================================================================================

                                  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
                  June 30, 2002

                                       or


         [ ]      Transition Report pursuant to Section 13 or 15(d) of the
                  Securities Exchange Act of 1934 for the transition period from
                  _______ to _________


                         COMMISSION FILE NUMBER 0-21529


                          GIGA INFORMATION GROUP, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


               Delaware                                     06-1422860
   -------------------------------                       ----------------
   (State or other jurisdiction of                       (I.R.S. Employer
    incorporation or organization)                      Identification No.)


                                 139 MAIN STREET
                               CAMBRIDGE, MA 02142
                                 (617) 577-4900
                   -------------------------------------------
                   (Address, including zip code, and telephone
                    number, including area code, of principal
                               executive offices)


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. [X] Yes  [ ] No


As of August 7, 2002, there were 10,757,277 shares of Common Stock, $0.001 par
value, of the registrant outstanding.


================================================================================


<PAGE>
                          GIGA INFORMATION GROUP, INC.
                          QUARTERLY REPORT ON FORM 10-Q
                       FOR THE PERIOD ENDED JUNE 30, 2002


                                      INDEX

<TABLE>
<CAPTION>
                                                                                                    PAGE
                                                                                                    ----
<S>                                                                                                <C>
PART I - FINANCIAL INFORMATION

           Item 1.   Financial Statements

                     Consolidated Statements of Operations for the three and six
                               months ended June 30, 2002 (unaudited) and June
                               30, 2001 (unaudited)                                                   3.

                     Consolidated Balance Sheets at June 30, 2002 (unaudited)
                               and December 31, 2001                                                  4.

                     Consolidated Statements of Cash Flows for the six months
                               ended June 30, 2002 (unaudited) and June 30, 2001 (unaudited)          5.

                     Notes to Consolidated Financial Statements (unaudited)                           6.

           Item 2.   Management's Discussion and Analysis of Financial Condition and
                               Results of Operations                                                  11.

           Item 3.   Quantitative and Qualitative Disclosures About Market Risk                       23.


PART II - OTHER INFORMATION


           Item 6.   Exhibits and Reports on Form 8-K                                                 24.


SIGNATURE PAGE                                                                                        25.

EXHIBIT INDEX                                                                                         26.

</TABLE>




                                       2
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS

                          GIGA INFORMATION GROUP, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
           (UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

<TABLE>
<CAPTION>
                                                               THREE MONTHS ENDED                       SIX MONTHS ENDED
                                                                    JUNE 30,                                JUNE 30,
                                                        -----------------------------------   -------------------------------------
                                                               2002              2001                  2002              2001
                                                        -----------------------------------   -------------------------------------
<S>                                                     <C>                  <C>               <C>                    <C>
Revenues:
    Net research, advisory and consulting                      $  15,494         $  16,714             $  30,718         $  33,186
    Other, principally events                                      1,197             2,102                 1,662             3,163
                                                        -----------------------------------   -------------------------------------

    Total revenues                                                16,691            18,816                32,380            36,349

Costs and expenses:
    Cost of services                                               7,763             9,242                13,729            16,437
    Sales and marketing                                            5,345             8,368                10,381            15,936
    Research and development                                         295               299                   561               553
    General and administrative                                     2,136             2,459                 4,411             4,540
    Restructuring charge                                               -             1,025                     -             1,025
    Depreciation and amortization                                    830               841                 1,769             1,689
                                                        -----------------------------------   -------------------------------------

    Total costs and expenses                                      16,369            22,234                30,851            40,180
                                                        -----------------------------------   -------------------------------------


Income (loss) from operations                                        322           (3,418)                 1,529           (3,831)
                                                        -----------------------------------   -------------------------------------

Interest income                                                        6                13                    14                43
Interest expense                                                     (8)              (68)                  (74)              (86)
Foreign exchange loss                                               (13)               (3)                  (46)              (87)
                                                        -----------------------------------   -------------------------------------

    Income (loss) from operations before income taxes                307           (3,476)                 1,423           (3,961)
Income tax provision (benefit)                                        29                 -                    29              (20)
                                                        -----------------------------------   -------------------------------------

Net income (loss)                                               $    278        $  (3,476)             $   1,394        $  (3,941)
                                                        ===================================   =====================================

Earnings (loss) per common share
    Basic                                                      $    0.03        $   (0.33)             $    0.13        $   (0.38)
    Diluted                                                    $    0.02        $   (0.33)             $    0.12        $   (0.38)

Weighted average common shares outstanding
    Basic                                                     10,688,572        10,511,267            10,680,709        10,497,175
    Diluted                                                   11,609,870        10,511,267            11,602,581        10,497,175

</TABLE>

            The accompanying unaudited notes are an integral part of
                     the consolidated financial statements.


                                       3
<PAGE>
                          GIGA INFORMATION GROUP, INC.
                           CONSOLIDATED BALANCE SHEETS
                 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

<TABLE>
<CAPTION>
                                                                                       JUNE 30,            DECEMBER 31,
                                                                                         2002                  2001
                                                                                   -----------------    -------------------
                                                                                      (UNAUDITED)
<S>                                                                                <C>                  <C>
                                     ASSETS
Current assets:
    Cash and cash equivalents                                                             $   4,281             $    1,118
    Restricted cash                                                                              16                     57
    Trade accounts receivable, net of allowances of $1,171 and $1,128 at
       June 30, 2002 and December 31, 2001, respectively                                     13,909                 15,879
    Pledged accounts receivable                                                                   -                  3,128
    Unbilled accounts receivable                                                              5,245                  5,588
    Prepaid expenses and other current assets                                                 3,526                  4,186
                                                                                   -----------------    -------------------
       Total current assets
                                                                                             26,977                 29,956

Restricted cash                                                                                 668                    620

Unbilled accounts receivable                                                                  1,015                  1,399

Property and equipment, net                                                                   4,296                  5,770

Other assets                                                                                  2,162                  2,011
                                                                                   -----------------    -------------------
       Total assets                                                                       $  35,118             $   39,756
                                                                                   =================    ===================

                      LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
    Short-term borrowings                                                                  $      -             $    2,507
    Current portion of capitalized lease obligations                                            324                    325
    Accounts payable                                                                          2,025                  3,841
    Deferred revenues                                                                        35,534                 36,601
    Accrued expenses and other current liabilities                                            7,897                  7,593
                                                                                   -----------------    -------------------
       Total current liabilities
                                                                                             45,780                 50,867

Capitalized lease obligations, net of current portion                                            76                    254

Deferred revenues                                                                             1,498                  2,024
                                                                                   -----------------    -------------------
       Total liabilities
                                                                                             47,354                 53,145

Stockholders' deficit:
Preferred Stock, $.001 par value; 5,000,000 shares authorized at June 30, 2002
    and December 31, 2001, no shares issued and outstanding at June 30, 2002
    and December 31, 2001                                                                         -                      -
Common Stock, $.001 par value: 60,000,000 shares authorized at June 30, 2002
    and December 31, 2001, 10,689,571 and 10,666,021 shares issued and
    outstanding at June 30, 2002 and December 31, 2001, respectively                             11                     11

Additional paid-in capital                                                                   82,934                 82,899

Deferred compensation                                                                             -                   (67)

Accumulated deficit                                                                        (96,258)               (97,652)

Accumulated other comprehensive income                                                        1,077                  1,420
                                                                                   -----------------    -------------------
       Total stockholders' deficit                                                         (12,236)               (13,389)
                                                                                   -----------------    -------------------
       Total liabilities and stockholders' deficit                                        $  35,118             $   39,756
                                                                                   =================    ===================

</TABLE>
            The accompanying unaudited notes are an integral part of
                     the consolidated financial statements.


                                       4
<PAGE>
                          GIGA INFORMATION GROUP, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (UNAUDITED, IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                                          SIX MONTHS ENDED
                                                                                                              JUNE 30,
                                                                                                   --------------------------------
                                                                                                        2002            2001
                                                                                                   --------------------------------
<S>                                                                                                <C>              <C>
Cash flows from operating activities:
    Net income (loss)                                                                               $     1,394     $    (3,941)
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:
       Depreciation and amortization                                                                      1,769           1,689
       Amortization of deferred financing costs                                                              99              21
       Provision for doubtful accounts                                                                       77             324
       Provision for sales cancellations                                                                      -             500
       Gain on sale of fixed assets                                                                           -              (1)
       Compensation expense related to stock options                                                         74              90
       Change in assets and liabilities:
          Decrease in billed and unbilled accounts receivable                                              5,934           6,428
          Decrease in prepaid expenses and other current assets                                              239           1,110
          Decrease (increase) in other assets                                                                  6              (9)
          Decrease in deferred revenues                                                                   (1,836)         (3,221)
          Decrease in accounts payable and accrued liabilities                                              (924)         (1,828)
                                                                                                   --------------------------------
             Net cash provided by operating activities                                                     6,832           1,162
                                                                                                   --------------------------------

Cash flows from investing activities:
    Acquisition of equipment and improvements                                                               (284)         (2,040)
    Cash paid to complete the acquisition of Gigaweb Information Group, Ltd.                                (642)              -
    Investment in GigaGroup S.A.                                                                            (156)              -
    Increase in restricted cash                                                                                -            (532)
    Other, net                                                                                                 -             (10)
                                                                                                   --------------------------------
             Net cash used in investing activities                                                        (1,082)         (2,582)
                                                                                                   --------------------------------

Cash flows from financing activities:
    Proceeds from issuance of common stock under option plans                                                  -              22
    Proceeds from issuance of common stock under employee stock purchase plan                                 35              92
    Net (payments) borrowings under Accounts Receivable Financing Agreement                               (2,507)            234
    Principal payments under capital lease obligations                                                      (179)           (151)
    Other, net                                                                                                 -               7
                                                                                                   --------------------------------
             Net cash (used in) provided by financing activities                                          (2,651)             204
                                                                                                   --------------------------------

Effect of exchange rates on cash and cash equivalents
                                                                                                              64             (50)
                                                                                                   --------------------------------
Net increase (decrease) in cash and cash equivalents                                                       3,163          (1,266)
Cash and cash equivalents, beginning of period                                                             1,118           1,640
                                                                                                   --------------------------------
Cash and cash equivalents, end of period                                                            $      4,281      $      374
                                                                                                   ================================

Noncash investing and financing activities:
    Purchase of assets under capital lease obligations                                              $          -      $      530

</TABLE>
          The accompanying unaudited notes are an integral part of the
                       consolidated financial statements.


                                       5
<PAGE>
                          GIGA INFORMATION GROUP, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


1.         Interim Consolidated Financial Statements

           The accompanying consolidated financial statements of Giga
Information Group, Inc. ("Giga") at June 30, 2002 and for the three and six
months ended June 30, 2002 and 2001 are unaudited and have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Rule 10-01 of Regulation
S-X. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. All adjustments, consisting only of normal recurring adjustments,
have been made which, in the opinion of management, are necessary for a fair
presentation. The results of operations for the periods presented are not
necessarily indicative of the results that may be expected for any future
period. For further information, refer to Giga's audited consolidated financial
statements included in its Annual Report on Form 10-K for the period ended
December 31, 2001, as filed with the Securities and Exchange Commission.

2.         Investments

           In June 2002, GigaGroup S.A. issued 42,969 shares of its common stock
to its shareholders, increasing the total number of shares outstanding to
809,340 from 766,371. Giga purchased 8,136 of these shares for 75,339 Euros at
9.26 Euros per share, giving Giga a total of 157,377 shares of the common stock.
As a result of this transaction, Giga's ownership of the entity decreased from
19.5% to 19.4%. Giga's investment in GigaGroup S.A. of $1,215,000 is carried at
cost and is included in other assets on Giga's Consolidated Balance Sheet at
June 30, 2002.


3.         Earnings (Loss) Per Common Share

           Giga computes basic and diluted earnings (loss) per share in
accordance with Statement of Financial Accounting Standards ("SFAS") No. 128,
"Earnings Per Share." Basic earnings (loss) per share is computed using the
weighted average number of common shares outstanding during the period. Diluted
earnings per share is computed using the weighted average number of common
shares outstanding during the period plus the dilutive effect, if any, of
outstanding stock options and warrants using the treasury stock method. Dilutive
loss per share is computed using the weighted average number of common shares
outstanding during the period and excludes the dilutive potential common shares
outstanding, as their effect would be antidilutive. The table below represents
the calculation of both basic and diluted earnings (loss) per share (in
thousands, except per share data).

<TABLE>
<CAPTION>
                                                             THREE MONTHS ENDED                 SIX MONTHS ENDED
                                                                  JUNE 30,                          JUNE 30,
                                                       -------------------------------   --------------------------------
                                                              2002           2001               2002            2001
                                                       -------------------------------   --------------------------------
<S>                                                    <C>               <C>              <C>               <C>
Net income (loss)                                             $   278       $ (3,476)           $  1,394       $ (3,941)

Basic weighted average common shares outstanding               10,689          10,511             10,681          10,497

Dilutive effect of stock options                                  747               -                750               -

Dilutive effect of warrants                                       174               -                172               -
                                                       -------------------------------   --------------------------------
Diluted weighted average common shares outstanding             11,610          10,511             11,603          10,497
                                                       ===============================   ================================

Basic earnings (loss) per common share                        $  0.03       $  (0.33)            $  0.13       $  (0.38)
Diluted earnings (loss) per common share                      $  0.02       $  (0.33)            $  0.12       $  (0.38)

</TABLE>

                                       6
<PAGE>
                          GIGA INFORMATION GROUP, INC.
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                                   (UNAUDITED)

           Stock options and warrants to purchase 2,530,398 and 2,601,928 shares
of common stock for the three and six months ended June 30, 2002, respectively,
were outstanding but were not included in the computation of diluted earnings
per share because the exercise price of these stock options and warrants was
greater than the average market price of the common stock for the period
reported. Due to Giga's net loss for the three and six months ended June 30,
2001, no stock options or warrants were included in the computation of diluted
loss per share, as their effect would have been antidilutive.


4.         Comprehensive Income (Loss)

           Comprehensive income (loss) is comprised of net income (loss) and
other comprehensive income (loss). Other comprehensive income (loss) includes
certain changes in equity that are excluded from net income (loss). At June 30,
2002 and 2001, accumulated other comprehensive income (loss) was comprised
solely of cumulative foreign currency translation adjustments, which is
reflected in the table below (in thousands).

<TABLE>
<CAPTION>
                                                                THREE MONTHS ENDED                 SIX MONTHS ENDED
                                                                     JUNE 30,                          JUNE 30,
                                                          -------------------------------   --------------------------------
                                                               2002           2001                2002           2001
                                                          -------------------------------   --------------------------------
<S>                                                        <C>             <C>               <C>             <C>
Net income (loss)                                          $         278  $     (3,476)      $      1,394    $     (3,941)
    Other comprehensive income (loss), net of tax:
             Foreign currency translation adjustment                (448)          101               (343)            190
                                                          -------------------------------   --------------------------------

Comprehensive income (loss)                                $        (170) $     (3,375)      $      1,051    $     (3,751)
                                                          ===============================   ================================

</TABLE>


5.         New Accounting Pronouncements

           In April 2002, the Financial Accounting Standards Board ("FASB")
issued SFAS No. 145, "Rescission of FASB Statements No. 4, 44, and 64, Amendment
of FASB Statement No. 13, and Technical Corrections." SFAS No. 145 rescinds SFAS
No 4, "Reporting Gains and Losses from Extinguishment of Debt," and an amendment
of that Statement, SFAS No. 64, "Extinguishments of Debt Made to Satisfy
Sinking-Fund Requirements," and SFAS No. 44, "Accounting for Intangible Assets
of Motor Carriers." SFAS No. 145 also amends SFAS No. 13, "Accounting for
Leases," to eliminate an inconsistency between the required accounting for
sale-leaseback transactions and the required accounting for certain lease
modifications that have the same economic effects as sale-leaseback
transactions. This Statement also amends other existing authoritative
pronouncements to make various technical corrections, clarify meanings, or
describe their applicability under changed conditions. The provisions of this
Statement related to the rescission of SFAS No. 4 are effective for fiscal years
beginning after May 15, 2002. The provisions of this Statement related to SFAS
No. 13 are effective for transactions occurring after May 15, 2002. All other
provisions of this Statement are effective for financial statements issued on or
after May 15, 2002. Giga's adoption of SFAS No. 145 has not had, and is not
expected to have, a significant effect on its financial position or its results
of operations.

           In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs
Associated with Exit or Disposal." This Statement addresses financial accounting
and reporting for costs associated with exit or disposal activities and
nullifies Emerging Issues Task Force ("EITF") Issue No. 94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity (including Certain Costs Incurred in a Restructuring)." SFAS No. 146 is
effective for exit or disposal activities that are initiated after December 31,
2002, with early application encouraged. Management of Giga is currently


                                       7
<PAGE>
                          GIGA INFORMATION GROUP, INC.
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                                   (UNAUDITED)

assessing the impact that the adoption of SFAS No. 146 will have on Giga's
financial position and results of operations and plans to adopt this Statement
on January 1, 2003.


6.         Restructuring and Exit Costs

           In February 2000, Giga announced its plan to consolidate operations
in its Watford, U.K. and Windsor, U.K. locations into one common facility in the
Windsor area. Nine employees from its finance and its conferences groups elected
not to relocate to the Windsor area. In June 2001, Giga announced its plan to
cancel this facility project. Giga recorded total restructuring charges of
$439,000 and $183,000 for the years ended December 31, 2001 and 2000,
respectively, for employee benefit costs related to severance packages for
terminated employees, facility costs and other exit activity costs. The exit
activities related to the facility project were substantially complete as of
December 31, 2001. Giga carried a minimal provision balance as of June 30, 2002
for any remaining costs related to the project.

           During the year ended December 31, 2001, Giga recorded a total
restructuring charge of $890,000 for involuntary employee benefit costs in
connection with staff reductions made during the second, third and fourth
quarters of 2001. There were a total of 117 employees terminated, 99 of whom
were from North America and 18 of whom were from Europe, across all departments.
The restructuring activities related to the staff reductions were substantially
complete as of December 31, 2001. Giga carried a minimal provision balance as of
June 30, 2002 for any remaining costs related to the restructuring.


7.         Borrowings

Accounts Receivable Financing Agreement

           In April 2001, Giga renewed its Accounts Receivable Financing
Agreement, dated April 7, 2000, with a bank, for a second one-year period (the
"Financing Agreement"). As a result of Giga's non-compliance with the financial
covenants of the Financing Agreement, Giga entered into a Loan Modification and
Forbearance Agreement in August 2001 (the "August Forbearance Agreement") and a
second Loan Modification and Forbearance Agreement in November 2001 (the
"November Forbearance Agreement"). Subsequent to December 31, 2001, the bank
continued to advance funds to Giga pursuant to the terms of the November
Forbearance Agreement, which allowed Giga to finance up to a maximum of $3.125
million of eligible accounts receivable, as defined by the Financing Agreement,
at an advance rate not to exceed 80%. Loans under the November Forbearance
Agreement bore interest at the bank's prime rate plus 5.5% and the bank charged
a monthly collateral handling fee of 0.875% on the average daily financed
receivable balance outstanding.

           An outstanding balance of approximately $2.5 million remained as of
December 31, 2001. During the first quarter of 2002, Giga pledged approximately
$1.9 million of accounts receivable as collateral and received proceeds of
approximately $1.5 million. Giga repaid a total of approximately $4.0 million
during the first quarter of 2002, leaving no borrowings outstanding as of March
31, 2002.

           On March 27, 2002, Giga renewed the Financing Agreement for a third
one-year period (the "2002 Financing Agreement"), under which it can finance up
to a maximum of $5.0 million of the eligible accounts receivable, as defined in
the 2002 Financing Agreement, at an advance rate not to exceed 80%. Upon
execution of the 2002 Financing Agreement, Giga paid fees totaling $37,500.
Loans under the 2002 Financing Agreement bear interest at the bank's prime rate
plus 1.0%. The bank charges a monthly collateral handling fee of 0.25% on the
average daily financed receivable balance outstanding.

           The 2002 Financing Agreement is collateralized by substantially all
of Giga's tangible and intangible assets, including intellectual property. Giga
is subject to various financial covenants under the 2002 Financing Agreement,
including the requirement to maintain a minimum adjusted quick ratio, a ratio of


                                       8
<PAGE>
                          GIGA INFORMATION GROUP, INC.
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                                   (UNAUDITED)

quick assets, which includes unrestricted cash, cash equivalents and net billed
receivables, to current liabilities minus deferred revenue, of 1.4 to 1.0 on a
quarterly basis, with the exception of the second fiscal quarter of 2002, where
an adjusted quick ratio of 1.25 to 1.0 is permitted. Giga is also required to
achieve a minimum net income of $1.00 on a quarterly basis, subject to a
one-time permissible quarterly net loss of $100,000. Giga was in compliance with
both of these financial covenants at June 30, 2002. There were no borrowings
pursuant to the 2002 Financing Agreement outstanding as of June 30 2002.

Overdraft Facility

           In August 2001, Giga's wholly-owned subsidiary in the United Kingdom,
Giga Information Group Ltd., established an Overdraft Facility (the "Overdraft
Facility") with a bank, under which it can borrow up to 100,000 British pounds.
The Overdraft Facility was scheduled to expire in July 2002. Upon execution of
the Overdraft Facility, Giga Information Group, Ltd. paid fees totaling 1,000
British pounds. Borrowings under the Overdraft Facility bear interest at the
bank's base rate plus 1.5%. In December 2001, the terms of the Overdraft
Facility were amended. Upon execution of the amended Overdraft Facility, Giga
Information Group, Ltd. paid fees totaling 500 British pounds. The terms of the
amended Overdraft Facility maintained the existing interest rate and allowed
Giga Information Group, Ltd. to borrow an additional 100,000 British pounds, for
a total of up to 200,000 British pounds, through March 31, 2002. The bank has
orally agreed to extend the terms of the Overdraft Facility, allowing Giga
Information Group, Ltd. to borrow up to 100,000 British pounds through August
2002. Giga Information Group, Ltd. is currently in the process of renewing the
Overdraft Facility. There were no borrowings outstanding under the Overdraft
Facility at June 30, 2002.


8.         Warrants

           In September 2001, upon execution of the August Forbearance Agreement
discussed in Note 7, Giga issued warrants to the bank to purchase 300,000 shares
of Giga common stock. The warrants are exercisable at any time at $0.97 per
share and are scheduled to expire on September 5, 2008. The estimated fair value
of the warrants at the time of issuance was approximately $231,000, which was
recorded as deferred financing costs and are included, net of accumulated
amortization, in prepaid expenses and other current assets on Giga's
Consolidated Balance Sheet at December 31, 2001. These costs were amortized over
the remaining seven months of the original term of the renewed Financing
Agreement and were fully amortized as of March 31, 2002. Giga recognized charges
of approximately $99,000 for the amortization of the financing costs during the
first quarter of 2002. None of these warrants had been exercised as of June 30,
2002.


9.         Segment Information

           Giga has determined that it operates in one reportable segment,
advisory services. This determination is based on Giga's method of internal
reporting and the similarities among its products and services. Giga's products
and services are similar with regard to financial performance and business risk,
targeted customer market, the methods used to market, sell and provide its
products and services to customers and their purpose which is to provide
customers with objective research and advice and personalized consulting on
developments and trends in information technology. Revenues from the products
and services within, and in support of, Giga's research, advisory and consulting
services are presented in detail in Giga's Consolidated Statements of
Operations.

           Giga conducts business principally in the United States and United
Kingdom. Operations in Germany, Italy and Israel (as of July 9, 2001) have been
aggregated (collectively "Other International"). Revenues are reflected in the
geographic area in which the sales are recorded. The table below presents
information about Giga's reported revenues for the three and six months ended
June 30, 2002 and 2001 and Giga's reported total assets as of June 30, 2002 and
December 31, 2001, respectively (in thousands).


                                       9
<PAGE>
                          GIGA INFORMATION GROUP, INC.
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                REVENUES                                     REVENUES
                                 ----------------------------------------     ----------------------------------------
                                       THREE MONTHS ENDED JUNE 30,                   SIX MONTHS ENDED JUNE 30,
                                 ----------------------------------------     ----------------------------------------
                                        2002                2001                     2002                2001
                                 ----------------------------------------     ----------------------------------------
<S>                              <C>                     <C>                    <C>                   <C>
United States                             $   14,051          $   15,576               $   26,958          $   29,965

United Kingdom                                 2,129               2,519                    4,432               4,882

Other International                              511                 721                      990               1,502
                                 ----------------------------------------     ----------------------------------------
      Consolidated                        $   16,691          $   18,816               $   32,380          $   36,349
                                 ========================================     ========================================


                                              TOTAL ASSETS
                                 ----------------------------------------
                                      JUNE 30,          DECEMBER 31,
                                        2002                2001
                                 ----------------------------------------

United States                             $   29,161          $   33,008

United Kingdom                                 4,044               4,697

Other International                            1,913               2,051
                                 ----------------------------------------
      Consolidated                        $   35,118          $   39,756
                                 ========================================


</TABLE>








                                       10
<PAGE>
ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           RESULTS OF OPERATIONS

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

           INFORMATION INCLUDED IN THIS QUARTERLY REPORT ON FORM 10-Q MAY
CONTAIN FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS ARE NOT STATEMENTS OF
HISTORICAL FACTS, BUT RATHER REFLECT GIGA'S CURRENT EXPECTATIONS CONCERNING
FUTURE EVENTS AND RESULTS. GIGA GENERALLY USES THE WORDS "BELIEVES," "EXPECTS,"
"INTENDS," "PLANS," "ANTICIPATES," "LIKELY," "WILL" AND SIMILAR EXPRESSIONS TO
IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS, INCLUDING
THOSE CONCERNING GIGA'S EXPECTATIONS, INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS, SOME OF WHICH ARE BEYOND GIGA'S CONTROL, WHICH
MAY CAUSE GIGA'S ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS, TO BE MATERIALLY
DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE, OR ACHIEVEMENTS EXPRESSED OR
IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. IN EVALUATING SUCH STATEMENTS AS
WELL AS THE FUTURE PROSPECTS OF GIGA, SPECIFIC CONSIDERATION SHOULD BE GIVEN TO
VARIOUS FACTORS INCLUDING THE FOLLOWING: GIGA'S PRIOR HISTORY OF LOSSES AND
NEGATIVE WORKING CAPITAL; GIGA'S DEPENDENCE ON SALES AND RENEWALS OF
SUBSCRIPTION-BASED SERVICES; GIGA'S ABILITY TO ACHIEVE AND SUSTAIN HIGH RENEWAL
RATES; COMPETITION FROM OTHER COMPANIES INCLUDING THOSE WITH GREATER RESOURCES
THAN GIGA; GIGA'S NEED TO ATTRACT AND RETAIN QUALIFIED PERSONNEL; GIGA'S ABILITY
TO MANAGE AND SUSTAIN GROWTH; THE RISKS ASSOCIATED WITH THE DEVELOPMENT OF NEW
SERVICES AND PRODUCTS; GIGA'S DEPENDENCE ON KEY PERSONNEL; THE POTENTIAL FOR
SIGNIFICANT FLUCTUATIONS IN QUARTERLY OPERATING RESULTS; THE RISKS ASSOCIATED
WITH INTERNATIONAL OPERATIONS; GIGA'S FUTURE CAPITAL NEEDS AND THE RISKS OF
WORKING CAPITAL DEFICIENCY; CONTINUED MARKET ACCEPTANCE OF AND DEMAND FOR GIGA
SERVICES; UNCERTAINTIES RELATING TO PROPRIETARY RIGHTS; GIGA'S DEPENDENCE ON THE
INTERNET INFRASTRUCTURE; THE RISK OF SYSTEM FAILURE; AND THE RISKS RELATED TO
CONTENT. IN EVALUATING SUCH FORWARD-LOOKING STATEMENTS, AS WELL AS THE FUTURE
PROSPECTS OF GIGA, SPECIFIC CONSIDERATION SHOULD BE GIVEN TO THE VARIOUS FACTORS
DISCUSSED IN THIS QUARTERLY REPORT ON FORM 10-Q, INCLUDING THOSE DISCUSSED UNDER
GENERAL RISKS AND UNCERTAINTIES. GIGA UNDERTAKES NO OBLIGATION TO UPDATE ANY
FORWARD-LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, UNANTICIPATED EVENTS,
OR OTHERWISE.


OVERVIEW

           Giga provides objective research, pragmatic advice and personalized
consulting on technology information. Emphasizing close interaction among
analysts and clients, Giga enables companies to make better strategic decisions
that are designed to maximize technology investments and achieve business
results. Giga's four principal products and services are (i) Advisory Service,
which includes Advisory Consulting , (ii) Events and Conferences, (iii) Web Site
ScoreCard and (iv) Total Economic Impact ("TEI"). Giga's services are designed
to be accessed through GigaWeb, partner web sites and consultation with Giga's
analysts and advisors.

           Giga introduced its Advisory Service and GigaWeb in April 1996. Giga
introduced Advisory Consulting in September 1997. Giga acquired its Events and
Conferences product line in April 1995. Giga launched its Web Site ScoreCard
offering in the third quarter of 1999 and its TEI service in the second quarter
of 2001. For financial reporting purposes, revenues from (i) Advisory Service
(including Advisory Consulting), Web Site ScoreCard and TEI are aggregated into
Research, advisory and consulting and (ii) Events and Conferences are aggregated
into Other, principally events.

           Essentially all of Giga's current international operations are
located in the European Community, Canada and Israel. Giga's wholly-owned
subsidiaries in the United Kingdom and Germany manage direct sales personnel in
these and other countries in the European Community. In Canada, Giga uses a
direct sales force and provides business support to these salespersons through
its operations in the United States. Giga's wholly-owned subsidiary in Israel,
Gigaweb Information Group, Ltd. ("Gigaweb Ltd."), an entity that was formerly a
reseller of Giga's products and services, manages direct sales personnel,
primarily in Israel. In France, Giga resells its services through GigaGroup
S.A., an entity that was formerly a wholly-owned subsidiary of Giga. Giga also
markets its products in Korea, Argentina, Brazil, Panama, Australia, India, Hong
Kong, Japan and Hungary through resellers or distributors.


                                       11
<PAGE>
           Substantially all of Giga's revenues from the European Community and
Israel are denominated in foreign currencies, particularly the British pound,
while essentially all of Giga's revenues from Canada are denominated in U.S.
dollars. Revenues from resellers have been, and are expected to continue to be,
denominated in U.S. dollars. To date, however, such revenues have been
insignificant. As a result of fluctuations in exchange rates, transactions
denominated in foreign currencies have inherent financial risk. Giga does not
currently hedge its exposure to foreign currency adjustments.

           Giga believes that a leading measure of its business volume is
Revenue Run Rate. Revenue Run Rate is defined as the combination of revenues
derived from the cumulative annualized subscription value of Giga's Advisory
Services contracts in effect at a given point in time ("Annualized Value" or
"AV"), and revenues from non-subscription services, such as events, Web Site
ScoreCard and TEI, for the preceding twelve months. Historically, annual
revenues from Giga's Advisory Services contracts have approximated 90% of
Annualized Value. At June 30, 2002, Revenue Run Rate decreased approximately 7%
to $65.6 million from $70.4 million at June 30, 2001. Annualized Value at June
30, 2002 decreased approximately 7% to $64.8 million from $69.4 million at June
30, 2001. Giga's total orders taken for the six months ended June 30, 2002
decreased approximately 8% to $28.0 million from $30.5 million for the same
six-month period of 2001.

           A majority of Giga's contracts renew automatically unless the
customer cancels the subscription. Giga's experience is that substantial
portions of customers renew expiring contracts for an equal or greater amount of
total fees each year. Historically, a substantial portion of new business,
upgrades and renewals for a given year has been generated by Giga in the last
two calendar quarters, particularly in the last month of the last quarter. As a
result of this quarterly trend in business volume, trade accounts receivable,
unbilled accounts receivable, deferred revenues and deferred commissions
typically increase substantially at quarter end and at the fiscal year end.
However, given the decrease experienced in Revenue Run Rate and AV at June 30,
2002 and lower anticipated growth rates for the advisory services industry,
these accounts may decrease during fiscal year 2002.

           Giga's operating expenses consist of cost of services, sales and
marketing, research and development, general and administrative, restructuring
costs, and depreciation and amortization. Cost of services consists primarily of
the direct costs associated with the delivery of Giga's research, advisory and
consulting, and other services. These direct expenses include costs for
analysts, research support staff and customer support, direct expenses for
events and conferences and costs to design, print and distribute conference
brochures and course materials. Sales and marketing expenses include personnel
expenses, promotional expenses, and sales commissions. Sales commissions are
typically deferred when earned and recorded to expense as the related revenue is
recognized. Research and development expenses consist of personnel, consulting
and other expenses to operate GigaWeb. General and administrative expenses are
primarily personnel costs and fees for professional services supporting the
operational and administrative functions of Giga. Restructuring costs primarily
consist of exit costs related to the cancellation of a facility project in the
United Kingdom and involuntary employee termination benefits expenses incurred
in connection with staff reductions. Depreciation and amortization costs consist
primarily of depreciation of computer equipment, furniture and fixtures and
leasehold improvements, and amortization of software licenses and software
implementation costs and assets under capital lease obligations.

           In February 2000, Giga announced its plan to consolidate operations
in its Watford, U.K. and Windsor, U.K. locations into one common facility in the
Windsor area. Nine employees from its finance and its conferences groups elected
not to relocate to the Windsor area. In June 2001, Giga announced its plan to
cancel this facility project. Giga recorded total restructuring charges of
$439,000 and $183,000 for the years ended December 31, 2001 and 2000,
respectively, for employee benefit costs related to severance packages for
terminated employees, facility costs and other exit activity costs. The exit
activities related to the facility project were substantially complete as of
December 31, 2001. Giga carried a minimal provision balance as of June 30, 2002
for any remaining costs related to the project.

           During the year ended December 31, 2001, Giga recorded a total
restructuring charge of $890,000 for involuntary employee benefit costs in
connection with staff reductions made during the second, third and fourth
quarters of 2001. There were a total of 117 employees terminated, 99 of whom
were from North America and 18 of whom were from Europe, across all departments.
The restructuring activities related to the staff reductions were substantially
complete as of December 31, 2001. Giga carried a minimal provision balance as of
June 30, 2002 for any remaining costs related to the restructuring.


                                       12
<PAGE>
CRITICAL ACCOUNTING POLICIES

           For a description of Giga's critical accounting policies, refer to
"Management's Discussion and Analysis of Financial Condition and Results of
Operations - Critical Accounting Policies" and the notes to Giga's consolidated
financial statements, each included in Giga's Annual Report on Form 10-K for the
year ended December 31, 2001, as filed with the Securities and Exchange
Commission.



















                                       13
<PAGE>
RESULTS OF OPERATIONS


           The following table sets forth certain statement of operations data
as a percentage of revenues for the periods indicated:


<TABLE>
<CAPTION>
                                                                   THREE MONTHS ENDED                  SIX MONTHS ENDED
                                                                        JUNE 30,                           JUNE 30,
                                                             --------------------------------   --------------------------------
                                                                  2002            2001               2002            2001
                                                             --------------- ----------------   --------------- ----------------
<S>                                                          <C>             <C>                <C>             <C>
Revenues:
    Net research, advisory and consulting                               93%              89%               95%              91%
    Other, principally events                                            7%              11%                5%               9%
                                                             --------------- ----------------   --------------- ----------------

    Total revenues                                                     100%             100%              100%             100%
                                                             =============== ================   =============== ================

Costs and expenses:
    Cost of services                                                    46%              49%               42%              45%
    Sales and marketing                                                 32%              44%               32%              44%
    Research and development                                             2%               2%                2%               2%
    General and administrative                                          13%              13%               14%              12%
    Restructuring charge                                                  -               5%                 -               3%
    Depreciation and amortization                                        5%               5%                5%               5%
                                                             --------------- ----------------   --------------- ----------------

    Total costs and expenses                                            98%             118%               95%             111%
                                                             --------------- ----------------   --------------- ----------------

Income (loss) from operations                                            2%            (18%)                5%            (11%)
                                                             --------------- ----------------   --------------- ----------------

Interest income                                                           -                -                 -                -
Interest expense                                                          -                -              (1%)                -
Foreign exchange loss                                                     -                -                 -                -
                                                             --------------- ----------------   --------------- ----------------

    Income (loss) from operations before income taxes                    2%            (18%)                4%            (11%)
Income tax provision (benefit)                                            -                -                 -                -
                                                             --------------- ----------------   --------------- ----------------

Net income (loss)                                                        2%            (18%)                4%            (11%)
                                                             =============== ================   =============== ================
</TABLE>


           Generally, the year-on-year decreases in Giga's operating expenses,
expressed as a percentage of total revenues in the table above, are primarily
due to a decrease in expenses resulting from staff reductions and other
cost-cutting initiatives implemented during 2001. During the second, third and
fourth quarters of 2001, Giga terminated a total of 117 employees, 99 of whom
were from North America and 18 of whom were from Europe, across all departments.



                                       14
<PAGE>
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THREE MONTHS ENDED JUNE 30, 2001

           Revenues. Total revenues decreased 11% to $16.7 million for the three
months ended June 30, 2002 from $18.8 million for the same three-month period in
2001. The decrease in total revenues was due to the decreases in both revenue
from research, advisory and consulting and other revenue, principally events.

           Research, advisory and consulting. Revenues from research, advisory
and consulting decreased 7% to $15.5 million for the three months ended June 30,
2002 from $16.7 million for the same three-month period in 2001. The decrease
was primarily due to the decline in annualized subscription value experienced in
2001 and 2002, which was a result of reduced IT spending and the impact that the
economic downturn had on customer spending for research and advisory services.

           Other, principally events. Other revenues, principally events,
decreased 43% to $1.2 million for the three months ended June 30, 2002 from $2.1
million for the same three-month period in 2001. The decrease was primarily due
to the decrease in revenues from event registrations, sponsorships and
exhibitors.

           Costs and expenses. Total costs and expenses decreased 26% to $16.4
million for the three months ended June 30, 2002 from $22.2 million for the same
three-month period in 2001. The decrease in total costs and expenses was
primarily due to the decrease in cost of services and sales and marketing
expenses. In addition, total costs and expenses for the three months ended June
30, 2001 include a $1.0 million restructuring charge for exit costs related to
the cancellation of a facility project in the United Kingdom and for involuntary
employee termination benefits expenses incurred in connection with staff
reductions.

           Cost of services. Cost of services decreased 16% to $7.8 million for
the three months ended June 30, 2002 from $9.2 million for the same three-month
period in 2001. The decrease in costs was primarily due to staff reductions and
other cost-cutting initiatives implemented during the second, third and fourth
quarters of 2001. The decrease was also due to lower costs required to produce
Giga's events held in the second quarter of 2002. Cost of services as a
percentage of total revenues declined to 46% for the three months ended June 30,
2002 from 49% of total revenues for the same period of 2001, primarily due to
the decrease in expenses.

           Sales and marketing. Sales and marketing expenses decreased 36% to
$5.3 million for the three months ended June 30, 2002 from $8.4 million for the
same three-month period in 2001. The decrease was primarily due to staff
reductions and other cost-cutting initiatives implemented during the second,
third and fourth quarters of 2001. The decrease is also due to lower costs
required to market Giga's events held in the second quarter of 2002. Sales and
marketing expenses as a percentage of total revenues declined to 32% for the
three months ended June 30, 2002 from 44% of total revenues for the same period
of 2001, primarily due to the decrease in expenses.

           Research and development. Research and development expenses were
constant at approximately $300,000 for the three months ended June 30, 2002 and
for the same three-month period in 2001.

           General and administrative. General and administrative expenses
decreased 13% to $2.1 million for the three months ended June 30, 2002 from $2.5
million for the same three-month period in 2001. The decrease was primarily due
to staff reductions made in the second, third and fourth quarters of 2001 and
lower bad debt expense, offset by higher insurance and consulting costs.

           Restructuring Charge. Restructuring charges totaling $1.0 million
were recorded for the three months ended June 30, 2001 and there were none
recorded for the same three-month period in 2002. Of the total charges incurred
in 2001, $723,000 was for exit costs related to the cancellation of a facility
project in the United Kingdom. The remaining $302,000 of the restructuring costs
relate to involuntary employee termination benefits expenses incurred in
connection with staff reductions.

           Depreciation and amortization. Depreciation and amortization expenses
were constant at approximately $800,000 for the three months ended June 30, 2002
and for the same three-month period in 2001. The increase in amortization from
the amortization of website development costs for the enhanced version of
GigaWeb that was deployed in July 2001 was offset by decreases in depreciation
and amortization of computer equipment and software that had been fully
depreciated and amortized.


                                       15
<PAGE>
           Interest income and expense. Interest income decreased to $6,000 for
the three months ended June 30, 2002 from $13,000 for the same three-month
period in 2001 due to a decrease in interest rates. Interest expense decreased
to $8,000 for the three months ended June 30, 2002 from $68,000 for the same
three-month period in 2001. The decrease was a result of having no short-term
borrowings outstanding pursuant to Giga's Accounts Receivable Financing
Agreement during the second quarter of 2002. See Note 7 to the Consolidated
Financial Statements.

           Foreign exchange loss. Foreign exchange losses recorded for the three
months ended June 30, 2002 were $13,000 compared to $3,000 for the same
three-month period in 2001 due primarily to unrealized losses related to foreign
currency denominated trade accounts receivable and accounts payable.


SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO SIX MONTHS ENDED JUNE 30, 2001

           Revenues. Total revenues decreased 11% to $32.4 million for the six
months ended June 30, 2002 from $36.3 million for the same six-month period in
2001. The decrease in total revenues was due to the decreases in both revenue
from research, advisory and consulting and other revenue, principally events.

           Research, advisory and consulting. Revenues from research, advisory
and consulting decreased 7% to $30.7 million for the six months ended June 30,
2002 from $33.2 million for the same six-month period in 2001. The decrease was
primarily due to the decline in annualized subscription value experienced in
2001 and 2002, which was a result of reduced IT spending and the impact that the
economic downturn had on customer spending for research and advisory services.

           Other, principally events. Other revenues, principally events,
decreased 47% to $1.7 million for the six months ended June 30, 2002 from $3.2
million for the same six-month period in 2001. The decrease was primarily due to
the decrease in revenues from event registrations, sponsorships and exhibitors.

           Costs and expenses. Total costs and expenses decreased 23% to $30.9
million for the six months ended June 30, 2002 from $40.2 million for the same
six-month period in 2001. The decrease in total costs and expenses was primarily
due to the decrease in cost of services and sales and marketing expenses. In
addition, the total costs and expenses for the six months ended June 30, 2001
include a $1.0 million restructuring charge for exit costs related to the
cancellation of a facility project in the United Kingdom and for involuntary
employee termination benefits expenses incurred in connection with staff
reductions.

           Cost of services. Cost of services decreased 16% to $13.7 million for
the six months ended June 30, 2002 from $16.4 million for the same six-month
period in 2001. The decrease in costs was primarily due to staff reductions and
other cost-cutting initiatives implemented during the second, third and fourth
quarters of 2001. The decrease was also due to lower costs required to produce
Giga's events held in the second quarter of 2002. Cost of services as a
percentage of total revenues declined to 42% for the six months ended June 30,
2002 from 45% of total revenues for the same period of 2001, primarily due to
the decrease in expenses.

           Sales and marketing. Sales and marketing expenses decreased 35% to
$10.4 million for the six months ended June 30, 2002 from $15.9 million for the
same six-month period in 2001. The decrease was primarily due to staff
reductions and other cost-cutting initiatives implemented during the second,
third and fourth quarters of 2001. The decrease was also due to lower costs
required to market Giga's events held in the second quarter of 2002. The first
quarter of 2001 includes a non-recurring benefit of approximately $569,000
related to an adjustment to commission expense that was recorded in fiscal years
2000 and 1999. Sales and marketing expenses as a percentage of total revenues
declined to 32% for the six months ended June 30, 2002 from 44% of total
revenues for the same period of 2001, primarily due to the decrease in expenses.

           Research and development. Research and development expenses were
constant at approximately $600,000 for the six months ended June 30, 2002 and
the same six-month period in 2001.

           General and administrative. General and administrative expenses
decreased 3% to $4.4 million for the six months ended June 30, 2002 from $4.5
million for the same six-month period in 2001. The decrease was primarily due
staff reductions made in the second, third and fourth quarters of 2001 and lower


                                       16
<PAGE>
bad debt expense, offset by increases in insurance costs, bank fees on
outstanding short-term borrowings during the first quarter of 2002, and
consulting and other professional fees.

           Restructuring Charge. Restructuring charges totaling $1.0 million
were recorded for the six months ended June 30, 2001 and there were none
recorded for the same six-month period in 2002. Of the total charges incurred in
2001, $723,000 was for exit costs related to the cancellation of a facility
project in the United Kingdom. The remaining $302,000 of the restructuring costs
relate to involuntary employee termination benefits expenses incurred in
connection with staff reductions.

           Depreciation and amortization. Depreciation and amortization expenses
increased 5% to $1.8 million for the six months ended June 30, 2002 from $1.7
million for the same six-month period in 2001. The increase was primarily due to
the amortization of the website development costs for the enhanced version of
GigaWeb that was deployed in July 2001.

           Interest income and expense. Interest income decreased to $14,000 for
the six months ended June 30, 2002 from $43,000 for the same six-month period in
2001 due to a decrease in interest rates. Interest expense decreased to $74,000
for the three months ended March 31, 2002 from $86,000 for the same six-month
period in 2001. The decrease was primarily a result of no short-term borrowings
pursuant to Giga's Accounts Receivable Financing Agreement during the three
months ended June 30, 2002. See Note 7 to the Consolidated Financial Statements.

           Foreign exchange loss. Foreign exchange losses recorded for the six
months ended June 30, 2002 were $46,000 compared to $87,000 for the same
six-month period in 2001 due primarily to unrealized losses related to foreign
currency denominated trade accounts receivable and accounts payable.


LIQUIDITY AND CAPITAL RESOURCES

           At June 30, 2002, Giga had cash and cash equivalents of approximately
$4.3 million, short-term restricted cash of approximately $16,000 and long-term
restricted cash of approximately $668,000. Of the total restricted cash,
$584,000 consists of certificates of deposit held for irrevocable standby
letters of credit that are security deposits related to operating leases for
premises located in Cambridge, Massachusetts, Munich, Germany, and Frankfurt,
Germany. Cash associated with these letters of credit remains restricted for the
term of the corresponding lease period with the exception of $300,000, which may
be reduced to $100,000 in 2003 if Giga achieves positive net income for the year
ended December 31, 2002. Restricted cash in the amount of $100,000 is held in a
restricted certificate of deposit as collateral for automated clearing house
payments.

           Cash provided by operating activities was approximately $6.8 million
for the six months ended June 30, 2002 compared to $1.2 million for the six
months ended June 30, 2001. The increase in cash provided by operating
activities was due principally to Giga's net income and an increase in working
capital, offset by decreases in non-cash charges such as the provision for
doubtful accounts and sales cancellations.

           Cash used in investing activities was approximately $1.1 million for
the six months ended June 30, 2002 compared to $2.6 million for the six months
ended June 30, 2001. The decrease in cash used in investing activities was
primarily due to the decrease in purchases of capital items offset by the
additional investment in GigaGroup S.A. and cash paid to a former shareholder of
Gigaweb, Ltd. for Giga's purchase of Gigaweb, Ltd. that was made on December 31,
2001.

           During the six months ended June 30, 2002, Giga's capital
expenditures totaled approximately $284,000 compared to approximately $2.0
million for six months ended June 30, 2001. Capital expenditures in the first
half of 2001 were primarily for the enhancement of its GigaWeb delivery system.
As of December 31, 2001, approximately $1.4 million had been capitalized, in
accordance with Emerging Issues Task Force Issue No. 00-02, "Accounting for Web
Site Development Costs," for costs associated with the customization and
deployment of a new enhanced version of GigaWeb. The new GigaWeb was completed
and successfully launched in July 2001. Giga expects its aggregate capital
spending in fiscal 2002 to be approximately $1.0 million.

           Cash used in financing activities was approximately $2.7 million for
the six months ended June 30, 2002 compared to cash provided by financing
activities of approximately $204,000 for the six months ended June 30, 2001. The


                                       17
<PAGE>
cash used in financing activities was primarily due to the net repayments of
short-term borrowings under the Accounts Receivable Financing Agreement, offset
by a decrease in the proceeds received from the exercise of stock options and
from the employee stock purchase plan, which both result in the issuance of
Giga's common stock.

           In April 2001, Giga renewed its Accounts Receivable Financing
Agreement, dated April 7, 2000, with a bank, for a second one-year period (the
"Financing Agreement"). As a result of Giga's non-compliance with the financial
covenants of the Financing Agreement, Giga entered into a Loan Modification and
Forbearance Agreement in August 2001 (the "August Forbearance Agreement"). In
September 2001, upon execution of the August Forbearance Agreement, Giga issued
warrants to the bank to purchase 300,000 shares of Giga common stock. The
warrants are exercisable at any time at $0.97 per share and are scheduled to
expire on September 5, 2008. The estimated fair value of the warrants at the
time of issuance was approximately $231,000, which was recorded as deferred
financing costs and are included, net of accumulated amortization, in prepaid
expenses and other current assets on Giga's Consolidated Balance Sheet at
December 31, 2001. These costs were amortized over the remaining seven months of
the original term of the renewed Financing Agreement and were fully amortized as
of March 31, 2002. Giga recognized charges of approximately $99,000 for the
amortization of the financing costs during the first quarter of 2002. None of
these warrants had been exercised as of June 30, 2002.

           As a result of Giga's non-compliance with the financial covenants of
the Financing Agreement, Giga entered into a second Loan Modification and
Forbearance Agreement in November 2001 (the "November Forbearance Agreement").
Subsequent to December 31, 2001, the bank continued to advance funds to Giga
pursuant to the terms of the November Forbearance Agreement, which allowed Giga
to finance up to a maximum of $3.125 million of eligible accounts receivable, as
defined by the Financing Agreement, at an advance rate not to exceed 80%. Loans
under the November Forbearance Agreement bore interest at the bank's prime rate
plus 5.5% and the bank charged a monthly collateral handling fee of 0.875% on
the average daily financed receivable balance outstanding.

           An outstanding short-term borrowing balance of approximately $2.5
million remained as of December 31, 2001. During the first quarter of 2002, Giga
pledged approximately $1.9 million of accounts receivable as collateral and
received proceeds of approximately $1.5 million. Giga repaid a total of
approximately $4.0 million during the first quarter of 2002, leaving no
borrowings outstanding as of March 31, 2002. On March 27, 2002, Giga renewed the
Financing Agreement for a third one-year period (the "2002 Financing
Agreement"), under which it can finance up to a maximum of $5.0 million of
eligible accounts receivable, as defined by the 2002 Financing Agreement, at an
advance rate not to exceed 80%. Upon execution of the 2002 Financing Agreement,
Giga paid fees totaling $37,500. Loans under the 2002 Financing Agreement bear
interest at the bank's prime rate plus 1.0%. The bank charges a monthly
collateral handling fee of 0.25% on the average daily financed receivable
balance outstanding.

           The 2002 Financing Agreement is collateralized by substantially all
of Giga's tangible and intangible assets, including intellectual property. Giga
is subject to various financial covenants under the 2002 Financing Agreement,
including the requirement to maintain a minimum adjusted quick ratio, a ratio of
quick assets, which includes unrestricted cash, cash equivalents and net billed
receivables, to current liabilities minus deferred revenue, of 1.4 to 1.0 on a
quarterly basis, with the exception of the second fiscal quarter of 2002, where
an adjusted quick ratio of 1.25 to 1.0 is permitted. Giga is also required to
achieve a minimum net income of $1.00 on a quarterly basis, subject to a
one-time permissible quarterly net loss of $100,000. Giga was in compliance with
both of these financial covenants at June 30, 2002. There were no borrowings
pursuant to the 2002 Financing Agreement outstanding as of June 30, 2002.

           In August 2001, Giga's wholly-owned subsidiary in the United Kingdom,
Giga Information Group Ltd., established an Overdraft Facility (the "Overdraft
Facility") with a bank, under which it can borrow up to 100,000 British pounds.
The Overdraft Facility was scheduled to expire in July 2002. Upon execution of
the Overdraft Facility, Giga Information Group, Ltd. paid fees totaling 1,000
British pounds. Borrowings under the Overdraft Facility bear interest at the
bank's base rate plus 1.5%. In December 2001, the terms of the Overdraft
Facility were amended. Upon execution of the amended Overdraft Facility, Giga
Information Group, Ltd. paid fees totaling 500 British pounds. The terms of the
amended Overdraft Facility maintained the existing interest rate and allowed
Giga Information Group, Ltd. to borrow an additional 100,000 British pounds, for
a total of up to 200,000 British pounds, through March 31, 2002. The bank has
orally agreed to extend the terms of the Overdraft Facility, allowing Giga
Information Group, Ltd. to borrow up to 100,000 British pounds through August


                                       18
<PAGE>
2002. Giga Information Group, Ltd. is currently in the process of renewing the
Overdraft Facility. There were no borrowings outstanding under the Overdraft
Facility at June 30, 2002.

           Giga believes that its existing cash and cash equivalents, cash
expected to be generated from operations, and cash available from its financing
and overdraft agreements, net of repayments on short-term borrowings, will be
sufficient to fund Giga's cash needs at least through the third fiscal quarter
of 2003. However, Giga had a negative working capital balance of $18.8 million
and an accumulated deficit of $96.3 million at June 30, 2002. In recent years,
Giga has funded its working capital needs and net operating losses primarily
from cash receipts from subscription services delivered in future months. In the
event that Giga continues to experience declines in its subscription renewals
and new business or otherwise encounters difficulties in collecting accounts
receivable or billing and collecting unbilled accounts receivable, it may not be
able to continue to fund its operations through working capital resources.
Furthermore, in the event that Giga does not maintain quarterly profitability
and the financial metrics specified in the 2002 Financing Agreement, Giga would
be in default of the covenants of the 2002 Financing Agreement, which could
result in the outstanding amounts, if any, becoming immediately due, and the
need for Giga to seek additional financing to fund operations. Similarly, if the
2002 Financing Agreement, which expires at the end of the first quarter of 2003,
is not extended, Giga may be required to seek additional financing to fund
operations. If necessary, Giga will consider various sources of additional
financing, including but not limited to, private placements of debt or equity
securities, which could result in dilution to Giga's stockholders, the sale of
assets and strategic alliances, but there can be no assurance that such
financing would be available to Giga on terms that are acceptable, if at all. If
adequate funds are not available, Giga may be required to reduce its fixed costs
and delay, scale back or eliminate certain of its services, any of which could
have a material adverse effect on Giga's business, financial condition or
results of operations. There can be no assurance, however, that Giga would be
able to obtain financing or sufficiently scale back operations to provide the
liquidity necessary for Giga to continue its operations.


RECENTLY ISSUED ACCOUNTING STANDARDS

           In April 2002, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standards ("SFAS") No. 145, "Rescission
of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and
Technical Corrections." SFAS No. 145 rescinds SFAS No 4, "Reporting Gains and
Losses from Extinguishment of Debt," and an amendment of that Statement, SFAS
No. 64, "Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements," and
SFAS No. 44, "Accounting for Intangible Assets of Motor Carriers." SFAS No. 145
also amends SFAS No. 13, "Accounting for Leases," to eliminate an inconsistency
between the required accounting for sale-leaseback transactions and the required
accounting for certain lease modifications that have the same economic effects
as sale-leaseback transactions. This Statement also amends other existing
authoritative pronouncements to make various technical corrections, clarify
meanings, or describe their applicability under changed conditions. The
provisions of this Statement related to the rescission of SFAS No. 4 are
effective for fiscal years beginning after May 15, 2002. The provisions of this
Statement related to SFAS No. 13 are effective for transactions occurring after
May 15, 2002. All other provisions of this Statement are effective for financial
statements issued on or after May 15, 2002. Giga's adoption of SFAS No. 145 has
not had, and is not expected to have, a significant effect on its financial
position or its results of operations.

           In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs
Associated with Exit or Disposal." This Statement addresses financial accounting
and reporting for costs associated with exit or disposal activities and
nullifies Emerging Issues Task Force ("EITF") Issue No. 94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity (including Certain Costs Incurred in a Restructuring)." SFAS No. 146 is
effective for exit or disposal activities that are initiated after December 31,
2002, with early application encouraged. Management of Giga is currently
assessing the impact that the adoption of SFAS No. 146 will have on Giga's
financial position and results of operations and plans to adopt this Statement
on January 1, 2003.


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<PAGE>
GENERAL RISKS AND UNCERTAINTIES

GIGA HAS A HISTORY OF PRIOR LOSSES AND NEGATIVE WORKING CAPITAL. A FAILURE TO
PRODUCE POSITIVE OPERATING RESULTS COULD AFFECT GIGA'S LIQUIDITY AND ITS ABILITY
TO OBTAIN FINANCING ON ACCEPTABLE TERMS.

           Giga incurred net losses of $2.4 million, $8.2 million and $17.3
million for the years ended December 31, 2001, 2000 and 1999, respectively and
had a negative working capital balance of $18.8 million and an accumulated
deficit of $96.3 million at June 30, 2002. In recent years, Giga has funded its
working capital needs and net operating losses primarily from cash receipts from
subscription services delivered in future periods. In the event that Giga
experiences continued declines in its subscription renewals and new business,
Giga may not be able to continue to fund its operations through working capital
resources.

           Although Giga recorded net income of $278,000, $1.1 million, $972,000
and $534,000 for the three months ended June 30, 2002, March 31, 2002, December
31, 2001 and September 30, 2001, respectively, there can be no assurance that
continued profitability will be sustained. Giga's ability to maintain
profitability depends on a number of factors, including, among other things,
increasing revenues, reducing costs, maintaining current customers, attracting
new customers, implementing its business strategies and other factors, many of
which are outside Giga's control. In the event that Giga does not maintain
quarterly profitability and the financial metrics specified in the 2002
Financing Agreement, Giga would be in default of the financial covenants of the
2002 Financing Agreement, which could result in the outstanding borrowing
amounts, if any, becoming immediately due, and the need for Giga to seek
additional financing to fund operations. There can be no assurance that Giga
would be able to obtain financing on acceptable terms, which could cause a
material adverse effect on Giga's business, results of operations and financial
position. See "Management's Discussion and Analysis of Financial Condition and
Results of Operations--Liquidity and Capital Resources."

IF GIGA IS UNABLE TO SUCCESSFULLY MAINTAIN ITS SUBSCRIPTION RENEWAL RATES, IT
COULD ADVERSELY AFFECT GIGA'S PROFITABILITY.

           Giga derived approximately 86% of its total revenues from its
subscription-based services for the six months ended June 30, 2002 and 2001.
Giga operates in a rapidly evolving market and its ability to renew
subscriptions is subject to a number of factors, including Giga's ability to
deliver consistent, high-quality, and timely research and analysis to its
clients and to anticipate market trends and the changing needs of its clients.
If Giga is unable to successfully maintain its subscription renewal rates, it
could have a material adverse effect on Giga's profitability.

INCREASED COMPETITION COULD CAUSE GIGA TO LOSE MARKET SHARE AND ADVERSELY AFFECT
ITS REVENUES AND PROFITABILITY.

           Giga faces competition from a significant number of independent
providers of information products and services, including competitors with
considerably greater financial resources and market share than Giga, as well as
the internal marketing and planning organizations of its clients. Giga also
competes indirectly against consulting firms and other information providers,
including electronic and print media companies. These indirect competitors could
choose to compete directly with Giga in the future. In addition, limited
barriers to entry exist in the market in which Giga competes. As a result,
additional new competitors may emerge and existing competitors may start to
provide additional or complementary services. Increased competition may result
in loss of market share, diminished value in Giga's products and services,
reduced pricing and increased marketing expenditures, which could have a
material adverse effect on Giga's revenues and profitability.

GIGA'S FUTURE SUCCESS DEPENDS ON ITS ABILITY TO ATTRACT AND RETAIN QUALIFIED
PERSONNEL.

           Giga's future success depends heavily upon the quality of its
research analysts, sales personnel, consultants and other personnel. Its future
operating results, therefore, are dependent, in part, upon its ability to retain
the services of these people and to attract personnel from a limited pool of
qualified applicants. Giga faces intense competition in hiring and retaining
qualified professionals from, among others, technology-related companies, market
research firms, consulting firms and electronic and print media companies. Any
failure to retain key personnel or hire additional qualified personnel, as may
be required to support the evolving needs of clients or growth in Giga's
business, could adversely affect the quality of Giga's products and services,
and, therefore, its future business and operating results.


                                       20
<PAGE>
IF GIGA IS UNABLE TO MANAGE ITS GROWTH EFFECTIVELY, IT COULD ADVERSELY AFFECT
THE QUALITY OF ITS PRODUCTS AND SERVICES.

           Since inception, Giga's operations have changed substantially due to
the expansion and growth of its business. Growth places significant demands on
Giga's management, administrative, operational and financial resources and
systems. Giga's ability to effectively manage growth will require it to continue
to develop and improve its management, administrative, operational and financial
resources and systems. Giga must also continue to expand its business
development capabilities and continue to train, motivate and manage its
employees. If Giga is unable to effectively manage its growth, the quality of
Giga's services and products, its retention of key employees, its results of
operations, and its financial condition could be materially adversely affected.

IF GIGA DOES NOT CONTINUE TO SUCCESSFULLY ENHANCE EXISTING PRODUCTS AND SERVICES
OR DEVELOP NEW PRODUCTS AND SERVICES, IT COULD HAVE A MATERIAL ADVERSE EFFECT ON
ITS REVENUES AND PROFITABILITY.

           The market for Giga's products and services is characterized by
rapidly changing needs for information and analysis. To maintain its competitive
position, Giga must continue to successfully enhance and improve its products
and services, develop or acquire new products and services in a timely manner,
and appropriately position and price products and services. Moreover, the
process of internally researching, developing, launching, and gaining client
acceptance of a new product or service is inherently risky and costly. Any
failure to successfully develop new products and services could have a material
adverse effect on Giga's revenues and profitability.

GIGA'S ABILITY TO OPERATE ITS BUSINESS EFFECTIVELY COULD BE IMPAIRED IF IT LOSES
KEY MANAGEMENT PERSONNEL.

           Giga manages its business with a number of key management personnel,
the loss of a number of who could have a material adverse effect on Giga's
ability to maintain and grow its business. In addition, as its business develops
and expands, Giga believes that its future success will depend greatly on its
continued ability to attract and retain highly skilled and qualified management
personnel. There is no assurance that key management personnel will continue to
be employed by Giga or that it will be able to attract or retain qualified
management personnel in the future. Some of the personnel that Giga attempts to
hire are subject to non-competition agreements that could impede its short-term
recruitment efforts. Giga does not have "key man" insurance to cover its
executive officers. Failure to retain or attract key management personnel could
have a material adverse effect on Giga's business, results of operations or
financial position.

GIGA'S QUARTERLY OPERATING RESULTS MAY FLUCTUATE IN THE FUTURE.

           Giga's quarterly operating income may fluctuate in the future as a
result of a number of factors, including the timing of the execution of research
contracts, the performance of consulting engagements, the timing of events and
conferences, the amount of new business generated by Giga, the mix of domestic
and international business, changes in market demand for Giga's products and
services, the timing of the development, introduction and marketing of new
products and services, and competition in the industry. As a result, Giga's
operating results in any quarter may not necessarily be a good indicator of its
operating results for any future period.

IF GIGA IS UNABLE TO SUCCESSFULLY MANAGE THE RISKS ASSOCIATED WITH INTERNATIONAL
OPERATIONS, ITS BUSINESS COULD BE ADVERSELY AFFECTED.

           Net revenues attributable to international clients represented
approximately 17% of Giga's total revenues for the six months ended June 30,
2002 compared to 18% for the six months ended June 30, 2001. Giga's operating
results are subject to the risks inherent in international business activities,
including general political and economic conditions in each country, changes in
market demand as a result of exchange rate fluctuations and tariffs, challenges
in staffing and managing foreign operations, changes in regulatory requirements,
compliance with numerous foreign laws and regulations, different or overlapping
tax structures, higher levels of U.S. taxation on foreign income, and the
difficulty of enforcing client agreements and protecting intellectual property
rights in international jurisdictions. If Giga is unable to successfully manage


                                       21
<PAGE>
the risks associated with international operations, such an inability could
adversely affect Giga's business and financial results.

















                                       22
<PAGE>
ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


           Interest Rate Exposure

           Giga's exposure to market risk for changes in interest rates relates
primarily to borrowings under the 2002 Financing Agreement. Pursuant to the 2002
Financing Agreement, interest is computed on outstanding borrowings at the
bank's prime rate plus 1.0%. As of June 30, 2002, there were no borrowings
outstanding under the 2002 Financing Agreement. Giga believes that a near-term
change in interest rates would not have a material effect on Giga's consolidated
results of operations or financial position.

           Investment Exposure

           Giga is exposed to market risk as it relates to changes in the market
value of its long-term investments. As of June 30, 2002, Giga had long-term
investments totaling $1,240,000, of which GigaGroup S.A. represents $1,215,000.
These investments are inherently risky because the companies in which Giga has
invested are not publicly traded, which makes determining the fair value of the
investments difficult. Future adverse changes in market conditions or poor
operating results of underlying investments could result in losses or an
inability to recover the carrying value of the investments that may not be
reflected in the investment's carrying value, thereby possibly requiring an
impairment charge in the future.

           Currency Rate Exposure

           Giga is exposed to two market risks as it relates to foreign currency
exchange rates: translation risk and transaction risk. Assets and liabilities of
foreign operations are translated to U.S. dollars at the exchange rates in
effect at the balance sheet date. The resulting translation adjustments are
recorded as a component of accumulated other comprehensive income in the
stockholders' deficit section of the Consolidated Balance Sheets. Giga's foreign
subsidiaries generally collect revenues and pay expenses in currencies other
than the U.S. dollar. Since the functional currency of Giga's foreign
subsidiaries is generally the local currency, foreign currency translation
adjustments are reflected as a component of stockholders' deficit and do not
impact operating results. Revenues and expenses in foreign currencies translate
into higher or lower revenues and expenses in U.S. dollars as the U.S. dollar
weakens or strengthens against other currencies. Therefore, changes in exchange
rates may negatively affect Giga's consolidated revenues and expenses (as
expressed in U.S. dollars) from foreign operations. Currency transaction gains
or losses arising from transactions in currencies other than the functional
currency are included in results of operations. Giga currently has not entered
into any foreign currency forward exchange contracts or other derivative
financial instruments to hedge the effects of adverse fluctuations in foreign
currency exchange rates.






                                       23
<PAGE>
PART II - OTHER INFORMATION

ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K

         (a)      Exhibits

         10.1     Amended and Restated Giga Information Group, Inc. 1996 Stock
                  Option Plan

         10.2     Amended and Restated Giga Information Group, Inc. 1997
                  Director Option Plan

         10.3     Amended and Restated Giga Information Group, Inc. 1999 Share
                  Incentive Plan

         99.1     Certification pursuant to 18 U.S.C. Section 1350, as adopted
                  pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

         99.2     Certification pursuant to 18 U.S.C. Section 1350, as adopted
                  pursuant to Section 906 of the Sarbanes-Oxley Act of 2002


         (b)      Reports on Form 8-K

           Giga filed a Current Report on Form 8-K, dated April 18, 2002,
pertaining to a press release announcing Giga's results of operations for the
quarter ended March 31, 2002.
















                                       24
<PAGE>
                                   SIGNATURE

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


                                            GIGA INFORMATION GROUP, INC.

                August 14, 2002             By:  Victoria M. Lynch
                                                 ------------------------------
                                                  Victoria M. Lynch
                                                  Senior Vice President.
                                                  Chief Financial Officer,
                                                  Secretary and Treasurer
                                                  (Principal Financial and
                                                  Accounting Officer)












                                       25
<PAGE>
                                 EXHIBIT INDEX


       Exhibit Number                   Description of Documents
       --------------                   ------------------------

           10.1       Amended and Restated Giga Information Group, Inc. 1996
                      Stock Option Plan

           10.2       Amended and Restated Giga Information Group, Inc. 1997
                      Director Option Plan

           10.3       Amended and Restated Giga Information Group, Inc. 1999
                      Share Incentive Plan

           99.1       Certification pursuant to 18 U.S.C. Section 1350, as
                      adopted pursuant to Section 906 of the Sarbanes-Oxley Act
                      of 2002

           99.2       Certification pursuant to 18 U.S.C. Section 1350, as
                      adopted pursuant to Section 906 of the Sarbanes-Oxley Act
                      of 2002













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