<PAGE>


                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

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

                                    FORM 10-Q

                   Quarterly Report Under Section 13 or 15(d)

                     of the Securities Exchange Act of 1934

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


  For Quarter Ended SEPTEMBER 30, 2001           Commission File Number 0-7282


                             COMPUTER HORIZONS CORP.
                             -----------------------
             (Exact name of registrant as specified in its charter)


              NEW YORK                                   13-2638902
  (State or other jurisdiction of                     (I.R.S. Employer
   incorporation or organization)                   Identification Number)

         49 OLD BLOOMFIELD AVENUE, MOUNTAIN LAKES, NEW JERSEY 07046-1495
         ---------------------------------------------------------------
               (Address of principal executive offices) (Zip code)

        Registrant's telephone number, including area code (973) 299-4000


                                 NOT APPLICABLE
                                 --------------
             (Former name, former address and former fiscal year, 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 twelve 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.

                                  X
                                  --
                                  Yes             No

As of November 12, 2001 the issuer had 31,898,622 shares of common stock
outstanding.

                                        1

<PAGE>


                             COMPUTER HORIZONS CORP.

                                      Index

                                                                       Page No.

   Part I   Financial Information

              Consolidated Balance Sheets
              September 30, 2001 (unaudited) and December 31, 2000         3

              Consolidated Statements of Operations
              Three and Nine Months Ended September 30, 2001
              and September 30, 2000 (unaudited)                           4

              Condensed Consolidated Statements of
              Cash Flows  -  Nine Months Ended
              September 30, 2001 and September 30, 2000 (unaudited)        5

              Notes to Consolidated Financial Statements                   6

              Management's Discussion and Analysis
              of Financial Condition and Results of
              Operations                                                  14

   Part II    Other Information                                           21

              Signatures                                                  21



                                        2


<PAGE>

COMPUTER HORIZONS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share data)


<TABLE>
<CAPTION>

                                                                   September 30,        December 31,
                                                                       2001                2000
                                                                       ----                ----
                                                                    (unaudited)

<S>                                                                <C>                  <C>
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                                            $  44,526         $  17,559
  Accounts receivable, net of allowance for doubtful
    accounts of $5,743 and $2,702 at September
    30, 2001 and December 31, 2000, respectively                          94,130            98,021
  Net assets held for sale                                                18,698            35,274
  Deferred income tax benefit                                             18,007            19,207
  Refundable income taxes                                                  3,621            21,325
  Other                                                                    7,338             2,998
                                                                       ---------         ---------
          TOTAL CURRENT ASSETS                                           186,320           194,384
                                                                       ---------         ---------

PROPERTY AND EQUIPMENT                                                    35,252            31,962
  Less accumulated depreciation                                          (21,053)          (17,920)
                                                                       ---------         ---------
                                                                          14,199            14,042
                                                                       ---------         ---------
OTHER ASSETS - NET:
  Goodwill                                                                49,340            51,264
  Deferred income tax benefit                                                603               603
  Other                                                                    9,082             9,103
                                                                       ---------         ---------
          TOTAL OTHER ASSETS                                              59,025            60,970
                                                                       ---------         ---------

TOTAL ASSETS                                                           $ 259,544         $ 269,396
                                                                       =========         =========


LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
  Notes payable, current                                               $       -         $  20,704
  Accrued payroll, payroll taxes and benefits                             17,976            14,194
  Accounts payable                                                        24,552            17,945
  Restructuring reserve                                                    1,298             2,887
  Other accrued expenses                                                   5,590             4,182
                                                                       ---------         ---------
          TOTAL CURRENT LIABILITIES                                       49,416            59,912
                                                                       ---------         ---------

LONG-TERM DEBT                                                            14,081                 -

OTHER LIABILITIES                                                          1,669             1,560
                                                                       ---------         ---------

SHAREHOLDERS' EQUITY:
  Preferred stock, $.10 par; authorized and unissued 200,000
    shares, including 50,000 Series A
  Common stock, $.10 par, authorized 100,000,000 shares;
     issued 33,152,855 shares at September 30, 2001
    and 33,152,206 shares at December 31, 2000 respectively                3,315             3,315
  Additional paid-in capital                                             135,230           139,418
  Accumulated comprehensive loss                                          (3,031)             (980)
  Retained earnings                                                       69,340            80,741
                                                                       ---------         ---------
                                                                         204,854           222,494
                                                                       ---------         ---------

  Less shares held in treasury, at cost; 1,293,688 shares
    and 1,344,615 shares at September 30, 2001 and
    December 31, 2000, respectively                                      (10,476)          (14,570)
                                                                       ---------         ---------
          TOTAL SHAREHOLDERS' EQUITY                                     194,378           207,924
                                                                       ---------         ---------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                             $ 259,544         $ 269,396
                                                                       =========         =========
</TABLE>


                                                                 3

<PAGE>

COMPUTER HORIZONS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(dollars in thousands, except per share data)


<TABLE>
<CAPTION>

                                                       THREE MONTHS ENDED                            NINE MONTHS ENDED
                                       ----------------------------------------------  --------------------------------------------
                                          September 30, 2001     September 30, 2000       September 30, 2001     September 30, 2000
                                          ------------------     ------------------       ------------------     ------------------
                                                        % of                   % of                     % of                   % of
                                                     revenue                revenue                  revenue                revenue
                                                     -------                -------                  -------                -------
<S>                                    <C>          <C>      <C>            <C>       <C>           <C>     <C>             <C>

REVENUES:
    IT Services                        $    65,242     69.3% $    72,694      69.6%   $   212,659    69.6%  $   229,813       68.2%
    Solutions Group                         28,970     30.7%      31,811      30.4%        93,029    30.4%      107,069       31.8%
                                       -----------    ------ -----------     -----    -----------   -----   -----------      -----

                                            94,212    100.0%     104,505     100.0%       305,688   100.0%      336,882      100.0%
                                       -----------    -----  -----------     -----    -----------   -----   -----------      -----

COSTS AND EXPENSES:
     Direct costs                           67,672     71.8%      75,011      71.8%       215,515    70.5%      237,604       70.5%
     Selling, general and administrative    30,404     32.3%      38,550      36.9%        97,626    31.9%      108,243       32.1%
     Restructuring charge / (credit)             -      0.0%           -       0.0%         5,473     1.8%       (2,376)      -0.7%
     Amortization of intangibles               650      0.7%       1,662       1.6%         2,080     0.7%        5,118        1.5%
                                       -----------    ------ -----------     -----    -----------   -----   -----------      -----

                                            98,726    104.8%     115,223     110.3%       320,694   104.9%      348,589      103.4%
                                       -----------    ------ -----------     -----    -----------   -----   -----------      -----

LOSS FROM OPERATIONS                        (4,514)    -4.8%     (10,718)    -10.3%       (15,006)   -4.9%      (11,707)      -3.4%
                                       -----------    ------ -----------     -----    -----------   -----   -----------      -----

OTHER INCOME / (EXPENSE):
     Loss on sale of assets                 (2,833)    -3.0%           -       0.0%        (2,395)   -0.8%            -        0.0%
     Interest income                           537      0.6%          41       0.0%         1,761     0.6%          330        0.1%
     Interest expense                         (494)    -0.5%        (414)     -0.4%        (1,637)   -0.5%       (1,270)      -0.4%
                                       -----------    ------ -----------      ----    -----------   -----   -----------      -----

                                            (2,790)    -2.9%        (373)     -0.4%        (2,271)   -0.7%         (940)      -0.3%
                                       -----------    ------ -----------      ----    -----------   -----   -----------      -----

LOSS BEFORE INCOME TAXES                    (7,304)    -7.7%     (11,091)    -10.7%       (17,277)   -5.6%      (12,647)      -3.7%
                                       -----------    ------ -----------     -----    -----------   -----   -----------      -----

INCOME (BENEFIT) / TAXES:
     Current                                (2,483)    -2.6%      (4,725)     -4.5%        (7,074)   -2.3%       (6,196)      -1.8%
     Deferred                                    -      0.0%         400       0.4%         1,200     0.4%        1,202        0.3%
                                       -----------    ------ -----------      ----    -----------   -----   -----------      -----

                                            (2,483)    -2.6%      (4,325)     -4.1%        (5,874)   -1.9%       (4,994)      -1.5%
                                       -----------    ------ -----------      ----    -----------   -----   -----------      -----


NET LOSS                               $    (4,821)    -5.1% $    (6,766)     -6.6%   $   (11,403)   -3.7%  $    (7,653)      -2.2%
                                       ===========    ====== ===========      ====    ===========   =====   ===========      =====


LOSS PER SHARE:
    Basic                              $     (0.15)          $     (0.21)             $     (0.36)          $     (0.24)
                                       ===========           ===========              ===========           ===========
    Diluted                            $     (0.15)          $     (0.21)             $     (0.36)          $     (0.24)
                                       ===========           ===========              ===========           ===========

WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING:
    Basic                               31,964,000            31,710,000               31,953,000            31,605,000
                                       ===========           ===========              ===========           ===========
    Diluted                             31,964,000            31,710,000               31,953,000            31,605,000
                                       ===========           ===========              ===========           ===========

</TABLE>

Note: Certain reclassifications have been made to the prior periods to conform
to the 2001 presentation.


                                       4

<PAGE>


COMPUTER HORIZONS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(dollars in thousands)

<TABLE>
<CAPTION>
                                                                          Nine Months Ended
                                                                 ----------------------------------
                                                                 September 30,        September 30,
                                                                     2001                 2000
                                                                     ----                 ----
<S>                                                             <C>                    <C>

CASH FLOWS PROVIDED BY/(USED IN) OPERATING ACTIVITIES            $ 30,025              $   (976)
                                                                 --------              --------
CASH FLOWS PROVIDED BY/(USED IN) INVESTING ACTIVITIES
   Purchases of property and equipment                             (4,160)               (1,692)
   Additions to goodwill                                             (173)                   -
   Cash received from the sale of assets                           10,027                    -
                                                                 --------              --------
                                                                    5,694                (1,692)
                                                                 --------              --------

CASH FLOWS (USED IN)/PROVIDED BY FINANCING ACTIVITIES
   (Decrease)/increase in borrowings                              (20,688)                1,697
   Increase/(decrease) in long-term debt                           14,081                (4,100)
   Repurchase of common stock                                      (1,842)                    -
   Stock options exercised                                          1,748                 3,785
                                                                 --------              --------
                                                                   (6,701)                1,382
                                                                 --------              --------

   Effect of exchange rate difference on cash                      (2,051)                    8
                                                                 --------              --------

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS               26,967                (1,278)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                     17,559                17,072
                                                                 --------              --------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                       $ 44,526              $ 15,794
                                                                 ========              ========

</TABLE>

                                       5

<PAGE>

                             COMPUTER HORIZONS CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

            For the Periods September 30, 2001 and September 30, 2000
                                   (unaudited)



1.  BASIS OF PRESENTATION

The consolidated balance sheet as of September 30, 2001, the consolidated
statements of operations for the three and nine months ended September 30, 2001
and September 30, 2000, respectively and the statement of cash flows for the
nine months ended September 30, 2001 and 2000 have been prepared by the Company
without audit. In the opinion of management, all adjustments (which include
normal recurring adjustments) necessary to present fairly the financial
position, results of operations and cash flows at September 30, 2001 (and for
all periods presented) have been made.

Certain information and note disclosures, normally included in financial
statements prepared in accordance with accounting principles generally accepted
in the United States of America, have been condensed or omitted. It is suggested
that these consolidated financial statements be read in conjunction with the
financial statements and notes thereto included in the Annual Report on Form
10-K for the year ended December 31, 2000 filed by the Company. The results of
operations for the periods ended September 30, 2001 and 2000 are not necessarily
indicative of the operating results for the respective full years.

2.  RECENT ACCOUNTING PRONOUNCEMENTS

In June 2001, the Financial Accounting Standards Board approved the issuance of
SFAS No. 141, "Business Combinations" and SFAS 142, "Goodwill and Other
Intangible Assets" which was issued July 20, 2001. The new standards require
that all business combinations initiated after June 30, 2001 must be accounted
for under the purchase method. In addition, all intangible assets acquired that
are obtained through contractual or legal right, or are capable of being
separately sold, transferred, licensed, rented or exchanged shall be recognized
as an asset apart from goodwill. Goodwill and intangibles with indefinite lives
will no longer be subject to amortization, but will be subject to at least an
annual assessment for impairment by applying a fair value based test.

The Company will continue to amortize goodwill existing at September 30, 2001
under its current method until January 1, 2002. Thereafter, annual and quarterly
goodwill amortization of approximately $2.6 million and $650,000, respectively,
will no longer be recognized. By June 30, 2002, the Company will perform a
transitional fair value based impairment test and if the fair value is less than
the recorded value at January 1, 2002, the Company will record an impairment
loss in the March 31, 2002 quarter, as a cumulative effect of a change in
accounting principle.

In August 2001, the FASB issued statement of Financial Accounting Standard No.
144 "Accounting for the Impairment or Disposal of Long Lived Assets", ("SFAS
144"). This statement is effective for fiscal years beginning after December 15,
2001. This supercedes SFAS 121, while retaining many of the requirements of such
statement. The Company is currently evaluating the impact of the statement.


                                        6

<PAGE>

                             COMPUTER HORIZONS CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

            For the Periods September 30, 2001 and September 30, 2000
                                   (unaudited)


3.  EARNINGS PER SHARE

Basic Earnings Per Share ("EPS") is based on the weighted average number of
common shares outstanding without consideration of common stock equivalents.
Diluted earnings per share is based on the weighted average number of common and
common equivalent shares outstanding, except where the effect would have been
antidilutive. The calculation takes into account the shares that may be issued
upon exercise of stock options, reduced by the shares that may be repurchased
with the funds received from the exercise, based on the average price during the
year.

In accordance with SFAS No.128, the table below presents both basic and diluted
loss per share:

<TABLE>
<CAPTION>

                                                     Three Months Ended                    Nine Months Ended

                                                  September 30,    September 30,    September 30,    September 30,
                                                      2001             2000              2001             2000
                                                 -----------------------------------------------------------------
<S>                                              <C>            <C>               <C>               <C>
Numerator:
   Net loss (in thousands)                       $     (4,821)   $    (6,766)       $   (11,403)     $    (7,653)
Denominator:
   Denominator for basic loss per share
      Weighted average shares outstanding          31,964,000     31,710,000         31,953,000       31,605,000

Effect of stock options                                    --             --                 --               --

Diluted potential loss per share:
   Denominator for diluted loss per share
      Adjusted weighted average shares
         outstanding and assumed conversions       31,964,000     31,710,000         31,953,000       31,605,000

Basic loss per share                              $     (0.15)   $     (0.21)       $     (0.36)     $     (0.24)

Diluted loss per share                            $     (0.15)   $     (0.21)       $     (0.36)     $     (0.24)


</TABLE>

The computation of diluted loss per share excludes options with exercise prices
greater than the average market price as their effect would have been
antidilutive. During 2001, there were 3,880,100 excluded options with exercise
prices of $3.65 to $26.63 per share at September 30. During 2000, there were
1,469,653 excluded options outstanding at September 30, 2000 with exercise
prices of $13.81 to $26.63 per share.

                                        7

<PAGE>


                             COMPUTER HORIZONS CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

         For the Periods Ended September 30, 2001 and September 30, 2000
                                   (unaudited)


4.  SEGMENT INFORMATION

The Company has identified two segments: IT Services and the Solutions Group.
The IT Services segment consists largely of the professional services
traditionally rendered by the Company and primarily related to legacy and client
server environments. IT Services is primarily Staffing and Outsourcing. The
Solutions Group consists of e-products, e-services and e-commerce components.
Broadly defined, revenue is derived from product sales and services that enable
customers to conduct business electronically. Operating income/(loss) consists
of income/(loss) before income taxes excluding interest income, interest
expense, restructuring charge/(credit), loss on the sale of assets and
amortization of intangibles. These exclusions total $3.4 million and $2.0
million in the third quarter of 2001 and 2000, respectively and $9.8 million and
$3.7 million in the first nine months of 2001 and 2000, respectively. Corporate
services, consisting of general and administrative services, are provided to the
segments from a centralized location. Such costs are allocated to the segments
based on revenue.

                                             Nine Months Ended
                                       September 30,   September 30,
                                          2001              2000
                                       ----------------------------
REVENUE:
   IT Services                         $212,659          $229,813
   Solutions Group                       93,029           107,069
                                       --------------------------
TOTAL                                  $305,688          $336,882
                                       --------------------------

OPERATING INCOME / (LOSS):
   IT Services                         $  7,122            $4,736
   Solutions Group                      (14,575)          (13,701)
                                       --------------------------
TOTAL                                  $ (7,453)         $ (8,965)
                                       --------------------------

ASSETS:
   IT Services                         $105,261          $204,835
   Solutions Group                       78,550            62,828
   Corporate and other                   75,733            60,962
                                       --------------------------
TOTAL                                  $259,544          $328,625
                                       --------------------------



                                       8



<PAGE>


                             COMPUTER HORIZONS CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

         For the Periods Ended September 30, 2001 and September 30, 2000
                                   (unaudited)

5.  RESTRUCTURING CHARGES

During the fourth quarter of 2000, the Company recorded restructuring charges of
$43.9 million. The Company's restructuring plan included the offering for sale
of four businesses acquired between 1998 and 1999, including Princeton Softech,
Inc., SELECT Software Tools division ("Select"), eB Networks and CHC
International, Ltd (formerly Spargo Consulting PLC). In addition, restructuring
charges included the shutdown of Enterprise Solutions Group ("ESG") which was
acquired in 1998, the closing of seven offices and the site reduction of two
other IT Services offices.

At December 31, 2000, the Company recorded a write down of goodwill of $7.2
million for the shutdown of ESG. In addition, a non-cash charge writing down
goodwill of $26 million and purchased software of $6.9 million was recorded in
the fourth quarter of 2000, in connection with the write down of assets held for
sale to realizable value. The closing of IT Services and Solutions offices
resulted in the termination of 90 employees with a severance charge of $1.3
million. As of September 30, 2001, $963,000 had been paid to date in severance
to the terminated employees.

                                                            Remaining at
                        Remaining at                        September 30,
                       Dec. 31, 2000             Paid           2001
                       ----------------------------------------------------
Severance:
   United States              $1,020             $(716)             $  304
                       ----------------------------------------------------
Lease Obligations:
   United States              $1,600             $(730)             $  870
                       ----------------------------------------------------

                       ----------------------------------------------------
      Total                   $2,620           $(1,446)             $1,174
                       ----------------------------------------------------





                                        9


<PAGE>


                             COMPUTER HORIZONS CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

         For the Periods Ended September 30, 2001 and September 30, 2000
                                   (unaudited)


5.  RESTRUCTURING CHARGES (CONTINUED)

During the third quarter of 1999, the Company recorded a restructuring charge of
$6.4 million primarily related to the consolidating and closing of certain
facilities, generally used for Year 2000 and other legacy related services, as
well as reduction of related staff levels.

During the second quarter of 2000, the Company recorded a restructuring credit
of $2.4 million. This credit resulted primarily from the earlier than expected
occupancy of two abandoned properties that were part of the third quarter 1999
restructuring reserve and the reversal of an over accrual of employee severance
benefits due to terminated employees in the UK and Canada. The remaining balance
at September 30, 2001 includes continuing rents on two properties with the
leases terminating in 2004 and 2005 and severance amounting to $118,000, of
which $70,000 was paid in the third quarter of 2001.

                                                               Remaining at
                            Remaining at                       September 30,
                           Dec. 31, 2000         Paid           2001
                           ---------------------------------------------------
Severance:
   United States                    $118          $ (70)            $ 48
                           ---------------------------------------------------


                           ---------------------------------------------------
Lease Obligations:
   United States                    $267          $(191)            $ 76
                           ---------------------------------------------------


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

      Total                         $385          $(261)            $124
                           ---------------------------------------------------




                                       10


<PAGE>


                             COMPUTER HORIZONS CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

         For the Periods Ended September 30, 2001 and September 30, 2000
                                   (unaudited)



6.  NET ASSETS HELD FOR SALE

The Company decided in 2000 to offer three of its subsidiaries (Princeton
Softech "Princeton," including the SELECT Software Tools division "Select," CHC
International Limited "Spargo," and eB Networks) for sale or disposition and
accordingly classified these entities as "assets held for sale." This decision
resulted in the recording of a net loss of $33.1 million, in the fourth quarter
of 2000, to reduce the carrying amount to estimated net realizable value. The
fair value of the assets held for sale was based on estimates of selling value
from independent third party appraisals. During the second quarter of 2001 one
of the Company's subsidiaries, eB Networks, was revalued and accordingly another
approximately $5.5 million loss was recorded to reduce the carrying amount to
the current estimated net realizable value.

For financial reporting purposes, the assets and liabilities attributable to
these subsidiaries have been classified in the consolidated balance sheet as net
assets held for sale and are included in the Solutions segment. During the third
quarter ended September 30, 2001 and 2000 these respective entities generated
net loss of $1.5 million, excluding $1.8 million from the loss on the sale of
assets, and $2.8 million, respectively and amortization expense of nil and $0.9
million, respectively. For the first nine months of 2001 and 2000 these
respective entities generated net loss of $4.2 million, excluding $1.6 million
from the loss on the sale of assets, and $4.2 million, respectively and
amortization expense of nil and $2.6 million, respectively. (See Note 8 for
information on the sale of certain of these assets).

As of September 30, 2001, the remaining net assets held for sale are
attributable to Princeton Softech, and are as follows:


Current Assets                                     $22,337
Property and equipment                               1,398
Other assets                                         2,797
                                                     -----

Total assets                                        26,532
Total liabilities                                  (7,834)
                                                   -------

Total net assets held for sale                     $18,698
                                                   =======



                                       11


<PAGE>


                             COMPUTER HORIZONS CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

         For the Periods Ended September 30, 2001 and September 30, 2000
                                   (unaudited)

7.  COMPREHENSIVE INCOME / (LOSS)

Statement of Financial Accounting Standards No. 130, Reporting Comprehensive
Income ("SFAS No.130"), requires that items defined as other comprehensive
income/(loss), such as foreign currency translation adjustments, be separately
classified in the financial statements and that the accumulated balance of other
comprehensive income/(loss) be reported separately from retained earnings and
additional paid-in capital in the equity section of the balance sheet. The
components of comprehensive income/(loss) for the three and nine months ended
September 30, 2001 and September 30, 2000 are as follows:

<TABLE>
<CAPTION>

                                                      Three Months Ended              Nine Months Ended
                                                   September 30,   September 30,    September 30,   September 30,
                                                      2001             2000            2001             2000
                                                 ----------------------------------------------------------------
<S>                                              <C>                <C>             <C>             <C>

Comprehensive Income/(Loss):

Net Loss                                               $(4,821)        $(6,766)         $(11,403)       $ (7,653)
Other Comprehensive income/(loss)-
        foreign currency adjustment                         (7)          1,055            (2,051)              8
                                                 ----------------------------------------------------------------
Comprehensive Loss                                     $(4,828)        $(5,711)         $(13,454)       $ (7,645)
                                                 ----------------------------------------------------------------

</TABLE>




                                       12

<PAGE>



                             COMPUTER HORIZONS CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

         For the Periods Ended September 30, 2001 and September 30, 2000
                                   (unaudited)



8.  SALE OF SUBSIDIARIES

On September 10, 2001, the Company sold the assets of eB Networks to Inrange
Technologies, a storage networking company, for cash of $4.9 million and a
short-term note receivable of $540,000. The loss from the transaction was
$3.2 million, which included the final write-down of related goodwill of
$2.1 million. The results of operations are included in the consolidated
financial statements through September 10, 2001 within the Solutions group.

On August 30, 2001, the Company sold the ICM Education name to AlphaNet
Solutions, Inc., an IT professional services firm, for $0.5 million. The
gain from the transaction was $332,000. The results of operations are
included in the consolidated financial statements through August 30, 2001
within the Solutions group.

On April 17, 2001, the Company sold the SELECT Software Tools division "Select"
of Princeton Softech to Aonix, a member of the Gores Technology Group, for
approximately $895,000 including $545,000 of cash received and a note receivable
of $350,000. This sale included all the software assets and intellectual
property rights of Select and was sold at book value. The results of operations
are included in the consolidated financial statements through April 17, 2001
within the Solutions group.

On January 31, 2001, the Company sold the stock of CHC International Limited,
("Spargo"), to an information technology consultancy service provider for cash
of $3.2 million. The gain from the transaction was $438,000. The results of
operations are not included in the consolidated financial statements as of
January 1, 2001.

9.  PURCHASE OF TREASURY STOCK

In April 2001, the Board of Directors approved the repurchase in the open
market of up to 10% of its common shares outstanding, or approximately 3.2
million shares. As of November 13, 2001 the Company had repurchased, in the
open market, 670,000 shares of its stock at an average price of $3.17 per
share for an aggregate purchase amount of $2.2 million.

10. ASSET-BASED LENDING FACILITY

On July 31, 2001 the Company entered into an agreement with a secured
asset-based lending facility which replaced its two unsecured discretionary
lines of credit. This new line of credit is a three-year, $40 million
facility with availability based primarily on eligible customer receivables.
The interest rate for the first ninety days from closing is Prime plus 0.5%,
thereafter the rate is LIBOR plus 2.75% based on the unpaid principal. The
borrowing base less outstanding loans must equal or exceed $15 million. At the
time of closing there was a $170,000 commitment fee paid to the agent. As of
September 30, 2001 there was $14 million in borrowing outstanding against the
facility.

                                       13

<PAGE>


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
         For the Periods Ended September 30, 2001 and September 30, 2000


RESULTS OF OPERATIONS

REVENUES. Revenues decreased to $94.2 million in the third quarter of 2001 from
$104.5 million in the third quarter of 2000, a decrease of $10.3 million or
9.9%. The Solutions Group decreased to $29.0 million in the third quarter of
2001 from $31.8 million in the third quarter of 2000, a decrease of $2.8 million
or 8.8%. IT Services revenues decreased to $65.2 million in the third quarter of
2001 from $72.7 million in the third quarter of 2000, a decrease of $7.5 million
or 10.3%. The decrease in Solutions Group revenue is entirely attributable to
the revenue decline experienced by the business units held for sale. Solutions
Group revenue, excluding the operations of units held for sale, actually
increased by $7.4 million in the third quarter of 2001 to $22.3 million. The
decrease in IT Services revenue is primarily attributed to the current softness
in the IT Staffing business. This softness is the result of a combination of
spending shifts of customers from legacy environments to e-business initiatives
and reductions in IT spending due to current economic conditions.

Revenues decreased to $305.7 million in the first nine months of 2001 from
$336.9 million in the first nine months of 2000, a decrease of $31.2 million or
9.3%. The Solutions Group decreased to $93.0 million in the first nine months of
2001 from $107.1 million in the first nine months of 2000, a decrease of $14.1
million or 13.2%. Excluding the operations of the business units held for sale,
Solutions Group revenue increased by $16.9 million or 37.4% for the first nine
months of 2001. IT Services decreased to $212.7 million in the first nine months
of 2001 from $229.8 million in the first nine months of 2000, a decrease of
$17.1 million or 7.4% which is attributable to the softness in the IT Staffing
business.

DIRECT COSTS. Direct costs decreased to $67.7 million and $215.5 million in the
third quarter and nine months of 2001, respectively, from $75.0 million and
$237.6 million in the comparable periods of 2000. Gross margin was flat, at
28.2% and 29.5%, respectively, in the third quarter and first nine months of
2001, as compared to the third quarter and first nine months of 2000. The
Company's margins are subject to fluctuations due to a number of factors,
including the level of salary and other compensation necessary to attract and
retain qualified technical personnel.

SELLING, GENERAL AND ADMINISTRATIVE. Selling, general and administrative
expenses (excluding the restructuring charge/(credit)) decreased to $30.4
million and $97.6 million in the third quarter and first nine months of 2001,
respectively, from $38.6 million and $108.2 million in the comparable 2000
periods, a decrease of $8.2 million or 21.2% and $10.6 million or 9.8%,
respectively. As a percentage of revenues, selling, general and
administrative expenses decreased to 32.3% and 31.9% of revenues in the third
quarter and first nine months of 2001 from 36.9% and 32.1% of revenues in the
comparable periods of 2000. During the first nine months of 2001, the Company
recorded a restructuring charge of $5.5 million related to the further
write-down of one of the Company's assets held for sale to current fair
value. During the first nine months of 2000, the Company recorded a
restructuring credit to reverse $2.4 million of the restructuring charge
recorded in the third quarter of 1999, leaving approximately $0.4 million of
the original reserve relating to future costs associated with continuing rent
and severance commitments in the United States.

                                       14


<PAGE>


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
         For the Periods Ended September 30, 2001 and September 30, 2000

LOSS FROM OPERATIONS. Operating margins, excluding the restructuring charge in
2001 and the restructuring credit in 2000, increased to a loss of 4.8% and 3.1%
in the third quarter and first nine months of 2001 from a loss of 10.3% and 4.2%
in the comparable 2000 periods. The Company's business is labor-intensive and,
as such, is sensitive to inflationary trends. This sensitivity applies to client
billing rates, as well as to payroll costs.

OTHER INCOME/(EXPENSE). Other expense increased to $2.8 million and $2.3 million
in the third quarter and first nine months of 2001, respectively, compared to
other expense of $0.4 million and $0.9 million in the same periods of 2000. This
increase in other expense was primarily the result of the loss on sale of
assets.

PROVISION FOR INCOME TAXES. The effective tax rates for Federal, state and local
income taxes were 34.0% for the third quarter and first nine months of 2001. For
the comparable 2000 periods, the rate was 39.0% and 39.5%.

NET LOSS. Net loss for the third quarter of 2001 was $4.8 million, or $0.15 loss
per diluted share, compared to net loss of $6.8 million, or $0.21 loss per
diluted share for the third quarter of 2000, an increase of $2.0 million. For
the first nine months of 2001, the net loss was $11.4 million, or $0.36 loss per
diluted share, compared to net loss of $7.7 million, or $0.24 loss per diluted
share for the first nine months of 2000.

LIQUIDITY AND CAPITAL RESOURCES

At September 30, 2001, the Company had $136.9 million in working capital, of
which $44.5 million was cash and cash equivalents.

Net cash provided by operating activities in the first nine months of 2001 was
$30.0 million, consisting primarily of a $21 million tax refund as a result of
the carryback of year 2000 operating losses to profitable prior years.

Net cash provided by investing activities in the first nine months of 2001
was $5.7 million, consisting primarily of cash received from the sale of
assets, offset by purchases of equipment.

Net cash used in financing activities was $6.7 million for the first nine months
of 2001, primarily consisting of the decrease in borrowings.

At September 30, 2001, the Company had a current ratio position of 3.8 to 1. The
Company believes that its cash and cash equivalents, line of credit and
internally generated funds will be sufficient to meet its working capital needs
through 2001.

On July 31, 2001 the Company entered into an agreement with a
secured asset-based lending facility which replaced its two unsecured
discretionary lines of credit. This new line of credit is a three-year, $40
million facility with availability based primarily on eligible customer
receivables. The interest rate for the first ninety days from closing is
Prime plus 0.5%, thereafter the rate is LIBOR plus 2.75% based on the unpaid
principal. The borrowing base less outstanding loans must equal or exceed $15
million. At the time of closing there was a $170,000 commitment fee paid to
the agent. As of September 30, 2001 there was $14 million in borrowing
outstanding against the facility.



                                       15

<PAGE>


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
         For the Periods Ended September 30, 2001 and September 30, 2000


LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)

In June 2001, the Financial Accounting Standards Board approved the issuance
of SFAS No. 141, "Business Combinations" and SFAS 142, "Goodwill and Other
Intangible Assets" which was issued July 20, 2001. The new standards require
that all business combinations initiated after June 30, 2001 must be
accounted for under the purchase method. In addition, all intangible assets
acquired that are obtained through contractual or legal right, or are capable
of being separately sold, transferred, licensed, rented or exchanged shall be
recognized as an asset apart from goodwill. Goodwill and intangibles with
indefinite lives will no longer be subject to amortization, but will be
subject to at least an annual assessment for impairment by applying a fair
value based test.

The Company will continue to amortize goodwill existing at September 30, 2001
under its current method until January 1, 2002. Thereafter, annual and
quarterly goodwill amortization of approximately $2.6 million and $650,000,
respectively, will no longer be recognized. By June 30, 2002, the Company
will perform a transitional fair value based impairment test and if the fair
value is less than the recorded value at January 1, 2002, the Company will
record an impairment loss in the March 31, 2002 quarter, as a cumulative
effect of a change in accounting principle.

In August 2001, the FASB issued statement of Financial Accounting Standard
No. 144 "Accounting for the Impairment or Disposal of Long Lived Assets",
("SFAS 144"). This statement is effective for fiscal years beginning after
December 15, 2001. This supercedes SFAS 121, while retaining many of the
requirements of such statement. The Company is currently evaluating the
impact of the statement.


                                       16


<PAGE>


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
         For the Periods Ended September 30, 2001 and September 30, 2000

PRO FORMA FINANCIAL INFORMATION EXCLUDING ASSETS HELD FOR SALE

The accompanying unaudited pro forma condensed consolidated statement of
operations as of the quarters ended September 30, 2001, June 30, 2001, March 31,
2001, March 31, 2000, June 30, 2000, September 30, 2000 and December 31, 2000
have been prepared to give effect of the consolidated operations excluding net
assets held for sale and is intended for informational purposes only.

All adjustments necessary to fairly present this pro forma condensed
consolidated financial information have been made based on available information
and assumptions, which, in the opinion of management, are reasonable. The
unaudited pro forma condensed consolidated financial information is based upon
and should be read in conjunction with, the historical consolidated financial
statements of the Company and the notes thereto.

                                          Quarter Ended September 30, 2001
                                   --------------------------------------------
                                    Consolidated     Assets held     Pro forma
                                             CHC        for Sale           CHC
                                   --------------------------------------------

   Revenues                             $94,212          $6,597       $87,615
   Direct Costs                          67,672           2,409        65,263
                                        -------         -------       -------
   Gross Profit                          26,540           4,188        22,352
   SG&A                                  29,790           6,321        23,469
   Bad Debt Expense                         614              89           525
                                        -------         -------       -------
   Operating Loss                        (3,864)         (2,222)       (1,642)
   Interest Income                          (43)             --           (43)
   Loss on Sale of Assets                 2,833           2,833            --
   Amortization of Intangibles              650              --           650
                                        -------         -------       -------
   Loss before taxes                     (7,304)         (5,055)       (2,249)
   Income taxes/(benefit)                (2,483)         (1,718)         (765)
                                        -------         -------       -------
   Net Loss                             $(4,821)        $(3,337)      $(1,484)
                                        =======         =======       =======



                                       17


<PAGE>


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
         For the Periods Ended September 30, 2001 and September 30, 2000



                                               Quarter Ended June 30, 2001
                                    -------------------------------------------
                                    Consolidated     Assets held     Pro forma
                                             CHC        for Sale           CHC
                                    -------------------------------------------

       Revenues                         $104,995        $11,140       $93,855
       Direct Costs                       74,927          4,057        70,870
                                        --------        -------       -------
       Gross Profit                       30,068          7,083        22,985
       SG&A                               32,162          9,614        22,548
       Bad Debt Expense                      396             37           359
                                        --------        -------       -------
       Operating Income/(loss)            (2,490)        (2,568)           78
       Restructuring Charge                5,473             --         5,473
       Interest Income                      (256)            --          (256)
       Amortization of Intangibles           723             --           723
                                        --------        -------       -------
       Loss before taxes                  (8,430)        (2,568)       (5,862)
       Income taxes/(benefit)             (2,866)          (873)       (1,993)
                                        --------        -------       -------
       Net Loss                         $ (5,564)       $(1,695)      $(3,869)
                                        ========        =======       =======




                                             Quarter Ended March 31, 2001
                                        ---------------------------------------
                                        Consolidated   Assets held    Pro forma
                                                 CHC      for Sale          CHC
                                        ---------------------------------------

       Revenues                         $106,481        $13,265       $93,216
       Direct Costs                       72,916          4,997        67,919
                                        --------        -------       -------
       Gross Profit                       33,565          8,268        25,297
       SG&A                               34,221          9,793        24,428
       Bad Debt Expense                      443             48           395
                                        --------        -------       -------
       Operating Income/(loss)            (1,099)        (1,573)          474
       Gain on sale of Spargo                438            438            --
       Interest Expense                      175             --           175
       Amortization of Intangibles           707             --           707
                                        --------        -------       -------
       Loss before taxes                  (1,543)        (1,135)         (408)
       Income taxes/(benefit)               (525)          (386)         (139)
                                        --------        -------       -------
       Net Loss                         $(1,018)        $  (749)      $  (269)
                                        ========        =======       =======




                                       18

<PAGE>


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

         For the Periods Ended September 30, 2001 and September 30, 2000


                                             Quarter Ended March 31, 2000
                                        ---------------------------------------
                                        Consolidated  Assets held    Pro forma
                                                 CHC     for Sale          CHC
                                        ---------------------------------------

       Revenues                         $114,282         $21,397      $92,885
       Direct Costs                       83,015          11,505       71,510
                                        --------        --------      -------
       Gross Profit                       31,267           9,892       21,375
       SG&A                               32,073          12,549       19,524
       Bad Debt Expense                    1,087              --        1,087
                                        --------        --------      -------
       Operating Income/(loss)            (1,893)         (2,657)         764
       Interest Expense                      266              --          266
       Amortization of Intangibles         1,776             897          879
                                        --------        --------      -------
       Loss before taxes                  (3,935)         (3,554)        (381)
       Income taxes/(benefit)             (1,692)         (1,528)        (164)
                                        --------        --------      -------
       Net Loss                         $ (2,243)       $ (2,026)     $  (217)
                                        ========        ========      =======




                                               Quarter Ended June 30, 2000
                                        ---------------------------------------
                                        Consolidated   Assets held    Pro forma
                                                 CHC      for Sale          CHC
                                        ---------------------------------------

       Revenues                         $118,095        $23,655       $94,440
       Direct Costs                       79,578          9,145        70,433
                                        --------        --------      -------
       Gross Profit                       38,517         14,510        24,007
       SG&A                               35,049         12,684        22,365
       Bad Debt Expense                    1,484             --         1,484
                                        --------        --------      -------
       Operating Income/(loss)             1,984          1,826           158
       Restructuring Credits              (2,376)            --        (2,376)
       Interest Expense                      301             --           301
       Amortization of Intangibles         1,680            787           893
                                        --------        --------      -------
       Income before taxes                 2,379          1,039         1,340
       Income taxes                        1,023            447           576
                                        --------        --------      -------
       Net Income                       $  1,356        $   592       $   764
                                        ========        =======       =======




                                       19

<PAGE>


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
         For the Periods Ended September 30, 2001 and September 30, 2000



                                            Quarter Ended September 30, 2000
                                        ---------------------------------------
                                        Consolidated   Assets held   Pro forma
                                                 CHC      for Sale         CHC
                                        ---------------------------------------

       Revenues                         $104,505        $16,877       $87,628
       Direct Costs                       75,011          7,818        67,193
                                        --------        -------       -------
       Gross Profit                       29,494          9,059        20,435
       SG&A                               36,634         12,686        23,948
       Bad Debt Expense                    1,916             --         1,916
                                        --------        -------       -------
       Operating Loss                     (9,056)        (3,627)       (5,429)
       Interest Expense                      373             --           373
       Amortization of Intangibles         1,662            935           727
                                        --------        -------       -------
       Loss before taxes                 (11,091)        (4,562)       (6,529)
       Income taxes/(benefit)             (4,325)        (1,779)       (2,546)
                                        --------        -------       -------
       Net Loss                          $(6,766)       $(2,783)      $(3,983)
                                        ========        =======       =======



                                            Quarter Ended December 31, 2000
                                        ---------------------------------------
                                        Consolidated   Assets held   Pro forma
                                                 CHC      for Sale         CHC
                                        ---------------------------------------

       Revenues                         $108,597        $19,849       $ 88,748
       Direct Costs                       75,211          8,745         66,466
                                        --------        -------       --------
       Gross Profit                       33,386         11,104         22,282
       SG&A                               39,935         12,420         27,515
       Bad Debt Expense                   21,965             --         21,965
                                        --------        -------       --------
       Operating Loss                    (28,514)        (1,316)       (27,198)
       Restructuring Charges              43,904             --         43,904
       Interest Expense                      265             --            265
       Amortization of Intangibles         2,316          1,517            799
                                        --------        -------       --------
       Loss before taxes                 (74,999)        (2,833)       (72,166)
       Income taxes/(benefit)            (24,825)          (938)       (23,887)
                                        --------        -------       --------
       Net Loss                         $(50,174)       $(1,895)      $(48,279)
                                        ========        =======       ========


CERTAIN DISCLOSURES

This report contains certain forward-looking statements for purposes of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties that could cause actual results to differ
materially. Such statements are based upon, among other things, assumptions made
by, and information currently available to management, including management's
own knowledge and assessment of the Company's industry and competition.

                                       20


<PAGE>


                            PART II Other Information

Item 6.

         b) None

                                   Signatures

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

                                            COMPUTER HORIZONS CORP.
                                            ----------------------
                                                  (Registrant)


DATE:       NOVEMBER 14, 2001               /S/  JOHN J. CASSESE
            -----------------               --------------------
                                            John J. Cassese
                                            Chairman of the Board and
                                            President


DATE:       NOVEMBER 14, 2001               /S/ WILLIAM J. MURPHY
            -----------------               ---------------------
                                            William J. Murphy
                                            Executive Vice President,
                                            Chief Financial Officer
                                            (Principal Financial Officer) and
                                            Director


DATE:       NOVEMBER 14, 2001               /S/ MICHAEL J. SHEA
            -----------------               -------------------
                                            Michael J. Shea,
                                            Vice President and Controller
                                            (Principal Accounting Officer)



                                       21