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 July 5, 2003

                                       OR

( )  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934


For the transition period from              to

Commission file number 0-20022


                           POMEROY IT SOLUTIONS, INC.
                           --------------------------
             (Exact name of registrant as specified in its charter)


DELAWARE                                                      31-1227808
--------                                                      ----------
(State or jurisdiction of incorporation                     (IRS Employer
  or organization)                                        Identification No.)

                     1020 Petersburg Road, Hebron, KY 41048
                     --------------------------------------
                    (Address of principal executive offices)

                                 (859) 586-0600
                                 --------------
              (Registrant's telephone number, including area code)

     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
requirements  for  the  past  90  days.

YES   X  NO
     ---    ---

     Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

YES   X  NO
     ---     ---

The number of shares of common stock outstanding as of August 6, 2003 was
12,907,346.


                                        1
<PAGE>
                           POMEROY IT SOLUTIONS, INC.

                                TABLE OF CONTENTS

Part I.     Financial Information

            Item 1.  Financial Statements:                                  Page
                                                                            ----

                     Consolidated Balance Sheets as of July 5, 2003
                     and January 5, 2003                                      3

                     Consolidated Statements of Income for the
                     Three Months Ended July 5, 2003 and 2002                 5

                     Consolidated Statements of Income for the
                     Six Months Ended July 5, 2003 and 2002                   6

                     Consolidated Statements of Cash Flows for the
                     Six Months Ended July 5, 2003 and 2002                   7

                     Notes to Consolidated Financial Statements               8

            Item 2.  Management's Discussion and Analysis of Financial
                     Condition and Results of Operations                     16

            Item 3.  Quantitative and Qualitative Disclosure about
                     Market Risk                                             21

            Item 4.  Controls and Procedures                                 21

Part II.    Other Information                                                22

SIGNATURE                                                                    23


                                        2
<PAGE>
<TABLE>
<CAPTION>
                           POMEROY IT SOLUTIONS, INC.

                           CONSOLIDATED BALANCE SHEETS

(in thousands)                                              July 5,   January 5,
                                                              2003       2003
                                                            --------  -----------
<S>                                                         <C>       <C>
                                                           Unaudited
ASSETS

Current Assets:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 57,900  $    32,505

Accounts receivable:
  Trade, less allowance of $1,935 and $1,553 at July 5,
    2003 and January 5, 2003, respectively . . . . . . . .    86,840       95,859
  Vendor receivables, less allowance of $3,334 at
    July 5, 2003 and January 5, 2003 . . . . . . . . . . .     5,421       10,297
  Net investment in leases . . . . . . . . . . . . . . . .     2,432        1,966
  Other. . . . . . . . . . . . . . . . . . . . . . . . . .     2,796        2,775
                                                            --------  -----------
      Total receivables. . . . . . . . . . . . . . . . . .    97,489      110,897
                                                            --------  -----------

Inventories. . . . . . . . . . . . . . . . . . . . . . . .    11,710       11,238
Other. . . . . . . . . . . . . . . . . . . . . . . . . . .     8,507       10,198
                                                            --------  -----------
      Total current assets . . . . . . . . . . . . . . . .   175,606      164,838
                                                            --------  -----------

Equipment and leasehold improvements:
  Furniture, fixtures and equipment. . . . . . . . . . . .    29,439       28,741
  Leasehold Improvements . . . . . . . . . . . . . . . . .     6,400        5,951
                                                            --------  -----------
      Total. . . . . . . . . . . . . . . . . . . . . . . .    35,839       34,692

  Less accumulated depreciation. . . . . . . . . . . . . .    17,599       15,393
                                                            --------  -----------
      Net equipment and leasehold improvements . . . . . .    18,240       19,299
                                                            --------  -----------

Net investment in leases . . . . . . . . . . . . . . . . .     2,579        1,889
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . .    64,895       60,635
Intangible assets. . . . . . . . . . . . . . . . . . . . .       544          540
Other assets . . . . . . . . . . . . . . . . . . . . . . .     1,195        1,295
                                                            --------  -----------
      Total assets . . . . . . . . . . . . . . . . . . . .  $263,059  $   248,496
                                                            ========  ===========
</TABLE>


                See notes to consolidated financial statements.
                                        3
<PAGE>
<TABLE>
<CAPTION>
                           POMEROY IT SOLUTIONS, INC.

                           CONSOLIDATED BALANCE SHEETS

(in thousands)                                                  July 5,   January 5,
                                                                  2003       2003
                                                                --------  -----------
<S>                                                             <C>       <C>
                                                               (unaudited)
LIABILITIES AND EQUITY

Current Liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . .  $ 41,382  $    31,165
Current portion of notes payable . . . . . . . . . . . . . . .     1,204          541
Deferred revenue . . . . . . . . . . . . . . . . . . . . . . .     1,866        1,490
Other current liabilities. . . . . . . . . . . . . . . . . . .     9,075        8,308
                                                                --------  -----------
      Total current liabilities. . . . . . . . . . . . . . . .    53,527       41,504
                                                                --------  -----------

Notes payable. . . . . . . . . . . . . . . . . . . . . . . . .       663            -
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . .     4,161        3,318
Commitments and contingencies

Equity:
  Preferred stock,  $.01 par value; authorized 2,000 shares,
    (no shares issued or outstanding). . . . . . . . . . . . .         -            -
  Common stock, $.01 par value; authorized 20,000 shares,
    (12,892 and 12,869 shares issued at July 5, 2003 and
    January 5, 2003, respectively) . . . . . . . . . . . . . .       129          129
  Paid in capital. . . . . . . . . . . . . . . . . . . . . . .    81,940       81,740
  Retained earnings. . . . . . . . . . . . . . . . . . . . . .   129,508      125,988
                                                                --------  -----------
                                                                 211,577      207,857
  Less treasury stock, at cost (642 and 355 shares
    at July 5, 2003 and January 5, 2003, respectively) . . . .     6,869        4,183
                                                                --------  -----------
         Total equity. . . . . . . . . . . . . . . . . . . . .   204,708      203,674
                                                                --------  -----------
         Total liabilities and equity. . . . . . . . . . . . .  $263,059  $   248,496
                                                                ========  ===========
</TABLE>


                See notes to consolidated financial statements.


                                        4
<PAGE>
<TABLE>
<CAPTION>
                           POMEROY IT SOLUTIONS, INC.
                        CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)            Three Months Ended
                                              -----------------------
                                                July 5,      July 5,
                                                  2003        2002
                                              ------------  ---------
<S>                                           <C>           <C>
                                               (unaudited) (unaudited)
Net sales and revenues:
  Sales-equipment, supplies and leasing . .   $   116,195   $162,923
  Service . . . . . . . . . . . . . . . . .        31,157     33,657
                                              ------------  ---------
    Total net sales and revenues. . . . . .       147,352    196,580
                                              ------------  ---------

Cost of sales and service:
  Sales-equipment, supplies and leasing . .       107,291    149,342
  Service . . . . . . . . . . . . . . . . .        22,744     23,136
                                              ------------  ---------
    Total cost of sales and service . . . .       130,035    172,478
                                              ------------  ---------
      Gross profit. . . . . . . . . . . . .        17,317     24,102
                                              ------------  ---------

Operating expenses:
  Selling, general and administrative . . .        11,808     13,111
  Rent expense. . . . . . . . . . . . . . .           809        849
  Depreciation. . . . . . . . . . . . . . .         1,250      1,151
  Amortization. . . . . . . . . . . . . . .            73        225
  Provision for doubtful accounts . . . . .             -        500
  Restructuring charge. . . . . . . . . . .             -        487
  Litigation settlement . . . . . . . . . .           150          -
                                              ------------  ---------
      Total operating expenses. . . . . . .        14,090     16,323
                                              ------------  ---------

Income from operations. . . . . . . . . . .         3,227      7,779
                                              ------------  ---------

Other expense (income):
  Interest. . . . . . . . . . . . . . . . .           (81)       199
  Miscellaneous . . . . . . . . . . . . . .             8         (6)
                                              ------------  ---------
      Net other expense (income). . . . . .           (73)       193
                                              ------------  ---------

  Income  before income tax . . . . . . . .         3,300      7,586
  Income tax expense. . . . . . . . . . . .         1,287      2,959
                                              ------------  ---------
  Net income. . . . . . . . . . . . . . . .   $     2,013   $  4,627
                                              ============  =========

Weighted average shares outstanding:
  Basic . . . . . . . . . . . . . . . . . .        12,346     12,743
                                              ============  =========
  Diluted . . . . . . . . . . . . . . . . .        12,379     12,872
                                              ============  =========

Earnings per common share:
  Basic . . . . . . . . . . . . . . . . . .   $      0.16   $   0.36
                                              ============  =========
  Diluted . . . . . . . . . . . . . . . . .   $      0.16   $   0.36
                                              ============  =========
</TABLE>


                See notes to consolidated financial statements.


                                        5
<PAGE>
<TABLE>
<CAPTION>
                           POMEROY IT SOLUTIONS, INC.
                        CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)               Six Months Ended
                                                -----------------------
                                                   July 5,     July 5,
                                                    2003        2002
                                                ------------  ---------
<S>                                             <C>           <C>
                                                 (unaudited) (unaudited)
Net sales and revenues:
  Sales-equipment, supplies and leasing. . . .  $   216,181   $316,376
  Service. . . . . . . . . . . . . . . . . . .       61,149     66,552
                                                ------------  ---------
    Total net sales and revenues . . . . . . .      277,330    382,928
                                                ------------  ---------

Cost of sales and service:
  Sales-equipment, supplies and leasing. . . .      199,361    289,178
  Service. . . . . . . . . . . . . . . . . . .       44,275     45,828
                                                ------------  ---------
    Total cost of sales and service. . . . . .      243,636    335,006
                                                ------------  ---------
      Gross profit . . . . . . . . . . . . . .       33,694     47,922
                                                ------------  ---------

Operating expenses:
  Selling, general and administrative. . . . .       23,298     26,924
  Rent expense . . . . . . . . . . . . . . . .        1,595      1,764
  Depreciation . . . . . . . . . . . . . . . .        2,414      2,327
  Amortization . . . . . . . . . . . . . . . .          296        496
  Provision for doubtful accounts. . . . . . .          200        500
  Restructuring charge . . . . . . . . . . . .            -        487
  Litigation settlement. . . . . . . . . . . .          150          -
                                                ------------  ---------
      Total operating expenses . . . . . . . .       27,953     32,498
                                                ------------  ---------

Income from operations . . . . . . . . . . . .        5,741     15,424
                                                ------------  ---------

Other expense (income):
  Interest . . . . . . . . . . . . . . . . . .          (15)       325
  Miscellaneous. . . . . . . . . . . . . . . .          (14)        (8)
                                                ------------  ---------
      Net other expense (income) . . . . . . .          (29)       317
                                                ------------  ---------

  Income  before income tax. . . . . . . . . .        5,770     15,107
  Income tax expense . . . . . . . . . . . . .        2,250      5,817
                                                ------------  ---------
  Net income . . . . . . . . . . . . . . . . .  $     3,520   $  9,290
                                                ============  =========

Weighted average shares outstanding:
  Basic. . . . . . . . . . . . . . . . . . . .       12,399     12,720
                                                ============  =========
  Diluted. . . . . . . . . . . . . . . . . . .       12,422     12,832
                                                ============  =========

Earnings per common share:
  Basic. . . . . . . . . . . . . . . . . . . .  $      0.28   $   0.73
                                                ============  =========
  Diluted. . . . . . . . . . . . . . . . . . .  $      0.28   $   0.72
                                                ============  =========
</TABLE>


                See notes to consolidated financial statements.


                                        6
<PAGE>
<TABLE>
<CAPTION>
                           POMEROY IT SOLUTIONS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS


(in thousands)                                          Six Months Ended
                                                     -----------------------
                                                        July 5,     July 5,
                                                         2003        2002
                                                     ------------  ---------
<S>                                                  <C>           <C>
                                                     (unaudited)  (unaudited)
Cash flows from operating activities:
  Net income. . . . . . . . . . . . . . . . . . . .  $     3,520   $  9,290
  Adjustments to reconcile net income to net cash
    flows from operating activities:
  Depreciation. . . . . . . . . . . . . . . . . . .        2,414      2,841
  Amortization. . . . . . . . . . . . . . . . . . .          296        496
  Deferred income taxes . . . . . . . . . . . . . .        1,617     (1,251)
  Loss on sale of fixed assets. . . . . . . . . . .           19        597
  Changes in working capital accounts, net of
    effects of acquisitions:
    Receivables . . . . . . . . . . . . . . . . . .       17,736     25,307
    Inventories . . . . . . . . . . . . . . . . . .         (339)      (391)
    Prepaids. . . . . . . . . . . . . . . . . . . .        1,834     (1,686)
    Net investment in leases. . . . . . . . . . . .       (1,156)       790
    Accounts payable. . . . . . . . . . . . . . . .        6,205    (36,150)
    Deferred revenue. . . . . . . . . . . . . . . .          376       (336)
    Income tax payable. . . . . . . . . . . . . . .            -     (3,269)
    Other, net. . . . . . . . . . . . . . . . . . .           23      1,425
                                                     ------------  ---------
  Net operating activities. . . . . . . . . . . . .       32,545     (2,337)
                                                     ------------  ---------
Cash flows from investing activities:
  Capital expenditures. . . . . . . . . . . . . . .       (1,166)    (6,130)
  Proceeds from sale of fixed assets. . . . . . . .            1        434
  Proceeds from sale of leasing segment . . . . . .            -     21,716
  Acquisition of subsidiary companies, net of
    cash acquired . . . . . . . . . . . . . . . . .       (3,499)      (848)
                                                     ------------  ---------
  Net investing activities. . . . . . . . . . . . .       (4,664)    15,172
                                                     ------------  ---------
Cash flows from financing activities:
  Payments under notes payable. . . . . . . . . . .            -     (8,385)
  Proceeds under notes payable. . . . . . . . . . .            -      4,900
  Net payments under bank notes payable . . . . . .            -    (11,883)
  Proceeds from exercise of stock options . . . . .           34        810
  Payment for treasury stock purchase . . . . . . .       (2,686)         -
  Proceeds from employee stock purchase plan. . . .          166        238
                                                     ------------  ---------
  Net financing activities. . . . . . . . . . . . .       (2,486)   (14,320)
                                                     ------------  ---------

Increase (decrease) in cash . . . . . . . . . . . .       25,395     (1,485)
Cash:
  Beginning of period . . . . . . . . . . . . . . .       32,505      2,875
                                                     ------------  ---------
  End of period . . . . . . . . . . . . . . . . . .  $    57,900   $  1,390
                                                     ============  =========
</TABLE>


                See notes to consolidated financial statements.


                                        7
<PAGE>
                           POMEROY IT SOLUTIONS, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   Basis  of  Presentation

     The consolidated financial statements have been prepared in accordance with
     accounting  principles  generally  accepted in the United States of America
     ("US  GAAP") for interim financial information and with the instructions to
     Form  10-Q  and  Rule  10-01  of  Regulation  S-X. Accordingly, they do not
     include  all  of  the  information  and  footnotes  required by US GAAP for
     complete  financial  statements. Except as disclosed herein, there has been
     no  material  change  in  the  information  disclosed  in  the  notes  to
     consolidated  financial  statements included in the Company's Annual Report
     on  Form  10-K  for  the  year  ended  January  5,  2003. In the opinion of
     management,  all  adjustments  (consisting  of  normal  recurring accruals)
     necessary for a fair presentation of the interim period have been made. The
     results  of  operations for the six month period ended July 5, 2003 are not
     necessarily  indicative  of  the  results  that  may be expected for future
     interim  periods  or  for  the  year  ending  January  5,  2004.

2.   Recent  Accounting  Pronouncements

     In April 2003, the FASB issued SFAS 149, "Amendment of Statement Derivative
     Instruments  and  Hedging  Activities"  ("SFAS  149").  SFAS 149 amends and
     clarifies  accounting  for  derivative  instruments,  including  certain
     derivatives  instruments  embedded  in  other  contracts,  and  for hedging
     activities  under  SFAS  133. The Company does not expect the provisions of
     SFAS  149 to have a material impact on the financial position or results of
     operations.

     In  May  2003,  the  FASB issued Statement No. 150, "Accounting for Certain
     Financial  Instruments with Characteristics of Both Liabilities and Equity"
     ("SFAS  150").  SFAS  150  improves  the  accounting  for certain financial
     instruments  that,  under  previous  guidance, issuers could account for as
     equity.  The new Statement requires that those instruments be classified as
     liabilities  in  statements  of  financial  position.  The Company does not
     expect  the  provisions  of  SFAS  150  to  have  a  material impact on the
     financial  position  or  results  of  operations.

3.   Cash  and  Bank  Notes  Payable

     The  Company  maintains  a  sweep  account with its bank whereby daily cash
     receipts  are  automatically  transferred  as payment towards the Company's
     credit  facility.  As  of July 5, 2003 and January 5, 2003, the Company did
     not  have  a  balance outstanding under the Company's credit facility. This
     credit  facility  expires  June  28,  2004.

4.   Treasury  Stock

     During  the  first  six  months  of  fiscal  2003,  the  Board of Directors
     authorized  a  program  to  repurchase  up  to  1.1  million  shares of the
     Company's  outstanding  common  stock at market price. During the first six
     months of fiscal 2003, the Company repurchased 286,687 shares of stock at a
     cost  of  $2.7  million.


                                        8
<PAGE>
5.   Stock-Based  Compensation

     The  Financial  Accounting Standards Board issued SFAS No. 123, "Accounting
     for  Stock-Based  Compensation",  in  the  fall  of  1995.  The  statement
     encourages, but does not require, companies to record compensation cost for
     stock-based  employee  compensation plans at fair value beginning in fiscal
     1996. The Company elected to account for stock-based compensation using the
     intrinsic  value  method  prescribed in Accounting Principles Board Opinion
     No.  25,  "Accounting  for  Stock  Issued  to  Employees".  Accordingly,
     compensation  cost  for stock options is measured as the excess, if any, of
     the  quoted market price of the Company's common stock at the date of grant
     over  the  amount  an  employee  must pay to acquire the stock. The Company
     adopted  SFAS  No.  123  for disclosure purposes and for non-employee stock
     options.

     Had  compensation cost for the Company's stock option plans been determined
     based  on  the  fair  value  at  the grant date for awards in the first six
     months  of  fiscal 2003 and 2002 consistent with the provisions of SFAS No.
     123,  the  Company's  net  income  and  earnings  per share would have been
     reduced  to  the  pro  forma  amounts  indicated  below:

<TABLE>
<CAPTION>
     (in thousands, except per                          Three Months Ended July 5,
     share amounts)                                         2003          2002
                                                        ------------  ------------
<S>                                                     <C>           <C>
     Net income - as reported                           $      2,013  $      4,627
     Stock-based compensation expense-net of tax                 253            91
                                                        ------------  ------------
     Net income - pro forma                             $      1,760  $      4,536
                                                        ============  ============
     Net income per common share - as reported
       Basic                                            $       0.16  $       0.36
                                                        ============  ============
       Diluted                                          $       0.16  $       0.36
                                                        ============  ============
     Net income per common share - pro forma
       Basic                                            $       0.14  $       0.36
                                                        ============  ============
       Diluted                                          $       0.14  $       0.35
                                                        ============  ============
</TABLE>


                                        9
<PAGE>
<TABLE>
<CAPTION>
     (in thousands, except per                      Six Months Ended July 5,
     share amounts)                                   2003           2002
                                                   -----------  --------------
<S>                                                <C>          <C>
     Net income - as reported                      $     3,520  $        9,290
     Stock-based compensation expense-net of tax           805             593
                                                   -----------  --------------
     Net income - pro forma                        $     2,715  $        8,697
                                                   ===========  ==============
     Net income per common share - as reported
       Basic                                       $      0.28  $         0.73
                                                   ===========  ==============
       Diluted                                     $      0.28  $         0.72
                                                   ===========  ==============
     Net income per common share - pro forma
       Basic                                       $      0.22  $         0.68
                                                   ===========  ==============
       Diluted                                     $      0.22  $         0.68
                                                   ===========  ==============
</TABLE>

6.   Earnings  per  Common  Share

     The following is a reconciliation of the number of shares used in the basic
     EPS  and  diluted  EPS  computations: (in thousands, except per share data)

<TABLE>
<CAPTION>
                                  Three Months Ended July 5,
                         -------------------------------------------
                                 2003                  2002
                         ---------------------  --------------------
                                     Per Share             Per Share
                           Shares      Amount    Shares      Amount
                         ---------    --------  --------    --------
<S>                      <C>          <C>       <C>         <C>
     Basic EPS              12,346    $   0.16    12,743    $  0.36
     Effect of dilutive
       Stock options            33           -       129          -
                         ---------    --------  --------    --------
     Diluted EPS            12,379    $   0.16    12,872    $  0.36
                         =========    ========  ========    ========

                                   Six Months Ended July 5,
                         -------------------------------------------
                                  2003                  2002
                         ---------------------  --------------------
                                     Per Share             Per Share
                           Shares      Amount    Shares      Amount
                         ---------    --------  --------    --------
     Basic EPS              12,399    $   0.28    12,720    $  0.73
     Effect of dilutive
       Stock options            23           -       112      (0.01)
                         ---------    --------  --------    --------
     Diluted EPS            12,422    $   0.28    12,832    $  0.72
                         =========    ========  ========    ========
</TABLE>


                                       10
<PAGE>
7.   Goodwill  and  Long  Lived  Assets

     On July 20, 2001, the Financial Accounting Standards Board issued Statement
     of  Financial Accounting Standards ("SFAS") 141, Business Combinations, and
     SFAS  142,  Goodwill  and  Intangible Assets. SFAS 141 is effective for all
     business  combinations completed after June 30, 2001. SFAS 142 is effective
     for  fiscal  years  beginning  after  December  15,  2001; however, certain
     provisions  of this Statement apply to goodwill and other intangible assets
     acquired  between  July  1,  2001 and the effective date of SFAS 142. Major
     provisions  of  these  Statements and their effective dates for the Company
     are  as  follows:

-    All  business  combinations  initiated  after  June  30,  2001 must use the
     purchase method of accounting. The pooling of interest method of accounting
     is  prohibited  except  for  transactions initiated before July 1, 2001, of
     which  there  were  none.
-    Intangible  assets  acquired  in  a  business  combination must be recorded
     separately  from  goodwill  if  they  arise from contractual or other legal
     rights  or  are  separable  from  the  acquired  entity  and  can  be sold,
     transferred,  licensed, rented or exchanged, either individually or as part
     of  a  related  contract,  asset  or  liability.
-    Goodwill,  as  well  as  intangible  assets with indefinite lives, acquired
     after  June 30, 2001, will not be amortized. Effective January 6, 2002, all
     previously  recognized goodwill and intangible assets with indefinite lives
     will  no  longer  be  subject  to  amortization.
-    Effective  January  6, 2002, goodwill and intangible assets with indefinite
     lives  will  be  tested  for  impairment  annually and whenever there is an
     impairment  indicator.
-    All  acquired  goodwill must be assigned to reporting units for purposes of
     impairment  testing.


     The  Company  adopted  SFAS  142  in  the first quarter of fiscal 2002. The
     Company  has  determined that all its intangible assets other than goodwill
     have  definite  lives and will continue to amortize these assets over their
     estimated useful lives. During fiscal 2002, the Company no longer amortized
     goodwill  in  accordance  with  SFAS  142.  The  Company  has  completed  a
     transitional  fair value based impairment test of goodwill as of January 6,
     2002  and  has  determined no impairment loss in the carrying amount of its
     goodwill.  The  Company reviews its intangible assets with finite lives for
     impairment  in  accordance with SFAS 144, "Accounting for the Impairment of
     Long-Lived  Assets  and  for  Long-Lived  Assets  to  Be  Disposed  Of".

     Long-lived  assets,  including  property  and equipment, goodwill and other
     intangible  assets  are  reviewed  for impairment when events or changes in
     facts  and  circumstances  indicate  that  their carrying amount may not be
     recoverable.  Events or changes in facts and circumstances that the Company
     consider  as  impairment  indicators  include  the  following:
     -    Significant  underperformance  of  the  Company's  operating  results
          relative  to  expected  operating  results;
     -    Net  book  value  compared  to  its  market  capitalization;
     -    Significant  adverse  economic  and  industry  trends;
     -    Significant decrease in the market value of the asset;
     -    Significant changes to the asset since the Company acquired it; and
     -    The  extent that the Company may use an asset or changes in the manner
          that the  Company  may  use  it.

     When  the  Company  determines  that  one or more impairment indicators are
     present for its long-lived assets, excluding goodwill, the Company compares
     the  carrying amount of the asset to the net future undiscounted cash flows
     that  the  asset  is  expected  to generate. The Company would recognize an
     impairment  loss  to the extent of the excess of the carrying amount of the
     asset  over  its  fair  value.


                                       11
<PAGE>
     When  the  Company  determines  that  one or more impairment indicators are
     present  for  its  goodwill,  the  Company  compares  its  reporting unit's
     carrying  value  to its fair value. The Company has two reporting units for
     goodwill  testing  which  are  a  products  reporting  unit  and a services
     reporting unit. The Company has adopted January 6 as the valuation date for
     the  annual testing. For goodwill, a two-step impairment test is performed.
     The  first  step  compares  the  fair  value  of  a reporting unit with its
     carrying  amount,  including goodwill. If the carrying value of a reporting
     unit exceeds its fair value, then the second step of the impairment test is
     performed  to  measure  the  amount  of  impairment  loss.  The second step
     compares  the  implied  fair  value of the reporting unit goodwill with the
     carrying  amount  of that goodwill. The implied fair value is determined by
     allocating  the  fair  value  of  a  reporting  unit  to all the assets and
     liabilities  of  that  unit  as  if  the  reporting unit been acquired in a
     business combination. The excess of the fair value of a reporting unit over
     the  amounts  assigned  to  its  assets and liabilities is the implied fair
     value of goodwill. If the carrying amount of the reporting unit goodwill is
     in  excess  of  the implied fair value of that goodwill, then an impairment
     loss  is recognized equal to that excess. An impairment loss, if any, would
     be  reported  in  the  Company's  future  results  of  operations.

     In  April  2003,  the Company engaged a third-party valuation specialist to
     perform  the annual goodwill impairment testing as of January 6, 2003. As a
     result  of  the  annual goodwill impairment test, no impairment losses were
     indicated.

     Intangible  assets  consist  of  the  following:

<TABLE>
<CAPTION>
(in thousands)                    Gross                      Net       Gross                      Net
                                Carrying    Accumulated   Carrying   Carrying    Accumulated   Carrying
                                 Amount    Amortization    Amount     Amount    Amortization    Amount
                                7/5/2003     7/5/2003     7/5/2003   1/5/2003     1/5/2003     1/5/2003
                                ---------  -------------  ---------  ---------  -------------  ---------
<S>                             <C>        <C>            <C>        <C>        <C>            <C>
Amortized intangible assets:
  Covenants not to compete      $   1,844  $       1,583  $     261  $   1,694  $       1,324  $     370
  Customer lists                      627            344        283        477            307        170
                                ---------  -------------  ---------  ---------  -------------  ---------
  Total amortized intangibles   $   2,471  $       1,927  $     544  $   2,171  $       1,631  $     540
                                =========  =============  =========  =========  =============  =========
</TABLE>

     Projected  future  amortization  expense  related to intangible assets with
     definite  lives  are  as  follows:

<TABLE>
<CAPTION>
(in thousands)
Fiscal Years:
<S>                 <C>         <C>
2003                $     108   July 6, 2003 - January 5, 2004
2004                      138
2005                       53
2006                       20
2007                       20
2008 and thereafter       205
                    ---------
Total               $     544
                    =========
</TABLE>


                                       12
<PAGE>
     For  the  six  months ended July 5, 2003, there was no amortization expense
     related  to goodwill. Amortization expense related to intangible assets was
     $73  thousand  for the quarter ended July 5, 2003 and $296 thousand for the
     six  months  ended  July  5,  2003.

     For  the  six  months ended July 5, 2002, there was no amortization expense
     related  to  goodwill.  For  the  quarter  ended July 5, 2002, amortization
     expense  related to intangible assets was $225 thousand. For the six months
     ended  July  5, 2002, amortization expense related to intangible assets was
     $413 thousand of which $71 thousand was reported under the caption "cost of
     sales"  or  "selling,  general  and  administrative" expenses. Amortization
     expense  associated  with  assets reported under the caption "other current
     assets"  was  $154  thousand.

     During the first quarter of fiscal 2003, the Company changed the allocation
     of  goodwill by reporting unit. As a result of this evaluation process, the
     Company reallocated approximately $10.3 million of goodwill to the services
     reporting  unit  from the products reporting unit. This reallocation had no
     effect  on  the  result  of  any  previous period's impairment testing. The
     reallocation  is  also  reflected  in  the  segment information on Note 10.

     The  reallocation of the net carrying amount of goodwill for the six months
     ended  July  5,  2003  by  segment  are  as  follows:

<TABLE>
<CAPTION>
(in thousands)                               Products   Services   Consolidated
                                            ----------  ---------  -------------
<S>                                         <C>         <C>        <C>
Net carrying amount as of 1/5/03            $  42,357   $  18,278  $      60,635
Reallocation of goodwill                      (10,284)     10,284              -
Goodwill recorded during first six months       2,262       1,998          4,260
                                            ----------  ---------  -------------
Net carrying amount as of 7/5/03            $  34,335   $  30,560  $      64,895
                                            ==========  =========  =============
</TABLE>

8.   Supplemental  Cash  Flow  Disclosures

     Supplemental disclosures with respect to cash flow information and non-cash
     investing  and  financing  activities  are  as  follows:  (in  thousands)

<TABLE>
<CAPTION>
                                                  Six Months Ended July 5,
                                                ----------------------------
                                                    2003           2002
                                                ------------  --------------
<S>                                             <C>           <C>
Interest paid                                   $       211   $          297
                                                ============  ==============
Income taxes paid                               $       684   $       10,336
                                                ============  ==============
Post Acquisition adjustments to purchase price
 of acquisition assets and intangibles          $     1,624   $        1,861
                                                ============  ==============

Business combinations accounted for
as purchases:
  Assets acquired                               $     7,573   $            -
  Liabilities assumed                                (4,074)
                                                ------------  --------------
  Net cash paid                                 $     3,499   $            -
                                                ============  ==============
</TABLE>


                                       13
<PAGE>
9.   Litigation

     The  Company  recorded  a  litigation  settlement  of  $0.2  million.  The
     litigation  settlement  is related to a single bankruptcy preference claim.

     There  are  various  other  legal  actions  arising in the normal course of
     business  that  have  been brought against the Company. Management believes
     these  matters  will  not  have  a material adverse effect on the Company's
     financial  position  or  results  of  operations.

10.  Segment  Information

     During  the  first  quarter of fiscal 2003, the Company revised its segment
     methodologies for allocating operating expenses between segments to reflect
     ongoing  changes  in the operating activities giving rise to such expenses.
     This  change  resulted  in  a decrease of approximately $1.5 million in the
     second  quarter  and  $3.1  million  year  to  date  of allocated operating
     expenses  to  the  product segment and a corresponding increase by the same
     amount  to  the  services  segment.  In  addition,  the Company revised its
     allocation of assets between segments to reflect the use of assets in those
     segments. The assets affected were principally goodwill, tax-related assets
     and  equipment  and  leasehold  improvements.

     Summarized  financial  information  concerning  the  Company's  reportable
     segments  is  shown  in  the  following  table.  (in  thousands)

<TABLE>
<CAPTION>
                                     Three Months Ended July 5, 2003
                               ---------------------------------------------
                               Products   Services   Leasing   Consolidated
                               ---------  ---------  --------  -------------
<S>                            <C>        <C>        <C>       <C>
Revenues                       $ 116,150  $  31,157  $     45  $     147,352
Income from operations             2,008      1,180        39          3,227
Total assets                     168,966     87,677     6,416        263,059
Capital expenditures                 195        183         -            378
Depreciation and amortization        671        652                    1,323
</TABLE>

<TABLE>
<CAPTION>
                                     Three Months Ended July 5, 2002
                               ---------------------------------------------
                               Products   Services   Leasing   Consolidated
                               ---------  ---------  --------  -------------
<S>                            <C>        <C>        <C>       <C>
Revenues                       $ 162,389  $  33,657  $    534  $     196,580
Income from operations             3,041      4,407       331          7,779
Total assets                     199,069     57,278     7,523        263,870
Capital expenditures               3,297      1,998         -          5,295
Depreciation and amortization      1,322        170        28          1,520
</TABLE>


                                       14
<PAGE>
<TABLE>
<CAPTION>
                                       Six Months Ended July 5, 2003
                               ---------------------------------------------
                               Products   Services   Leasing   Consolidated
                               ---------  ---------  --------  -------------
<S>                            <C>        <C>        <C>       <C>
Revenues                       $ 216,030  $  61,149  $    151  $     277,330
Income from operations             3,278      2,323       140          5,741
Total assets                     168,966     87,677     6,416        263,059
Capital expenditures                 577        589         -          1,166
Depreciation and amortization      1,427      1,283         -          2,710
</TABLE>

<TABLE>
<CAPTION>
                                       Six Months Ended July 5, 2002
                               ---------------------------------------------
                               Products   Services   Leasing   Consolidated
                               ---------  ---------  --------  -------------
<S>                            <C>        <C>        <C>       <C>
Revenues                       $ 313,142  $  66,552  $  3,234  $     382,928
Income from operations             5,734      8,375     1,315         15,424
Total assets                     199,069     57,278     7,523        263,870
Capital expenditures               3,947      2,099        84          6,130
Depreciation and amortization      2,694        437       206          3,337
</TABLE>

11.  Restructuring  Charge

     During fiscal 2002, the Company approved a plan to consolidate and relocate
     operations  in various geographical locations and to abandon certain assets
     associated  with  modification  to  strategic  initiatives.

     The execution of the plan began and was completed during fiscal 2002. As of
     July  5,  2003,  the  Company  had  $8.0  thousand  in  accrued  and unpaid
     restructuring  costs.  The  Company expects to pay substantially all of the
     remaining  accrued  and  unpaid  costs  by  the  end  of  fiscal  2003.

12.  Acquisitions

     On  February  21,  2003,  the  Company  announced  the  completion  of  the
     acquisition  of Micrologic Business Systems of K.C., INC. ("Micrologic"), a
     Kansas  City based IT solutions and professional services provider. For the
     twelve  months ended December 31, 2002, Micrologic has recorded revenues of
     $32.0  million. Their primary services include systems network integration,
     project  management,  and  telephony integration. The Company recorded $3.3
     million  of  goodwill  related  to  the  acquisition.

13.  Subsequent  Events

     On  July  18,  2003,  the  Company  announced  that  it will pay a one time
     dividend  of approximately $10 million or $.80 per share to shareholders of
     record  as  of  July  28,  2003.  The  dividend was paid on August 7, 2003.


                                       15
<PAGE>
Item 2-Management's Discussion and Analysis of Financial Condition and Results
of Operations

         Special Cautionary Notice Regarding Forward-Looking Statements
         --------------------------------------------------------------

Certain  of the matters discussed under the caption "Management's Discussion and
Analysis  of  Financial  Condition  and  Results  of Operations" contain certain
forward  looking  statements  regarding future financial results of the Company.
The words "expect," "estimate," "anticipate," "predict," and similar expressions
are  intended  to  identify  forward-looking  statements.  Such  statements  are
forward-looking  statements  for  purposes of the Securities Act of 1933 and the
Securities  Exchange  Act of 1934, as amended, and as such may involve known and
unknown  risks,  uncertainties  and  other  factors  which  may cause the actual
results,  performance  or achievements of the Company to be materially different
from  future  results,  performance or achievements expressed or implied by such
forward-looking  statements.  Important  factors  that  could  cause  the actual
results,  performance  or  achievements of the Company to differ materially from
the  Company's  expectations  are  disclosed in this document including, without
limitation,  those  statements  made  in  conjunction  with  the forward-looking
statements  under  "Management's  Discussion and Analysis of Financial Condition
and  Results  of  Operations".  All  written  or oral forward-looking statements
attributable  to  the  Company are expressly qualified in their entirety by such
factors.

                           POMEROY IT SOLUTIONS, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

TOTAL  NET  SALES  AND  REVENUES.  Total  net sales and revenues decreased $49.2
million,  or  25.0%, to $147.4 million in the second quarter of fiscal 2003 from
$196.6  million in the second quarter of fiscal 2002. This decrease was a result
primarily  of  a  continued industry-wide slowdown in technology spending due to
the general weakness in the U.S. economy.  Further, the Company sometimes elects
to  take  a  commission  from the manufacturers for arranging sales transactions
where  it  judges the gross profit to be inadequate for its participation in the
sales  transaction.  During  the  second  quarter  of  fiscal  2003, the Company
elected  to  take  such  commissions on transactions whose sales would otherwise
have  been  $2.8 million.  Excluding acquisitions completed in fiscal year 2003,
total  net  sales  and  revenues  decreased  28.8%.  Products  and leasing sales
decreased  $46.7  million,  or  28.7% to $116.2 million in the second quarter of
fiscal  2003 from $162.9 million in the second quarter of fiscal 2002. Excluding
acquisitions completed in fiscal year 2003, products and leasing sales decreased
32.8%.  Service  revenues  decreased  $2.5 million, or 7.4%, to $31.2 million in
the  second  quarter  of fiscal 2003 from $33.7 million in the second quarter of
fiscal  year  2002.   Excluding  acquisitions  completed  in  fiscal  year 2003,
service  revenues  decreased  9.4%.

Total  net  sales  and  revenues  decreased  $105.6 million, or 27.6%, to $277.3
million  in the first six months of fiscal 2003 from $382.9 million in the first
six  months  of fiscal 2002. This decrease was a result primarily of a continued
industry-wide slowdown in technology spending due to the general weakness in the
U.S.  economy  and  the  decrease  in  leasing  revenue  due  to  the  sale  of
substantially  all the assets of Technology Integration Financial Services, Inc.
("TIFS").  Further,  the  Company sometimes elects to take a commission from the
manufacturers  for arranging sales transactions where it judges the gross profit
to  be  inadequate  for  its participation in the sales transaction.  During the
first six months of fiscal 2003, the Company elected to take such commissions on
transactions  whose  sales  would  otherwise  have been $5.3 million.  Excluding
acquisitions  completed  in  fiscal  year  2003,  total  net  sales and revenues
decreased  30.7%.  Products and leasing sales decreased $100.2 million, or 31.7%
to  $216.2 million in the first six months of fiscal 2003 from $316.4 million in
the  first six months of fiscal 2002. Excluding acquisitions completed in fiscal
year  2003,  products  and  leasing  sales  decreased  35.1%.  Service  revenues
decreased  $5.4  million,  or  8.1%, to $61.1 million in the first six months of
fiscal  2003  from  $66.5  million  in the first six months of fiscal year 2002.
Excluding acquisitions completed in fiscal year 2003, service revenues decreased
9.7%.


                                       16
<PAGE>
GROSS  PROFIT.  Gross  profit decreased to 11.8% in the second quarter of fiscal
2003  as  compared to 12.3% in the second quarter of fiscal 2002.  This decrease
in  gross  margin  resulted  primarily from the decrease in hardware and service
margins  and  offset  by  the higher proportion of service gross margin to total
gross margin. The decrease in hardware gross margin is primarily associated with
the  Company's strategic decision to aggressively price its hardware business in
order  to  maintain  and  capture  market  share  and  to  the weakened economic
conditions  of  the IT industry. On a forward looking basis, the Company expects
to  continue  its  aggressive  product  pricing in order to gain existing market
share  which  will  have  a  continued  impact  on  product  gross margin.   The
competitive  environment  as  well  as  less  than  maximum  technical  employee
utilization  rate  has  also  resulted  in downward pressure on service margins.
Additionally,  the  Company expects to continue increasing the breadth and depth
of  its  service  offerings, which will have a continued impact on service gross
margin.  Service  revenues increased to 21.1% of total net sales and revenues in
the  second  quarter  of  fiscal  2003  compared to 17.1% of total net sales and
revenues  in  the second quarter of fiscal 2002.  Service gross margin increased
to  48.6%  of total gross margin in the second quarter of fiscal 2003 from 43.7%
in  the second quarter of fiscal 2002.  Factors that may have an impact on gross
margin  in  the future include the continued changes in hardware margins, change
in  personnel utilization rates, the mix of products sold and services provided,
a  change  in  unit  prices,  the  percentage of equipment or service sales with
lower-margin  customers,  the  ratio  of service revenues to total net sales and
revenues,  and the Company's decision to aggressively price certain products and
services.

Gross  profit  decreased  to  12.2%  in  the  first six months of fiscal 2003 as
compared  to  12.5%  in  the  first six months of fiscal 2002.  This decrease in
gross  margin  resulted  primarily  from  the  decrease  in hardware and service
margins  and  offset  by  the higher proportion of service gross margin to total
gross  margin associated with the improved utilization of service personnel. The
decrease  in  hardware  gross  margin is primarily associated with the Company's
strategic  decision  to  aggressively  price  its  hardware business in order to
maintain and capture market share and to the weakened economic conditions of the
IT  industry.  On  a  forward looking basis, the Company expects to continue its
aggressive  product  pricing  in  order to gain existing market share which will
have  a continued impact on product gross margin. The competitive environment as
well  as less than maximum technical employee utilization rate has also resulted
in  downward  pressure on service margins.  Additionally, the Company expects to
continue  increasing  the breadth and depth of its service offerings, which will
have  a continued impact on service gross margin.  Service revenues increased to
22.0%  of  total  net  sales and revenues in the first six months of fiscal 2003
compared  to  17.4%  of  total net sales and revenues in the first six months of
fiscal  2002.  Service  gross margin increased to 50.1% of total gross margin in
the first six months of fiscal 2003 from 43.2% in the first six months of fiscal
2002.  Factors that may have an impact on gross margin in the future include the
continued  changes  in  hardware margins, change in personnel utilization rates,
the  mix  of  products  sold and services provided, a change in unit prices, the
percentage  of equipment or service sales with lower-margin customers, the ratio
of  service revenues to total net sales and revenues, and the Company's decision
to  aggressively  price  certain  products  and  services.

OPERATING  EXPENSES.  Selling,  general  and  administrative expenses (including
rent  expense  and provision for doubtful accounts) expressed as a percentage of
total  net  sales and revenues increased to 8.7% in the second quarter of fiscal
2003  from 7.4% in the second quarter of fiscal 2002. This increase is primarily
a  result  of  lower than expected total net sales and revenues. Total operating
expenses  expressed as a percentage of total net sales and revenues increased to
9.6%  in  the  second  quarter of fiscal 2003 from 8.3% in the second quarter of
fiscal 2002.  This increase is primarily the result of lower than expected total
net  sales  and  revenues  and  litigation  settlement.

Selling,  general  and  administrative  expenses  (including  rent  expense  and
provision  for  doubtful  accounts) expressed as a percentage of total net sales
and  revenues increased to 9.1% in the first six months of fiscal 2003 from 7.6%
in  the  first six months of fiscal 2002. This increase is primarily a result of
lower  than  expected  total  net  sales  and revenues. Total operating expenses
expressed  as a percentage of total net sales and revenues increased to 10.1% in
the  first six months of fiscal 2003 from 8.5% in the first six months of fiscal
2002.  This  increase  is  primarily the result of lower than expected total net
sales  and  revenues  and  the  litigation  settlement.


                                       17
<PAGE>
RESTRUCTURING CHARGE.  During the second quarter of 2002, the Company recorded a
restructuring  charge  of $0.5 million.  The restructuring charge was related to
the  consolidation  of  business  operations.

LITIGATION SETTLEMENT.  During the second quarter of 2003,  the Company recorded
a  litigation  settlement of $0.2 million.  The litigation settlement is related
to  a  single  bankruptcy  preference  claim.

INCOME  FROM  OPERATIONS.  Income  from  operations  decreased  $4.6 million, or
59.0%, to $3.2 million in the second quarter of fiscal 2003 from $7.8 million in
the  second  quarter of fiscal 2002. The Company's operating margin decreased to
2.2%  in  the  second  quarter  of fiscal 2003 as compared to 4.0% in the second
quarter  of  fiscal  2002.  This  decrease  is  primarily due to the increase in
operating  expenses  as  a  percentage  of  total net sales and revenues and the
decrease  in  the  Company's  gross  margin.

Income  from operations decreased $9.7 million, or 63.0%, to $5.7 million in the
first  six  months  of fiscal 2003 from $15.4 million in the first six months of
fiscal  2002.  The Company's operating margin decreased to 2.1% in the first six
months  of  fiscal  2003  as  compared to 4.0% in the first six months of fiscal
2002.  This decrease is primarily due to the increase in operating expenses as a
percentage  of  total  net  sales and revenues and the decrease in the Company's
gross  margin.

INTEREST  EXPENSE.  Interest  Income  was  $.08 million in the second quarter of
fiscal  2003  compared to interest expense of $0.2 million in the second quarter
of  fiscal  2002.  This  decrease  was  due to reduced borrowings as a result of
improved  cash flow and a reduced interest rate charged by the Company's lender.

Interest income was $.02 million in the first six months of fiscal 2003 compared
to  interest  expense  of  $0.3  million in the first six months of fiscal 2002.
This  decrease  was due to reduced borrowings as a result of improved cash flow,
the  sale  of certain T.I.F.S. assets and a reduced interest rate charged by the
Company's  lender.

INCOME  TAXES.  The Company's effective tax rate was 39.0% in the second quarter
of  fiscal  2003  compared  to  39.0%  in  the  second  quarter  of fiscal 2002.

The  Company's  effective  tax  rate was 39.0% in the first six months of fiscal
2003  compared  to  38.5% in the first six months of fiscal 2002.  This increase
relates  to  an  expected  increase  in  state  tax  liabilities.

NET  INCOME. Net income decreased $2.6 million, or 56.5%, to $2.0 million in the
second quarter of fiscal 2003 from $4.6  million in the second quarter of fiscal
2002  due  to  the  factors  described  above.

Net  income  decreased  $5.8 million, or 62.4%, to $3.5 million in the first six
months  of fiscal 2003 from $9.3  million in the first six months of fiscal 2002
due  to  the  factors  described  above.


                                       18
<PAGE>
                         LIQUIDITY AND CAPITAL RESOURCES

Cash  provided by operating activities was $32.5 million in the first six months
of  fiscal  2003.  Cash  used  in  investing  activities was $4.7 million, which
included  $3.5  million  for  an  acquisition  made  in  2003  and  prior  year
acquisitions  and  $1.2 million for capital expenditures. Cash used in financing
activities  was  $2.5  million, which included  $2.7 million for the purchase of
treasury  stock,  and offset by $0.2 million in proceeds from the employee stock
purchase  plan  and  exercise  of  stock  options.

A  significant  part  of  the  Company's  inventories  is financed by floor plan
arrangements  with third parties. At July 5, 2003, these lines of credit totaled
$84.0  million,  including $72.0 million with GE Commercial Distribution Finance
("GECDF")  and  $12.0  million  with  IBM Credit Corporation ("ICC"). Borrowings
under  the  GECDF  floor  plan  arrangements  are  made  on  thirty-day  notes.
Borrowings  under  the ICC floor plan arrangements are made on either thirty-day
or  sixty-day  notes.  All such borrowings are secured by the related inventory.
Financing  on  substantially  all  of  the  arrangements is interest free due to
subsidies  by  manufacturers. Overall, the average rate on these arrangements is
less  than  1.0% per annum. The Company classifies amounts outstanding under the
floor  plan  arrangements  as  accounts  payable.

The  Company's  financing  of  receivables  is provided through a portion of its
credit  facility  with GECDF.  The Company's $240.0 million credit facility with
GECDF  has  a three year term and includes $72.0 million for inventory financing
as  described  above,  $144.0  million  for  working capital which is based upon
accounts  receivable financing, and a cash-flow component in the form of a $24.0
million  term  loan,  which is not restricted to a borrowing base.  The accounts
receivable  and  term  loan  portion  of  the  credit  facility carry a variable
interest  rate  based  on  the  London  InterBank  Offering Rate ("LIBOR") and a
pricing  grid.  This  credit  facility  expires  June  28,  2004.

At  July  5,  2003,  the  Company  did not have a balance outstanding under this
facility.  The  credit  facility  is  collateralized by substantially all of the
assets  of  the  Company,  except  those assets that collateralize certain other
financing  arrangements.  Under the terms of the credit facility, the Company is
subject to various financial covenants.  Currently, the Company is in compliance
with  all  financial  covenants.

The  Company believes that the anticipated cash flow from operations and current
financing  arrangements  will  be  sufficient  to  satisfy the Company's capital
requirements  for the next twelve months. Historically, the Company has financed
acquisitions  using a combination of cash, earn outs, shares of its Common Stock
and  seller  financing. The Company anticipates that future acquisitions will be
financed  in  a  similar  manner.

<TABLE>
<CAPTION>
           AGGREGATED INFORMATION ABOUT CONTRACTUAL OBLIGATIONS AND OTHER COMMITMENTS

                                                                                     MORE THAN
                                TOTAL   YEAR 1   YEAR 2   YEAR 3   YEAR 4   YEAR 5    5 YEARS
                               -------  -------  -------  -------  -------  -------  ---------
<S>                            <C>      <C>      <C>      <C>      <C>      <C>      <C>
Acquisition note               $ 1,204  $ 1,204  $     -  $     -  $     -  $     -  $       -
Operating leases                15,365    2,344    3,298    2,853    1,786    1,513      3,571
Long term notes payable            663        -      663        -        -        -          -
                               -------  -------  -------  -------  -------  -------  ---------
Total contractual
cash obligations               $17,232  $ 3,548  $ 3,961  $ 2,853  $ 1,786  $ 1,513  $   3,571
                               =======  =======  =======  =======  =======  =======  =========
</TABLE>


                                       19
<PAGE>
On  January  29,  2003, the Company's Board of Directors authorized a program to
repurchase  up  to  an  additional  100,000  shares of the Company's outstanding
common  stock,  which represents less than 1.0% of its outstanding common stock,
in  open  market  purchases  made  from  time  to  time at the discretion of the
Company's  management.  On May 13, 2003, the Company announced that its Board of
Directors  authorized  the  repurchase of an additional 1,000,000 shares through
its  stock repurchase program. The additional shares to be repurchased represent
approximately  8.0%  of  the  Company's  outstanding  common  stock  and will be
purchased  in  open market purchases made from time to time at the discretion of
the Company's management.  The time and extent of the repurchases will depend on
market  conditions.  The  acquired shares will be held in treasury or cancelled.
The  Company  anticipates  financing the stock redemption program out of working
capital  and the redemption program will be effectuated over the next 12 months.

On February 21, 2003, the Company announced the completion of the acquisition of
Micrologic Business Systems of K.C., INC. ("Micrologic"), a Kansas City based IT
solutions  and  professional  services  provider.  For  the  twelve months ended
December  31,  2002,  Micrologic  has recorded revenues of $32.0 million.  Their
primary  services  include  systems network integration, project management, and
telephony  integration.


On  July 18, 2003, the Company announced that it will pay a one time dividend of
approximately $10 million or $.80 per share to shareholders of record as of July
28,  2003.  The  dividend  was  paid  on  August  7,  2003.


                                       20
<PAGE>
Item 3-Quantitative and Qualitative Disclosures about Market Risk.

The  Company  is  exposed  to  interest  rate  risk primarily through its credit
facility  with  GECDF.  Due  to the Company's current cash position, the Company
did  not  experience a material impact from interest rate risk for the first six
months  of  fiscal  2003.

Currently,  the  Company does not have any significant financial investments for
trading  or  other  speculative  purposes  or  to manage interest rate exposure.


Item 4-Controls and Procedures

The  Company's chief executive officer and chief financial officer evaluated the
Company's  disclosure  controls and procedures within the 90-day period prior to
the  date  of  this  report  pursuant  to  Rule  13a-14(c)  and 15d-14(c) of the
Securities Exchange Act of 1934.  Their evaluation concluded that the disclosure
controls  and  procedures  are  effective  in connection with the filing of this
quarterly  report on Form 10-Q for the three months and six months ended July 5,
2003.

There  have been no significant changes in the Company's internal controls or in
other  factors  that could significantly affect these controls subsequent to the
date  of  their  evaluation,  including any significant deficiencies or material
weaknesses  of  internal  controls  that  would  require  corrective  action.


                                       21
<PAGE>
                           PART II - OTHER INFORMATION


Item 1-Legal Proceedings

There  are  various  legal actions arising in the normal course of business that
have  been  brought  against the Company. Management believes these matters will
not  have  a  material  adverse  effect  on  the Company's financial position or
results  of  operations.

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 . .

On June 19, 2003, the Company held its annual meeting of stockholders for the
following purposes:

          1.   To  elect  eight  directors;  and

          2.   To  approve  the  amendment  of  the  Company's  Certificate  of
               Incorporation  and grant the Company full authority to change its
               name  from  Pomeroy  Computer  Resources,  Inc.  to  Pomeroy  IT
               Solutions,  Inc.

     The voting on the above matters by the stockholders was as follows:

     Matter
     ------

     Election of Directors:                       For             Withheld
     ----------------------                       ---             --------


     David  B.  Pomeroy,  II                      10,305,898      1,682,682
     James  H.  Smith  III                        11,791,100        197,480
     Michael  E.  Rohrkemper                      10,197,930      1,790,650
     Stephen  E.  Pomeroy                         10,317,251      1,671,329
     William  H.  Lomicka                         11,782,372        206,208
     Vincent  D.  Rinaldi                         10,247,274      1,741,306
     Debra E. Tibey                               11,668,572        320,008
     Edward E. Faber                              11,692,365        296,215

     Approve  the  Company's  Name  Change
     -------------------------------------

11,975,827  shareholders  voted  in  favor  of  the forgoing proposal and 10,525
shareholders  voted against the forgoing proposal.  2,228 shareholders abstained
from  voting  and  there  were  0  shares  of  Broker  Non-Votes on the forgoing
proposal.  The  number  of  shares voted in favor of the proposal was sufficient
for  its  passage.


Item 5-Other Information . . . . . . . . . . . . . . . . . . .  None


                                       22
<PAGE>
Item 6-Exhibits and Reports on Form 8-K

     (a)  Reports  on  Form  8-K . . . . . . . . . . . . . . .

          On  May  23,  2003,  the  Company  reported  the announcement that the
          Company's Board of Directors had authorized the addition of $1 million
          shares  to  its  stock  repurchase  program.

          On  June  30,  2003, the Company reported the announcement of its name
          change  to  Pomeroy  IT  Solutions,  Inc.  effective  July  1,  2003.

          On  July 18, 2003, the Company reported the announcement of a one time
          dividend  of  approximately  $10  million  or  $.80  per  share  to
          shareholders  of  record as of July 28, 2003. The dividend was paid on
          August  7,  2003.

     (b)  Exhibits

          3

          3(i)(a)5  Certificate of Amendment to Certificate of Incorporation for
                    Pomeroy  Computer  Resources,  Inc.,  dated  June  19, 2003.

          3(i)(a)6  Certificate of Amendment to Certificate of Incorporation for
                    Pomeroy  Computer  Resources Sales Company, Inc., dated June
                    19,  2003.

          (mm)(13)  Fourth amendment to credit facilities agreement

          (mm)(14)  Fifth amendment and consent to credit facilities agreement

          11        Computation of earnings per share

          31(a)     Section 302 CEO Certification

          31(b)     Section 302 CF0 Certification

          32(a)     Section 906 CEO Certification

          32(b)     Section 906 CFO Certification


                                    SIGNATURE

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.

                                                POMEROY IT SOLUTIONS, INC.
                                                --------------------------
                                                         (Registrant)

Date: August 19, 2003                           By: /s/ Michael E. Rohrkemper
                                                --------------------------------
                                                Michael E. Rohrkemper
                                                Chief Financial Officer and
                                                Chief Accounting Officer


                                       23
<PAGE>