<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 SEPTEMBER 30, 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 No.)
incorporation or organization)


3820 Northdale Boulevard, Suite 200A        33624
Tampa, Florida
----------------------------------------    ------------------------------------
(Address of Principal executive offices)    (Zip Code)

REGISTRANT'S TELEPONE 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 18,152,920 shares of common stock, $.01 par value,
outstanding as of November 7, 2001.
<PAGE>

                                      INDEX

                                                                            Page
                                                                            ----
PART I - FINANCIAL INFORMATION

ITEM 1 - Consolidated Financial Statements

      Consolidated Balance Sheets as of September 30, 2001 (Unaudited)
      and March 31, 2001                                                      3

      Consolidated Statements of Operations for the three months ended
      September 30, 2001 and 2000 (Unaudited)                                 4

      Consolidated Statements of Operations for the six months ended
      September 30, 2001 and 2000 (Unaudited)                                 5

      Consolidated Statements of Cash Flows for the six months ended
      September 30, 2001 and 2000 (Unaudited)                                 6

      Consolidated Statement of Stockholders' Equity for the six months
      ended September 30, 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 2 - Changes in Securities and Use of Proceeds                           19

ITEM 4 - Submission of Matters to a Vote of Security Holders                 19

Item 6 - Exhibits and Reports on Form 8-K                                    20


SIGNATURE                                                                    21

EXHIBIT INDEX                                                                22
<PAGE>

PART I - FINANCIAL INFORMATION

ITEM 1.  Consolidated Financial Statements

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

<TABLE>
<CAPTION>
                                                                              September 30,    March 31,
                                                                                   2001           2001
                                                                              -------------    ---------
ASSETS                                                                         (Unaudited)
<S>                                                                             <C>            <C>
Current assets:
  Accounts receivable, net of allowance for doubtful accounts ($2,239
  and $2,150 at September 30, 2001 and March 31, 2001, respectively)            $  84,685      $  82,830
  Inventories                                                                      67,400         61,608
  Deferred income taxes                                                             4,069          3,813
  Prepaid expenses and other current assets                                         3,729          3,667
                                                                                ---------      ---------
      Total current assets                                                        159,883        151,918
Rental equipment, net                                                              13,973         13,553
Property and equipment, net                                                        13,516         11,550
Other assets                                                                        1,188          1,156
Related party notes receivable                                                        400            400
Intangible assets, net:
  Goodwill                                                                        294,927        294,204
  Noncompete agreements                                                               960          1,461
  Financing fees                                                                    4,687          4,577
                                                                                ---------      ---------
      Total assets                                                              $ 489,534      $ 478,819
                                                                                =========      =========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                                                              $  28,692      $  23,251
  Accrued liabilities                                                               8,808         12,422
  Accrued compensation and benefits                                                10,961         13,583
  Accrued interest                                                                  1,792          2,037
  Current maturities of long-term debt                                              6,170          5,521
  Deferred revenue                                                                 22,137         23,828
  Income taxes payable                                                              5,863            422
                                                                                ---------      ---------
      Total current liabilities                                                    84,423         81,064
Deferred income taxes                                                               3,872          2,830
Long-term debt, less current maturities                                           265,962        271,129
                                                                                ---------      ---------
      Total liabilities                                                           354,257        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:  19,327,619 and 19,225,086 shares issued
     and 18,151,980 and 18,049,447 shares outstanding at September 30, 2001
     and March 31, 2001, respectively                                                 193            192
  Common stock held in treasury, at cost                                          (10,352)       (10,352)
  Additional paid-in capital                                                       92,066         91,475
  Retained earnings                                                                54,715         42,481
  Accumulated other comprehensive income (loss)                                    (1,345)          --
                                                                                ---------      ---------
      Total stockholders' equity                                                  135,277        123,796
                                                                                ---------      ---------
      Total liabilities and stockholders' equity                                $ 489,534      $ 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
                                                             September 30,
                                                           2001         2000
                                                         --------     --------
Revenues:
  Equipment and supplies sales                           $122,426     $116,379
  Service and rentals                                      37,696       34,752
                                                         --------     --------
      Total revenues                                      160,122      151,131
Costs and operating expenses:
  Cost of equipment and supplies sales                     83,002       80,106
  Service and rental costs                                 19,720       17,890
  Selling, general and administrative expenses             40,053       35,796
  Intangible asset amortization                               248        2,443
                                                         --------     --------
      Total costs and operating expenses                  143,023      136,235
                                                         --------     --------
Income from operations                                     17,099       14,896
Interest expense                                            6,291        7,144
                                                         --------     --------
Income before income taxes                                 10,808        7,752
Income taxes                                                4,377        3,574
                                                         --------     --------
Net income                                               $  6,431     $  4,178
                                                         ========     ========

Net income per common share:
    Basic                                                $    .36     $    .23
                                                         ========     ========
    Diluted                                              $    .35     $    .23
                                                         ========     ========

Weighted average number of shares outstanding:
    Basic                                                  18,106       18,196
    Diluted                                                18,456       18,196

                             See accompanying notes.


                                       4
<PAGE>

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

                                                             Six Months Ended
                                                               September 30,
                                                             2001         2000
                                                           --------     --------
Revenues:
  Equipment and supplies sales                             $238,989     $219,173
  Service and rentals                                        76,582       68,875
                                                           --------     --------
      Total revenues                                        315,571      288,048
Costs and operating expenses:
  Cost of equipment and supplies sales                      161,207      149,580
  Service and rental costs                                   40,434       34,962
  Selling, general and administrative expenses               79,900       70,511
  Intangible asset amortization                                 512        4,882
                                                           --------     --------
      Total costs and operating expenses                    282,053      259,935
                                                           --------     --------
Income from operations                                       33,518       28,113
Interest expense                                             12,957       13,804
                                                           --------     --------
Income before income taxes                                   20,561       14,309
Income taxes                                                  8,327        6,574
                                                           --------     --------
Net income                                                 $ 12,234     $  7,735
                                                           ========     ========

Net income per common share:
    Basic                                                  $    .68     $    .42
                                                           ========     ========
    Diluted                                                $    .67     $    .42
                                                           ========     ========

Weighted average number of shares outstanding:
    Basic                                                    18,078       18,596
    Diluted                                                  18,310       18,603

                             See accompanying notes.


                                       5
<PAGE>

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

<TABLE>
<CAPTION>
                                                                   Six Months Ended
                                                                    September 30,
                                                                  2001          2000
                                                                --------      --------
<S>                                                             <C>           <C>
OPERATING ACTIVITIES:
Net income                                                      $ 12,234      $  7,735
Adjustments to reconcile net income to net cash provided
  by operating activities:
      Depreciation                                                 6,481         5,179
      Amortization                                                 1,042         5,354
      Deferred income taxes                                          778           430
      Interest income - derivatives                                  (87)         --
Changes in operating assets and liabilities, net of amounts
  acquired in purchase business combinations:
      Accounts receivable                                         (1,719)      (15,838)
      Inventories                                                 (5,792)        1,977
      Prepaid expenses and other current assets                      (62)       (1,141)
      Other assets                                                   (32)         (566)
      Accounts payable                                             5,428         2,592
      Accrued liabilities, compensation and benefits              (8,131)       (1,192)
      Deferred revenue                                            (1,770)        1,712
      Income taxes                                                 6,280         1,785
                                                                --------      --------
Net cash provided by operating activities                         14,650         8,027

INVESTING ACTIVITIES:
Purchase of property, equipment and rental equipment              (8,865)       (7,101)
Payment for purchase of businesses, net of cash acquired            (718)      (20,066)
                                                                --------      --------
Net cash used in investing activities                             (9,583)      (27,167)

FINANCING ACTIVITIES:
Proceeds (repayments) of long-term debt                           (1,955)       29,460
Scheduled payments on long-term debt                              (2,563)       (1,964)
Financing fees                                                      (641)         (131)
Common stock issued for cash                                          92          --
Common stock repurchases                                            --          (9,905)
                                                                --------      --------
Net cash provided by (used in) financing activities               (5,067)       17,460
                                                                --------      --------
Net increase (decrease) in cash and cash equivalents                --          (1,680)
Cash and cash equivalents, beginning of period                      --           3,629
                                                                --------      --------
Cash and cash equivalents, end of period                        $   --        $  1,949
                                                                ========      ========
</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     Income (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                                                                                12,234                        12,234
   Unrealized loss on derivative
    instruments                                                                                           $(1,345)         (1,345)
                                                                                                                         --------
    Total comprehensive income                                                                                             10,889

Stock options exercised                   7,295       --                            92                                         92
Common stock issued in
 conjunction with earnout                95,238        1                           499                                        500
                                     ----------     ----        --------       -------      -------       -------        --------
Balances at September 30, 2001       18,151,980     $193        $(10,352)      $92,066      $54,715       $(1,345)       $135,277
                                     ==========     ====        ========       =======      =======       =======        ========
</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 September 30, 2001,
consolidated statements of operations for the three and six months ended
September 30, 2001 and 2000, consolidated statements of cash flows for the six
months ended September 30, 2001 and 2000, and the consolidated statement of
stockholders' equity for the six months ended September 30, 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.

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 Six Months Ended
                                                  -----------------------------  -----------------------------
                                                  September 30,   September 30,  September 30,   September 30,
                                                      2001            2000           2001            2000
                                                  -------------   -------------  -------------   -------------
<S>                                                 <C>             <C>             <C>             <C>
Numerator:
   Numerator for basic and diluted earnings
     per share ................................     $ 6,431         $ 4,178         $12,234         $ 7,735
                                                    =======         =======         =======         =======
Denominator:
   Denominator for basic earnings per share....      18,106          18,196          18,078          18,596

   Effect of dilutive securities:
     Employee stock options ...................         350            --               232               7
                                                    -------         -------         -------         -------
   Denominator for diluted earnings per
     share ....................................      18,456          18,196          18,310          18,603
                                                    =======         =======         =======         =======
</TABLE>


NOTE 3.   ACQUISITIONS

     During the six months ended September 30, 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 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
                                           Six Months ended September 30,
                                           ------------------------------
                                             2001                2000
                                           --------             --------
Revenues.................................. $315,801             $301,095
Net income................................ $ 12,279             $  7,636
                                           ========             ========
Basic earnings per share:
    Net income per share.................. $    .68             $    .41
Diluted earnings per share:
    Net income per share.................. $    .67             $    .41


NOTE 4.  STOCK OPTION PLANS

     In 1998, the Board of Directors adopted a stock option plan under which
1,820,000 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 September 30, 2001, options to purchase
1,387,620 shares of the Company's common stock were outstanding under the stock
option plan. During the six months ended September 30, 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 May 18, 2001, the Board of Directors approved an amendment to the 1998
stock option plan to increase the number of shares available for grant under the
plan by 700,000 from 1,820,000 shares to 2,520,000 shares. This amendment was
approved by Global's stockholders at Global's 2001 annual stockholders meeting
in August 2001.

     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 September 30, 2001, options to purchase
298,500 shares were outstanding under the 2001 stock option plan. During the six
months ended September 30, 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


                                       9
<PAGE>

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 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 September 30, 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 average
variable rate of 4.7% and paid an average fixed rate of 6.6% during the six
months ended September 30, 2001. During the six months ended September 30, 2001,
the Company reduced interest expense by approximately $87 related to the
ineffective portion of its hedging instruments. Additionally, the Company has
recognized a loss, net of tax, of approximately $1,345 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     Six Months Ended
                                                               September 30, 2001    September 30, 2001
                                                               ------------------    ------------------
<S>                                                                 <C>                  <C>
Net income..................................................        $  6,431             $  12,234
Cumulative effect of adopting SFAS No. 133, net of tax......             --                   (994)
Unrealized loss on cash flow hedges, net of tax.............            (225)                 (351)
                                                                    --------             ---------
Total comprehensive income..................................        $  6,206             $  10,889
                                                                    ========             =========
</TABLE>


                                       10
<PAGE>

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
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 September
30, 2001 are as follows:

Balance as of April 1, 2001..................................       $  294,204
Goodwill acquired............................................              167
Impairment losses............................................              --
Adjustments to goodwill......................................              556
                                                                    ----------
Balance at September 30, 2001................................       $  294,927
                                                                    ==========

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

<TABLE>
<CAPTION>
                                                   Three Months Ended           Six Months Ended
                                                      September 30,               September 30,
                                                -----------------------     -------------------------
                                                   2001          2000          2001           2000
                                                ---------     ---------     ----------     ----------
<S>                                             <C>           <C>           <C>            <C>
Reported net income .........................   $   6,431     $   4,178     $   12,234     $    7,735
Add back: Goodwill amortization, net of tax..        --           1,715           --            3,334
                                                ---------     ---------     ----------     ----------
Adjusted net income .........................   $   6,431     $   5,893     $   12,234     $   11,069
                                                =========     =========     ==========     ==========

Basic earnings per share:
    Reported net income .....................   $     .36     $     .23     $      .68     $      .42
    Goodwill amortization ...................        --             .09           --              .17
                                                ---------     ---------     ----------     ----------
    Adjusted net income .....................   $     .36     $     .32     $      .68     $      .59
                                                =========     =========     ==========     ==========

Diluted earnings per share:
    Reported net income .....................   $     .35     $     .23     $      .67     $      .42
    Goodwill amortization ...................        --             .09           --              .17
                                                ---------     ---------     ----------     ----------
    Adjusted net income .....................   $     .35     $     .32     $      .67     $      .59
                                                =========     =========     ==========     ==========
</TABLE>


NOTE 8.  RECENT ACCOUNTING PRONOUNCEMENTS

     In July 2001, the Financial Accounting Standards Board 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.


                                       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:

     o    downturns in general economic and business conditions, either
          nationally or in our markets, which could reduce our revenue, restrict
          revenue growth or increase costs.
     o    changes in our competitive climate, which could require us to lower
          prices and therefore would reduce our revenues with no corresponding
          reduction in cost.
     o    fewer than expected acquisition opportunities or difficulty obtaining
          additional financing on satisfactory terms, which could slow our
          growth through acquisitions.
     o    recognition of unanticipated costs and delays associated with ongoing
          integration efforts.
     o    inability to obtain financing on satisfactory terms due to our
          substantial indebtedness or fluctuations in our common stock price.
     o    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.
     o    technological developments that may reduce demand for the products and
          services we sell or results in us facing increased competition to sell
          those products and services.
     o    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 these factors and others 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. This includes the sale and service of automated
office equipment such as copiers, facsimile machines, printers and duplicators,
network integration solutions and electronic presentation equipment. From our
founding through September 30, 2001, we have acquired 14 core companies in the
United States and 37 additional satellite companies that have been integrated
into the core companies. We believe the businesses we have acquired and the
businesses we acquire in the future will benefit from various programs and
operating strategies. These benefits include increased


                                       13
<PAGE>

operating efficiencies, the support of experienced and professional senior
management, expansion of the types of office imaging 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. 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 dealers.
Generally, sales of equipment and supplies have lower gross profit margins than
sales of 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            Six Months Ended
                                          ----------------------------  ----------------------------
                                          September 30,  September 30,  September 30,  September 30,
                                              2001           2000           2001           2000
                                          -------------  -------------  -------------  -------------
<S>                                         <C>            <C>            <C>            <C>
Revenues:
  Equipment and supplies sales ...........    76.5%          77.0%          75.7%          76.1%
  Service and rentals ....................    23.5           23.0           24.3           23.9
                                             -----          -----          -----          -----
Total revenues ...........................   100.0          100.0          100.0          100.0
Cost and operating expenses:
  Cost of equipment and supplies sales....    51.8           53.0           51.1           51.9
  Service and rental costs ...............    12.3           11.8           12.8           12.1
  Selling, general, and administrative
    expenses .............................    25.0           23.7           25.3           24.5
  Intangible asset amortization ..........      .2            1.6             .2            1.7
                                             -----          -----          -----          -----
Total costs and operating expenses .......    89.3           90.1           89.4           90.2
                                             -----          -----          -----          -----
Income from operations ...................    10.7            9.9           10.6            9.8
Interest expense .........................     3.9            4.8            4.1            4.8
                                             -----          -----          -----          -----
Income before income taxes ...............     6.8            5.1            6.5            5.0
Income taxes .............................     2.8            2.3            2.6            2.3
                                             -----          -----          -----          -----
Net income ...............................     4.0%           2.8%           3.9%           2.7%
                                             =====          =====          =====          =====
</TABLE>

THREE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO THREE MONTHS ENDED
SEPTEMBER 30, 2000

     Revenues

     Total revenues for the three months ended September 30, 2001 increased to
$160,122, 5.9% higher than total revenues of $151,131 for the same period in
2000. The majority of the increase in revenue was due to acquisition of
businesses during fiscal year 2001, with the remainder coming from internal
growth.

     Equipment and supplies revenues for the three months ended September 30,
2001 increased to $122,426, 5.2% higher than equipment and supplies revenues of
$116,379 for the same period in 2000.

     Service and rental revenues for the three months ended September 30, 2001
increased to $37,696, 8.5% higher than service and rental revenues of $34,752
for the same period in 2000.

     Gross Profit

     Gross profit for the three months ended September 30, 2001 increased to
$57,400, 8.0% higher than gross profit of $53,135 for the same period in 2000.
When viewed as a percentage of total revenue, gross profit was 35.8% for the
three months ended September 30, 2001 versus 35.2% 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 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 the network integration and electronic presentation systems dealers.


                                       15
<PAGE>

     Gross profit as a percentage of equipment and supplies revenues increased
to 32.2% for the three months ended September 30, 2001 from 31.2% for the same
period one year ago.

     As a percentage of revenue, the combined service and rental gross profit
margin declined to 47.7% for the three months ended September 30, 2001 from
48.5% 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 September 30, 2001 increased to $40,053, 11.9% higher than SG&A expenses
of $35,796 for the same period in 2000. These expenses increased principally due
to the acquisitions we made during fiscal year 2001. Office equipment dealers
typically incur higher SG&A expenses as a percentage of revenue, while network
integration and electronic presentation systems dealers incur a lower level of
SG&A expenses as a percentage of revenue. The increase in expense as a
percentage of revenues was the result of acquiring automated office equipment
businesses in 2001 and 2002 and an increase in health insurance expenses.

     Intangible Asset Amortization

     Intangible asset amortization was $248 for the three months ended September
30, 2001. This amortization is for non-compete agreements, while goodwill is no
longer amortized due to the adoption of SFAS No. 142 as of April 1, 2001. During
the same period in 2000, intangible asset amortization was $2,443, which
included goodwill amortization of $2,168 and non-compete agreements amortization
of $275. See Note 7 for a further discussion of SFAS No. 142.

     Income From Operations

     Income from operations for the three months ended September 30, 2001 was
$17,099, 14.8% higher than $14,896 from the same period in 2000. Income from
operations was positively impacted by the early adoption of SFAS No. 142 (see
Note 7) and the increase in combined revenues and gross profit.

     Interest Expense

     Interest expense for the three months ended September 30, 2001 was $6,291,
compared to $7,144 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 facilities with First Union, the senior
subordinated notes and ineffective hedging activities.

     Income Taxes

     The provision for income taxes for the three months ended September 30,
2001 was $4,377, 22.5% higher than $3,574 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 September 30, 2001 and 46.1% 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%


                                       16
<PAGE>

due to state and local taxes, and for the three months ended September 30, 2000,
the non-deductible goodwill amortization.

SIX MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO SIX MONTHS ENDED
SEPTEMBER 30, 2000

     Revenues

     Total revenues for the six months ended September 30, 2001 increased to
$315,571, 9.6% higher than total revenues of $288,048 for the same period in
2000. The revenue growth was split evenly between internal growth and
acquisition of businesses during fiscal year 2001.

     Sales of equipment and supplies revenues for the six months ended September
30, 2001 increased to $238,989, 9.0% higher than equipment and supplies revenues
of $219,173 for the same period in 2000.

     Service and rental revenues for the six months ended September 30, 2001
increased to $76,582, 11.2% higher than service and rental revenues of $68,875
for the same period in 2000.

     Gross Profit

     Gross profit for the six months ended September 30, 2001 increased to
$113,930, 10.1% higher than gross profit of $103,506 for the same period in
2000. When viewed as a percentage of total revenue, gross profit was 36.1% for
the six months ended September 30, 2001 versus 35.9% 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 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 the network integration and electronic presentation
systems dealers.

     Gross profit as a percentage of equipment and supplies revenues increased
to 32.5% for the six months ended September 30, 2001 from 31.8% for the same
period one year ago.

     As a percentage of revenue, the combined service and rental gross profit
margin declined to 47.2% for the six months ended September 30, 2001 from 49.2%
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 six months
ended September 30, 2001 increased to $79,900, 13.3% higher than SG&A expenses
of $70,511 for the same period in 2000. These expenses increased principally due
to the acquisitions we made during fiscal year 2001. Office equipment dealers
typically incur higher SG&A expenses as a percentage of revenue, while network
integration and electronic presentation systems dealers incur a lower level of
SG&A expenses as a percentage of revenue. The increase in expense as a
percentage of revenues was the result of acquiring automated office equipment
businesses in 2001 and 2002 and an increase in health insurance expenses.


                                       17
<PAGE>

     Intangible Asset Amortization

     Intangible asset amortization was $512 for the six months ended September
30, 2001. This amortization is for non-compete agreements, while goodwill is no
longer amortized due to the adoption of SFAS No. 142 as of April 1, 2001. During
the same period in 2000, intangible asset amortization was $4,882, which
included goodwill amortization of $4,312 and non-compete agreements amortization
of $570. See Note 7 for a further discussion of SFAS No. 142.

     Income From Operations

     Income from operations for the six months ended September 30, 2001 was
$33,518, 19.2% higher than $28,113 from the same period in 2000. Income from
operations was positively impacted by the early adoption of SFAS No. 142 (see
Note 7) and the increase in combined revenues and gross profit.

     Interest Expense

     Interest expense for the six months ended September 30, 2001 was $12,957,
compared to $13,804 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 facilities with First Union, the senior
subordinated notes and ineffective hedging activities.

     Income Taxes

     The provision for income taxes for the six months ended September 30, 2001
was $8,327, 26.7% higher than $6,574 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 six
months ended September 30, 2001 and 45.9% 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 six months ended September 30, 2000, the
non-deductible goodwill amortization.

LIQUIDITY AND CAPITAL RESOURCES

     Historically, Global has financed its operations primarily through internal
cash flow, sales of stock 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
during this time period.

     For the six months ended September 30, 2001 the net cash provided by
operations was $14,650 and for the six months ended September 30, 2000 the net
cash provided by operations was $8,027. For the six months ended September 30,
2001 and for the six months ended September 30, 2000 Global's net cash used in
investing activities was $9,583 and $27,167, respectively, primarily for
property,


                                       18
<PAGE>

equipment and rental equipment expenditures in 2001 and the purchase of
businesses in 2000. For the six months ended September 30, 2001 and the six
months ended September 30, 2000, Global's net cash provided by (used in)
financing activities was $(5,067) and $17,460, respectively.

     As of September 30, 2001, we had $68,928 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 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 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

     On August 9, 2001, Global issued 95,238 shares of Common Stock to the
former stockholders of Column Office Equipment ("Column") as part of an "earn-
out" payment arising from Global's acquisition of Column in November 1999. The
offer and sale of the Company's Common Stock was made to accredited investors
and was exempt from registration under the Securities Act of 1933 as amended
pursuant to Rule 506 thereunder.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     At Global's 2001 Annual Meeting of Stockholders held August 13, 2001, our
stockholders approved the following items:

     1    Thomas S. Johnson was re-elected to serve as our Director with a term
          to expire in 2004. The vote upon such proposal was as follows:

                  For           16,250,140
                  Withheld         527,529

     2.   Carl D. Thoma was re-elected to serve as our Director with a term to
          expire in 2004. The vote upon such proposal was as follows:

                  For           16,332,696
                  Withheld         444,973

     3.   R. Eric McCarthey was re-elected to serve as our Director with a term
          to expire in 2004. The vote upon such proposal was as follows:

                  For           16,332,946
                  Withheld         444,723


                                       19
<PAGE>

     4.   The amendment of the Global Imaging Systems, Inc. 1998 Stock Option
          Plan, which increased the number of shares available for grant under
          the plan by 700,000 from 1,820,000 to 2,520,000 shares, was approved.
          The vote upon such proposal was as follows:

                  For           15,962,192
                  Against          790,268
                  Abstention        25,209

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 September 30, 2001.


                                       20
<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)


        November 9, 2001                            /s/ Raymond Schilling
---------------------------------            -----------------------------------
              Date                                     Raymond Schilling
                                             Chief Financial Officer, Secretary,
                                              and Treasurer, (Duly Authorized
                                              Officer and Principal Financial
                                                 and Accounting Officer)


                                       21
<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    Third Amendment and Waiver to Credit Agreement, dated as of
         May 10, 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.


                                       22