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 October 5, 2000


                                       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 COMPUTER RESOURCES, 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
   ---        ---
The  number  of  shares  of  common stock outstanding as of November 5, 2000 was
12,577,497.


                                    1 of 16
<PAGE>
                        POMEROY COMPUTER RESOURCES, INC.

                               TABLE OF CONTENTS


Part I.    Financial Information

           Item 1.                   Financial Statements:                  Page
                                                                            ----

                                     Consolidated Balance Sheets as of
                                     January 5, 2000 and October 5, 2000       3

                                     Consolidated Statements of Income for
                                     the Three Months Ended October 5, 1999
                                     and 2000                                  5

                                     Consolidated Statements of Income for
                                     the Nine Months Ended October 5, 1999
                                     and 2000                                  6

                                     Consolidated Statements of Cash Flows
                                     for the Nine Months Ended October 5,
                                     1999 and 2000                             7

                                     Notes to Consolidated Financial
                                     Statements                                8

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

Part II.   Other Information                                                  14

SIGNATURE                                                                     16


                                    2 of 16
<PAGE>
<TABLE>
<CAPTION>
                                POMEROY COMPUTER RESOURCES, INC.

                                  CONSOLIDATED BALANCE SHEETS

(in thousands)                                                    January 5,   October 5,
                                                                     2000         2000
                                                                  -----------  -----------
<S>                                                               <C>          <C>
ASSETS
 Current assets:
    Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $     1,737  $       454

    Accounts receivable:
     Trade, less allowance of $504 and $563 at January 5, 2000
     and October 5, 2000, respectively. . . . . . . . . . . . .       129,882      129,788
    Vendor receivables, less allowance of $1,902 and $1,950 at
     January 5, 2000 and October 5, 2000, respectively. . . . .        53,698       45,178
    Net investment in leases . . . . . . . . . . . . . . . . . .       14,937       33,213
    Other. . . . . . . . . . . . . . . . . . . . . . . . . . . .        4,144        3,133
                                                                  -----------  -----------
        Total receivables . . . . . . . . . . . . . . . . . . .       202,661      211,312
                                                                  -----------  -----------

   Inventories . . . . . . . . . . . . . . . . . . . . . . . . .       38,858       41,914
   Other . . . . . . . . . . . . . . . . . . . . . . . . . . . .        3,819        4,971
                                                                  -----------  -----------
        Total current assets. . . . . . . . . . . . . . . . . .       247,075      258,651
                                                                  -----------  -----------

   Equipment and leasehold improvements. . . . . . . . . . . . .       25,276       31,112
     Less accumulated depreciation. . . . . . . . . . . . . . .         9,804       13,245
                                                                  -----------  -----------
   Net equipment and leasehold improvements. . . . . . . . . . .       15,472       17,867
                                                                  -----------  -----------

   Net investment in leases. . . . . . . . . . . . . . . . . . .       29,183       42,900
   Goodwill and other intangible assets. . . . . . . . . . . . .       39,344       48,663
   Other assets. . . . . . . . . . . . . . . . . . . . . . . . .        2,067        1,492
                                                                  -----------  -----------
         Total assets. . . . . . . . . . . . . . . . . . . . . .  $   333,141  $   369,573
                                                                  ===========  ===========
</TABLE>


                 See notes to consolidated financial statements.


                                    3 of 16
<PAGE>
<TABLE>
<CAPTION>
                        POMEROY COMPUTER RESOURCES, INC.

                           CONSOLIDATED BALANCE SHEETS

(in thousands)                                                       January 5,   October 5,
                                                                        2000         2000
                                                                     -----------  -----------
<S>                                                                  <C>          <C>
LIABILITIES & EQUITY

Current liabilities:
   Current portion of notes payable . . . . . . . . . . . . . . . .  $    11,337  $    19,099
   Accounts payable . . . . . . . . . . . . . . . . . . . . . . . .       92,454       75,098
   Bank notes payable . . . . . . . . . . . . . . . . . . . . . . .       69,027       68,955
   Other current liabilities. . . . . . . . . . . . . . . . . . . .       13,131       12,220
                                                                     -----------  -----------
         Total current liabilities. . . . . . . . . . . . . . . . .      185,949      175,372
                                                                     -----------  -----------

Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . .        6,971       21,128
Deferred Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . .            -        1,400

Equity:
   Preferred stock (no shares issued or outstanding). . . . . . . .            -            -
   Common stock (11,843 and 12,577 shares issued and outstanding
    at January 5, 2000 and October 5, 2000, respectively) . . . . .          118          126
   Paid-in capital. . . . . . . . . . . . . . . . . . . . . . . . .       66,743       76,108
   Retained earnings. . . . . . . . . . . . . . . . . . . . . . . .       73,682       95,761
                                                                     -----------  -----------
                                                                         140,543      171,995
   Less treasury stock, at cost  (31 shares at January 5, 2000 and
      October 5, 2000). . . . . . . . . . . . . . . . . . . . . . .          322          322
                                                                     -----------  -----------
      Total equity. . . . . . . . . . . . . . . . . . . . . . . . .      140,221      171,673
                                                                     -----------  -----------
      Total liabilities and equity. . . . . . . . . . . . . . . . .  $   333,141  $   369,573
                                                                     ===========  ===========
</TABLE>


                    See notes to consolidated financial statements.


                                    4 of 16
<PAGE>
<TABLE>
<CAPTION>
               POMEROY COMPUTER RESOURCES, INC.

               CONSOLIDATED STATEMENTS OF INCOME



(in thousands, except per share data)      Three Months Ended
                                        -------------------------
                                        October 5,    October 5,
                                           1999          2000
                                        -----------  ------------
<S>                                     <C>          <C>
Net sales and revenues . . . . . . . .  $   197,090  $   246,911
Cost of sales and service. . . . . . .      170,035      212,838
                                        -----------  ------------
         Gross margin. . . . . . . . .       27,055       34,073
                                        -----------  ------------

Operating expenses:
   Selling, general and administrative       12,385       15,588
   Rent expense. . . . . . . . . . . .          767          891
   Depreciation. . . . . . . . . . . .          869        1,331
   Amortization. . . . . . . . . . . .          771        1,143
   Provision for doubtful accounts . .            -          192
                                        -----------  ------------
         Total operating expenses. . .       14,792       19,145
                                        -----------  ------------

Income from operations . . . . . . . .       12,263       14,928
                                        -----------  ------------

Other expense (income):
   Interest expense. . . . . . . . . .        1,182        1,326
   Miscellaneous . . . . . . . . . . .            1           (8)
                                        -----------  ------------
         Total other expense . . . . .        1,183        1,318
                                        -----------  ------------

   Income before income tax. . . . . .       11,080       13,610

   Income tax expense. . . . . . . . .        4,548        5,423
                                        -----------  ------------

   Net income. . . . . . . . . . . . .  $     6,532  $     8,187
                                        ===========  ============

Weighted average shares outstanding:
   Basic . . . . . . . . . . . . . . .       11,744       12,289
                                        ===========  ============
   Diluted . . . . . . . . . . . . . .       11,831       12,543
                                        ===========  ============

Earnings per common share:
   Basic . . . . . . . . . . . . . . .  $      0.56  $      0.67
                                        ===========  ============
   Diluted . . . . . . . . . . . . . .  $      0.55  $      0.65
                                        ===========  ============
</TABLE>


       See notes to consolidated financial statements.


                                    5 of 16
<PAGE>
<TABLE>
<CAPTION>
             POMEROY COMPUTER RESOURCES, INC.

            CONSOLIDATED  STATEMENTS OF INCOME



(in thousands, except per share data)        Nine Months Ended
                                        --------------------------
                                         October 5,    October 5,
                                            1999          2000
                                        ------------  ------------
<S>                                     <C>           <C>
Net sales and revenues . . . . . . . .  $   547,862   $   679,399
Cost of sales and service. . . . . . .      474,240       589,026
                                        ------------  ------------
         Gross margin. . . . . . . . .       73,622        90,373
                                        ------------  ------------

Operating expenses:
   Selling, general and administrative       35,006        41,413
   Rent expense. . . . . . . . . . . .        2,169         2,447
   Depreciation. . . . . . . . . . . .        2,666         3,514
   Amortization. . . . . . . . . . . .        2,086         3,072
   Provision for doubtful accounts . .           46           292
                                        ------------  ------------
         Total operating expenses. . .       41,973        50,738
                                        ------------  ------------

Income from operations . . . . . . . .       31,649        39,635
                                        ------------  ------------

Other expense (income):
   Interest expense. . . . . . . . . .        2,832         3,157
   Miscellaneous . . . . . . . . . . .          (44)         (117)
                                        ------------  ------------
         Total other expense . . . . .        2,788         3,040
                                        ------------  ------------

   Income before income tax. . . . . .       28,861        36,595

   Income tax expense. . . . . . . . .       11,581        14,517
                                        ------------  ------------

   Net income. . . . . . . . . . . . .  $    17,280   $    22,078
                                        ============  ============

Weighted average shares outstanding:
   Basic . . . . . . . . . . . . . . .       11,709        12,084
                                        ============  ============
   Diluted . . . . . . . . . . . . . .       11,824        12,304
                                        ============  ============

Earnings per common share:
   Basic . . . . . . . . . . . . . . .  $      1.48   $      1.83
                                        ============  ============
   Diluted . . . . . . . . . . . . . .  $      1.46   $      1.79
                                        ============  ============
</TABLE>


                 See notes to consolidated financial statements.


                                    6 of 16
<PAGE>
<TABLE>
<CAPTION>
                        POMEROY COMPUTER RESOURCES, INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS



(in  thousands)                                            Nine  Months  Ended
                                                        --------------------------
                                                         October 5,    October 5,
                                                            1999          2000
                                                        ------------  ------------
<S>                                                     <C>           <C>
Cash Flows from Operating Activities:
   Net income. . . . . . . . . . . . . . . . . . . . .  $    17,280   $    22,078
   Adjustments to reconcile net income to net cash
       flows from operating activities:
   Depreciation. . . . . . . . . . . . . . . . . . . .        3,387         4,077
   Amortization. . . . . . . . . . . . . . . . . . . .        2,086         3,072
   Deferred income taxes . . . . . . . . . . . . . . .       (1,715)        1,888
   Changes in working capital accounts, net of effects
       of acquisitions:
       Receivables . . . . . . . . . . . . . . . . . .      (42,256)       (3,423)
       Inventories . . . . . . . . . . . . . . . . . .        9,025        (3,087)
       Prepaids. . . . . . . . . . . . . . . . . . . .       (1,393)         (921)
       Net investment in leases. . . . . . . . . . . .          340       (12,985)
       Accounts payable. . . . . . . . . . . . . . . .      (16,985)      (20,466)
       Deferred revenue. . . . . . . . . . . . . . . .        1,786        (2,589)
       Other, net                                             1,113           538
                                                        ------------  ------------
   Net cash flows used in operating activities . . . .      (27,332)      (11,818)
                                                        ------------  ------------

Cash Flows from Investing Activities:
   Capital expenditures. . . . . . . . . . . . . . . .       (2,172)       (4,836)
   Acquisition of assets, net of cash acquired . . . .       (4,298)      (12,230)
                                                        ------------  ------------
   Net cash flows used in investing activities. . . .        (6,470)      (17,066)
                                                        ------------  ------------

Cash Flows from Financing Activities:
   Net borrowings (payments) on bank notes payable. .        32,592           (72)
   Net borrowings on notes payable. . . . . . . . . .         1,232        18,301
   Proceeds from stock options related tax benefit. .           827             -
   Proceeds from exercise of stock options. . . . . .           451         9,208
   Proceeds from employee stock purchase plan . . . .           124           164
                                                        ------------  ------------
   Net cash flows provided by financing activities . .       35,226        27,601
                                                        ------------  ------------

Increase (decrease) in cash. . . . . . . . . . . . . .        1,424        (1,283)

Cash:
   Beginning of period . . . . . . . . . . . . . . . .        3,962         1,737
                                                        ------------  ------------

   End of period . . . . . . . . . . . . . . . . . . .  $     5,386   $       454
                                                        ============  ============
</TABLE>


                 See notes to consolidated financial statements.


                                    7 of 16
<PAGE>
                        POMEROY COMPUTER RESOURCES, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   Basis of Presentation

     The consolidated financial statements have been prepared in accordance with
     generally accepted accounting  principles for interim financial information
     and with the  instructions  to Form 10-Q and Rule 10-01 of Regulation  S-X.
     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, 2000. 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 nine-month
     period ended October 5, 2000 are not necessarily  indicative of the results
     that may be  expected  for future  interim  periods or for the year  ending
     January 5, 2001.

2.   Cash and Bank Notes Payable

     The Company  maintains a sweep  account  with its bank  whereby  daily cash
     receipts are  automatically  transferred as a payment towards the Company's
     credit facility.  As a result,  the Company  maintains  minimal cash in its
     bank account.  At January 5 and October 5, 2000, bank notes payable include
     $19.1 million and $10.1  million,  respectively,  of overdrafts in accounts
     with a participant  bank to the Company's  credit  facility.  These amounts
     were subsequently funded through the normal course of business.

3.   Accounts Receivable

     Reclassifications  have  been  made to the  January  5,  2000  consolidated
     balance sheet included herein to conform with the  presentation  used as of
     October 5, 2000.

4.   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)

                           Three  Months  Ended  October  5,
                         ---------------------------------------
                               1999                 2000
                         -----------------      ----------------
                                 Per Share             Per Share
                         Shares   Amount        Shares   Amount
                         ------  --------       ------  --------
     Basic EPS           11,744  $  0.56        12,289  $  0.67
     Effect of dilutive
      Stock options          87    (0.01)          254    (0.02)
                         ------  --------       ------  --------
     Diluted EPS         11,831  $  0.55        12,543  $  0.65
                         ======  ========       ======  ========


                               Nine Months Ended October 5,
                         ---------------------------------------
                               1999                  2000
                         ----------------       ----------------
                                Per Share              Per Share
                         Shares   Amount        Shares   Amount
                         ------  --------       ------  --------
     Basic EPS           11,709  $  1.48        12,084  $  1.83
     Effect of dilutive
      Stock options         115    (0.02)          220    (0.04)
                         ------  --------       ------  --------
     Diluted EPS         11,824  $  1.46        12,304  $  1.79
                         ======  ========       ======  ========


                                    8 of 16
<PAGE>
5.   Supplemental Cash Flow Disclosures

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

                                          Nine Months Ended October 5,
                                          ----------------------------
                                               1999             2000
                                          ---------------  -------------
     Interest paid                        $         2,650  $       3,039
                                          ===============  =============
     Income taxes paid                    $        12,496  $      11,984
                                          ===============  =============
     Adjustments to purchase price
      of acquisition assets               $         1,740  $           -
                                          ===============  =============

     Business combinations accounted for
     as purchases:
       Assets acquired                    $        10,573  $      19,658
       Liabilities assumed                          5,022          5,278
       Notes payable                                  697          2,150
       Stock issued                                   556              -
                                          ---------------  -------------
       Net cash paid                      $         4,298  $      12,230
                                          ===============  =============

6.   Related Parties

     A director of the Company is president of Information  Leasing  Corporation
     ("ILC").  In the first  quarter of fiscal  2000,  the Company  sold certain
     leases to ILC for $5.0 million.

7.   Litigation

     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.

8.   Segment Information

     Summarized  financial  information   concerning  the  Company's  reportable
     segments  is shown in the  following  table.  During the second  quarter of
     fiscal 1999,  depreciation  expense  associated with TIFS' operating leases
     was  reclassified  under  cost  of  sales  for  the  leasing  segment.  (in
     thousands)

                                     Three  Months  Ended  October  5,  1999
                                   ---------------------------------------------
                                   Products   Services   Leasing   Consolidated
                                   ---------  ---------  --------  -------------
    Revenues                       $ 168,896  $  27,059  $  1,135  $     197,090
    Income from operations             6,796      5,170       297         12,263
    Total assets                     202,207     60,897    36,665        299,769
    Capital expenditures                 539        144         -            683
    Depreciation and amortization      1,234        367        39          1,640


                                     Three  Months  Ended  October  5,  2000
                                   ---------------------------------------------
                                   Products   Services   Leasing   Consolidated
                                   ---------  ---------  --------  -------------
    Revenues                       $ 206,015  $  38,667  $  2,229  $     246,911
    Income from operations             6,834      7,496       598         14,928
    Total assets                     219,535     66,116    83,922        369,573
    Capital expenditures               1,910        632       479          3,021
    Depreciation and amortization      1,872        496       106          2,474


                                    9 of 16
<PAGE>
                                      Nine  Months  Ended  October  5,  1999
                                   ---------------------------------------------
                                   Products   Services   Leasing   Consolidated
                                   ---------  ---------  --------  -------------
    Revenues                       $ 470,482  $  74,459  $  2,921  $     547,862
    Income from operations            16,067     14,627       955         31,649
    Total assets                     202,207     60,897    36,665        299,769
    Capital expenditures               1,321        606       245          2,172
    Depreciation and amortization      3,659      1,004        89          4,752


                                       Nine  Months  Ended  October  5,  2000
                                   ---------------------------------------------
                                   Products   Services   Leasing   Consolidated
                                   ---------  ---------  --------  -------------
    Revenues                       $ 569,759  $ 102,160  $  7,480  $     679,399
    Income from operations            15,312     22,029     2,294         39,635
    Total assets                     219,535     66,116    83,922        369,573
    Capital expenditures               3,526        831       479          4,836
    Depreciation and amortization      5,068      1,247       271          6,586

9.   Subsequent Events


     The  Company's  credit  facility  extension  agreement  with DFS expired on
     October 14, 2000, and the Company signed an additional ninety-day extension
     agreement  with DFS under the same terms as the original  credit  facility.
     This  extension  will expire  January 12, 2001.  DFS  approved,  subject to
     execution  of  documentation,  an  increase  in the total  facility to $175
     million  during the  ninety-day  extension  period  which  consists of $100
     million working capital facility and $75 million  inventory  facility.  The
     Company is currently negotiating with various financial  institutions a new
     credit  facility in order to increase its overall  financing  availability.
     Although  there  can be no  assurances  that  the  Company  will be able to
     finalize a new credit facility,  the Company currently  anticipates that an
     agreement will be reached.

     On November 7, 2000, the Company acquired The Linc Corporation and Val Tech
     Computer  Systems,  Inc.,  both based in  Birmingham,  Alabama.  The Linc's
     primary focus is on network  design,  consulting,  systems  engineering and
     maintenance  in  connection  with Cisco  products.  Val Tech  operates as a
     leasing company for products and services offered by the Linc  Corporation.
     The  acquisition  will be  accounted  for as a stock  purchase  and was not
     significant   with  respect  to  the   Company's   consolidated   financial
     statements. The results of operations from the acquisition will be included
     in the consolidated statement of income from the date of acquisition.



                                    10 of 16
<PAGE>
         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 COMPUTER RESOURCES, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

TOTAL NET SALES AND  REVENUES.  Total  net sales and  revenues  increased  $49.8
million,  or 25.3%,  to $246.9  million in the third quarter of fiscal 2000 from
$197.1  million  in  the  third  quarter  of  fiscal  1999.  This  increase  was
attributable  to an  increase  in sales to  existing  and new  customers  and to
acquisitions  completed in fiscal year 2000. Excluding acquisitions completed in
fiscal year 2000,  total net sales and revenues  increased  23.7%.  Product  and
leasing sales increased $38.2 million,  or 22.5%, to $208.2 million in the third
quarter of fiscal 2000 from $170.0  million in the third quarter of fiscal 1999.
Excluding  acquisitions completed in fiscal year 2000, product and leasing sales
increased 21.0%.  Service revenues  increased $11.6 million,  or 42.8%, to $38.7
million  in the third  quarter of fiscal  2000 from  $27.1  million in the third
quarter of fiscal year 1999.  Excluding  acquisitions  completed  in fiscal year
2000, service revenues increased 40.8%.

Total net sales and  revenues  increased  $131.5  million,  or 24.0%,  to $679.4
million in the first nine months of fiscal 2000 from $547.9 million in the first
nine months of fiscal 1999.  This  increase was  attributable  to an increase in
sales to existing and new customers and to acquisitions completed in fiscal year
2000. Excluding  acquisitions completed in fiscal year 2000, total net sales and
revenues increased 23.4%. Product and leasing sales increased $103.8 million, or
21.9%,  to $577.2  million in the first nine  months of fiscal  2000 from $473.4
million  in the  first  nine  months  of  fiscal  1999.  Excluding  acquisitions
completed  in fiscal  year 2000,  product  and leasing  sales  increased  21.4%.
Service  revenues  increased  $27.7 million,  or 37.2%, to $102.2 million in the
first nine months of fiscal 2000 from $74.5  million in the first nine months of
fiscal year 1999. Excluding  acquisitions completed in fiscal year 2000, service
revenues increased 36.5%.

GROSS  MARGINS.  Gross margin  increased to 13.8% in the third quarter of fiscal
2000 as compared to 13.7% in the third quarter of fiscal 1999.  This increase in
gross  margin  resulted  primarily  from the increase in a higher mix of service
revenue to total revenue. Service revenues increased to 15.7% of total net sales
and revenues in the third  quarter of fiscal 2000 compared to 13.7% of total net
sales and  revenues in the third  quarter of fiscal 1999.  Service  gross margin
increased  to 45.6% of total  gross  margin in the third  quarter of fiscal 2000
from 39.1% in the third quarter of fiscal 1999.  This increase in the percentage
of service  gross margin to total gross margin was primarily due to the increase
in  higher-margin  service  revenues.  Factors  that may have an impact on gross
margin in the future include the further decline of 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 personnel utilization rates.

Gross  margin  decreased  to 13.3% in the first  nine  months of fiscal  2000 as
compared  to 13.4% in the first nine  months of fiscal  1999.  This  decrease in
gross  margin  resulted  primarily  from the  Company's  decision  to obtain new
business  and  increase  sales by  aggressively  pricing  certain  products  and
services in the first  quarter of fiscal  2000.  Service  revenues  increased to
15.0% of total net sales and  revenues  in the first nine  months of fiscal 2000
compared  to 13.6% of total net sales and  revenues  in the first nine months of
fiscal 1999.  Service gross  margin  increased to 47.1% of total gross margin in


                                    11 of 16
<PAGE>
the first nine  months of fiscal  2000 from  41.4% in the first  nine  months of
fiscal 1999.  This  increase in the  percentage of service gross margin to total
gross  margin  was  primarily  due  to the  increase  in  higher-margin  service
revenues.  Factors that may have an impact on gross margin in the future include
the further decline of 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 personnel utilization rates.

OPERATING EXPENSES. Selling, general and administrative expenses (including rent
expense)  expressed  as a percentage  of total net sales and  revenues  remained
constant at 6.7% in the third  quarter of fiscal 2000 as compared to 6.7% in the
third quarter of fiscal 1999.  Excluding  acquisitions  completed in fiscal year
2000, selling,  general and administrative expenses expressed as a percentage of
total net sales and revenues would have been 6.6% in the third quarter of fiscal
2000. Total operating  expenses expressed as a percentage of total net sales and
revenues  increased to 7.8% in the third quarter of fiscal 2000 from 7.5% in the
third  quarter of fiscal 1999 due to the  increase in  depreciation  expense and
amortization expense as a result of acquisitions and other capital expenditures.
Excluding  acquisitions  completed in fiscal year 2000, total operating expenses
expressed as a percentage  of total net sales and revenues  would have been 7.6%
in the third quarter of fiscal 2000.

Selling,  general and administrative expenses (including rent expense) expressed
as a percentage  of total net sales and revenues  decreased to 6.5% in the first
nine months of fiscal  2000 from 6.8% in the first nine  months of fiscal  1999.
This decrease is primarily due to the growth in net sales and revenues exceeding
the  growth  in  selling,   general  and  administrative   expenses.   Excluding
acquisitions completed in fiscal year 2000, selling,  general and administrative
expenses  expressed as a percentage  of total net sales and revenues  would have
been 6.4% in the first nine  months of fiscal  2000.  Total  operating  expenses
expressed as a percentage  of total net sales and revenues  decreased to 7.5% in
the  first  nine  months of fiscal  2000 from 7.7% in the first  nine  months of
fiscal  1999 due to the  reason  noted  above  and  offset by the  increases  in
depreciation  and amortization  expenses.  Excluding  acquisitions  completed in
fiscal year 2000,  total operating  expenses  expressed as a percentage of total
net sales and  revenues  would have been 7.4% in the first nine months of fiscal
2000.

INCOME FROM OPERATIONS. Income from operations increased $2.6 million, or 21.1%,
to $14.9  million in the third  quarter of fiscal 2000 from $12.3 million in the
third quarter of fiscal 1999. The Company's  operating  margin decreased to 6.1%
in the third  quarter of fiscal 2000 as compared to 6.2% in the third quarter of
fiscal  1999.  This  decrease  is  primarily  due to the  Company's  increase in
operating  expenses  in the third  quarter due to the  increase in  depreciation
expense  and  amortization  as  a  result  of  acquisitions  and  other  capital
expenditures.

Income from operations increased $8.0 million, or 25.3%, to $39.6 million in the
first nine months of fiscal 2000 from $31.6  million in the first nine months of
fiscal 1999. The Company's  operating  margin  remained  constant at 5.8% in the
first nine months of fiscal 2000 as compared to 5.8% in the first nine months of
fiscal 1999.

INTEREST  EXPENSE.  Interest  expense  increased $0.1 million,  or 8.3%, to $1.3
million  in the third  quarter  of fiscal  2000 from $1.2  million  in the third
quarter of fiscal 1999. This increase is primarily due to the Company's  overall
increase in debt borrowings in the first nine months of fiscal 2000.

Interest expense increased $0.4 million,  or 14.3%, to $3.2 million in the first
nine months of fiscal 2000 from $2.8  million in the first nine months of fiscal
1999. This increase is primarily due to the Company's  overall  increase in debt
borrowings in the first nine months of fiscal 2000.

INCOME TAXES. The Company's effective tax rate was 39.8% in the third quarter of
fiscal 2000 compared to 41.0% in the third quarter of fiscal 1999.  The decrease
in  the  Company's effective tax rate results from the Company's lowering of its
overall state income tax liability.

The  Company's  effective  tax rate was 39.7% in the first nine months of fiscal
2000 compared to 41.0% in the first nine months of fiscal 1999.  The decrease in
the  Company's  effective  tax  rate  results from the Company's lowering of its
overall state income tax liability.

NET INCOME. Net income increased $1.7 million,  or 26.2%, to $8.2 million in the
third  quarter of fiscal 2000 from $6.5  million in the third  quarter of fiscal
1999 due to the factors  described above. Net income increased $4.8 million,  or
27.7%,  to $22.1  million  in the first  nine  months of fiscal  2000 from $17.3
million in the first nine  months of fiscal  1999 due to the  factors  described
above.


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<PAGE>
                         LIQUIDITY AND CAPITAL RESOURCES

Cash  used in operating activities was $11.8 million in the first nine months of
fiscal  2000. Cash used in investing activities was $17.1 million which included
$4.9  million  for  capital  expenditures  and  $12.2  million  for acquisitions
completed  in fiscal 2000 and fiscal 1999. Cash provided by financing activities
was  $27.6  million  which  included  $18.3  million  of net borrowings on notes
payable  and  $9.3 million from the exercise of stock options and employee stock
purchase  plan.

A  significant  part of the  Company's  inventories  is  financed  by floor plan
arrangements  with third  parties.  At October  5, 2000,  these  lines of credit
totaled $72.0 million,  including $60.0 million with Deutsche Financial Services
("DFS") and $12.0 million with IBM Credit Corporation ("ICC").  Borrowings under
the DFS 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%.  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 DFS. The credit  facility  provides a credit line of $80.0
million for accounts  receivable  financing.  The accounts receivable portion of
the credit  facility  carries a variable  interest  rate based on the prime rate
less 125 basis  points.  At October 5, 2000,  the amount  outstanding  was $69.0
million,  including  $10.1  million  of  overdrafts  on the  Company's  books in
accounts at a participant bank on the credit facility,  which was at an interest
rate of 8.25%. The overdrafts were subsequently funded through the normal course
of business.  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.

During the first nine months of fiscal 2000,  the Company  increased the leasing
activity  through its  wholly-owned  leasing  subsidiary,  TIFS.  This increased
leasing  activity  during the first nine months of fiscal 2000 resulted in $23.4
million in increased net  borrowings  under the  Company's  notes  payable.  The
funding of the  Company's net  investment  in  sales-type  leases is provided by
various  financial  institutions on a non-recourse  basis.  Further increases in
leasing  operations  could  result  in  additional  debt  and  interest  expense
depending  on  the  amount  of  leasing  activity  and  the  types  of  leasing
transactions.

The  Company's  credit  facility extension agreement with DFS expired on October
14,  2000,  and  the Company signed an additional ninety-day extension agreement
with  DFS  under the same terms as the original credit facility.  This extension
will  expire  January  12,  2001.  DFS  approved,  subject  to  execution  of
documentation,  an  increase  in  the  total facility to $175 million during the
ninety-day  extension  period  which  consists  of  $100 million working capital
facility  and  $75  million  inventory  facility.  The  Company  is  currently
negotiating  with  various financial institutions a new credit facility in order
to  increase  its  overall  financing  availability.  Although  there  can be no
assurances  that the Company will be able to finalize a new credit facility, the
Company  currently  anticipates  that  an  agreement  will  be  reached.

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.


                                    13 of 16
<PAGE>
                        POMEROY COMPUTER RESOURCES, INC.

                            PART II OTHER INFORMATION

Items  1  to  3   None

Item  4  None

Item  5  None

Item  6  Exhibits  and  Reports  on  Form  8-K

(a)  Exhibits
     --------
10(i)
                 Material Agreements

       (kk)(1)   The Asset Purchase Agreement dated
                 July 27, 2000 by, between and among
                 Pomeroy Computer Resources, Inc.,
                 Pomeroy Select Integration Solutions,
                 Inc., DataNet, Inc., DataNet Technical
                 Services, LLC, DataNet Tangible
                 Products, LLC, DataNet Programming,
                 LLC, Richard Stitt, Gregory Stitt,
                 Jeffrey Eacho, and Richard
                 Washington.

      (kk) (2)   Noncompetiton Agreement by and
                 between Jeffrey Eacho and Pomeroy
                 Computer Resources, Inc.

      (kk) (3)   Noncompetition Agreement by and
                 between Jeffrey Eacho and Pomeroy
                 Select Integration Solutions, Inc.

      (kk) (4)   Noncompetition Agreement by and
                 between Gregory Stitt and Pomeroy
                 Computer Resources, Inc.

      (kk) (5)   Noncompetition Agreement by and
                 between Gregory Stitt and Pomeroy
                 Select Integration Solutions, Inc.

      (kk) (6)   Noncompetition Agreement by and
                 between DataNet Programming, LLC
                 and Pomeroy Computer Resources,
                 Inc.

     (kk) (7)    Noncompetition Agreement by and
                 between DataNet Tangible Products, LLC
                 and Pomeroy Computer Resources,
                 Inc.

     (kk) (8)    Noncompetition Agreement by and
                 between DataNet Technical Services, LLC
                 and Pomeroy Computer Resources,
                 Inc.


                                    14 of 16
<PAGE>
    (kk) (9)     Noncompetition Agreement by and
                 between DataNet, Inc. and Pomeroy
                 Computer Resources, Inc.

    (kk) (10)    Noncompetition Agreement by and
                 between DataNet Programming, LLC and
                 Pomeroy Select Integration Solutions, Inc.

    (kk) (11)    Noncompetition Agreement by and
                 between DataNet Tangible Products, LLC and
                 Pomeroy Select Integration Solutions, Inc.

    (kk) (12)    Noncompetition Agreement by and
                 between DataNet Technical Services, LLC and
                 Pomeroy Select Integration Solutions, Inc.

    (kk) (13)    Noncompetition Agreement by and
                 between DataNet, Inc. and Pomeroy Select
                 Integration Solutions, Inc.

    (kk) (14)    Noncompetition Agreement by and
                 between Richard Stitt and Pomeroy
                 Computer Resources, Inc.

    (kk) (15)    Noncompetition Agreement by and
                 between Richard Stitt and Pomeroy
                 Select Integration Solutions, Inc.

    (kk) (16)    Noncompetition Agreement by and
                 between Richard Washington and
                 Pomeroy Computer Resources, Inc.

    (kk) (17)    Noncompetition Agreement by and
                 between Richard Washington and
                 Pomeroy Select Integration Solutions, Inc.

    (kk) (18)    Employment Agreement by and
                 between  Pomeroy Computer Resources,
                 Inc. and Jeffrey Eacho.

    (kk) (19)    Employment Agreement by and
                 between Pomeroy Computer Resources,
                 Inc. and Gregory Stitt.

    (kk) (20)    Employment Agreement by and
                 between Pomeroy Computer Resources,
                 Inc. and Richard Stitt.

    (kk) (21)    Employment Agreement by and
                 between Pomeroy Computer Resources,
                 Inc. and Richard Washington.

  11             Computation of Earnings Per Share

  27             Financial Data Schedules

(b) Reports on Form 8-K      None


                                    15 of 16
<PAGE>
                                    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 COMPUTER RESOURCES,  INC.
                                            ---------------------------------
                                                       (Registrant)


Date: November 10, 2000                      By:  /s/  Stephen  E.  Pomeroy
                                            ------------------------------------
                                            Stephen  E.  Pomeroy
                                            Chief  Financial  Officer  and
                                            Chief  Accounting  Officer


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<PAGE>