                                                                                        December 31,           March 31,
                                                                                            2001                 2001
                                                                                        ------------           ---------
ASSETS                                                                                  (Unaudited)
<S>                                                                                     <C>                    <C>
Current assets:
 Accounts receivable, net of allowance for doubtful accounts ($2,401
 and $2,150 at December 31, 2001 and March 31, 2001, respectively)                        $ 80,426             $ 82,830
 Inventories                                                                                66,168               61,608
 Deferred income taxes                                                                       4,396                3,813
 Prepaid expenses and other current assets                                                   5,599                3,667
                                                                                        ----------             --------
   Total current assets                                                                    156,589              151,918
Rental equipment, net                                                                       14,418               13,553
Property and equipment, net                                                                 13,051               11,550
Other assets                                                                                 1,076                1,156
Related party notes receivable                                                                 400                  400
Intangible assets, net:
 Goodwill                                                                                  294,924              294,204
 Noncompete agreements                                                                         733                1,461
 Financing fees                                                                              4,650                4,577
                                                                                        ----------             --------
   Total assets                                                                           $485,841             $478,819
                                                                                        ==========             ========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Accounts payable                                                                         $ 22,293             $ 23,251
 Accrued liabilities                                                                         9,420               12,422
 Accrued compensation and benefits                                                          11,601               13,583
 Accrued interest                                                                            4,631                2,037
 Current maturities of long-term debt                                                        6,503                5,521
 Deferred revenue                                                                           21,625               23,828
 Income taxes payable                                                                        3,970                  422
                                                                                        ----------             --------
   Total current liabilities                                                                80,043               81,064
Deferred income taxes                                                                        4,830                2,830
Long-term debt, less current maturities                                                    258,535              271,129
                                                                                        ----------             --------
   Total liabilities                                                                       343,408              355,023
Stockholders' equity:
 Preferred stock, $.01 par value:
  10,000,000 shares authorized:  No shares issued.                                               -                    -
 Common stock, $.01 par value:
  50,000,000 shares authorized:  19,329,159 and 19,225,086 shares issued and
  18,153,520 and 18,049,447 shares outstanding at December 31, 2001 and March
  31, 2001, respectively                                                                       193                  192
 Common stock held in treasury, at cost                                                    (10,352)             (10,352)
 Additional paid-in capital                                                                 92,085               91,475
 Retained earnings                                                                          61,866               42,481
 Accumulated other comprehensive loss                                                       (1,359)                   -
                                                                                        ----------             --------
   Total stockholders' equity                                                              142,433              123,796
                                                                                        ----------             --------
   Total liabilities and stockholders' equity                                             $485,841             $478,819
                                                                                        ==========             ========
</TABLE>

                            See accompanying notes.

                                       3

<PAGE>

GLOBAL IMAGING SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                                       Three Months Ended
                                                          December 31,
                                                       2001         2000
                                                     --------     --------
Revenues:
 Equipment and supplies                              $112,028     $109,243
 Service and rentals                                   39,102       37,530
                                                     --------     --------
   Total revenues                                     151,130      146,773
Costs and operating expenses:
 Cost of equipment and supplies                        74,170       73,876
 Service and rental costs                              19,724       18,668
 Selling, general and administrative expenses          39,086       36,373
 Intangible asset amortization                            226        2,615
                                                     --------     --------
   Total costs and operating expenses                 133,206      131,532
                                                     --------     --------
Income from operations                                 17,924       15,241
Interest expense                                        5,905        7,306
                                                     --------     --------
Income before income taxes                             12,019        7,935
Income taxes                                            4,868        3,653
                                                     --------     --------
Net income                                           $  7,151     $  4,282
                                                     ========     ========

Net income per common share:
  Basic                                              $    .39     $    .24
                                                     ========     ========
  Diluted                                            $    .39     $    .24
                                                     ========     ========

Weighted average number of shares outstanding:
  Basic                                                18,153       18,074
  Diluted                                              18,513       18,074

                            See accompanying notes.

                                       4
<PAGE>

GLOBAL IMAGING SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

                                                           Nine Months Ended
                                                             December 31,
                                                           2001        2000
                                                         --------    --------
Revenues:
 Equipment and supplies                                  $351,017    $328,416
 Service and rentals                                      115,684     106,405
                                                         --------    --------
    Total revenues                                        466,701     434,821
Costs and operating expenses:
 Cost of equipment and supplies                           235,377     223,456
 Service and rental costs                                  60,158      53,630
 Selling, general and administrative expenses             118,986     106,884
 Intangible asset amortization                                738       7,497
                                                         --------    --------
    Total costs and operating expenses                    415,259     391,467
                                                         --------    --------
Income from operations                                     51,442      43,354
Interest expense                                           18,862      21,110
                                                         --------    --------
Income before income taxes                                 32,580      22,244
Income taxes                                               13,195      10,227
                                                         --------    --------
Net income                                               $ 19,385    $ 12,017
                                                         ========    ========

Net income per common share:
  Basic                                                  $   1.07    $    .65
                                                         ========    ========
  Diluted                                                $   1.05    $    .65
                                                         ========    ========

Weighted average number of shares outstanding:
  Basic                                                    18,103      18,421
  Diluted                                                  18,378      18,426

                            See accompanying notes.

                                       5
<PAGE>

GLOBAL IMAGING SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                                Nine Months Ended
                                                                                                   December 31,
                                                                                           2001                  2000
                                                                                        ---------              ---------
<S>                                                                                     <C>                    <C>
OPERATING ACTIVITIES:
Net income                                                                              $  19,385              $  12,017
Adjustments to reconcile net income to net cash provided by operating
 activities:
     Depreciation                                                                           9,848                  7,939
     Amortization                                                                           1,556                  8,197
     Deferred income taxes                                                                  2,183                    820
Changes in operating assets and liabilities, net of amounts acquired in
 purchase business combinations:
     Accounts receivable                                                                    2,475                 (9,259)
     Inventories                                                                           (4,495)                (4,779)
     Prepaid expenses and other current assets                                             (1,932)                (2,387)
     Other assets                                                                              80                    250
     Accounts payable                                                                        (971)                   306
     Accrued liabilities, compensation and benefits, interest                              (4,139)                 2,565
     Deferred revenue                                                                      (2,282)                 1,466
     Income taxes payable                                                                   3,611                  1,933
                                                                                        ---------              ---------
Net cash provided by operating activities                                                  25,319                 19,068

INVESTING ACTIVITIES:
Purchase of property and equipment and rental equipment                                   (12,212)               (10,411)
Payment for purchase of businesses, net of cash acquired                                     (715)               (29,756)
                                                                                        ---------              ---------
Net cash used in investing activities                                                     (12,927)               (40,167)

FINANCING ACTIVITIES:
Proceeds (repayments) of long-term debt                                                    (7,612)                30,640
Scheduled payments on long-term debt                                                       (4,000)                (3,052)
Financing fees                                                                               (891)                  (131)
Common stock issued for cash                                                                  111                      -
Common stock repurchases                                                                        -                 (9,987)
                                                                                        ---------              ---------
Net cash provided by (used in) financing activities                                       (12,392)                17,470
                                                                                        ---------              ---------
Net decrease in cash and cash equivalents                                                       -                 (3,629)
Cash and cash equivalents, beginning of period                                                  -                  3,629
                                                                                        ---------              ---------
Cash and cash equivalents, end of period                                                $       -              $       -
                                                                                        =========              =========
</TABLE>

                            See accompanying notes.


                                       6
<PAGE>

GLOBAL IMAGING SYSTEMS, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited)
(IN THOUSANDS, EXCEPT FOR SHARE AMOUNTS)

<TABLE>
<CAPTION>
                                              Common Stock
                                ---------------------------------------
                                                                                                        Accumulated
                                                              Held in     Additional                       Other
                                Number of                    Treasury,      Paid-in      Retained      Comprehensive
                                 Shares      Par Value        at cost       Capital      Earnings          Loss           Total
                               ----------   ----------     ------------   -----------   ---------    ----------------   ----------
<S>                            <C>          <C>            <C>             <C>          <C>          <C>                <C>
Balances at March 31, 2001     18,049,447         $192         $(10,352)      $91,475     $42,481                   -     $123,796

Comprehensive income:
 Net income                                                                                19,385                           19,385
 Unrealized loss on
  derivative instruments                                                                                      $(1,359)      (1,359)
                                                                                                                        -----------
  Total comprehensive income                                                                                                18,026

Stock options exercised             8,835            -                            111                                          111
Common stock issued in
conjunction with earnout           95,238            1                            499                                          500

                               ----------   ----------     ------------   -----------   ---------    ----------------   ----------
Balances at December 31, 2001  18,153,520         $193         $(10,352)      $92,085     $61,866             $(1,359)    $142,433
                               ==========   ==========     ============   ===========   =========    ================   ==========
</TABLE>

                            See accompanying notes.

                                       7
<PAGE>

GLOBAL IMAGING SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

NOTE 1. BASIS OF PRESENTATION

   The accompanying consolidated balance sheet as of December 31, 2001,
consolidated statements of operations for the three and nine months ended
December 31, 2001 and 2000, consolidated statements of cash flows for the nine
months ended December 31, 2001 and 2000, and the consolidated statement of
stockholders' equity for the nine months ended December 31, 2001 are unaudited.
In the opinion of management, all adjustments, consisting of normal recurring
accruals, necessary for a fair presentation of the results of operations for the
interim periods presented have been reflected herein. The results of operations
for the interim periods are not necessarily indicative of the results which may
be expected for the entire fiscal year. The consolidated financial statements
should be read in conjunction with the consolidated financial statements and the
notes thereto included in Global Imaging Systems, Inc.'s (together with its
subsidiaries, "Global" or the "Company") Annual Report for the year ended March
31, 2001. Certain prior year amounts have been reclassified to conform to the
current year presentation.

NOTE 2. EARNINGS PER SHARE

   Basic earnings per share ("EPS") is computed by dividing net income by the
weighted average number of shares outstanding for the period. Diluted EPS
reflects the potential dilution from the exercise of stock options or the
conversion of securities into stock.

   The following table reconciles the numerators and denominators of the basic
and diluted EPS computations (shares in thousands):

<TABLE>
<CAPTION>
                                                             For Three Months Ended                    For Nine Months Ended
                                                         -------------------------------          -------------------------------
                                                         December 31,       December 31,          December 31,       December 31,
                                                             2001               2000                  2001               2000
                                                         ------------       ------------          ------------       ------------
<S>                                                      <C>                <C>                   <C>                <C>
Numerator:
 Numerator for basic and diluted earnings per
  share...........................................         $   7,151          $   4,282             $  19,385           $ 12,017
                                                         ============       ============          ============       ============
Denominator:
 Denominator for basic earnings per share.........            18,153             18,074                18,103             18,421
 Effect of dilutive securities:
  Employee stock options..........................               360                  -                   275                  5
                                                         ------------       ------------          ------------       ------------
 Denominator for diluted earnings per share.......            18,513             18,074                18,378             18,426
                                                         ============       ============          ============       ============
</TABLE>

NOTE 3. ACQUISITIONS

     During the nine months ended December 31, 2001 the Company acquired one
business that provides office-imaging solutions. Aggregate consideration for
this acquisition was approximately $162 in cash and acquisition related
expenses. Liabilities totaling approximately $137 were assumed by the Company in
connection with this acquisition. Goodwill of approximately $167 was recorded
related to this acquisition. This acquisition was accounted for by the purchase
method of accounting and accordingly is included in the results of operations
from the date of acquisition.

                                       8
<PAGE>

     The unaudited pro forma results presented below include the effects of the
Company's acquisitions for fiscal years 2001 and 2002 as if they had been
consummated as of April 1, 2000. The unaudited pro forma financial information
below is not necessarily indicative of either future results of operations or
results that might have been achieved had the acquisitions been consummated at
the beginning of the year prior to acquisition.

                                                 Unaudited Pro forma
                                            Nine Months ended December 31,
                                         ------------------------------------
                                             2001                      2000
                                         ----------               -----------
Revenues...........................        $466,931                  $448,767
Net income.........................        $ 19,432                  $ 11,908
                                         ==========               ===========
Net income per common share:
  Basic............................        $   1.07                  $    .65
  Diluted..........................        $   1.06                  $    .65

NOTE 4. STOCK OPTION PLANS

     In 1998, the Board of Directors adopted a stock option plan, as amended,
under which 2,520,000 shares of the Company's common stock may be sold pursuant
to stock options or granted or sold as restricted stock to directors, officers,
employees and consultants to the Company. As of December 31, 2001, options to
purchase 1,377,080 shares of the Company's common stock were outstanding under
the stock option plan. During the nine months ended December 31, 2001, options
to purchase an aggregate of 102,000 shares were granted under the 1998 stock
option plan with exercise prices ranging from $5.80 to $13.45 per share.

     On January 25, 2001, the Board of Directors adopted the Global Imaging
Systems, Inc. 2001 Stock Option Plan under which Global may grant options to
purchase up to 300,000 shares of Global's common stock to employees of and
service providers to Global, except for executive officers and directors. Stock
options granted under the 2001 stock option plan have the same terms as those
granted under the 1998 plan. As of December 31, 2001, options to purchase
297,500 shares were outstanding under the 2001 stock option plan. During the
nine months ended December 31, 2001, options to purchase an aggregate of 300,000
shares were granted under the 2001 stock option plan with an exercise price of
$5.44 per share.

     In addition to options outstanding under Global's stock option plans,
10,000 shares of Global's common stock are issuable upon the exercise of an
option granted outside Global's stock option plans. This option is exercisable
at a price of $12.00 per share.

NOTE 5. DERIVATIVES

     On April 1, 2001, the Company adopted Statement of Financial Accounting
Standard (SFAS) No. 133, Accounting for Derivative Instruments and Hedging
Activities, as amended. SFAS No. 133 requires the recognition of all derivative
instruments as either assets or liabilities in the consolidated balance sheet at
fair value. The accounting for changes in the fair value (i.e., gains or losses)
of a derivative instrument depends on whether it has been designated and
qualifies as part of a hedging relationship and further, on the type of hedging
relationship. For those derivative instruments that are designated and qualify
as hedging instruments, a company must designate the hedging instrument, based
on the exposure being hedged, as either a fair value hedge, cash flow hedge, or
a hedge of a net investment in a foreign operation. The adoption of SFAS No. 133
did not have a material impact on

                                       9
<PAGE>

the consolidated balance sheet or statement of operations of the Company and
derivative instruments are not used by the Company for speculative purposes.

     For derivative instruments that are designated and qualify as a cash flow
hedge (i.e., hedging the exposure to variability in expected future cash flows
that is attributable to a particular risk, such as interest rate risk), the
effective portion of the gain or loss on the derivative instrument is reported
as a component of comprehensive income and reclassified into earnings in the
same period or periods during which the hedged transaction affects earnings. The
remaining gain or loss on the derivative instrument in excess of the cumulative
change in the present value of the future cash flows of the hedged item, if any,
is recognized in current earnings during the period of change.

     The Company has entered into interest rate swap agreements that effectively
convert a portion of its floating-rate debt to a fixed-rate basis until
September 2002, thus reducing the impact of interest-rate changes on future
interest expense. At December 31, 2001, $52,000 of the Company's borrowings
under the credit agreement has been designated as the hedged items to interest
rate swap agreements. Under the swap agreements, the Company received an averae
variable rate of 4.3% and paid months ended December 31, 2001. The Company has
recognized a loss, net of tax, of approximately $1,359 related to the portion of
the hedging instrument included in the assessment of hedge effectiveness, which
has been recorded in comprehensive income. Amounts of net gains or losses on
derivative instruments expected to be reclassified from comprehensive income to
earnings in the next twelve months are not expected to be material.

     The Company has entered into an interest rate cap agreement (cap) in the
total notional amount of approximately $22,000, which is not designated as a
hedging instrument. The cap is recorded on the balance sheet at fair value, with
changes in the fair value of the cap being recorded in the consolidated
statement of operations during the period of change. The cap limits the
Company's interest rate risk exposure to 9% for the related notional amount. No
payments have been received under the cap, which expires September 2002.

NOTE 6. COMPREHENSIVE INCOME

     The following table presents a reconciliation of comprehensive income,
comprised of net income, the cumulative effect of adopting SFAS No. 133 on April
1, 2001 and the unrealized loss on cash flow hedges.

<TABLE>
<CAPTION>
                                                                           Three Months Ended            Nine Months Ended
                                                                           December 31, 2001             December 31, 2001
                                                                           ------------------            ------------------
<S>                                                                        <C>                           <C>
Net income..........................................................           $        7,151                $       19,385
Cumulative effect of adopting SFAS No. 133, net of tax..............                        -                          (994)
Unrealized loss on cash flow hedges, net of tax.....................                      (14)                         (365)
                                                                           ------------------            ------------------

Total comprehensive income..........................................           $        7,137                $       18,026
                                                                           ==================            ==================
</TABLE>

NOTE 7. GOODWILL

     Effective April 1, 2001, the Company adopted SFAS No. 142, Goodwill and
Other Intangible Assets in accordance with the early adoption provisions of the
standard. Under SFAS No. 142 goodwill and intangibles with indefinite lives are
no longer amortized, but are tested for impairment on a periodic basis. The
provisions of this accounting standard also require the completion of a

                                       10
<PAGE>

transitional impairment test within six months of adoption, with any impairments
identified treated as a cumulative effect of a change in accounting principle.
The Company completed the required transitional impairment test resulting in no
goodwill impairment.  Separately identified intangibles that are not deemed to
have indefinite lives will continue to be amortized over their useful life, with
no maximum life.

     The changes in the carrying amount of goodwill from April 1 to December 31,
2001 are as follows:

Balance as of April 1, 2001......................................     $294,204
Goodwill acquired................................................          167
Impairment losses................................................            -
Adjustments to goodwill..........................................          553
                                                                      --------
Balance at December 31, 2001.....................................     $294,924
                                                                      ========

     The following pro forma table includes the prior period results of
operations as if SFAS No. 142 had been adopted at April 1, 2000.

<TABLE>
<CAPTION>
                                                          Three Months Ended        Nine Months Ended
                                                              December 31,              December 31,
                                                       ----------------------    ----------------------
                                                          2001        2000          2001         2000
                                                       ---------   ----------    ---------    ---------
<S>                                                    <C>          <C>          <C>         <C>
Reported net income...................................    $7,151       $4,282      $19,385      $12,017
Add back: Goodwill amortization, net of tax...........         -        1,814            -        5,148
                                                       ---------   ----------    ---------    ---------
Adjusted net income...................................    $7,151       $6,096      $19,385      $17,165
                                                       =========   ==========    =========    =========
Basic earnings per share:
 Reported net income..................................    $  .39       $  .24      $  1.07      $   .65
 Goodwill amortization................................         -          .10            -          .28
                                                       ---------   ----------    ---------    ---------
 Adjusted net income..................................    $  .39       $  .34      $  1.07      $   .93
                                                       =========   ==========    =========    =========
Diluted earnings per share:
 Reported net income..................................    $  .39       $  .24      $  1.05      $   .65
 Goodwill amortization................................         -          .10            -          .28
                                                       ---------   ----------    ---------    ---------
 Adjusted net income..................................    $  .39       $  .34      $  1.05      $   .93
                                                       =========   ==========    =========    =========
</TABLE>

NOTE 8.  RECENT ACCOUNTING PRONOUNCEMENTS

     In July 2001, the Financial Accounting Standards Board (FASB) issued SFAS
No. 141, Business Combinations.  SFAS No. 141 requires all business combinations
initiated after June 30, 2001 to be accounted for using the purchase method.
The Company does not expect the adoption of this standard to have an impact on
its financial statements.

     In October 2001, the FASB issued SFAS No. 144, Accounting for the
Impairment or Disposal of Long-Lived Assets.  The FASB's new rules on asset
impairment supersede SFAS No. 121, Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to Be Disposed Of, and provide a single
accounting model for long-lived assets to be disposed of.  The Company does not
expect the adoption of this standard to have a material impact on its financial
statements.

                                       11
<PAGE>

NOTE 9.  SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION

     The Company has issued $100,000 of 10 3/4% Senior Subordinated Notes that
are fully and unconditionally guaranteed on a joint and several basis by all the
Company's existing subsidiaries (the Guarantors), each of which is wholly owned,
directly or indirectly, by the Company.  The Company is a holding company all of
whose operations are conducted by the Guarantors and the Company has no
operations or assets separate from its investment in its subsidiaries.

                                       12
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS
         (DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

     The following discussion and analysis should be read in conjunction with
the accompanying financial statements and related notes included elsewhere in
this Report on Form 10-Q and our annual report for the year ended March 31,
2001. The discussion in this section contains forward-looking statements,
including statements relating to the pace of our future acquisitions and overall
growth, the benefits that will be realized by businesses we have acquired or may
acquire, our future product and service offerings, pace of borrowings and rate
of internally generated cash flows and time frame for seeking additional
financing. These forward-looking statements are based largely on management's
current expectations and projections about future events and financial trends
affecting the financial condition of our business. These forward-looking
statements are subject to risks, uncertainties and assumptions, which could
cause our actual results to differ materially from the results suggested by
these forward-looking statements. Some factors that may cause our results to
differ materially from these statements are:

     .  downturns in general economic and business conditions, either nationally
        or in our markets, which could reduce our revenue, restrict revenue
        growth or increase costs.
     .  changes in our competitive climate, which could require us to lower
        prices and therefore would reduce our revenues with no corresponding
        reduction in cost.
     .  fewer than expected acquisition opportunities or difficulty obtaining
        additional financing on satisfactory terms, which could slow our growth
        through acquisitions.
     .  recognition of unanticipated costs and delays associated with ongoing
        integration efforts.
     .  inability to obtain financing on satisfactory terms due to our
        substantial indebtedness or fluctuations in our common stock price.
     .  increases in borrowing rates and costs which could limit our
        acquisitions, cause us to reduce our pace of acquisitions or growth, or
        accelerate the time in which we need to obtain new financing.
     .  technological developments that may reduce demand for the products and
        services we sell or result in us facing increased competition to sell
        those products and services.
     .  economic and other disruptions and uncertainties resulting from the
        terrorist attacks in New York City and Washington, D.C. on September 11,
        2001 and a continuing war on terrorism, including military action, new
        terrorist attacks, actual or threatened, and related political events.

     Information regarding many of these factors and other factors that may
cause our actual results to differ materially from those contained in the
forward-looking statements is presented in the "Risk Factors" section of our
Annual Report on Form 10-K for the year ended March 31, 2001. We undertake no
obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.

Overview

     Global was founded in June 1994 and is a leading provider of a number of
office technology solutions such as the sale and service of automated office
equipment including copiers, facsimile machines, printers and duplicators,
network integration solutions and electronic presentation systems.  We currently
offer solutions incorporating products from Konica, Canon, Ricoh, Sharp,
Hewlett-Packard, IBM, Microsoft, InFocus, Sony and other leading companies from
113 locations in 27 states.  Since our founding in June 1994, we have acquired
51 businesses, all within the United States, and presently operate 14 core
companies and 37 satellite companies that have been integrated into the core

                                       13
<PAGE>

companies.  We believe the businesses we have acquired and the businesses we
acquire in the future will benefit from our various programs and operating
strategies.  These benefits include increased operating efficiencies, the
support of experienced and professional senior management, expansion of the
types of office technology products and services offered, increased access to
capital, and enhanced financial management.

     Our revenues come from two sources: (1) sales of equipment and supplies and
(2) sales of complementary services and equipment rentals. The growth of
equipment revenues and the complementary supplies, parts and service revenues
depends on several factors, including the demand for equipment, our reputation
for providing timely and reliable service, and general economic conditions.
Revenues generated from the sale of equipment and complementary supplies, parts
and services are affected by price, general economic conditions, service
reputation, and competitors' actions in the marketplace. Sales of complementary
supplies, parts and services are also affected by equipment sales and rental
volumes.

     Gross profit as a percentage of revenues varies from period to period
depending on a number of variables.  Those variables include the mix of revenues
from equipment, supplies, service and rentals; the mix of revenues among the
markets served by us; and the mix of revenues of the businesses acquired by us.
As we acquire businesses, the percentage of our revenues from sales of equipment
and supplies, as opposed to service and rentals, fluctuates depending on whether
the businesses acquired are automated office equipment dealers or are network
integrators or electronic presentation systems dealers.  Automated office
equipment dealers typically derive a higher percentage of their revenues from
service and rentals, and a lower percentage from sales of equipment and
supplies, than do network integrators or electronic presentation system dealers.
Generally, sales of equipment and supplies have lower gross profit margins than
revenues from service and rentals.  In addition, equipment sales in the
automated office equipment market generally have higher gross profit margins
than equipment sales in the network integration or electronic presentation
systems markets.  To the extent these markets grow faster than the automated
office equipment market, over time a larger percentage of our revenues and gross
profits may be derived from sales that have lower gross profit margins than our
current gross profit margins.

     Cost of goods sold consists primarily of the cost of new equipment, cost of
supplies and parts, labor costs to provide services, rental equipment
depreciation and other direct operating costs.  We depreciate our rental
equipment primarily over a three-year period on a straight-line basis.

                                       14
<PAGE>

RESULTS OF OPERATIONS

   The following table sets forth selected consolidated financial information as
a percentage of total revenues.

<TABLE>
<CAPTION>
                                                              Three Months Ended                        Nine Months Ended
                                                   ------------------------------------------ -------------------------------------
                                                      December 31,          December 31,        December 31,        December 31,
                                                          2001                  2000                2001                2000
                                                   ------------------- ---------------------- ------------------ ------------------
<S>                                                 <C>                   <C>                 <C>                   <C>
Revenues:
 Equipment and supplies...........................             74.1%                 74.4%               75.2%           75.5%
 Service and rentals..............................             25.9                  25.6                24.8            24.5
                                                   ------------------- ---------------------- ------------------ ------------------
Total revenues....................................            100.0                 100.0               100.0           100.0
Cost and operating expenses:
 Cost of equipment and supplies...................             49.1                  50.3                50.4            51.4
 Service and rental costs.........................             13.0                  12.7                12.9            12.3
 Selling, general and administrative expenses.....             25.9                  24.8                25.5            24.6
 Intangible asset amortization....................               .1                   1.8                  .2             1.7
                                                   ------------------- ---------------------- ------------------ ------------------
Total costs and operating expenses................             88.1                  89.6                89.0            90.0
                                                   ------------------- ---------------------- ------------------ ------------------
Income from operations............................             11.9                  10.4                11.0            10.0
Interest expense..................................              3.9                   5.0                 4.0             4.9
                                                   ------------------- ---------------------- ------------------ ------------------
Income before income taxes........................              8.0                   5.4                 7.0             5.1
Income taxes......................................              3.3                   2.5                 2.8             2.3
                                                   ------------------- ---------------------- ------------------ ------------------
Net income........................................              4.7%                  2.9%                4.2%            2.8%
                                                   =================== ====================== ================== ==================
</TABLE>


THREE MONTHS ENDED DECEMBER 31, 2001 COMPARED TO THREE MONTHS ENDED DECEMBER 31,
2000

   Revenues

   Total revenues for the three months ended December 31, 2001 increased to
$151,130, 3.0% higher than total revenues of $146,773 for the same period in
2000.  The majority of the increase in revenue was due to internal growth, with
the remainder coming from the acquisition of businesses during fiscal years 2001
and 2002.

   Equipment and supplies revenues for the three months ended December 31, 2001
increased to $112,028, 2.5% higher than equipment and supplies revenues of
$109,243 for the same period in 2000.

   Service and rental revenues for the three months ended December 31, 2001
increased to $39,102, 4.2% higher than service and rental revenues of $37,530
for the same period in 2000.

   Gross Profit

   Gross profit for the three months ended December 31, 2001 increased to
$57,236, 5.5% higher than gross profit of $54,229 for the same period in 2000.
When viewed as a percentage of total revenue, gross profit was 37.9% for the
three months ended December 31, 2001 versus 36.9% for the same period in 2000.
Office equipment dealers typically receive a higher percentage of revenues and
gross profit from service and rentals, while network integration solutions and
electronic presentation systems dealers derive a higher percentage of revenues
and gross profit from sales of equipment and supplies.  For our existing
businesses, the sales internal growth rate of the automated office equipment
dealers was higher than that of the network integration solutions and electronic
presentation systems dealers.

                                       15
<PAGE>

   Gross profit as a percentage of equipment and supplies revenues increased to
33.8% for the three months ended December 31, 2001 from 32.4% for the same
period one year ago.

   As a percentage of revenue, the combined service and rental gross profit
margin declined to 49.6% for the three months ended December 31, 2001 from 50.3%
for the same period one year ago.  This is primarily due to an increase in
rental depreciation expense as a result of several large accounts replacing
fully depreciated rental equipment with new rental equipment.

   Selling, General and Administrative Expenses

   Selling, general and administrative, or SG&A, expenses for the three months
ended December 31, 2001 increased to $39,086, 7.5% higher than SG&A expenses of
$36,373 for the same period in 2000.  These expenses increased principally due
to payroll wages and commissions related to the increase in sales, and increased
health insurance, advertising and depreciation expenses.  The increase in
expense as a percentage of revenues also was the result of acquiring automated
office equipment businesses in 2001 and 2002.

   Intangible Asset Amortization

   Intangible asset amortization was $226 for the three months ended December
31, 2001.  This amortization is for non-compete agreements, while goodwill is no
longer amortized due to the adoption of SFAS No. 142 effective April 1, 2001.
During the same period in 2000, intangible asset amortization was $2,615, which
included goodwill amortization of $2,330 and non-compete agreements amortization
of $285.  See Note 7 to the consolidated financial statements for a further
discussion of SFAS No. 142.

   Income From Operations

   Income from operations for the three months ended December 31, 2001 was
$17,924, 17.6% higher than $15,241 from the same period in 2000.  Income from
operations was positively impacted by the early adoption of SFAS No. 142 (see
Note 7 to the consolidated financial statements) and the increase in combined
revenues and gross profit.

   Interest Expense

   Interest expense for the three months ended December 31, 2001 was $5,905,
compared to $7,306 from the same period in 2000.  The decrease in interest
expense was due to the decrease in our level of borrowings and lower interest
rates.  Interest expense includes the amortization of financing fees incurred in
connection with our current credit facility, the senior subordinated notes and
ineffective hedging activities.

   Income Taxes

   The provision for income taxes for the three months ended December 31, 2001
was $4,868, 33.3% higher than $3,653 from the same period in 2000.  The increase
in income taxes was primarily due to higher pre-tax income in 2001, offset by
the reduction in the effective income tax rate due to the non-deductibility of
goodwill amortization.  The effective income tax rate was 40.5% for the three
months ended December 31, 2001 and 46.0% for the same period in 2000. The
decline in the effective income tax rate is primarily due to goodwill not being
amortized with the adoption of SFAS No. 142, effective April 1, 2001.  The
effective income tax rate was higher than the federal statutory rate of 35% due
to state and local taxes, and for the three months ended December 31, 2000, the
non-deductible goodwill amortization.

                                       16
<PAGE>

NINE MONTHS ENDED DECEMBER 31, 2001 COMPARED TO NINE MONTHS ENDED DECEMBER 31,
2000

   Revenues

   Total revenues for the nine months ended December 31, 2001 increased to
$466,701, 7.3% higher than total revenues of $434,821 for the same period in
2000.  The majority of the increase in revenue was due to internal growth, with
the remainder coming from acquisition of businesses during fiscal years 2001 and
2002.

   Sales of equipment and supplies revenues for the nine months ended December
31, 2001 increased to $351,017, 6.9% higher than equipment and supplies revenues
of $328,416 for the same period in 2000.

   Service and rental revenues for the nine months ended December 31, 2001
increased to $115,684, 8.7% higher than service and rental revenues of $106,405
for the same period in 2000.

   Gross Profit

   Gross profit for the nine months ended December 31, 2001 increased to
$171,166, 8.5% higher than gross profit of $157,735 for the same period in 2000.
When viewed as a percentage of total revenue, gross profit was 36.7% for the
nine months ended December 31, 2001 versus 36.3% for the same period in 2000.
Office equipment dealers typically receive a higher percentage of revenues and
gross profit from service and rentals, while network integration solutions and
electronic presentation systems dealers derive a higher percentage of revenues
and gross profit from sales of equipment and supplies.  For our existing
businesses, the sales internal growth rate of the automated office equipment
dealers was higher than that of the network integration solutions and electronic
presentation systems dealers.

   Gross profit as a percentage of equipment and supplies revenues increased to
32.9% for the nine months ended December 31, 2001 from 32.0% for the same period
one year ago.

   As a percentage of revenue, the combined service and rental gross profit
margin declined to 48.0% for the nine months ended December 31, 2001 from 49.6%
for the same period one year ago.  This is primarily due to an increase in
rental depreciation expense as a result of several large accounts replacing
fully depreciated rental equipment with new rental equipment.

   Selling, General and Administrative Expenses

   Selling, general and administrative, or SG&A, expenses for the nine months
ended December 31, 2001 increased to $118,986, 11.3% higher than SG&A expenses
of $106,884 for the same period in 2000.  These expenses increased principally
due to payroll wages and commissions related to the increase in sales, and
increased health and property and casualty insurance expenses, and occupancy
expenses.  The increase in expense as a percentage of revenues also was the
result of acquiring automated office equipment businesses in 2001 and 2002.

                                       17
<PAGE>

   Intangible Asset Amortization

   Intangible asset amortization was $738 for the nine months ended December 31,
2001.  This amortization is for non-compete agreements, while goodwill is no
longer amortized due to the adoption of SFAS No. 142 effective April 1, 2001.
During the same period in 2000, intangible asset amortization was $7,497, which
included goodwill amortization of $6,642 and non-compete agreements amortization
of $855.  See Note 7 to the consolidated financial statements for a further
discussion of SFAS No. 142.

   Income From Operations

   Income from operations for the nine months ended December 31, 2001 was
$51,442, 18.7% higher than $43,354 from the same period in 2000.  Income from
operations was positively impacted by the early adoption of SFAS No. 142 (see
Note 7 to the consolidated financial statements) and the increase in combined
revenues and gross profit.

   Interest Expense

   Interest expense for the nine months ended December 31, 2001 was $18,862,
compared to $21,110 from the same period in 2000. Even though we had a slightly
higher level of borrowings, the interest expense was lower due to lower interest
rates. Interest expense includes the amortization of financing fees incurred in
connection with our current credit facility, the senior subordinated notes and
ineffective hedging activities.

   Income Taxes

   The provision for income taxes for the nine months ended December 31, 2001
was $13,195, 29.0% higher than $10,227 from the same period in 2000.  The
increase in income taxes was primarily due to higher pre-tax income in 2001,
offset by the reduction in the effective income tax rate due to the non-
deductibility of goodwill amortization.  The effective income tax rate was 40.5%
for the nine months ended December 31, 2001 and 46.0% for the same period in
2000.  The decline in the effective income tax rate is primarily due to goodwill
not being amortized with the adoption of SFAS No. 142, effective April 1, 2001.
The effective income tax rate was higher than the federal statutory rate of 35%
due to state and local taxes, and for the nine months ended December 31, 2000,
the non-deductible goodwill amortization.

LIQUIDITY AND CAPITAL RESOURCES

   Historically, Global has financed its operations primarily through internal
cash flow, sales of equity and debt securities and bank financing, including the
financing facilities described below.  These sources of funds have been used to
fund our growth both internally and through acquisitions.  We are pursuing an
acquisition strategy and expect to acquire more businesses.  As we continue to
acquire more businesses, it is likely we will incur additional debt and seek
additional equity capital.

   Under the terms of seven of our acquisition agreements, we may be required to
make additional payments of up to $22,238 in cash and issue common stock valued
at up to $5,000 over the next three years to some of the former owners of the
businesses we have acquired based on the profitability of those businesses since
we acquired them.

   For the nine months ended December 31, 2001 the net cash provided by
operations was $25,319 and for the nine months ended December 31, 2000 the net
cash provided by operations was $19,068.

                                       18
<PAGE>

For the nine months ended December 31, 2001 and for the nine months ended
December 31, 2000 Global's net cash used in investing activities was $12,927 and
$40,167, respectively, primarily for property, equipment and rental equipment
expenditures in 2001 and the purchase of businesses in 2000. For the nine months
ended December 31, 2001 and the nine months ended December 31, 2000, Global's
net cash provided by (used in) financing activities was $(12,392) and $17,470,
respectively.

   As of December 31, 2001, we had $74,100 borrowing availability under our
senior credit facility.  Due to overall economic conditions we anticipate
reduced borrowings for acquisition activity compared to the levels of borrowings
for acquisitions in the prior fiscal year.  The reduced acquisition rate and the
continued internally generated cash flows will extend the time frame for us to
seek additional financing in either the capital or equity markets.  However, we
continue to explore opportunities available to us in the capital and equity
markets to raise additional financing.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

   Our market risk is primarily limited to fluctuations in interest rates as it
pertains to our borrowings under the Credit Agreement and the long-term note
that bears a fixed rate.  There have been no material changes to the information
in the Item 7A disclosure made in Global's Annual Report on Form 10-K for the
fiscal year ended March 31, 2001.

PART II - OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     (a)   Exhibits

     The Exhibit Index filed herewith is incorporated herein by reference.

     (b)   Reports on Form 8-K.

     We did not file any Current Reports on Form 8-K during the three months
ended December 31, 2001.

                                       19
<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.

                                           Global Imaging Systems, Inc.
                                     -------------------------------------
                                                  (Registrant)


           January 30, 2002                    /s/ Raymond Schilling
---------------------------------    -------------------------------------
               Date                              Raymond Schilling
                                      Chief Financial Officer, Secretary, and
                                      Treasurer, (Duly Authorized Officer and
                                    Principal Financial and Accounting Officer)

                                       20
<PAGE>

                                 EXHIBIT INDEX
                                 -------------

                   (Pursuant to item 601 of Regulation S-K)

Number    Exhibit
------    -------
  3.1     Amended and Restated Certificate of Incorporation (1)
  3.2     Amended and Restated Bylaws (1)
  4.1     Fourth Amendment and Waiver to Credit Agreement, dated as of
          September 28, 2001.
______________

(1)  Incorporated by reference to Global's Registration Statement on Form S-1,
     No. 333-48103, which was declared effective by the Securities and Exchange
     Commission on June 17, 1998.

                                       21