UNITED STATES
                   SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D.C. 20549

                                FORM 10-Q
(Mark One)

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

For the quarterly period ended March 31, 2002 or

___  Transition report pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934

For the period from __________ to ___________

                     Commission file number 0-10541

                        COMTEX NEWS NETWORK, INC.

         (Exact name of registrant as specified in its charter)

                    New York                      13-3055012
        (State or other jurisdiction of          (I.R.S. Employer
          incorporation or organization)        Identification No.)

                           4900 Seminary Road
                                Suite 600
                       Alexandria, Virginia  22311
                (Address of principal executive offices)

                             (703) 820-2000
            Registrant's Telephone number including area code


  Former name, former address and former fiscal year, if changed since
                               last report

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 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 May 10, 2002, 13,091,744 shares of the Common Stock of the
registrant were outstanding.
<PAGE>

                        COMTEX NEWS NETWORK, INC.
                            TABLE OF CONTENTS



Part I    Financial Information:                       Page No.

     Item 1.  Financial Statements

               Consolidated Balance Sheets                       3
                as of March 31, 2002 (unaudited)
                and June 30, 2001

               Consolidated Statements of Operations             4
                for the Three and Nine Months Ended
                March 31, 2002 and 2001 (unaudited)

               Consolidated Statements of Cash Flows             5
                for the Nine Months Ended
                March 31, 2002 and 2001 (unaudited)

               Notes to Financial Statements                     6


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

Item 3.  Quantitative and Qualitative Disclosure
                about Market Risk                                15

Part II   Other Information:

     Item 1. Legal Proceedings                                   15
     Item 2. Changes in Securities and Use of Proceeds           15
     Item 3. Defaults Upon Senior Securities                     15
     Item 4. Submission of Matters to a
               Vote of Security Holders                          15
     Item 5. Other Information                                   15
     Item 6.   Exhibits and Reports on Form 8-K                  16


SIGNATURES                                                       17
<PAGE>
                                  COMTEX NEWS NETWORK, INC.
                                 CONSOLIDATED BALANCE SHEETS
<TABLE>
                                                        March 31,                 June 30,
                                                          2002                      2001
                                                     --------------            --------------
                                                        (Unaudited)

<S>                                                   <C>                       <C>
ASSETS

  CURRENT ASSETS
    Cash and Cash Equivalents                          $  1,052,268              $   367,493
    Accounts Receivable, Net of Allowance of
      approximately $296,000 and $554,000
        at March 31, 2002 and June 30, 2001,
        respectively                                      1,085,338                1,897,983
    Prepaid Expenses and Other Current Assets               259,204                  367,112
                                                     --------------            --------------
              TOTAL CURRENT ASSETS                        2,396,810                2,632,588

  PROPERTY AND EQUIPMENT, NET                             3,345,924                3,730,653

  DEPOSITS AND OTHER ASSETS                                 193,349                  201,802
                                                     --------------            --------------
TOTAL ASSETS                                           $  5,936,083              $ 6,565,043
                                                     ==============            ==============
LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES:
    Accounts Payable and Accrued Expenses              $  1,971,989              $ 2,501,834
                                                     --------------            --------------
              TOTAL CURRENT LIABILITIES                   1,971,989                2,501,834

  LONG-TERM LIABILITIES:
    Long-Term Notes Payable - Affiliate                     926,954                  953,954
                                                     --------------            --------------
TOTAL LIABILITIES                                         2,898,943                3,455,788

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY

    Common Stock, $0.01 Par Value -
      Shares Authorized: 18,000,000;
         Shares issued and outstanding: 13,091,694
         and 10,191,373, respectively                       130,917                  101,914
    Additional Capital                                   12,180,932               11,867,469
    Accumulated Deficit                                  (9,271,434)              (8,860,128)
    Foreign Currency Translation Adjustment                  (3,275)                     -
                                                      --------------            --------------
TOTAL STOCKHOLDERS' EQUITY                                3,037,140                3,109,255
                                                      --------------            --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY             $  5,936,083              $ 6,565,043
                                                      ==============            ==============
</TABLE>
The accompanying "Notes to Financial Statements"
are an integral part of these financial statements.
                                         3
<PAGE>
                                   COMTEX NEWS NETWORK, INC.
                             CONSOLIDATED STATEMENTS OF OPERATIONS
                   FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2002 AND 2001
                                           (UNAUDITED)
<TABLE>
                                        Three months ended                     Nine months ended
                                             March 31,                             March 31,
                                   ------------------------------         ----------------------------
                                       2002              2001                2002              2001
                                   -----------       -----------          -----------      -----------
<S>                               <C>                <C>                  <C>              <C>
Revenues                          $ 2,901,678        $4,306,391           $9,563,537       $12,792,136

Cost of Revenues                    1,001,164         1,171,588            3,078,153         3,487,740
                                   -----------       -----------         -----------       -----------
Gross Profit                        1,900,514         3,134,803            6,485,384         9,304,396
Operating Expenses
Technical Operations & Support        548,007           862,970            1,671,420         2,545,469
Product Development                    82,710           191,322              285,514           458,424
Sales and Marketing                   351,370           687,373            1,042,344         2,081,465
General and Administrative          1,101,204         1,108,658            2,999,641         3,018,477
Stock-based Compensation                -                  -                   6,678           314,600
Depreciation and Amortization         280,083           201,889              828,535           516,207
                                   -----------      -----------          -----------       -----------
Total Operating Expenses            2,363,374         3,052,212            6,834,132         8,934,642

Operating Income/(Loss)              (462,860)           82,591             (348,748)          369,754

Other Income/(Expense)
Interest Expense/Other                (23,298)          (24,149)             (70,421)          (74,885)
Interest Income/Other                   2,488            12,615                8,288            62,992
                                   -----------      -----------          -----------       -----------
     Other Income/(Expense), net      (20,810)          (11,534)             (62,133)          (11,893)
                                   -----------      -----------          -----------       -----------
Income Before Income Taxes           (483,670)           71,057             (410,881)          357,861

Income Taxes                            -                   878                  425             2,103
                                   -----------      -----------          -----------       -----------
Net Income/(Loss)                    (486,670)         $ 70,179             (411,306)         $355,758
                                   ===========      ===========          ===========       ===========

Basic Earnings/(Loss)
  Per Common Share                   $   (.04)         $    .01             $   (.04)         $    .04
                                   ===========      ===========          ===========       ===========
Weighted Average Number
   of Common Shares                 11,659,409       10,062,307           10,767,801        10,004,446
                                   ===========      ===========          ===========       ===========
Diluted Earnings/(Loss)
   Per Common Share                  $   (.04)         $    .01             $   (.04)         $    .03
                                   ===========      ===========          ===========       ===========
Weighted Average Number
   of Shares Assuming Dilution      11,659,409       13,270,990           10,767,801        13,629,447
                                   ===========      ===========          ===========       ===========
</TABLE>
The accompanying "Notes to Financial Statements"
are an integral part of these financial statements
                                                       4
<PAGE>
                            COMTEX NEWS NETWORK, INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)
<TABLE>
                                                                   Nine Months Ended
                                                                        March 31,
                                                       ------------------------------------------
                                                            2002                        2001
                                                       --------------              --------------
<S>                                                    <C>                         <C>
Cash Flows from Operating Activities:
Net Income/(Loss)                                        $  (410,381)                $   355,758
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and Amortization Expense                        828,522                     516,207
Bad Debt Expense                                             373,199                     552,850
Stock-based Compensation                                       6,678                     314,600
Changes in Assets and Liabilities:
Accounts Receivable                                          439,446                    (609,843)
Prepaid Expenses and Other Current Assets                    107,838                    (249,177)
Deposits and Other Long Term Assets                            8,453                    (150,712)
Accounts Payable and Accrued Expenses                       (529,790)                     24,280
                                                       --------------              --------------

Net Cash provided by Operating Activities                    823,965                     753,963

Cash Flows from Investing Activities:
Purchases of Property and Equipment                         (444,399)                 (2,042,517)
                                                       --------------              --------------
Net Cash used in Investing Activities                       (444,399)                 (2,042,517)

Cash Flows from Financing Activities:
Repayments on Notes Payable                                  (27,000)                    (84,000)
Issuance of Stock under Employee Stock Purchase Plan          17,965                      43,478
Exercise of Stock Options                                    317,823                      55,817
                                                       -------------               --------------
Net Cash provided by Financing Activities                    308,788                      15,295

Effect of exchange rate changes on cash                       (3,579)                      -
                                                       --------------              --------------
Net Increase/(Decrease)
 in Cash and Cash Equivalents                                684,775                  (1,273,259)

Cash and Cash Equivalents
  at Beginning of Period                                     367,493                   1,655,222
                                                       --------------              --------------
Cash and Cash Equivalents at End of Period               $ 1,052,268                 $   381,963
                                                       ==============              ==============
</TABLE>
The accompanying "Notes to Financial Statements"
are an integral part of these financial statements
                                         5
<PAGE>

                    COMTEX NEWS NETWORK, INC.
            NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                         March 31, 2002


1.   Basis of Presentation

The accompanying interim consolidated financial statements
of COMTEX News Network, Inc. (the "Company" or "COMTEX") and its
wholly-owned subsidiary, nFactory COMTEX, S.L., are unaudited,
but in the opinion of management reflect all adjustments
(consisting only of normal recurring accruals) necessary for a
fair presentation of results for such periods.  The results of
operations for any interim period are not necessarily indicative
of results for the full year.  The balance sheet at June 30, 2001
has been derived from the audited financial statements at that
date but does not include all of the information and footnotes
required by accounting principles generally accepted in the
United States for complete financial statements. These financial
statements should be read in conjunction with the financial
statements and notes thereto included in the Company's Annual
Report on Form 10-K for the fiscal year ended June 30, 2001
("2001 Form 10-K"), filed with the Securities and Exchange
Commission on September 28, 2001.

In June 2001, the Financial Accounting Standards Board issued
Statements of Financial Accounting Standards No. 141, Business
Combinations, and No. 142, Goodwill and Other Intangible
Assets, effective for fiscal years beginning after December
15, 2001. Under the new rules, goodwill and intangible assets
deemed to have indefinite lives will no longer be amortized
but will be subject to annual impairment tests in accordance
with the Statements. Other intangible assets will continue to
be amortized over their useful lives.

The Company will apply the new rules on accounting for
goodwill and other intangible assets beginning in the first
quarter of fiscal 2003. Application of the non-amortization
provisions of the Statement is not expected to result in a
material change in net income.  If necessary, the Company will
perform the first of the required impairment tests of goodwill
and indefinite lived intangible assets as of July 1, 2002, and
has not yet determined what the effect of these tests will be
on the earnings and financial position of the Company.

The Company has designated the Euro as the functional currency of
its wholly-owned subsidiary in Spain.  Accordingly, assets and
liabilities are translated from the Euro into U.S. dollars at the
end of period exchange rate, and revenues and expenses are
translated at average monthly exchange rates.  Foreign currency
translation gains and losses are recorded in stockholders' equity
and reflected as a component of other comprehensive income or
loss.  Total comprehensive loss for the three and nine months
ended March 31, 2002 was approximately $487,000 and $415,000,
respectively.
<PAGE>
During the fiscal year ended June 30, 2001, the Company recorded
an adjustment to the quarter ended September 30, 2000, of
approximately $315,000 in stock-based compensation pursuant to
the transfer of options by the Chairman of the Board of Directors
to certain members of management. This adjustment resulted in a
reduction in operating income, net income and retained earnings
of the same amount. Basic earnings per share and diluted earnings
per share were reduced by 3 cents and 2 cents, respectively, for
the nine months ended March 31, 2001.

Certain amounts for the three and nine months ended March
31, 2001 have been reclassified to conform to the presentation of
the three and nine months ended March 31, 2002.


2.   Net Income per Share

The following table sets forth the computation of basic and diluted
earnings per share:
<TABLE>
                                         Three Months Ended                   Nine Months Ended
                                              March 31,                           March 31,
                                        2002              2001              2002              2001
                                   --------------     ------------    ---------------    --------------
 <S>                               <C>                <C>             <C>                <C>
 Numerator:
 Net Income/(Loss)                   $   (483,670)     $    70,179       $   (411,306)     $    355,758
                                   ==============     ============    ================   ==============
 Denominator:
 Denominator for basic earnings per
 share - weighted average shares       11,659,409       10,062,307         10,767,801        10,004,446

 Effect of dilutive securities:
 Stock Options                            -              3,208,683           -                3,625,001
                                   --------------     ------------    ----------------   ---------------
 Denominator for diluted earnings      11,659,409       13,270,990         10,767,801        13,629,447
 per share
                                   ==============     ============    ================   ===============

 Basic (Loss)/Earnings Per Share     $      (.04)     $        .01      $       (.04)    $         .04

 Diluted (Loss)/Earnings Per         $      (.04)     $        .01      $       (.04)    $         .03
 Share

</TABLE>
<PAGE>


3.   Income Taxes

The provision for income taxes is limited to the liability for
alternative minimum tax, as the majority of income for Federal and state
tax purposes has been offset by net operating loss and investment tax
credit carryforwards.


4.   Commitments and Contingencies

On July 17, 2001, the Company filed a breach of contract action against
Infospace, Inc., a former customer, in the United States District Court
for the Eastern District of Virginia for payments owed under contracts
with the defendant corporation.  The suit was captioned Comtex News
Network, Inc. v. Infospace, Inc.  Case Number CV01-1108-A.  On August 13,
2001, Infospace filed an Answer and Counterclaim alleging that Comtex
breached its agreement and sought damages for lost business, loss of
reputation and good will.

On March 11, 2002, the court issued a directed verdict in favor of
InfoSpace on the breach of contract claim and Infospace withdrew the
counterclaim.  Infospace has filed a petition with the court for
reimbursement of attorneys' fees and costs.  That petition has been
opposed by the Company and is under consideration by the court.


Item 2.
                 MANAGEMENT'S DISCUSSION AND ANALYSIS OF
              FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our financial condition and results of
operations should be read in conjunction with the financial statements
and the related notes included elsewhere in this Form 10-Q, and the
financial statements and related notes and Management's Discussion and
Analysis of Financial Condition and Results of Operations included in our
annual report on Form 10-K for the year ended June 30, 2001 filed with
the Securities and Exchange Commission on September 28, 2001.  Historical
results and percentage relationships among any amounts in the Financial
Statements are not expected to be indicative of trends in operating
results for any future period.
<PAGE>
Forward-looking Statements

This Form 10-Q contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These statements are
subject to a variety of risks and uncertainties, many of which are beyond
our control, which could cause actual results to differ materially from
those contemplated in these forward-looking statements. In particular,
the risks and uncertainties include those described in our annual report
on Form 10-K for the year ended June 30, 2001 and in other periodic
Securities and Exchange Commission filings. These risks and uncertainties
include, among other things, the following:

      O  the growth of the Internet news market;
      O  the effects of competition;
      O  our ability to maintain our name recognition;
      O  the financial stability of our customers;
      O  our ability to manage growth of our operations, both domestically
           and internationally;
      O  our ability to maintain a secure and reliable news-delivery network;
      O  our ability to maintain relationships with key content providers;
      O  our ability to attract and retain key personnel;
      O  the volatility of our Common Stock price;
      O  acquisitions involving us, which may disrupt the business and be
           dilutive to our existing stockholders;
      O  our ability to successfully market our services to current and new
           customers;
      O  our ability to reduce operating expenses; and
      O  our ability to manage and grow our business in markets impacted by
           terrorist activities.

Existing and prospective investors are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the
date hereof. We undertake no obligation to update or revise the
information contained in this Form 10-Q, whether as a result of new
information, future events or circumstances or otherwise.


Critical Accounting Policies and Estimates

Management's Discussion and Analysis of Financial Condition and Results
of Operations discusses our consolidated financial statements, which have
been prepared in accordance with accounting policies generally accepted
in the United States.  The preparation of these consolidated financial
statements requires us to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure of
contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting
period.  We believe the following critical accounting policies affect
significant judgments, estimates and assumptions used in the preparation
of the consolidated financial statements.
<PAGE>
Revenue

Information services revenues are recognized as services are rendered
based on contractual terms such as usage, fixed fee, percentage of
distributor revenues or other pricing models.  Start-up fee revenues are
recognized over the initial term of the contract.  Data communication
revenues are recognized in accordance with contract terms as costs are
incurred.  Amounts received in advance are deferred and recognized over
the service period.

Contingencies

From time to time, we are subject to proceedings, lawsuits and other
claims related to labor and other matters.  We are required to assess the
likelihood of any adverse judgments or outcomes to these contingencies as
well as potential ranges of probable losses and establish reserves
accordingly.  The amounts of reserves required, if any, may change in
future periods due to new developments in each matter or changes in
approach to a matter such as a change in settlement strategy.


RESULTS OF OPERATIONS

Comparison of the three months ended March 31, 2002 to the three months
ended March  31, 2001


During the three months ended March 31, 2002, we incurred an
operating loss of approximately $463,000, compared to operating income of
approximately $83,000 during the three months ended March 31, 2001.  We
reported a net loss of approximately $484,000 during the three months
ended March 31, 2002, compared to net income of approximately $70,000 for
the three months ended March 31, 2001.  As discussed below, the decline
in operating income and net income is due primarily to a decrease in
gross revenues and a decrease in gross profit margins. The decline in
revenues was partially offset by a decrease in total operating expenses.
In addition, we incurred costs of approximately $360,000 during the
quarter related to a breach of contract action against Infospace, Inc., a
former customer.

Revenues consist primarily of royalty revenues and fees from the
licensing of content products to information distributors.  During the
three months ended March 31, 2002, total revenues were approximately
$2,902,000, or approximately $1,405,000 (33%) less than the total
revenues for the three months ended March 31, 2001.  The decline in
revenues is the direct result of business shut downs and consolidation
among clients, primarily in the Internet and personal investor markets.
Further, revenues from new customers were less than the revenues
generated from new customers in the prior year's quarter.
<PAGE>
Our cost of revenues consists primarily of content license fees and
royalties to information providers, as well as data communication costs
for the delivery of our products to customers.  The cost of revenues for
the three months ended March 31, 2002 was approximately $1,001,000 or
approximately $170,000 (15%) less than the cost of revenues for the three
months ended March 31, 2001.  The decrease in cost is primarily due to
the decrease in content royalties as a result of decreased revenues for
the period.  The decrease is partially offset by required minimum fees
paid to certain information providers that cause royalties, as a
percentage of revenues, to be higher.

The gross profit for the three months ended March 31, 2002 was
approximately $1,901,000 or approximately $1,234,000 (39%) less than the
gross profit for the same period in the prior year.   The gross profit
percentage declined for the three months ended March 31, 2002 to
approximately 66% from approximately 73% for the three months ended March
31, 2001.  The decline relates to the decrease in revenues which caused
the required minimum fees paid to certain information providers to exceed
the royalties earned by those information providers during the period,
therefore increasing the cost as a percentage of revenues.

Total operating expenses for the three months ended March 31, 2002 were
approximately $2,363,000, representing an approximately $689,000 (23%)
decrease in operating expenses from the three months ended March 31,
2001.  The decrease in operating expenses reflects reductions in
personnel across all departments and reduced sales and marketing
expenses.  These expense reductions were implemented in response to the
decline in revenue over the past twelve months. The decrease in operating
expenses was partially offset by increased legal and accounting fees,
business consulting activities, the funding of nFactory COMTEX, S.L.
operations and an increase in depreciation and amortization expense.

Technical operations and support expenses during the three months
ended March 31, 2002 decreased approximately $315,000 (36%) from these
expenses in the three months ended March 31, 2001.  The decrease in
expense resulted from a decrease in personnel, computer parts and
consulting expenses.

Product development expenses decreased by approximately $109,000
(57%) for the three months ended March 31, 2002 compared to the three
months ended March 31, 2001.  This decrease is the result of personnel
reductions in this department.  Product development activities include
quality assurance, enhancements to our products and the development of
proprietary news products.

Sales and marketing expenses decreased by approximately $336,000
(49%) for the three months ended March 31, 2002 compared to the three
months ended March 31, 2001.  This decrease is the result of reductions
in personnel, advertising and promotional activities and public relations
expenses compared to the same quarter in the previous year, as well as
decreased sales commissions.
<PAGE>
General and administrative expenses for the three months ended March
31, 2002 were approximately $7,000 (1%) less than these expenses during
the three months ended March 31, 2001.  This minimal decrease is due
primarily to decreases in personnel and related costs including
recruiting and office supplies.  The decreases were partially offset by
an increase in consulting activities aimed at exploring business
development opportunities and legal and accounting fees related to the
Infospace lawsuit.

Depreciation and amortization expense for the three months ended March
31, 2002 was approximately $78,000 (39%) higher than the expense during
the same period in the prior year.  The increase was due to the
deployment of upgraded production software and hardware in the spring of
2001 and increased capital expenditures related to increasing the
capacity and redundancy of the production systems over the past twelve
months.

Other income for the three months ended March 31, 2002 decreased
approximately $9,000, or 80%, compared to the three months ended March
31, 2001.  The decrease was due to reduced interest earned on decreased
cash balances.


Comparison of the nine months ended March 31, 2002 to the nine months
ended March 31, 2001

During the nine months ended March 31, 2002, we incurred an
operating loss of approximately $349,000, compared to operating income of
approximately $370,000 during the nine months ended March 31, 2001.  We
reported a net loss of approximately $411,000 during the nine months
ended March 31, 2002, compared to net income of approximately $356,000
for the nine months ended March 31, 2001.  As discussed below, the
decline in operating income and net income is due primarily to a decrease
in gross revenues and partially to a decrease in gross profit margins.
In addition, we incurred professional fees related to a breach of
contract action against Infospace, Inc. during the nine months ended
March 31, 2002.  The decline was partially offset by a decrease in total
operating expenses.

Revenues consist primarily of royalty revenues and fees from the
licensing of content products to information distributors.  During the
nine months ended March 31, 2002, total revenues were approximately
$9,564,000 or approximately $3,229,000 (25%) less than the total revenues
for the nine months ended March 31, 2001. The decline in revenues is the
direct result of business shut downs and consolidation among clients,
primarily in the Internet and personal investor markets.   In addition,
revenues from new customers in the current nine-month period were less
than the revenues generated from new customers in the prior nine-month
period.
<PAGE>
Our cost of revenues consists primarily of content license fees and
royalties to information providers, as well as data communication costs
for the delivery of our products to customers.  The cost of revenues for
the nine months ended March 31, 2002 was approximately $3,078,000 or
approximately $410,000 (12%) less than the cost of revenues for the nine
months ended March 31, 2001.  The decrease in cost is primarily due to
the decrease in content royalties as a result of decreased revenues for
the period. The decrease is partially offset by required minimum fees
paid to certain information providers that cause royalties, as a
percentage of revenue, to be higher.

The gross profit for the nine months ended March 31, 2002 was
approximately $6,485,000 or approximately $2,819,000 (30%) less than the
gross profit for the same period in the prior year.   The gross profit
percentage declined for the nine months ended March 31, 2002 to
approximately 68% from approximately 73% for the nine months ended March
31, 2001. The decline relates to the decrease in revenues which caused
the required minimum fees paid to certain information providers to exceed
the royalties earned by those information providers during the period,
therefore increasing the cost as a percentage of revenues.

Total operating expenses for the nine months ended March 31, 2002 were
approximately $6,834,000, representing an approximately $2,101,000 (24%)
decrease in operating expenses over the nine months ended March 31, 2001.
The decrease in operating expenses reflects reductions in personnel
across all departments, reduced sales and marketing expenses and a
decrease in stock-based compensation.  These expense reductions were
implemented in response to a decline in revenue over the previous twelve
months. The decrease in operating expenses was partially offset by
increased consulting activities aimed at exploring business development
opportunities, increased legal and accounting fees and an increase in
depreciation and amortization expense.

Technical operations and support expenses during the nine months
ended March 31, 2002 decreased approximately $874,000 (34%) from these
expenses in the nine months ended March 31, 2001.  This decrease resulted
from a decrease in personnel, computer parts, software maintenance and
consulting expenses. The decrease in expense also includes an adjustment
to software expense related to the return of certain software and
renegotiated license fees.

Product development expenses decreased by approximately $173,000
(38%) for the nine months ended March 31, 2002 compared to the nine
months ended March 31, 2001.  This decrease is the result of personnel
reductions in this department.  Product development activities include
quality assurance, enhancements to our products and the development of
proprietary news products.

Sales and marketing expenses decreased by approximately $1,039,000
(50%) for the nine months ended March 31, 2002 compared to the nine
months ended March 31, 2001.  This decrease is the result of a reduction
in personnel, decreases in advertising and promotional activities, public
relations expenses and sales commissions.  In addition, travel,
entertainment and conference costs were significantly lower in the
current period compared to the previous year.
<PAGE>
General and administrative expenses for the nine months ended March
31, 2002 were approximately $19,000 (1%) less than these expenses during
the nine months ended March 31, 2000.  This minimal decrease in expenses
resulted from decreases in personnel and related costs including
recruiting, employee relations and office supplies.  The decrease was
partially offset by increases in consulting activities to explore
business development opportunities, legal and accounting fees for
litigation issues and SEC filings, and Board of Directors fees related to
additional meetings.

In connection with the transfer of stock options from the Chairman of the
Board of Directors to certain employees, we recorded stock-based
compensation of approximately $7,000 for the nine months ended March 31,
2002, compared to approximately $315,000 for the nine months ended March
31, 2001.  The decrease in stock-based compensation is a result of the
decrease in the fair market value of our common stock as of the dates of
transfer.

Depreciation and amortization expense for the nine months ended March 31,
2002 was approximately $312,000 (61%) higher than the expense during the
same period in the prior year.  The increase was due to the deployment of
upgraded production software and hardware in the spring of 2001 and
increased capital expenditures related to increasing the capacity and
redundancy of the production systems over the past twelve months.

Other income for the nine months ended March 31, 2002 decreased
approximately $50,000 compared to the nine months ended March 31, 2001.
This decrease was due to reduced interest earned on decreased cash
balances.


FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

For the nine months ended March 31, 2002, our operations produced an
operating loss of approximately $349,000 and a net loss of approximately
$411,000.  At March 31, 2002, we had working capital of approximately
$425,000, as compared with working capital of approximately $131,000 at
June 30, 2001.  The increase in working capital was due primarily to the
use of cash provided by operating activities to reduce accounts payable
and accrued expenses, as well as an increase in the collection of
accounts receivable.  We had net stockholders' equity of approximately
$3,037,000 at March 31, 2002, as compared to net stockholders' equity at
June 30, 2001 of approximately $3,109,000.  The decrease in stockholders'
equity was due primarily to the net loss incurred during the nine months
ended March 31, 2002, partially offset by the exercise of stock options,
and the issuance of stock under the Employee Stock Purchase Plan.

For the nine months ended March 31, 2002, operating activities generated
approximately $824,000 in cash.  We had cash of approximately $1,052,000
at March 31, 2002, compared to approximately $367,000 at June 30, 2001.
To date, our operations have generated cash flow sufficient to cover our
expenses.

We made capital expenditures of approximately $444,000 in the nine
months ended March 31, 2002, primarily for software licensing and the
development of software for internal use, compared to $2,043,000 for the
same period ended March 31, 2001. These investments improve our product
capabilities and reliability, and our ability to meet future content and
client processing requirements.
<PAGE>
In June 2001, we obtained a $500,000 line of credit to assist us with
short-term fluctuations in cash flow, if necessary.  The line of credit
bears interest at the Prime Rate, as published in The Wall Street
Journal, and expires June 29, 2002.  To date we have not used this
facility but may do so in the future.

In August 2001, we signed an amendment to the 10% Senior Subordinated and
Secured Note payable to AMASYS Corporation ("AMASYS") extending the term
of the note from July 1, 2002 to July 1, 2008.  Included in the amendment
is a provision for AMASYS to convert all or a portion of the outstanding
principal amount, plus accrued interest, into common stock of COMTEX.
The note is convertible at a price of $1.00 per share, which price
increases by $0.10 upon each anniversary of the amendment.

During the second quarter of FY 2002, our wholly owned subsidiary,
nFactory COMTEX, S.L., located in Madrid, Spain, began operations.  The
subsidiary was formed to sell existing Comtex products to clients in
Western Europe and establish a customer foundation for selected new
product initiatives.   The effective date of the agency agreement between
COMTEX and the subsidiary was amended to May 1, 2002.  All payments made
to or on behalf of the subsidiary prior to that date are recorded as
capital contributions.  As of the nine months ended March 31, 2002, we
have made capital contributions of approximately $189,000.  The financial
statements included with this Form 10-Q present the consolidated
financial results of COMTEX and its subsidiary.

Currently, our operations generate cash flow sufficient to cover our
expenses and we believe that cash from operations will provide us with
adequate cash resources to meet our obligations on a short-term basis.
Our ability to meet our liquidity needs on a long- term basis depends
upon our ability to generate sufficient revenues and cash to cover our
current obligations and to pay down our long-term debt obligations.  Any
further corporate consolidation or market deterioration affecting our
customers could limit our ability to generate such revenues.  No
assurance may be given that we will be able to maintain the revenue base
or the size of profitable operations that may be necessary to achieve our
liquidity needs.

EBITDA, as defined below, decreased approximately 59% to $486,000 for the
nine months ended March 31, 2002 compared to $1,201,000 for the nine
months ended March 31, 2001.  The decrease is due to the decline in
revenues and gross profit margin, offset partially by decreased operating
expenses, excluding stock-based compensation, depreciation and
amortization.

EBITDA consists of earnings before interest expense, interest and other
income, income taxes, stock-based compensation, depreciation and
amortization.  EBITDA does not represent funds available for management's
discretionary use and is not intended to represent cash flow from
operations.  EBITDA should also not be construed as a substitute for
operating income or a better measure of liquidity than cash flow from
operating activities, which are determined in accordance with generally
accepted accounting principles.  EBITDA excludes components that are
significant in understanding and assessing our results of operations and
cash flows.  In addition, EBITDA is not a term defined by generally
accepted accounting principles, and as a result, our measure of EBITDA
might not be comparable to similarly titled measures used by other
companies.
<PAGE>
However, we believe that EBITDA is relevant and useful information,
which is often reported and widely used by analysts, investors and other
interested parties in our industry.  Accordingly, we are disclosing this
information to permit a more comprehensive analysis of our operating
performance, as an additional meaningful measure of performance and
liquidity, and to provide additional information with respect to our
ability to meet future debt service, capital expenditure and working
capital requirements.  See the audited financial statements and notes
thereto contained elsewhere in this report for more detailed information.

Item 3.

          QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.

          None.

<PAGE>
Part II.  Other Information

     Item 1.  Legal Proceedings -

On July 17, 2001, we filed a breach of contract action against
Infospace, Inc., a former customer, in the United States District Court
for the Eastern District of Virginia for payments owed under contracts
with the defendant corporation.  The suit was captioned Comtex News
Network, Inc. v. Infospace, Inc.  Case Number CV01-1108-A.  On August 13,
2001, Infospace filed an Answer and Counterclaim alleging that we
breached our agreement and sought damages for lost business, loss of
reputation and good will.

On March 11, 2002, the court issued a directed verdict in favor of
InfoSpace on the breach of contract claim and Infospace withdrew the
counterclaim.  Infospace has filed a petition with the court for
reimbursement of attorneys' fees and costs.  We have opposed the
petition, which is under consideration by the court.

We are also involved in routine legal proceedings occurring in the
ordinary course of business, which in the aggregate are believed by
management to be immaterial to our financial condition.


     Item 2.  Changes in Securities and Use of Proceeds

               None.


     Item 3.  Defaults Upon Senior Securities

               None.


     Item 4.  Submission of Matters to a Vote of Security Holders

               None.


     Item 5.  Other Information

               None.

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

     (a)  Exhibits
                21  Subsidiaries of the Registrant


     (b)  Reports on Form 8-K

               On March 6, 2002 we filed a current report on Form 8-K
               reporting a change in control of the Company, by which
               current members of the Board of Directors and management
               increased their share ownership pursuant to the purchase
               of shares of common stock.
 <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.

                              COMTEX NEWS NETWORK, INC.
                                   (Registrant)


    Dated:  May 15, 2002         By:  /S/   CHARLES W. TERRY
                                  Charles W. Terry
                                  President and Chief Executive
                                   Officer
                                  (Principal Executive Officer)

                              By:  /S/   ROBIN Y. DEAL
                                   Robin Y. Deal
                                   Vice President, Finance
                                    & Accounting
                                    (Principal Financial
                                     and Accounting Officer)



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