SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                  -------------

                                    FORM 10-Q

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

                  For the quarterly period ended March 31, 1997

                         Commission File number: 0-28202

                            WALSH INTERNATIONAL INC.
             (Exact Name of Registrant as Specified in its Charter)


            Delaware                                       51-0309207
   (State or Other Jurisdiction                         (I.R.S. Employer
 of Incorporation or Organization)                    Identification Number)

105 Terry Drive, Suite 118, Newtown, Pennsylvania              18940
     (Address of Principal Executive Offices)               (Zip Code)


Registrant's Telephone Number, Including Area Code         215-860-4949


           ----------------------------------------------------------
              (Former Name, Former Address and Former Fiscal Year,
                          if Changed Since Last Report)

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

As of April 30, 1997 there were outstanding 10,529,460 shares of Common Stock of
Walsh International Inc.


<PAGE>




                    WALSH INTERNATIONAL INC. AND SUBSIDIARIES

                               INDEX TO FORM 10-Q


                                                                           Page
                                                                          Number


PART I    FINANCIAL INFORMATION

Item 1.   Financial statements

          Consolidated  Statements  of  Operations  (unaudited)  for the
          Three  months  ended  March 31,  1997 and 1996 and Nine Months
          Ended March 31, 1997 and 1996...................................  3

          Consolidated Balance Sheets as of March 31, 1997
          (unaudited) and June 30, 1996...................................  4

          Consolidated Statements of Cash Flows (unaudited) for the
          Nine Months Ended March 31, 1997 and 1996.......................  5

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


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


PART II   OTHER INFORMATION

Item 6.   Exhibits and Reports on Form 8-K...............................  10

          Signatures.....................................................  11



                                        2

<PAGE>



PART 1.                         FINANCIAL INFORMATION

ITEM 1.                         FINANCIAL STATEMENTS
                                --------------------
                        WALSH INTERNATIONAL AND SUBSIDIARIES
                        ------------------------------------

                        CONSOLIDATED STATEMENTS OF OPERATIONS

Dollars in thousands, except per share amounts, unaudited

<TABLE>
<CAPTION>
                                               -------------------------------------------------------------
                                                    THREE MONTHS ENDED                NINE MONTHS ENDED
                                                 MARCH 31,       MARCH 31,       MARCH 31,       MARCH 31,
                                               ----------------------------    ----------------------------
                                                   1997             1996           1997            1996
                                               ------------    ------------    ------------    ------------
<S>                                            <C>             <C>             <C>             <C>         
Revenue                                        $     13,704    $     12,108    $     39,815    $     34,181
                                               ------------    ------------    ------------    ------------

Costs and expenses:

  Production costs                                    5,269           4,709          15,043          13,597

  Selling, general and administrative
  expenses                                            5,892           5,241          18,087          15,518

  Research and development costs                        893             873           2,812           2,601

  Amortization of intangible assets                      36              28             108              84
                                               ------------    ------------    ------------    ------------
Total costs and expenses                             12,090          10,851          36,050          31,800
                                               ------------    ------------    ------------    ------------

Operating profit                                      1,614           1,257           3,765           2,381

Interest income                                         159             131             578             655

Interest expense                                        (58)           (559)           (191)         (1,747)

Minority Interest                                       (34)             --              78              --
                                               ------------    ------------    ------------    ------------
Income from continuing operations
  before income taxes                                 1,681             829           4,230           1,289


Income tax provision                                   (380)           (740)         (1,004)           (229)
                                               ------------    ------------    ------------    ------------

Income  from continuing operations                    1,301              89           3,226           1,060

Discontinued operations:

Loss from discontinued operations, net                   --              --              --          (1,755)
                                               ------------    ------------    ------------    ------------
Net income (loss)                              $      1,301    $         89    $      3,226    $       (695)
                                               ============    ============    ============    ============

Income per share from continuing operations    $       0.12    $       0.01    $       0.30    $       0.14

Loss per share from discontinued operations,
net                                                      --              --              --           (0.23)

                                               ------------    ------------    ------------    ------------
Net income (loss) per share                    $       0.12    $       0.01    $       0.30    $      (0.09)
                                               ============    ============    ============    ============

Shares used in computing income (loss) per
share                                            10,633,650       7,539,135      10,595,987       7,569,612
</TABLE>


    The accompanying notes are an integral part of these financial statements

                                        3

<PAGE>



                    WALSH INTERNATIONAL INC AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>

Dollars in thousands
                                                           -----------------------
                                                             MARCH 31,    JUNE 30,
                                                            ----------------------
ASSETS                                                           1997         1996
                                                            ---------    ---------
Current Assets:                                            (UNAUDITED)
<S>                                                         <C>          <C>      
  Cash and cash equivalents                                 $   6,833    $   8,629
  Marketable securities                                         8,505        9,992
  Accounts receivable, principally trade                       12,486       13,050
  Prepaid expenses and other current assets                     1,264          923
                                                            ---------    ---------
Total current assets                                           29,088       32,594
Property and equipment, net                                     4,413        4,663
Goodwill, net                                                   3,467        3,551
Other assets, net                                               3,736        3,209
                                                            ---------    ---------
Total assets                                                $  40,704    $  44,017
                                                            =========    =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
  Current maturities of long-term debt                      $      14    $      12
  Current portion of  capital lease obligations                   463          443
  Accounts payable                                              6,706        7,808
  Accrued liabilities                                          11,708       17,467
  Unearned income                                               5,075        4,541
                                                            ---------    ---------
Total current liabilities                                      23,966       30,271
                                                            ---------    ---------
Long-term debt                                                  1,107        1,105
Capital lease obligations                                       1,701        1,652
Other liabilities                                               5,818        6,295
Minority interest                                                  71          148
Stockholders' equity:
  Common stock, $0.01 par value, 20,000,000 shares
  authorized and 10,528,660 and 10,484,835 shares issued,
  respectively                                                    105          105


Paid-in capital                                               119,449      119,175
Accumulated deficit                                          (111,722)    (114,948)
Cumulative translation adjustment                                 668          675
Unrealized loss on available for sale securities, net of
  tax                                                              (2)          (4)
Treasury stock, at cost, 20,750 shares                           (457)        (457)
                                                            ---------    ---------
Total stockholders' equity                                      8,041        4,546
                                                            ---------    ---------
Total liabilities and stockholders' equity                  $  40,704    $  44,017
                                                            =========    =========
</TABLE>


    The accompanying notes are an integral part of these financial statements

                                        4

<PAGE>




                    WALSH INTERNATIONAL INC AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS


Dollars in thousands, unaudited
                                                           ---------------------
                                                             NINE MONTHS ENDED
                                                                 MARCH 31,
                                                           ---------------------
                                                             1997        1996
                                                           --------    --------
Net cash flows used in operating activities                $ (1,221)   $ (1,983)
                                                           --------    --------
Cash flows (used in) provided by investing activities:
  Sale of marketable securities, net of purchases             1,489          --
  Capital expenditures                                         (618)       (712)
  Capitalized software                                         (665)       (670)
                                                           --------    --------
Net cash provided by (used in) investing activities             206      (1,382)
                                                           --------    --------
Cash flows (used in) provided by financing activities:
  Collateral receipts                                            --       1,088
  Common stock issuance costs                                (1,086)         --
  Repayment of capital leases                                  (269)       (103)
  Options exercised                                             274          --
  Loan proceeds received from minority interest                 111
  Repayment of long-term debt                                    --      (1,073)
                                                           --------    --------
Net cash used in financing activities                          (970)        (88)
                                                           --------    --------
Effect of exchange rate movements                               189        (295)
Effect of discontinued operations                                --      (6,853)
                                                           --------    --------
Net decrease in cash and cash equivalents                    (1,796)    (10,601)
Cash and cash equivalents at beginning of period              8,629      15,110
                                                           --------    --------
Cash and cash equivalents at end of period                 $  6,833    $  4,509
                                                           ========    ========



    The accompanying notes are an integral part of these financial statements

                                        5

<PAGE>



WALSH INTERNATIONAL INC AND SUBSIDIARIES
----------------------------------------

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.       INTERIM UNAUDITED FINANCIAL INFORMATION
         ---------------------------------------

         The consolidated  financial  statements  include the  accounts of Walsh
         International  Inc.  (the  "Company")  and  all of  its  majority-owned
         subsidiaries.

         The  accompanying  consolidated  statements of operations for the three
         and nine  months  ended  March  31,  1997 and  1996,  the  consolidated
         statements  of cash flows for the nine months  ended March 31, 1997 and
         1996 the  consolidated  balance  sheets  as of March  31,  1997 and the
         related information of Walsh International Inc. included in these notes
         to the consolidated financial statements are unaudited.  In the opinion
         of  management,   the  interim  financial   information   reflects  all
         adjustments  (consisting  only of items of a  normal  recurring  nature
         except for discontinued operations) necessary for the fair presentation
         of the financial position, results of operations and cash flows for the
         periods presented.  Results of operations for the three and nine months
         ended March 31, 1997 are not  necessarily  indicative of the results to
         be expected for the entire fiscal year.

         The June 30, 1996 balance sheet was derived from the Company's June 30,
         1996 audited consolidated  financial  statements,  but does not include
         all disclosures required by generally accepted accounting principles.

         These interim  financial  statements should be read in conjunction with
         the audited consolidated financial statements and related notes thereto
         included in the  Company's  Consolidated  Financial  Statements on Form
         10-K for the year ended June 30, 1996.

2.       DISCONTINUED OPERATIONS - SOURCE BUSINESS
         -----------------------------------------
         The Company  consummated  an Initial Public  Offering  ("IPO") in April
         1996.  Immediately  prior to the IPO,  the Company  spun-off the Source
         business to its  stockholders by the  distribution of all of the issued
         and  outstanding  capital stock of Source  Informatics  Inc., a holding
         company formed for that purpose. The results of the Source business are
         shown as  discontinued  operations  in the  consolidated  statements of
         operations,   for  the  nine  months  ended  March  31,  1996  and  the
         consolidated  statement  of cash flows for the nine months  ended March
         31, 1996.

                                        6

<PAGE>




3.       EARNINGS PER SHARE
         ------------------

         Earnings  per share is computed  using the weighted  average  number of
         shares of Common Stock outstanding. Common equivalent shares from stock
         options  and  warrants  (using the  treasury  stock  method)  have been
         included in the computation when dilutive except that,  pursuant to the
         Securities and Exchange Commission Staff Accounting Bulletin, all stock
         options and warrants  issued by the Company at an exercise  price below
         the public offering price during the  twelve-month  period prior to the
         offering  have  been  included  in the  calculations  as if  they  were
         outstanding  for all periods  presented using the treasury stock method
         and  the IPO  price  of  $12.00.  Common  equivalent  shares  from  the
         Preferred Stock (using the  if-converted  method) have been included in
         the calculations for the three and nine months ended March 31, 1996.

4.       INCOME TAXES
         ------------

         For the three and nine months  ended March 31, 1997 the  effective  tax
         rates  were 23% and 24%  respectively  compared  to 89% and 18% for the
         equivalent  periods of fiscal 1996.  The  effective  income tax rate is
         based on the Company's projected mix of the profits of its subsidiaries
         operating in  different  countries,  together  with a  reassessment  of
         income tax provisions established in prior periods.


                                        7

<PAGE>



Item 2
               MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
               --------------------------------------------------
                       OPERATIONS AND FINANCIAL CONDITION
                       ----------------------------------
                    WALSH INTERNATIONAL INC AND SUBSIDIARIES
                    ----------------------------------------

THREE MONTHS ENDED MARCH 31, 1997 AND 1996

Revenue for the third quarter of Fiscal 1997 was $13.7  million,  an increase of
13% over the comparable period of the prior year. Excluding net adverse currency
fluctuations,  revenue  increased by 16%. The increase was  primarily due to 19%
growth (excluding the impact of currency) in revenues from technology  products;
Premiere, Precise and Pharbase.

Production  costs in the third  quarter  were  $5.3  million  (38% of  revenue),
compared with $4.7 million (39% of revenue) in the comparable  quarter of Fiscal
1996.  The decline in production  costs as a percentage of revenue  demonstrates
the Company's  operating  leverage.  Production costs have increased in absolute
terms following the initial  establishment costs associated with the creation of
a European  Regional  Support Centre to offer pan European support to customers,
particularly multi-country installations, of Premiere.

Selling, general and administrative expenses in the third quarter of Fiscal 1997
were $5.9 million (43% of revenue),  compared with $5.2 million (43% of revenue)
in the  comparable  quarter of the prior  year.  This  increase  reflects  costs
associated  with the increased  investment in senior sales  resources as well as
development plans for business expansion into new geographical markets.

Research and development  costs were $0.9 million (7% of revenues) which is at a
comparable level to the prior year reflecting  continuing  commitment to product
development.

Net interest  income for the third  quarter was $0.1  million  compared to a net
interest  expense of $0.4 million for the  comparable  fiscal 1996 period due to
the repayment of the Company's debentures following the IPO.

The  effective  tax rate for the  quarter  ended  March  31,  1997 was 23% which
compares to 89% for the comparable fiscal 1996 period. The effective fiscal 1997
tax  rate  is  based  on the  Company's  projected  mix of  the  profits  of its
subsidiaries  operating  in  different  countries,   together  with  an  updated
assessment of income tax accruals  established in prior periods. The fiscal 1996
rate was 56% after adding back non deductible  interest expense.  This is higher
than the 1997 rate due to the mix of profits.

Income from continuing operations of 1.3 million for the third quarter (12 cents
per share)  compared with $0.1 million (0.01 cents per share) for the comparable
period of 1996. The improvement reflects a $1.6 million increase in revenues and
a smaller  increase in operating  costs and expenses  together with interest and
tax improvements.

                                        8

<PAGE>



NINE MONTHS ENDED MARCH 31, 1997 AND 1996

Revenue for nine months to March 31 1997 was $39.8  million,  an increase of 16%
over  the  comparable  period  of the  prior  year.  Revenue  increases  were in
substantially all geographical markets. Excluding net adverse currency movements
revenue  increased by 19%. The increase was principally due to a 23% improvement
(excluding currency) in the Company's technology products; Premiere, Precise and
Pharbase.

Production costs in the nine months were $15.0 million (38% of revenue) compared
with $13.6  million  (40% of  revenue) in the  comparable  period of fiscal year
1996.  The decline in production  costs as a percentage of total revenues is due
to both the increasing  percentage of high margin  technology  product sales and
the Company's operating leverage.

Selling,  general  and  administrative  expenses in the nine months to March 31,
1997 were $18.1  million (45% of revenue),  compared  with $15.5 million (45% of
revenue) in the comparable  period of the prior year. The 17% increase is due to
significant  investment in senior sales and client service personnel to meet the
growing demand for Premiere.

Research and development  costs were $2.8 million (7% of revenues) for the first
nine months  compared  with $2.6  million (8% of  revenues)  for the  comparable
period of fiscal 1996 reflecting the continued investment in product innovation.
The amount of software  costs  capitalized  expressed as a  percentage  of total
research and development has remained at similar levels in each period.

Net interest  income for the nine months ended March 31, 1997 was $0.4  million,
compared to a net  interest  expense of $1.1 million for the  comparable  fiscal
1996 period, as a result of the repayment of the debentures following the IPO.

The  effective  tax rate for the nine months  ended March 31, 1997 was 24% which
compares to 18% for the comparable fiscal 1996 period. The effective fiscal 1997
tax  rate  is  based  on the  Company's  projected  mix of  the  profits  of its
subsidiaries  operating  in  different  countries,   together  with  an  updated
assessment of income tax accruals  established in prior periods. The fiscal 1996
effective  tax rate is reduced  due to  benefits  which arose as a result of the
recognition  of a deferred  tax asset on  available-for-sale  securities.  These
shares were transferred to Source Informatics at the Spin-Off.

The Company has  received a ruling from the IRS that the  Spin-Off of the Source
business  qualified  as a tax-free  distribution  pursuant to Section 355 of the
Internal Revenue Code of 1986.

Income from  continuing  operations of $3.2 million (30 cents per share) for the
nine  months  ended March 31, 1997  compared to a $1.1  million  (0.14 cents per
share)  for the  comparable  nine  months of  fiscal  1996.  This  $2.1  million
improvement is primarily due to a $1.4 million  improvement in operating  profit
which is a result of a 16%  improvement  in revenues and a 13% increase in total
costs and expenses.

                                        9

<PAGE>



                         LIQUIDITY AND CAPITAL RESOURCES



At March  31,  1997,  the  Company's  cash and cash  equivalents  totalled  $6.8
million,  a decrease of $1.8 million  from the $8.6 million  balance at June 30,
1996. The decrease is primarily due to the payment of costs  associated with the
IPO and  investment in capital  assets plus some adverse  timing  differences in
respect of working capital.

The  Company  additionally  holds  $8.5  million  in  a  professionally  managed
portfolio of marketable  securities.  The  marketable  securities are considered
current  assets by the  Company  as it has both the  ability  and the  intent to
realize these securities in the normal operating cycle of the business.

The Company believes that the anticipated cash flow from operations and existing
cash balances will satisfy the Company's  projected  working capital and capital
expenditure requirements through at least the end of fiscal 1998.

                      RECENTLY ISSUED ACCOUNTING STANDARDS

In February  1997,  the FASB issued SFAS No.128  "EARNINGS  PER SHARE"  which is
effective for financial  statements issued for periods ending after December 15,
1997.

The  new  standard  requires  changes  to  the  computation,   presentation  and
disclosure requirements of primary and fully diluted earnings per share.

The Company does not believe that the  application of the new  computation  will
have a  materially  different  impact from that  calculated  under its  existing
accounting policy for the current period.

                                       10

<PAGE>



PART II                                                        OTHER INFORMATION
-------                                                        -----------------


ITEM 6                       EXHIBITS AND REPORTS ON FORM 8-K

          (a)                Exhibits

          Exhibit Number

          3.1       Restated Certificate of Incorporation of Walsh International
                    Inc.,  incorporated  by  reference  to  Exhibit  3.1  to the
                    Registration  Statement on Form S-1 of the Company (file no.
                    333-316)

          3.2       By-laws   of   Walsh   International   Inc.,   as   amended,
                    incorporated by reference to Exhibit 3.2 to the Registration
                    Statement on Form S-1 of the Company (file no. 333-316)


          11        Computation of Earnings (Loss) per Share


          27        Financial Data Schedule


          (b)       Reports on Form 8-K

                    None.

                                       11

<PAGE>



                                   SIGNATURES


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


Date: May 12, 1997                Walsh International Inc.





                                  By: /s/Martyn D Williams
                                      ---------------------
                                  Martyn D Williams
                                  Chief Financial Officer

                                  On behalf of the registrant and 
                                  as principal financial officer.

                                                        12

<PAGE>



                                INDEX TO EXHIBITS
                                -----------------



Exhibit             Description
-------             -----------


3.1                 Restated Certificate of Incorporation of Walsh International
                    Inc.,  incorporated  by  reference  to  Exhibit  3.1  to the
                    Registration  Statement on Form S-1 of the Company (file no.
                    333-316)

3.2                 By-laws   of   Walsh   International   Inc.,   as   amended,
                    incorporated by reference to Exhibit 3.2 to the Registration
                    Statement on Form S- 1 of the Company (file no. 333-316)


11                  Computation of Earnings (Loss) per Share


27                  Financial Data Schedule

                                       13