SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                    Form 10-Q

    [ X ] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
                              Exchange Act of 1934

                      For the quarter ended March 31, 2001

     [ ] 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 0-26138

                          Dendrite International, Inc.
                          ----------------------------
             (Exact name of registrant as specified in its Charter)


                              New Jersey 22-2786386
                              ---------------------
                (State or other jurisdiction of (I.R.S. Employer
               incorporation or organization) Identification No.)



                            1200 Mount Kemble Avenue
                              Morristown, NJ 07960
                                  973-425-1200
                                  ------------
                   (Address, including zip code, and telephone
                  number (including area code) of registrant's
                           principal executive office)


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 ]

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common  stock,  as of the last  practicable  date:  at May 1,  2001  there  were
39,573,596 shares of common stock outstanding.

<PAGE>

<TABLE>
<CAPTION>

                          DENDRITE INTERNATIONAL, INC.

                                      INDEX

                                                                                           PAGE NO
                                                                                           -------

<S>                                                                                            <C>
PART I.       FINANCIAL INFORMATION                                                             3

ITEM 1.       Financial Statements (Unaudited)                                                  3

                 Consolidated Statements of Operations
                     Three months ended March 31, 2001 and 2000                                 3

                 Consolidated Balance Sheets
                      March 31, 2001 and December 31, 2000                                      4

                 Consolidated Statements of Cash Flows
                      Three months ended March 31, 2001 and 2000                                5

                 Notes to Unaudited Consolidated Financial Statements                           6

ITEM 2.       Management's Discussion and Analysis of Financial Condition
              and Results of Operations                                                         8

ITEM 3.       Quantitative and Qualitative Disclosures About Market Risk                       14

PART II.      OTHER INFORMATION                                                                15

ITEM 5.       Other Information                                                                15

ITEM 6.       Reports on Form 8-K                                                              15

Signatures                                                                                     16

</TABLE>


<PAGE>


PART I.       FINANCIAL INFORMATION

ITEM 1.       Financial Statements

<TABLE>
<CAPTION>

                          DENDRITE INTERNATIONAL, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                   (UNAUDITED)


                                                                 Three Months Ended March 31,
                                                                -----------------------------
                                                                     2001            2000
                                                                     ----            ----
<S>                                                                 <C>          <C>
Revenues:
   License fees                                                     $  3,003     $   5,609
   Services                                                           48,876        41,453
                                                                 ------------    ----------
                                                                      51,879        47,062
                                                                 ------------    ----------
Cost of revenues:
   Cost of license fees                                                  963           745
   Cost of services                                                   26,166        19,584
                                                                 ------------    ----------
                                                                      27,129        20,329
                                                                 ------------    ----------
      Gross margin                                                    24,750        26,733
                                                                 ------------    ----------
Operating expenses:
   Selling, general and administrative                                20,462        15,438
   Research and development                                            2,867         2,639
                                                                 ------------    ----------
                                                                      23,329        18,077
                                                                 ------------    ----------
      Operating income                                                 1,421         8,656
Interest income                                                          926           760
Other expense                                                            (26)            -
                                                                 ------------    ----------
      Income before income taxes                                       2,321         9,416
Income taxes                                                             836         3,390
                                                                 ------------    ----------
Net income                                                       $     1,485     $   6,026
                                                                 ============    ==========
Net income per share:
   Basic                                                         $       .04     $     .16
                                                                 ============    ==========
   Diluted                                                       $       .04     $     .15
                                                                 ============    ==========
Shares used in computing net income per share:
   Basic                                                              40,249        38,816
                                                                 ============    ==========
   Diluted                                                            41,159        41,210
                                                                 ============    ==========

</TABLE>

        The accompanying notes are an integral part of these statements.


<PAGE>

<TABLE>
<CAPTION>

                          DENDRITE INTERNATIONAL, INC.
                           CONSOLIDATED BALANCE SHEETS
                        (IN THOUSANDS, EXCEPT SHARE DATA)
                                   (UNAUDITED)

                                                                              March 31,       December 31,
                                                                                2001              2000
                                                                                ----              ----
<S>                                                                          <C>               <C>
Assets
Current Assets:
    Cash and cash equivalents                                                $   79,696        $   73,230
    Short-term investments                                                        7,434             4,143
    Accounts receivable, net                                                     33,393            48,182
    Prepaid expenses and other                                                    8,500             6,987
    Prepaid taxes                                                                 5,022             1,564
    Deferred taxes                                                                1,160             1,160
                                                                             -----------       -----------
        Total current assets                                                    135,205           135,266

Property and equipment, net                                                      15,612            15,924
Other assets                                                                      3,867             3,872
Goodwill, net                                                                    11,710            12,305
Purchased capitalized software, net                                               3,857             4,144
Capitalized software development costs, net                                       4,691             4,392
                                                                             -----------       -----------
                                                                             $  174,942        $  175,903
                                                                             ===========       ===========
Liabilities and Stockholders' Equity
Current Liabilities:
    Accounts payable                                                         $    5,940        $    5,120
    Accrued compensation and benefits                                             5,301             4,271
    Other accrued expenses                                                        8,181             8,085
    Deferred revenues                                                             6,601             4,052
                                                                             -----------       ----------
        Total current liabilities                                                26,023            21,528
                                                                             -----------       -----------
Deferred rent                                                                        -                 25
Deferred taxes                                                                    1,052             1,052

Stockholders' Equity
    Preferred Stock, no par value, 10,000,000 shares
        authorized, none issued                                                      -                 -
    Common Stock, no par value, 150,000,000 shares authorized,
        41,216,036 and 40,729,212 shares issued; 39,895,636 and
        40,127,712 shares outstanding                                            86,886            83,370
    Retained earnings                                                            75,434            73,949
    Deferred compensation                                                          (315)             (405)
    Accumulated other comprehensive loss                                         (2,215)           (1,689)
    Less treasury stock, at cost                                                (11,923)           (1,927)
                                                                             -----------       -----------
       Total stockholders' equity                                               147,867           153,298
                                                                             -----------       -----------
                                                                             $  174,942        $  175,903
                                                                             ===========       ===========

</TABLE>

        The accompanying notes are an integral part of these statements.


<PAGE>

<TABLE>
<CAPTION>
                          DENDRITE INTERNATIONAL, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                   (UNAUDITED)


                                                                                       Three Months Ended March 31,
                                                                                        2001                  2000
                                                                                        ----                  ----
<S>                                                                                     <C>                    <C>
Operating activities:
   Net income                                                                          $   1,485              $  6,026
   Adjustments to reconcile net income to net cash
      provided by operating activities:
        Depreciation and amortization                                                      3,534                 2,632
        Amortization of deferred compensation                                                 64                   112
        Tax benefit from exercise of employee stock options                                1,563                   932
        Changes in assets and liabilities, net of effect from acquisition:
           (Increase) decrease in accounts receivable                                     14,560                (3,812)
           Increase in prepaid expenses and other                                         (1,539)               (1,146)
           Increase in other assets                                                          (17)                   -
           Increase in prepaid income taxes                                               (3,479)                 (114)
           Increase (decrease) in accounts payable and accrued expenses                    1,614                (2,118)
           Decrease in deferred rent                                                         (25)                   -
           Increase in income taxes payable                                                    -                 1,360
           Increase (decrease) in deferred revenues                                        2,472                   (21)
                                                                                       ----------             ---------
              Net cash provided by operating activities                                   20,232                 3,851
                                                                                       ----------             ---------
Investing activities:
    Purchases of short-term investments                                                  (10,876)               (1,079)
    Sales of short-term investments                                                        7,585                15,145
    Acquisition, net of cash acquired                                                        -                  (2,172)
    Increase in other non-current assets                                                     -                  (2,500)
    Purchases of property and equipment                                                   (1,532)               (1,995)
    Additions to capitalized software development costs                                     (817)                 (465)
                                                                                       ----------             ---------
              Net cash provided by (used in) investing activities                         (5,640)                6,934
                                                                                       ----------             ---------
Financing activities:
     Purchase of treasury stock                                                           (9,996)                   -
     Payments on capital lease obligations                                                  -                     (115)
     Issuance of common stock                                                              1,980                 2,197
                                                                                       ----------             ---------
              Net cash provided by (used in) financing activities                         (8,016)                2,082
                                                                                       ----------             ---------
Effect of exchange rate changes on cash                                                     (110)                 (147)
Net increase in cash and cash equivalents                                                  6,466                12,720
Cash and cash equivalents, beginning of period                                            73,230                50,024
                                                                                       ----------             ---------
Cash and cash equivalents, end of period                                               $  79,696              $ 62,744
                                                                                       ==========             =========

</TABLE>

        The accompanying notes are an integral part of these statements.


<PAGE>


                          DENDRITE INTERNATIONAL, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.  Basis of Presentation

     The consolidated financial statements of Dendrite International,  Inc. (the
"Company")  and its  subsidiaries  included in this Form 10-Q are  unaudited and
reflect all adjustments  (consisting only of normal recurring adjustments) which
are, in the opinion of  management,  necessary  for a fair  presentation  of the
financial position and operating results for the three month periods ended March
31, 2001 and 2000. For further information,  refer to the consolidated financial
statements  and notes thereto,  included in the Company's  Annual Report on Form
10-K for the year ended December 31, 2000.

     Our interim  operating  results may not be indicative of operating  results
for the full year.

2.  Net Income Per Share

     Basic net income per share was computed by dividing the net income for each
period by the weighted average number of shares of common stock  outstanding for
each  period.  Diluted net income per share was  computed by dividing net income
for each period by the  weighted  average  number of shares of common  stock and
common stock equivalents  outstanding  during each period.  For the three months
ended  March 31,  2001 and 2000,  common  stock  equivalents  used in  computing
diluted net income per share were 910,000 and 2,394,000 shares, respectively.

3.  Comprehensive Income

         Assets and  liabilities  of the  Company's  wholly-owned  international
subsidiaries  are translated at their respective  period-end  exchange rates and
revenues and expenses are translated at average currency  exchange rates for the
period. The resulting translation adjustments are included as "Accumulated other
comprehensive  loss" and are reflected as a separate  component of stockholders'
equity.  Total after-tax  comprehensive  income for the three months ended March
31, 2001 and 2000 was $959,000 and $5,824,000, respectively.

 4.  Analytika, Inc. Acquisition

     On January 6, 2000,  the  Company  purchased  all of the assets and assumed
certain  liabilities of Analytika,  Inc.  ("Analytika"),  a provider of advanced
analytical products,  consulting services and outsourced  operations services to
the pharmaceutical  industry.  Under the terms of the acquisition agreement, the
Company  paid  $2,318,000  in  cash,  which  included   transaction  costs,  and
$6,506,000 in the Company's common stock. The acquisition has been accounted for
using the purchase method with the purchase price allocated to the fair value of
the assets  acquired and  liabilities  assumed  based on their  respective  fair
market value at the  acquisition  date. Of the purchase  price,  $2,890,000  was
allocated to purchased capitalized software development costs. The excess of the
purchase price over the fair value of the net assets acquired has been allocated
to  goodwill  ($5,979,000)  based  upon an  independent  appraisal.  Analytika's
results of operations have been included in the Company's consolidated financial
statements from the date of acquisition.

5.  Customer and Geographic Segment Data

         In  the  three  months  ended  March  31,  2001,  the  Company  derived
approximately 43% of its revenues from its two largest  customers.  In the three
months  ended March 31,  2000,  the  Company  derived  approximately  38% of its
revenues from its two largest customers.

    The Company is  organized by  geographic  locations  and has one  reportable
segment.  All  transfers  between  geographic  areas have been  eliminated  from
consolidated  revenues.  Operating income consists of total revenues recorded in
the location less operating expenses and does not include interest income, other
expense or income taxes. This data is presented in accordance with SFAS No. 131,
"Disclosure About Segments of an Enterprise and Related Information".

<PAGE>

                                     For the Three Months Ended March 31,
                                             2001              2000
                                      ----------------- -----------------
            Revenues:
            United States.........    $     41,028,000     $ 35,669,000
            All Other.............          10,851,000       11,393,000
                                      ----------------     ------------
                                      $     51,879,000     $ 47,062,000
                                      ================     ============
            Operating (loss) income:
            United States.........    $      2,709,000     $  7,007,000
            All Other.............          (1,288,000)       1,649,000
                                      -----------------    ------------
                                      $      1,421,000     $  8,656,000
                                      ================     ============

                                       March 31, 2001   December 31, 2000
                                      ----------------- -----------------
            Identifiable assets:
            United States.........    $    155,601,000     $155,843,000
            All Other.............          19,341,000       20,060,000
                                      ----------------     ------------
                                      $    174,942,000     $175,903,000
                                      ================     ============

     For segment reporting purposes, license revenues have been allocated to the
sales office of the respective  country in which the sale is made,  although the
actual contract is with the U.S. entity for legal and tax purposes.

6.  Recently Issued Accounting Pronouncements

    In December  1999, the  Securities  and Exchange  Commission  ("SEC") issued
Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements"
("SAB No. 101").  SAB No. 101 summarizes  certain of the SEC's views in applying
generally  accepted  accounting  principles  to  recognition,  presentation  and
disclosure  of  revenue  in  financial  statements.  Management  of the  Company
believes that its accounting  policies for revenue recognition are in compliance
with the provisions of SAB No. 101.

    In June 1998, the Financial  Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative  Instruments and Hedging  Activities." This statement
established  accounting  and  reporting  standards  for  derivative  instruments
including  certain  derivative  instruments  embedded in other contracts and for
hedging  activities and was effective  January 1, 2001. The adoption of SFAS No.
133 did not have any impact on operating results or financial position.

7.  Common Stock Repurchase Program

     On January 31, 2001, the Company  announced that its Board of Directors had
authorized the Company to repurchase up to $20,000,000 of its outstanding common
stock over a two-year period. The Company  repurchases shares on the open market
or in privately negotiated  transactions from time to time. Repurchases of stock
are at  management's  discretion,  depending  upon price and  availability.  The
repurchased  shares are held as treasury stock, which may be used to satisfy the
Company's  current and near term  requirements  under its equity  incentive  and
other benefit plans and for other corporate purposes.  As of March 31, 2001, the
Company  repurchased  718,900  shares  of  Company  common  stock  at a value of
$9,996,000. Subsequent to March 31, 2001, the Company repurchased 361,800 shares
of Company  common stock at a value of  $4,499,000.  As of April 12,  2001,  the
Company  repurchased  a total of 1,080,700  shares under the program for a total
value of $14,495,000.

8.  Shareholder Rights Plan

    On February 16, 2001, the Company's Board of Directors adopted a shareholder
rights plan (the "Rights  Plan").  The Rights Plan is designed to deter coercive
or unfair  takeover  tactics  and to  prevent a person or group  from  acquiring
control of the Company without  offering a fair price to all  shareholders.  The
adoption of the Rights  Plan was not in response to any known  effort to acquire
control of the Company.


    Under the Rights Plan, each  shareholder of record on March 5, 2001 received
a  distribution  of one Right  for each  share of  common  stock of the  Company
("Rights").  Initially,  the Rights will be represented by the Company's  common
stock certificates, will not be traded separately from the common stock and will
not be  exercisable.  The  Rights  will  become  exercisable  only  if a  person
acquires,  or  announces a tender offer that would result in ownership of 15% or
more of the Company's  common  stock,  at which time each Right would enable the
holder to buy one  one-hundredth  of a share of the Company's Series A preferred
stock at an  exercise  price of  $120,  subject  to  adjustment.  Following  the
acquisition of 15% or more of the Company's  common stock, the holders of Rights
(other than the acquiring  person or group) will be entitled to purchase  shares
of the Company's  common stock at  half-price,  and in the event of a subsequent
merger or other acquisition of the Company, to buy shares of common stock of the
acquiring entity at one-half of the market price of those shares.

    The  Company  may  redeem  the  Rights  for  $0.01  per  Right,  subject  to
adjustment,  at any time before the  acquisition  by a person or group of 15% or
more of the Company's  ordinary  shares.  The Rights will expire on February 20,
2011.


9.  Commitments and Contingencies

    In April 2001,  the Company spent  approximately  $10,800,000  to purchase a
145,000 square foot building in New Jersey.  In addition,  in the fourth quarter
of 2000,  the  Company  entered  into a lease  agreement  for a new  facility in
Chesapeake,  Virginia,  with future  minimum  rental  payments of  approximately
$15,000,000 over the next 11 years.  The two building  facility in Chesapeake is
comprised  of  approximately  100,000  total  square  feet.  We  expect  capital
expenditures in connection with tenant improvements,  furniture and fixtures and
other  capital costs to be incurred  through  year-end  2002.  Funding for these
expenditures  is  expected to be from  operating  cash flows and  existing  cash
balances.


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

FORWARD-LOOKING STATEMENTS

     This Form 10-Q contains certain forward-looking  statements that we believe
are within the meaning of Section 27A of the  Securities Act of 1933 and Section
21-E of the Securities Exchange Act of 1934, which are intended to be covered by
the safe harbors created by such acts. For this purpose, any statements that are
not  statements  of  historical  fact  may  be  deemed  to  be   forward-looking
statements, including the statements under "Management's Discussion and Analysis
of Financial Condition and Results of Operations" regarding our strategy, future
operations,  future  expectations or future  estimates,  financial  position and
objectives of  management.  Those  statements in this Form 10-Q  containing  the
words  "believes",  "anticipates",  "plans",  "expects" and similar  expressions
constitute   forward-looking   statements,   although  not  all  forward-looking
statements contain such identifying words. These forward-looking  statements are
based on our current expectations,  assumptions, estimates and projections about
our Company and the pharmaceutical  and consumer packaged goods industries.  All
such forward-looking statements involve risks and uncertainties, including those
risks identified under "Factors That May Affect Future Operating Results",  many
of which are beyond  our  control.  Although  we  believe  that the  assumptions
underlying our forward-looking statements are reasonable, any of the assumptions
could be inaccurate  and actual  results may differ from those  indicated by the
forward-looking  statements  included in this Form 10-Q, as more fully described
under  "Factors  That May  Affect  Future  Operating  Results".  In light of the
significant uncertainties inherent in the forward-looking statements included in
this Form 10-Q,  you should not consider the inclusion of such  information as a
representation by us or anyone else that we will achieve such results. Moreover,
we assume no  obligation to update these  forward-looking  statements to reflect
actual  results,  changes in assumptions  or changes in other factors  affecting
such forward-looking statements.

OVERVIEW

    Dendrite  International,  Inc.  provides a  comprehensive  range of customer
relationship  management  or CRM software  products and support  services to the
pharmaceutical  industry.  The Company also markets its products to the consumer
packaged goods industry.  The Company's solutions combine  proprietary  software
products with extensive  system support  services,  sales force support services
and analytical services.

    The Company  generates  revenues from both  services and  licenses.  Service
revenues,  which account for a substantial  portion of our revenues,  consist of
fees from a wide variety of contracted services,  which we make available to our
customers, generally under multi-year contracts. We generate implementation fees
from services  provided to configure and implement our CRM software products for
our  customers.  We receive  technical  and  hardware  support fees for services
related to, among other things,  ongoing technical  support,  maintenance of our
customers' databases, operations of our customers' server computers, maintenance
of our  customers'  remote  hardware and asset  control.  Technical and hardware
support  fees  also  include  fees for  software  maintenance  services  such as
software defect  resolution and performance  enhancements.  We generally  charge
fees for these maintenance services based on a percentage of total license fees.
We receive sales force support fees for organizing  and managing  support of our
customers' sales forces, including training, telephone support and data analysis
services.  It is our experience that our larger customers increase the amount of
services they purchase from us over time. Fees for these additional services are
typically  based on the labor  and  materials  used to  provide  the  applicable
service.

    We  charge  our  customers  license  fees  to use our  proprietary  computer
software. Customers generally pay one-time perpetual license fees based upon the
number of users, the territory  covered and the particular  software licensed by
the customer.

    The  Company  generally   recognizes  license  fees  as  revenue  using  the
percentage-of-completion  method over a period of time that  commences  with the
execution of the license  agreement and ends when the product  configuration  is
complete  and it is ready for use in the  field.  This  period  of time  usually
includes  initial  customization  or  configuration  and concludes  with quality
assurance and testing.  When there is no initial customization or configuration,
the Company  generally  recognizes  the license  fees from those  products  upon
delivery if any services to be provided are not  essential to the  functionality
of the software. Additionally,  license revenues are recognized immediately when
the user count for previously  delivered software increases.  Historically,  the
Company's software licensing agreements provide for a warranty period (typically
180 days from the date of execution of the  agreement).  The Company's  software
maintenance  period usually begins  immediately  after the warranty period.  The
portion of the license fee associated with the warranty period is unbundled from
the license fee and is recognized  ratably over the warranty period. The Company
does not recognize any license fees unless persuasive evidence of an arrangement
exists,  delivery has occurred,  the license amount is fixed or determinable and
collectability is probable.

     The United States,  the United Kingdom,  France and Japan are currently our
main markets. We bill services provided by our foreign branches and subsidiaries
in  local  currencies.  Operating  results  generated  in local  currencies  are
translated  into U.S.  dollars at the  average  exchange  rate in effect for the
reporting period.  We generated  approximately 21% and 24% of our total revenues
outside the United States during the three months ended March 31, 2001 and 2000,
respectively. Our operating profits by geographic segment are shown in Note 5 of
"Notes to Unaudited Consolidated Financial Statements."

RESULTS OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2001 AND 2000

  REVENUES.  Total  revenues  increased  $4,817,000 to  $51,879,000 in the three
months ended March 31, 2001, up 10% from  $47,062,000  in the three months ended
March 31, 2000.

  License fee revenues  decreased  $2,606,000  to $3,003,000 in the three months
ended March 31, 2001,  down 46% from  $5,609,000 in the three months ended March
31, 2000.  License fee revenues as a percentage of total revenues were 6% in the
three  months  ended March 31, 2001 as compared to 12% in the three months ended
March 31,  2000.  The  decrease in license fee  revenues was the result of fewer
sales to new  pharmaceutical  customers  and  additional  licenses  for existing
clients.

  Service revenues increased $7,423,000 to $48,876,000 in the three months ended
March 31,  2001,  up 18% from  $41,453,000  in the three  months ended March 31,
2000.  Service  revenues as a percentage of total revenues were 94% in the three
months ended March 31, 2001,  as compared to 88% in the three months ended March
31,  2000.  The  increase in service  revenues  was  primarily  the result of an
increase  in the number of  installed  users of Dendrite  sales  force  software
products  at both  new and  existing  customers,  as  well as the  provision  of
additional  services  for  our  existing  customers.  Also  contributing  to the
increase was a one-time  payment  relating to a contractual  adjustment  from an
existing customer that recently merged with another company.

  COST OF REVENUES.  Total cost of revenues increased  $6,800,000 to $27,129,000
in the three months ended March 31, 2001, up 33% from  $20,329,000  in the three
months ended March 31, 2000.

  Cost of license fees increased  $218,000 to $963,000 in the three months ended
March 31, 2001 up 29% from  $745,000 in the three  months  ended March 31, 2000.
Cost of license  fees for the three  months ended March 31, 2001 is comprised of
the  amortization  of purchased  software and capitalized  software  development
costs of $805,000  and third party  vendor  license  fees of  $158,000.  Cost of
license  fees for the same period in 2000 is comprised  of the  amortization  of
purchased  software and capitalized  software  development costs of $731,000 and
third party vendor license fees of $14,000.  The increase in the amortization of
capitalized  software development costs in the three months ended March 31, 2001
was primarily due to the increase in internally developed  capitalized software.
The costs  associated  with third party  vendor  licenses  increased  due to the
increased  number of third party  software  products  embedded  in our  WebForce
product.

  Cost of services increased $6,582,000 to $26,166,000 in the three months ended
March 31,  2001,  up 34% from  $19,584,000  in the three  months ended March 31,
2000.  This increase was due to a combination  of factors,  including the mix of
business and higher costs incurred to meet client demands for the  configuration
of software.

  Total gross  margin for the three  months  ended March 31, 2001 was 48%,  down
from 57% for the three  months  ended  March 31,  2000.  The margin was  clearly
impacted  by the mix of license  and service  revenue  and the  acceleration  of
software configuration, partially offset by the one-time contractual adjustment.
Excluding this one-time contractual  adjustment,  total gross margin was 46% for
the three months ended March 31, 2001.

  SELLING,  GENERAL AND ADMINISTRATIVE (SG&A) EXPENSES.  SG&A expenses increased
$5,024,000 to  $20,462,000 in the three months ended March 31, 2001, up 33% from
$15,438,000  in the three  months  ended  March 31,  2000.  As a  percentage  of
revenues,  SG&A  expenses  increased  to 39% in the three months ended March 31,
2001, up from 33% in the three months ended March 31, 2000,  which was primarily
attributable to the lower level of revenue growth for the quarter.  The increase
in SG&A  expenses was also  attributable  to an increase in sales and  marketing
expenses from our existing  businesses  due in part to an increase in the number
of worldwide  employees and expenses associated with the beginning stages of our
facilities move.

  RESEARCH AND DEVELOPMENT (R&D) EXPENSES.  R&D expenses  increased  $228,000 to
$2,867,000 in the three months ended March 31, 2001 up 9% from $2,639,000 in the
three  months ended March 31, 2000.  As a percentage  of revenues,  R&D expenses
remained  relatively constant at 6% in the three months ended March 31, 2001 and
2000.  With respect to future  research  and  development  expenses,  subject to
market  conditions,   we  currently   anticipate  that  such  expenses  will  be
approximately 4% to 6% of revenues.

  PROVISION FOR INCOME TAXES. The effective tax rate remained the same at 36% in
the three  months  ended March 31, 2001 as  compared to the three  months  ended
March 31, 2000. We anticipate  the  effective tax rate to be  approximately  36%
throughout 2001.


LIQUIDITY AND CAPITAL RESOURCES

   We finance our operations primarily through cash generated by operations. Net
cash provided by operating activities was $20,232,000 for the three months ended
March 31, 2001, compared to cash provided by operating  activities of $3,851,000
for the three  months ended March 31, 2000.  This  increase in cash  provided by
operating activities was due primarily to a decrease in accounts receivable,  an
increase in accounts  payable and accrued  expenses  and an increase in deferred
revenue, partially offset by lower net income.

   Cash used in investing  activities  was  $5,640,000 in the three months ended
March 31, 2001 compared to cash  provided by investing  activities of $6,934,000
in the three months ended March 31, 2000.  The  difference  was due primarily to
purchases of short-term  investments in 2000,  partially offset by cash used for
acquisitions in 2000.

   Cash used in financing  activities  was  $8,016,000 in the three months ended
March 31, 2001 compared to cash  provided by financing  activities of $2,082,000
in the three months ended March 31, 2000. The difference of $10,098,000  was due
to the purchase of stock under the stock repurchase  program which was announced
on January 31, 2001.

   We maintain a $15,000,000  revolving line of credit  agreement with The Chase
Manhattan Bank, N.A. The agreement is available to finance working capital needs
and possible  future  acquisitions.  The terms of this  agreement  require us to
maintain a minimum  consolidated  net worth,  among  other  covenants,  measured
quarterly,  which is equal to our net worth as of December  31, 1997 plus 50% of
net income  earned  after  January 1, 1998 plus 75% of the net  proceeds  of any
stock offerings (as defined in the agreement).  This covenant effectively limits
the  amount of cash  dividends  we may pay.  At March 31,  2001,  there  were no
borrowings  outstanding under the agreement and we satisfied all of our covenant
obligations.

   At March 31, 2001, our working  capital was  approximately  $109,182,000.  We
believe that available  funds,  anticipated  cash flows from  operations and our
line of credit will satisfy our currently  projected working capital and capital
expenditure  requirements,  exclusive of cash required for possible acquisitions
of businesses, products and technologies, for the foreseeable future.

   During the quarter,  the Company purchased 718,900 shares of its common stock
at a cost of $9,996,000 under the existing stock repurchase program.

   In April 2001,  the Company  purchased  361,800  shares of common  stock at a
value  of   $4,499,000.   Additionally,   in  April  2001,   the  Company  spent
approximately  $10,800,000  to purchase a 145,000  square  foot  building in New
Jersey.

   During the fourth quarter of 2000, the Company entered into a lease agreement
for a new facility in Chesapeake,  Virginia, with future minimum rental payments
of approximately  $15,000,000 over the next 11 years. The two building  facility
is comprised of  approximately  100,000  total  square feet.  We expect  capital
expenditures in connection with tenant improvements,  furniture and fixtures and
other  capital costs to be incurred  through  year-end  2001.  Funding for these
expenditures  is  expected to be from  operating  cash flows and  existing  cash
balances.

  We  regularly  evaluate   opportunities  to  acquire  products  or  businesses
complementary to our operations. Such acquisition opportunities,  if they arise,
and  are  successfully  completed,  may  involve  the  use  of  cash  or  equity
instruments.

FACTORS THAT MAY AFFECT FUTURE OPERATING RESULTS

OUR BUSINESS IS HEAVILY DEPENDENT ON THE PHARMACEUTICAL INDUSTRY

    Most of our  customer  relationship  management  products  and  services are
currently  used in connection  with the marketing and sale of  prescription-only
drugs. This market is undergoing a number of significant changes. These include:

         o        the significant  consolidation of the pharmaceutical  industry
                  as well as the timing and sequencing of sales to our customers
                  may reduce the number of our existing and potential customers;

         o        regulatory  changes that permit the  over-the-counter  sale of
                  formerly prescription-only drugs; and

         o        competitive pressure on the pharmaceutical  industry resulting
                  from the  continuing  shift to delivery of healthcare  through
                  managed care organizations.


    We cannot assure you that we can respond  effectively to any or all of these
and other changes in the marketplace. Our failure to do so could have a material
adverse effect on our business, operating results or financial condition.

OUR QUARTERLY RESULTS OF OPERATIONS MAY FLUCTUATE SIGNIFICANTLY AND MAY NOT MEET
MARKET EXPECTATIONS

    Our results of  operations  may vary from  quarter to quarter due to lengthy
sales and implementation cycles for our products, our fixed expenses in relation
to our fluctuating revenues and variations in our customers' budget cycles, each
of  which  is   discussed   below.   As  a  result,   you  should  not  rely  on
quarter-to-quarter  comparisons of our results of operations as an indication of
future  performance.  It is also possible that in some future period our results
of operations may be below our targeted goals and the expectations of the public
market  analysts and investors.  If this happens,  the price of our common stock
may decline.

OUR LENGTHY  SALES AND  IMPLEMENTATION  CYCLES MAKE IT  DIFFICULT TO PREDICT OUR
QUARTERLY REVENUES

    The   selection   of  a  CRM   solution   generally   entails  an   extended
decision-making  process because of the strategic  implications  and substantial
costs associated with a customer's license of the solution. Given the importance
of the decision,  senior  levels of  management  often are involved and, in some
instances,  its board of directors may be involved in this process. As a result,
the  decision-making  process  typically takes nine to eighteen  months,  and in
certain cases even longer.  Accordingly, we cannot control or predict the timing
of our execution of contracts with customers.

    In addition, an implementation process of three to six or more months before
the software is rolled out to a customer's sales force is customary. However, if
a customer  were to delay or extend its  implementation  process,  our quarterly
revenues  may  decline  below  expected  levels and could  adversely  affect our
results of operations.

OUR FIXED COSTS MAY LEAD TO FLUCTUATIONS IN OUR QUARTERLY  OPERATING  RESULTS IF
REVENUES FALL BELOW EXPECTATIONS

    We  establish  our  expenditure  levels for product  development,  sales and
marketing and some of our other  operating  expenses  based in large part on our
expected future revenues and anticipated competitive conditions.  In particular,
we frequently  add staff in advance of new business to permit  adequate time for
training.  If the new business is subsequently delayed or canceled, we will have
incurred expenses without the associated revenues.  In addition, we may increase
sales and  marketing  expenses if  competitive  pressures  become  greater  than
originally  anticipated.  Since  only a small  portion  of our  expenses  varies
directly with our actual revenues,  our operating  results and profitability are
likely to be adversely  and  disproportionately  affected if our  revenues  fall
below our targeted goals or expectations.

OUR BUSINESS IS AFFECTED BY VARIATIONS IN OUR CUSTOMERS' BUDGET CYCLES

    We have historically  realized a greater  percentage of our license fees and
service  revenues in the second half of the year than in the first half because,
among other things,  our customers  typically  spend more of their annual budget
authorization  for CRM  solutions in the second half of the year.  However,  the
relationship  between the amounts spent in the first and second halves of a year
may vary from year to year and from customer to customer.  In addition,  changes
in our  customers'  budget  authorizations  may reduce the amount of revenues we
receive from the license of  additional  software or the provision of additional
services. As a result, our operating results could be adversely affected.

WE DEPEND ON A FEW MAJOR CUSTOMERS FOR A SIGNIFICANT PORTION OF OUR REVENUES

    We derive a  significant  portion of our revenues  from a limited  number of
customers  (considering  all  affiliates  of  each  customer  as  part  of  that
customer).  Approximately  52% of our total  revenues  in 2000 came from  Pfizer
(which includes the former  Parke-Davis  division of Warner Lambert),  Johnson &
Johnson and  Bristol-Myers  Squibb.  Approximately  37% of our total revenues in
1999 came from  Pfizer  and  Johnson & Johnson.  Approximately  42% of our total
revenues  in 1998 came from Pfizer and  Johnson & Johnson.  We believe  that the
costs to our customers of switching to a competitor's  software  product,  or of
taking  significant  system  management  functions  in-house,  are  substantial.
Nevertheless,  some of our  customers  have  switched,  and in the future  other
customers  may  switch,  to software  products  and/or  services  offered by our
competitors  or by in-house  staff.  If any of our major  customers were to make
such a change, our business,  operating results or financial  condition would be
materially and adversely affected.

WE MAY BE UNABLE TO SUCCESSFULLY INTRODUCE NEW PRODUCTS OR RESPOND TO
TECHNOLOGICAL CHANGE

    The market for CRM products changes rapidly because of frequent improvements
in computer hardware and software technology. Our future success will depend, in
part, on our ability to:

         o        use  available  technologies  and data  sources to develop new
                  products and services and to enhance our current  products and
                  services;

         o        introduce new solutions  that keep pace with  developments  in
                  our target markets; and

         o        address the changing and increasingly  sophisticated  needs of
                  our customers.


    We cannot  assure  you that we will  successfully  develop  and  market  new
products or product  enhancements that respond to technological  advances in the
marketplace,  or that we will do so in a timely  fashion.  We also cannot assure
you that our products will adequately and competitively address the needs of the
changing marketplace.

    Competition  for software  products  has been  characterized  by  shortening
product cycles. We may be materially and adversely affected by this trend if the
product cycles for our products prove to be shorter than we anticipate.  If that
happens,  our  business,  operating  results  or  financial  condition  could be
adversely affected.

    To remain  competitive,  we also may have to spend more of our  revenues  on
product  research and  development  than we have in the past.  As a result,  our
results of operations could be materially and adversely affected.

    Further,  our software products are technologically  complex and may contain
previously undetected errors or failures.  Such errors have occurred in the past
and we cannot  assure you that,  despite our testing,  our new products  will be
free from  errors.  Errors that result in losses or delays could have a material
adverse effect on our business, operating results or financial condition.

INCREASED  COMPETITION MAY RESULT IN PRICE  REDUCTIONS AND DECREASED  DEMAND FOR
OUR PRODUCTS AND SERVICES

    We believe there are a number of other  companies that sell CRM products and
related  services  that  specifically   target  the   pharmaceutical   industry,
including:

         o        certain  competitors  that are  actively  selling CRM software
                  products in more than one country; and

         o        certain competitors that also offer CRM support services.

    We believe  that sales force  automation  or SFA and CRM  software  products
and/or services offered by most of our competitors do not address the variety of
pharmaceutical   customer  needs  that  our  solutions  address.  We  also  face
competition  from many vendors that market and sell SFA and CRM solutions in the
CPG market.  In addition,  we also compete with various  companies  that provide
support  services  similar to our  services.  We believe  our ability to compete
depends on many factors, some of which are beyond our control, including:

         o        the  number  and  success  of new  market  entrants  supplying
                  competing CRM products or support services;

         o        expansion of product  lines by, or  consolidation  among,  our
                  existing competitors; and

         o        development and/or operation of in-house CRM software products
                  or services by our customers and potential customers.

    Some  of our  competitors  and  potential  competitors  are  part  of  large
corporate groups and have  significantly  greater financial,  sales,  marketing,
technology  and other  resources than we have. We cannot assure you that we will
be able to compete  successfully  with these companies or that  competition will
not have a  material  adverse  effect  on our  business,  operating  results  or
financial condition.

OUR INTERNATIONAL OPERATIONS HAVE RISKS THAT OUR DOMESTIC OPERATIONS DO NOT

    The sale of our products and services in foreign countries accounts for, and
is expected in the future to account for, a material part of our revenues. These
sales are  subject  to risks  inherent  in  international  business  activities,
including:

         o        any adverse  change in the political or economic  environments
                  in these countries;

         o        any  adverse  change  in  tax,   tariff  and  trade  or  other
                  regulations;

         o        the  absence  or  significant  lack of  legal  protection  for
                  intellectual property rights;

         o        exposure to exchange rate risk for service  revenues which are
                  denominated in currencies other than U.S. dollars; and

         o        difficulties in managing an  organization  spread over various
                  jurisdictions.

WE MAY FACE RISKS ASSOCIATED WITH ACQUISITIONS

     Our business could be materially and adversely  affected as a result of the
risks associated with acquisitions.  As part of our business  strategy,  we have
acquired businesses that offer complementary products, services or technologies.
These  acquisitions  are  accompanied  by the risks  commonly  encountered in an
acquisition of a business, including:

         o        the effect of the  acquisition  on our financial and strategic
                  position;

         o        the failure of an acquired business to further our strategies;

         o        the difficulty of integrating the acquired business;

         o        the  diversion  of  our  management's   attention  from  other
                  business concerns;

         o        the impairment of relationships with customers of the acquired
                  business;

         o        the potential  loss of key employees of the acquired  company;
                  and

         o        the maintenance of uniform, company-wide standards, procedures
                  and policies.


     These  factors  could have a material  adverse  effect on our  revenues and
earnings. We expect that the consideration paid for future acquisitions, if any,
could be in the form of cash, stock,  rights to purchase stock, or a combination
of  these.  To the  extent  that we issue  shares  of stock or other  rights  to
purchase stock in connection with any future acquisition,  existing shareholders
will experience dilution and potentially decreased earnings per share.

OUR SUCCESS DEPENDS ON RETAINING OUR KEY SENIOR MANAGEMENT TEAM AND ON
ATTRACTING AND RETAINING QUALIFIED PERSONNEL

    Our future success depends,  to a significant extent, upon the contributions
of our  executive  officers  and  key  sales,  technical  and  customer  service
personnel.  Our future success also depends on our continuing ability to attract
and retain highly qualified technical and managerial personnel.  Competition for
such  personnel  is  intense.  We  have at  times  experienced  difficulties  in
recruiting  qualified  personnel and we may experience such  difficulties in the
future.  Any such  difficulties  could adversely affect our business,  operating
results or financial condition.

OUR INABILITY TO MANAGE OUR GROWTH COULD ADVERSELY AFFECT OUR BUSINESS

    To  manage  our  growth  effectively  we must  continue  to  strengthen  our
operational,  financial and management information systems and expand, train and
manage our work force.  However, we may not be able to do so effectively or on a
timely  basis.  Failure to do so could have a material  adverse  effect upon our
business, operating results or financial condition.

OUR BUSINESS DEPENDS ON PROPRIETARY TECHNOLOGY THAT WE MAY NOT BE ABLE TO
PROTECT COMPLETELY

    We rely on a  combination  of trade secret,  copyright  and trademark  laws,
non-disclosure  and other  contractual  agreements  and  technical  measures  to
protect our proprietary technology.  We cannot assure you that the steps we take
will prevent misappropriation of this technology. Further, protective actions we
have  taken  or  will  take  in the  future  may not  prevent  competitors  from
developing  products  with  features  similar  to  our  products.  In  addition,
effective copyright and trade secret protection may be unavailable or limited in
certain foreign countries. We have, on occasion, in response to a request by our
customer,  entered into agreements  which require us to place our source code in
escrow to secure our service and maintenance obligations.

    Further,  we believe that our products and  trademarks  do not infringe upon
the  proprietary  rights of third  parties.  However,  third  parties may assert
infringement  claims  against us in the future that may result in the imposition
of damages or  injunctive  relief  against us. In addition,  any such claims may
require  us to enter  into  royalty  arrangements.  Any of these  results  could
materially  and adversely  affect our business,  operating  results or financial
condition.

THERE ARE CHARACTERISTICS IN THE CONSUMER PACKAGED GOODS MARKET THAT DIFFER FROM
THE PHARMACEUTICAL MARKET

    We market and sell CRM solutions to companies in the CPG market. The selling
environment in this market has unique characteristics that differentiate it from
the  pharmaceutical  market.  In  addition,  we  believe  that the CPG market is
composed  of  sub-markets,  each  of  which  may  have  unique  characteristics.
Accordingly,  we cannot  assure  you that we will be able to  replicate  in this
market the success we have achieved in the ethical pharmaceutical market.

PROVISIONS  OF OUR  CHARTER  DOCUMENTS  AND NEW  JERSEY  LAW MAY  DISCOURAGE  AN
ACQUISITION OF DENDRITE

    Provisions of our Restated  Certificate of  Incorporation,  as amended,  our
By-laws,  as amended,  and New Jersey law may make it more difficult for a third
party to acquire  us. For  example,  the Board of  Directors  may,  without  the
consent of the  stockholders,  issue preferred stock with rights senior to those
of the common  stock.  In addition,  the Company has a  shareholder  rights plan
which may limit the ability of a third party to attempt a hostile acquisition of
the Company.

OUR COMMON STOCK MAY BE SUBJECT TO PRICE FLUCTUATIONS

    The market  price of our common stock may be  significantly  affected by the
following factors:

         o        the  announcement or the introduction of new products by us or
                  our competitors;

         o        quarter-to-quarter  variations  in our  operating  results  or
                  changes  in  earnings  estimates  or failure to meet or exceed
                  earnings estimates;

         o        market  conditions  in the  technology,  healthcare  and other
                  growth sectors; and

         o        general  consolidation in the healthcare  information industry
                  which  may  result  in  the  market  perceiving  us  or  other
                  comparable companies as potential acquisition targets.

    Further,  the stock market has  experienced  on occasion  extreme  price and
volume  fluctuations.  The  market  prices  of the  equity  securities  of  many
technology companies have been especially volatile and often have been unrelated
to the operating performance of such companies.  These broad market fluctuations
may have a material adverse effect on the market price of our common stock.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

FOREIGN CURRENCY RISK

    Because  we have  operations  in a  number  of  countries  and  our  service
agreements in such  countries are  denominated  in a foreign  currency,  we face
exposure to adverse  movements in foreign  currency  exchange rates. As currency
rates change, translation of the income statements of our international entities
from local  currencies to U.S. dollars affects  year-over-year  comparability of
operating  results.  We do not hedge  translation  risks  because  we  generally
reinvest the cash flows from international operations.

    Management  estimates  that a 10% change in  foreign  exchange  rates  would
impact  reported  operating  profit  by less  than  $500,000.  This  sensitivity
analysis  disregards the possibility that rates can move in opposite  directions
and that losses from one area may be offset by gains from another area.

    The  introduction  of the  Euro as a  common  currency  for  members  of the
European Monetary Union took place on January 1, 1999. The eleven  participating
countries will issue sovereign debt  exclusively in Euros and will  redenominate
outstanding  sovereign  debt. The legal  currencies  will continue to be used as
legal tender through January 1, 2002, at which point the legacy  currencies will
be canceled and Euro bills and coins will be used for cash  transactions  in the
participating  countries.  There can be no assurance  that such Euro  conversion
will  not  adversely  affect  our  business,  financial  condition,  results  of
operations or cash flows. We have not determined  what impact,  if any, the Euro
has on our foreign exchange exposure.

INTEREST RATE RISK

    We  earn  interest   income  from  our  balances  of  cash  and   short-term
investments.  This interest  income is subject to market risk related to changes
in interest rates, which primarily affects our investment  portfolio.  We invest
in  instruments  that meet high credit  quality  standards,  as specified in our
investment  policy.  The policy also limits the amount of credit exposure to any
one issue, issuer and type of investment.

    As of March 31, 2001,  our  short-term  investments  consisted  primarily of
commercial  paper maturing over the following  three months.  Due to the average
maturity and conservative nature of our investment portfolio, a sudden change in
interest  rates would not have a material  effect on the value of the portfolio.
Management  estimates  that if the average  yield of the  Company's  investments
decreased by 100 basis points,  our interest  income for the year ended December
31, 2000 would have decreased by less than $700,000.  This estimate assumes that
the  decrease  occurred  on the first day of 2000 and  reduced the yield of each
investment  instrument  by 100 basis points.  The impact on our future  interest
income,  of future changes in investment yields will depend largely on the gross
amount of our investments.


PART II.  OTHER INFORMATION

Item 5.     Other Information

             None

Item 6.     Exhibits and Reports on Form 8-K

      (i)  Exhibits

         None

      (ii)  Reports on Form 8-K

(a)        The Company  filed a Current  Report on Form 8-K on January 31, 2001,
           pursuant to "Item 5. Other Events" relating to the announcement  that
           the Company has authorized a stock repurchase program.

(b)        The Company filed a Current  Report on Form 8-K on February 20, 2001,
           pursuant  to  "Item  5.  Other  Events"  relating  to  the  Company's
           shareholder rights plan.

(c)        The  Company  filed a Current  Report on Form 8-K on March 20,  2001,
           pursuant  to "Item 5. Other  Events"  relating  to the  exercise  and
           "hold" of 200,000  stock  options by John E. Bailye,  Chairman of the
           Board and Chief Executive Officer.

(d)        The  Company  filed a Current  Report on Form 8-K on March 30,  2001,
           pursuant  to  "Item  5.  Other  Events"   relating  to  the  Restated
           Certificate of Incorporation,  employment agreements, leases, and the
           purchase of real property.


<PAGE>


                                   SIGNATURES


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


Date: May 15, 2001


                               By: /s/ John E. Bailye
                               --------------------------------------
                               John E. Bailye, Chairman and
                               Chief Executive Officer
                               (Principal Executive Officer)


                               By: /s/ Michael G. Atieh
                               -------------------------------------
                               Michael G. Atieh, Senior Vice
                               President and Chief Financial Officer
                               (Principal Financial Officer)