SECURITIES AND EXCHANGE COMMISSION

                        Washington, D.C. 20549



                              FORM 10-Q



[X]QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE
ACT                            OF 1934

            For the quarterly period ended March 31, 1997



[  ]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  0-25646





                        EXPERT SOFTWARE, INC.

   State of Delaware  -  I.R.S. Employer Identification No.:  65-0359860
                           800 Douglas Road
                     Executive Tower, Suite #750
                        Coral Gables, FL 33134
                            (305) 567-9990



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

As of April 30,  1997 there were  7,514,679  shares of the  Registrant's  Common
Stock, $ .01 par value, outstanding.

                  The exhibit index is on page 11.

                           Page 1 of 12.


<PAGE>



                        EXPERT SOFTWARE, INC.

                          INDEX TO FORM 10-Q

                  Three months ended March 31, 1997





                                                                Page
                                                                ----
Part I - Financial Information
Item 1.  Financial Statements.
  Condensed Consolidated Balance Sheets as of
    March 31, 1997 and December 31, 1996..........................3

  Condensed Consolidated Statements of Operations for the
    Three Months Ended March 31, 1997 and 1996....................4

  Condensed Consolidated Statements of Cash Flows for the
    Three Months Ended March 31, 1997 and 1996....................5

  Notes to Condensed Consolidated Financial Statements............6

Item 2.  Management's Discussion and Analysis of Financial        
  Condition and Results of Operations.............................7


Part II - Other Information
Item 6.  Exhibits and Reports on Form 8-K........................10

Signatures.......................................................10







  This Form 10-Q  contains  forward-looking  statements  within  the  meaning of
Section 27A of the  Securities  Act of 1933 and  Section  21E of the  Securities
Exchange Act of 1934. The Company's actual results could differ  materially from
those set forth in the forward-looking statements. Factors that might cause such
a difference are discussed in the section  entitled  "Factors  Affecting  Future
Operating Results" on page 10 of this Form 10-Q.




<PAGE>



                    PART I - FINANCIAL INFORMATION


Item 1.      Financial Statements.


                          EXPERT SOFTWARE, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                             (In thousands)

                                       March 31, December 31,              
                                         1997      1996
                                       --------- -----------
                ASSETS               (unaudited)
CURRENT ASSETS:
   Cash and equivalents...............  $4,111     $2,959
   Accounts receivable, net...........   3,034      3,775
   Income taxes receivable............   1,895      2,397
   Inventories........................     736      1,256
   Prepaid expenses...................     634        425
   Deferred income taxes..............   2,380      2,616
                                       --------- ----------
      Total current assets............  12,790     13,428
PROPERTY AND EQUIPMENT, net...........   1,696      1,897
ACQUIRED INTANGIBLES, net.............     132        166
DEFERRED INCOME TAXES.................   3,586      3,586
                                       --------- ----------
      Total assets.................... $18,204    $19,077
                                       ========= ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
   Accounts payable................... $ 1,432    $ 3,226
   Accrued expenses...................   5,761      5,038
   Current portion of capital lease                  
      obligations.....................      78         88
                                      ---------- ----------
      Total current liabilities.......   7,271      8,352
                                      ---------- ----------
OTHER OBLIGATIONS, net of current                 
      portion.........................     100        300
                                      ---------- ----------
STOCKHOLDERS' EQUITY:
   Preferred stock....................      --         --
   Common stock.......................      75         75
   Additional paid-in capital.........   23,204    23,198
   Accumulated deficit................  (12,446)  (12,848)
                                      ---------- ----------
      Total stockholders' equity......   10,833    10,425
                                      ========== ==========
      Total liabilities and             
         stockholders' equity.........   $18,204   $19,077
                                      ========== ==========



  The accompanying notes to condensed financial statements are an integral part
  of these balance sheets.


<PAGE>



                       EXPERT SOFTWARE, INC.
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (In thousands, except per share data)
                            (Unaudited)




                                  Three Months
                                 Ended March 31
                                ------------------
                                  1997      1996
                                -------- ---------

NET SALES....................... $8,027   $10,383
                                -------- ---------
OPERATING COSTS AND EXPENSES:
  Cost of sales.................  3,134    3,893
  Marketing and sales...........  2,427    2,663
  General and administrative....  1,215    1,753
  Development...................    641      860
                                -------- ---------

    Total operating costs and     
     expenses...................  7,417    9,169
                                -------- ---------

    Operating income............    610    1,214

Other income, net...............     28       40
                                -------- ---------

  Income before provision for       
   income taxes.................    638    1,254

Provision for income taxes......    236      459
                                -------- ---------

  Net income....................$   402   $  795
                                ======== =========

  Net income per share of         
    common stock................$  .05    $  .10
                                ======== =========

Weighted average number of
  common stock and stock            
  equivalents outstanding.......  7,896    8,064
                                ======== =========



















  The accompanying notes to condensed financial statements are an integral part
  of these statements.

<PAGE>


                       EXPERT SOFTWARE, INC.
          CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (In thousands)
                            (Unaudited)

                                        Three Months Ended
                                             March 31,
                                       ----------------------
                                           1997       1996
                                       ----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income.............................. $  402     $   795
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
  Depreciation of property and              
    equipment...........................    201         231
  Amortization of acquired software          
    technology..........................     24         391
  Amortization of acquired intangibles..     10          83
  Deferred income tax provision             
   (benefit)............................    236         (35)
Changes in current assets and
liabilities:
  (Increase) decrease in accounts           
    receivable..........................    741      (1,716)
  (Increase) decrease in income tax         
    receivable..........................    501          --
  (Increase) decrease in inventories....    520      (2,089)
  (Increase) decrease in prepaid          
    expenses............................   (209)       (223)
  (Increase) decrease in other assets...     --         (80)
  Increase (decrease) in accounts       
    payable............................. (1,793)      1,008
  Increase (decrease) in accrued            
    expenses............................    723        (355)
  Increase (decrease) in income taxes       
    payable.............................     --      (1,803)
  Increase (decrease) in other             
    obligations.........................   (200)         --
                                       ----------- ----------
    Net cash provided by (used in)        
     operating activities...............  1,156      (3,793)
                                       ----------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Maturities of marketable securities...     --       4,271
  Purchases of property and equipment...     --        (245)
                                       ----------- ----------
    Net cash provided by investing          
     activities.........................     --       4,026
                                       ----------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Stock options exercised...............      6       --
  Payments on capital lease                 
   obligations..........................    (10)        (38)
                                       ----------- ----------
    Net cash provided by (used in)           
     financing activities...............     (4)        (38)
                                       ----------- ----------

    Net increase in cash and              
     equivalents........................  1,152         195
CASH AND EQUIVALENTS, beginning of       
     period.............................  2,959         912
                                       ----------- ----------
CASH AND EQUIVALENTS, end of period..... $4,111     $ 1,107
                                       =========== ==========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
  Cash paid during the period for       
    interest............................ $    1     $    15
                                       =========== ==========

  Cash paid during the period for        
    income taxes........................ $   --     $ 2,527
                                       =========== ==========


  The accompanying notes to condensed  consolidated  financial  statements are
  an integral part of these statements.


<PAGE>


                        EXPERT SOFTWARE, INC.
         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                            March 31, 1997
                             (Unaudited)


1. BASIS OF PRESENTATION

The condensed consolidated balance sheet as of December 31, 1996, which has been
derived from audited financial  statements,  and the unaudited interim condensed
consolidated  financial  statements included herein, have been prepared pursuant
to the rules and regulations of the Securities and Exchange Commission.  Certain
information  and  note  disclosures   normally   included  in  annual  financial
statements prepared in accordance with generally accepted accounting  principles
have been condensed or omitted pursuant to those rules and regulations, although
the  Company  believes  that  the  disclosures  made  are  adequate  to make the
information presented not misleading.  These financial statements should be read
in conjunction  with the financial  statements and the notes thereto included in
the Company's Annual Report on Form 10-K for the year ended December 31, 1996.

In the opinion of the Company, the accompanying condensed consolidated financial
statements  contain  all  adjustments   (consisting  only  of  normal  recurring
accruals)  necessary to present fairly the financial  position of the Company as
of March 31, 1997,  and the results of  operations  and cash flows for the three
months ended March 31, 1997 and 1996.  Results of operations  and cash flows for
the period ending March 31, 1997 are not  necessarily  indicative of the results
of operations of the entire fiscal year or other future periods.

The accounting  policies followed for quarterly financial reporting purposes are
the same as those disclosed in the Company's  audited  financial  statements for
the year ended December 31, 1996, included in the Form 10-K.


2. THE ORGANIZATION

Expert  Software,  Inc.  (the  "Company")  publishes  and  distributes  computer
software under the "Expert" trade name. The Company's  products  address a broad
range of consumer interest and everyday tasks for the  productivity,  lifestyle,
small office/home  office,  entertainment and education market  categories.  The
Company primarily sells its products directly to large retailers,  as well as to
distributors.


3. INVENTORIES

Inventories  consisted  of the  following  as of March 31, 1997 and December 31,
1996 (in thousands):

                                   1997      1996
                                --------- ---------
       Finished  goods..........  $ 685     $1,101
       Raw materials............     51       155
                                --------- ---------
                                  $ 736     $1,256
                                ========= =========


4. NEWLY ISSUED ACCOUNTING STANDARD

In March 1997,  the Financial  Accounting  Standards  Board issued SFAS No. 128,
Earnings  Per Share,  which is required to be adopted as of December  31,  1997.
Upon  adoption,  all  prior  earnings  per  share  amounts  are  required  to be
retroactively restated.

The  computation  under SFAS No. 128 differs from the primary and fully  diluted
earnings per share  computed under APB Opinion No. 15 primarily in the manner in
which potential common stock is treated. Basic earnings per share is computed by
dividing net income by the weighted-average number of common shares outstanding.
In the computation of diluted earnings per share, the weighted-average number of
common shares  outstanding  is adjusted for the affect of all  potential  common
stock.

The pro forma basic and diluted  earnings per share  computed  according to SFAS
No. 128 for the quarter ended March 31, 1997 are $0.05 each. The pro forma basic
and  diluted  earnings  per share  computed  according  to SFAS No.  128 for the
quarters ended March 31, 1996 are $0.11 and $0.10, respectively.




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


Results of Operations

The  following  table sets  forth  certain  statement  of  operations  data as a
percentage of net sales, for comparative purposes, for the periods indicated.



                                        Three Months
                                            Ended
                                          March 31,
                                        ------ -------
                                         1997   1996
                                        ------ -------

     Net sales..........................  100%   100%
                                        ------ -------
     Operating costs and expenses:
       Cost of sales....................   39     37
       Marketing and sales..............   30     26
       General & administrative.........   15     17
       Development......................    8      8
                                        ------ -------
                                           92     88
                                        ------ -------

     Operating income...................    8     12
     Other income (expense).............   --     --
                                        ------ -------

     Income before provision for income     8     12
     taxes..............................
     Provision for income taxes.........    3      4
                                        ------ -------

     Net income.........................    5%     8%
                                        ====== =======



Comparison of Three Months Ended March 31, 1997 and 1996

Net Sales.  Net sales for the three  months  ended  March 31  decreased  to $8.0
million in 1996 from $10.4  million in 1996, a decrease of 2.4 million,  or 23%.
Domestic  net  sales in 1997  decreased  as a result  of a  number  of  factors,
including increased competition,  a more pronounced seasonality in the business,
retailers  keeping tighter  inventory levels and higher  provisions for returns.
International  net sales  decreased due to lower sales in the United  Kingdom as
the  Company is  transitioning  to a new  distributor.  Average  selling  prices
declined due to increased competition for shelf space at retail outlets. Average
selling prices for the balance of 1997 are not expected to change significantly,
however the sales of new premium  products  beginning  in the third  quarter are
expected to be at higher price points. The Company expects the second quarter of
the year to have lower net sales  than the first  quarter,  consistent  with the
prior two years,  due to seasonal  trends in sales of consumer  software,  while
third  quarter  sales are expected to exceed those of the second  quarter due to
new product releases and seasonal factors.

Cost of Sales. Cost of sales decreased to $3.1 million in 1997 from $3.9 million
in 1996,  a decrease  of $0.8  million,  or 19%,  due  primarily  to lower sales
volume,  amortization of acquired software  technology and royalties,  partially
offset by a reduction  in the value  assigned to  returned  goods.  Amortization
decreased  due to the  write-off  in  second  quarter  of 1996 of a  substantial
portion of software  technology  associated  with the acquisition of Swfte. As a
percentage  of net  sales,  cost of sales  increased  to 39% in 1997 from 37% in
1996,  due  primarily to increased  provisions  for returns,  which  reduced net
sales,  and the decrease in the value assigned to returned goods.  Cost of sales
consists primarily of product costs (printed material, boxes, disk and CD costs,
assembly  and  shipping),  freight  charges,  reserves  for excess and  obsolete
inventories,  and royalties to outside  programmers and content  providers.  The
Company  expects  cost of sales as a  percentage  of net  sales in 1997  will be
comparable to the percentage for this quarter.

Marketing and Sales.  Marketing  and sales expense  decreased to $2.4 million in
1997 from $2.7 million in 1996,  and  increased as a percentage  of net sales to
30% of net sales in 1997 from 26% in 1996.  The increase as a percentage  of net
sales was  primarily  due to  increased  marketing  activities  to  promote  the
Company's  products and brand name,  including  personnel  costs and promotional
costs paid to  retailers.  The Company  expects  competition  for shelf space to
continue and intends to continue to launch new marketing  promotions and to hire
additional  personnel as needed. As a result,  the Company expects marketing and
sales expenses to increase in dollar amount.

General and Administrative. General and administrative expense decreased to $1.2
million in 1997 from $1.7  million in 1996 a decrease of $0.5  million,  or 31%,
and decreased as a percentage of net sales to 15% in 1997 from 17% in 1996. This
decrease was  primarily  due to lower legal costs and  amortization  of acquired
intangible  assets.  Legal costs  decreased due to the  settlement in the fourth
quarter of 1996 of litigation involving the former owners of Swfte. Amortization
decreased  due to the  write-off in the second  quarter of 1996 of a substantial
portion of the intangible  assets  associated with the acquisition of Swfte. The
Company  expects  general  and  administrative  expenses  to decrease in 1997 as
compared  to 1996 as a result of the  settlement  of the Swfte  litigation,  and
lower bad debt expenses and personnel costs.

Development.  Development  expense  decreased  to $0.6 million in 1997 from $0.9
million in 1996, a decrease of $0.3  million,  or 25%, due  primarily to reduced
personnel costs related to the closing of the Swfte operations,  and represented
8% of net sales in 1997 and 1996.  Development expense includes expenses related
to product  upgrades,  new product  activities,  quality  control  and  customer
service  support.  During  the  fourth  quarter  of 1996,  the  Company  reduced
development  personnel and did not renew the lease for the facilities previously
occupied  by Swfte,  which will help to contain  development  expenses in future
periods.  The  Company  currently  believes  that  the  steps  taken  to  reduce
development  expenses in 1996 will be partially  offset by  additional  costs to
develop new brands and titles,  including  the  development  of products to take
advantage of the Internet and other on-line capabilities.

Other Income. Other income, which includes interest income and interest expense,
decreased to $28,000 in 1997 from $40,000 in 1996,  primarily due to the reduced
balance of interest bearing deposits and investments.

Provision for Income Taxes. The Company accounts for income taxes under SFAS No.
109,  Accounting for Income Taxes,  which requires that deferred income taxes be
recognized for the tax  consequences in future years of differences  between the
tax basis of assets and liabilities and their financial reporting basis at rates
based on enacted tax laws and statutory  tax rates  applicable to the periods in
which  the  differences  are  expected  to  affect  taxable  income.   Valuation
allowances are  established  when necessary to reduce deferred tax assets to the
amount  expected to be realized.  The  effective  tax rate used in recording the
provision for income taxes was approximately 37% in 1997 and 1996.


Liquidity and Capital Resources

During 1996, the Company  experienced a reduction in its  stockholders'  equity,
working capital and ratio of current assets to current liabilities, primarily as
a result of net losses realized during that period.  Management has responded by
reducing   expenses,   including,   among  other  actions,   reducing  personnel
significantly. With these actions and assuming the continued availability of the
Company's  revolving  line of credit,  management  believes that it has adequate
financial resources for its planned operations through 1997.

As of March 31, 1997, the Company had $5.5 million in working capital, including
$4.1 million in cash.  To date,  the Company has not  invested in any  financial
instruments  that involve a high level of complexity or risk.  Net cash provided
by  operating  activities  was $1.2 million for the three months ended March 31,
1997, primarily due to profitable results of operations,  decreased  investments
in accounts  receivable and  inventories,  and receipt of $0.5 million of income
tax refunds from taxes paid in 1996.

The Company  believes that cash  generated by  operations  may be affected by an
increase in working capital  requirements as it continues to expand  operations.
In response to such growth in working capital requirements,  the Company entered
into a loan  agreement with a bank which provides for a revolving line of credit
collateralized by substantially  all of the Company's  assets.  Borrowings under
the line are limited to a percentage of eligible  receivables  as defined in the
agreement  and may not exceed $5.0 million  through May 31,  1998,  the maturity
date.  The  loan  agreement  contains  restrictive  covenants.  There  can be no
assurance  that the  Company's  results of  operations  will  continue  to be in
compliance with the line of credit covenants which, among other things, prohibit
two consecutive  quarterly losses, or that the line of credit would be otherwise
available to the Company.

The  Company's  federal tax filings with respect to the year ended  December 31,
1992 and subsequent  years are presently being reviewed by the Internal  Revenue
Service  ("IRS").  The IRS has  questioned  the allocation of the purchase price
made by the Company in connection with the acquisition of assets and business of
the Predecessor  from Bloc in October 1992, and related  amortization  and other
deductions  with  respect to the acquired  assets.  The IRS has not proposed any
assessment  from their  review,  but it is expected to conclude its audit in the
near  future and has  indicated  that it intends to propose  adjustments  to the
Company's federal income tax returns claiming  additional tax due. At this time,
it is not possible to quantify the amount of additional taxes the IRS will claim
are  due.  There  can be no  assurance  that the  Company  will  prevail  in its
position,  or that the appeals,  if any, and final  resolution of any IRS claims
will not have a material  adverse impact on the Company's  liquidity,  financial
position, or results of operations.

From time to time, the Company  evaluates  potential  acquisitions  of products,
businesses  and  technologies  that would  complement  or expand  the  Company's
business. The Company currently does not have any commitments or agreements with
respect  to any  such  acquisitions.  There  can be no  assurance  that any such
acquisitions will be made or, if made, will be successfully integrated.


Factors Affecting Future Operating Results

This Form 10-Q contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of  1934.  The  Company's  actual  results  could  differ  materially  from  its
historical  operating  results  and from those set forth in the  forward-looking
statements and may fluctuate between operating periods. Factors that might cause
such a differences and fluctuations include, without limitation,  the following:
the size and rate of growth of the consumer  software  market,  consolidation of
the software industry among both customers and competitors, market acceptance of
the  Company's  products and those of its  competitors,  competitors'  marketing
strategies and promotions,  development and promotional expenses relating to the
introduction of new products, new versions of existing products or new operating
systems,  evolving distribution channels,  currency fluctuations associated with
international  sales and accounts  receivable,  the growth in  popularity of the
Internet  and other new  technologies  which could impact the  distribution  and
purchase of software,  product  returns,  acquisitions  of new businesses by the
Company  and related  charges and  write-offs,  the  collectibility  of accounts
receivable,  changes in pricing policies by the Company and its competitors, the
accuracy of  retailers'  forecasts of consumer  demand,  competition  for retail
space,  consumer  confidence,  the timing of the  receipt  of orders  from major
customers,  account  cancellations  or delays in shipment,  future cash flow and
working capital  requirements,  payment of the Company's  obligations  under the
settlement of the litigation with the former owners of Swfte, implementation and
expansion of the Company's  systems and operations to accommodate  the Company's
anticipated future revenues,  the outcome of current and future  examinations by
taxing  authorities,  and other  factors.  In addition,  the  consumer  software
business is seasonal due primarily to the increased demand for consumer software
during the year-end  holiday buying season.  Further,  a significant  portion of
sales within a quarter is typically not realized until late in that quarter.  As
a result,  it may be difficult  for the Company to predict its net sales for the
quarter  or to quickly  adapt its  spending  levels  within a quarter to reflect
changes in demand for its  products.  The market price of the  Company's  Common
Stock has been,  and in the  future  will  likely  be,  subject  to  significant
fluctuations in response to variations in quarterly  operating results and other
factors,  such as announcements of technological  innovations or new products by
the Company or its competitors, or other events.



<PAGE>



                     PART II - OTHER INFORMATION


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

(a) Exhibit 11.

    Statement regarding computation of earnings per share.

(b) Exhibit 27.

    Financial Data Schedule (EDGAR filing only).



                              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, thereto duly authorized.


                                    Expert Software, Inc.


                                    /s/ Charles H. Murphy
                                    Charles H. Murphy,
                                    Chief Financial Officer
                                   (Principal Financial and Accounting Officer)


Dated:  May 15, 1997