THIS PAPER  DOCUMENT IS BEING  SUBMITTED  PURSUANT TO RULE 901(D) OF  REGULATION
S-T.

                       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 September 30, 1996

                         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 October  31,  1996 there were  outstanding  10,490,435  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 September 30, 1996 and 1995..........................  3

        Consolidated Balance Sheets as of September 30, 1996
        (unaudited) and June 30, 1996.....................................  4

        Consolidated Statements of Cash Flows (unaudited) for the
        Three Months Ended September 30, 1996 and 1995....................  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




<PAGE>



PART 1.                      FINANCIAL INFORMATION

Item 1.                       FINANCIAL STATEMENTS
                    WALSH INTERNATIONAL INC. AND SUBSIDIARIES
                    -----------------------------------------

                      CONSOLIDATED STATEMENTS OF OPERATIONS

Dollars in thousands, except per share amounts, unaudited
<TABLE>
<CAPTION>

                                                               ----------------------------------------
                                                                         Three Months Ended
                                                                            September 30,
                                                               ----------------------------------------
                                                                        1996                    1995
                                                               ----------------      ------------------
<S>                                                               <C>                 <C>           
Revenue                                                         $     12,758          $       10,300
                                                               ----------------      ------------------

Costs and expenses:

  Production costs                                                     4,853                   4,479

  Selling, general and administrative expenses                         6,078                   4,991

  Research and development costs                                         962                     897

  Amortization of intangible assets                                       36                      28
                                                               ----------------      ------------------
Total costs and expenses                                              11,929                  10,395
                                                               ----------------      ------------------

Operating profit (loss)                                                  829                     (95)

Interest income                                                          190                     281

Interest expense                                                         (54)                   (596)

Minority Interest                                                         73                       -
                                                               ----------------      ------------------
Income (loss) from continuing operations
  before income taxes                                                  1,038                    (410)

Income tax provision                                                    (236)                    (23)
                                                               ----------------      ------------------

Income (loss) from continuing operations                                 802                    (433)

Discontinued operations:

Loss from discontinued operations, net                                     -                    (797)
                                                               ----------------      ------------------

Net income (loss)                                               $        802          $       (1,230)
                                                               ================      ==================

Income (loss) per share from continuing operations              $       0.08          $        (0.06)

Loss per share from discontinued operations, net                        0.00                   (0.10)

                                                               ----------------      ------------------
Net income (loss) per share                                     $       0.08          $        (0.16)
                                                               ================      ==================

Shares used in computing income (loss) per share                  10,653,821               7,745,173
</TABLE>


    The accompanying notes are an integral part of these financial statements

                                        3

<PAGE>



                    WALSH INTERNATIONAL INC AND SUBSIDIARIES
                    ----------------------------------------
                           Consolidated Balance Sheets

Dollars in thousands
<TABLE>
<CAPTION>
                                                                    ------------------------------------------------------
                                                                        September 30,                      June 30,
                                                                    ------------------------------------------------------
ASSETS                                                                      1996                         1996
                                                                    ------------------------        ----------------------
<S>                                                                  <C>                             <C>              
Current Assets:                                                       (Unaudited)
  Cash and cash equivalents                                           $             6,468             $           8,629
  Marketable securities                                                            10,236                         9,992
  Accounts receivable, principally trade                                           11,993                        13,050
  Prepaid expenses and other current assets                                           813                           923
                                                                    ------------------------        ----------------------
Total current assets                                                               29,510                        32,594
Property and equipment, net                                                         4,642                         4,663
Goodwill, net                                                                       3,523                         3,551
Other assets, net                                                                   3,436                         3,209
                                                                    ------------------------        ----------------------
Total assets                                                          $            41,111             $          44,017
                                                                    ========================        ======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
  Current maturities of long-term debt                                $                13             $              12
  Current portion of  capital lease obligations                                       467                           443
  Accounts payable                                                                  6,955                         7,808
  Accrued liabilities                                                              15,203                        17,467
  Unearned income                                                                   4,001                         4,541
                                                                    ------------------------        ----------------------
Total current liabilities                                                          26,639                        30,271
                                                                    ------------------------        ----------------------
Long-term debt                                                                      1,111                         1,105
Capital lease obligations                                                           1,601                         1,652
Other liabilities                                                                   6,171                         6,295
Minority interest                                                                      75                           148
Commitments
Stockholders' equity:
  Common stock, $0.01 par value, 20,000,000 shares
  authorized and and 10,497,985 10,484,835 shares issued,
  respectively.                                                                       105                           105
Paid-in capital                                                                   119,248                       119,175
Accumulated deficit                                                              (114,146)                     (114,948)
Cumulative translation adjustment                                                     741                           675
Unrealized gain (loss) on available for sale securities, net of
  tax                                                                                  23                            (4)
Treasury stock, at cost, 20,750 shares                                               (457)                         (457)
                                                                    ------------------------        ----------------------
Total stockholders' equity                                                          5,514                         4,546
                                                                    ------------------------        ----------------------
Total liabilities and stockholders' equity                            $            41,111             $          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
<TABLE>
<CAPTION>
                                                                                 ---------------------------------------------
                                                                                              Three Months Ended
                                                                                                 September 30,
                                                                                 ---------------------------------------------
                                                                                             1996                       1995
                                                                                 ------------------        -------------------

<S>                                                                               <C>                       <C>            
Net cash flows used in operating activities                                        $        (934)            $         (972)
                                                                                 ------------------        -------------------
Cash flows used in investing activities:
  Purchases of marketable securities                                                        (217)                         -
  Capital expenditures                                                                      (337)                      (191)
  Capitalized software                                                                      (246)                      (225)
                                                                                 ------------------        -------------------
Net cash used in investing activities                                                       (800)                      (416)
                                                                                 ------------------        -------------------
Cash flows (used in) provided by financing activities:
  Collateral receipts                                                                          -                          8
  Common stock issuance costs                                                               (588)                         -
  (Repayment) increase of capital leases                                                      (5)                       120
  Options exercised                                                                           73                          -
  Repayment of long-term debt                                                                  -                        (39)
                                                                                 ------------------        -------------------
Net cash (used in) provided by financing activities                                         (520)                        89
                                                                                 ------------------        -------------------
Effect of exchange rate movements                                                             93                       (218)
Effect of discontinued operations                                                              -                     (2,166)
Net decrease in cash and cash equivalents                                                 (2,161)                    (3,683)
Cash and cash equivalents at beginning of period                                           8,629                     15,110
                                                                                 ------------------        -------------------
Cash and cash equivalents at end of period                                         $       6,468             $       11,427
                                                                                 ==================        ===================
</TABLE>



    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 and consolidated
         statements of cash flows for the three months ended  September 30, 1996
         and 1995, the consolidated  balance sheets as of September 30, 1996 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 months ended
         September 30, 1996 are not necessarily  indicative of the results to be
         expected for the entire 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  and cash flows for the three  months  ended  September  30,
         1995.

                                        6

<PAGE>

3.       EARNINGS (LOSS) PER SHARE
         --------------------------

         Earnings (loss) 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 calculation for the three months ended September 30, 1995.


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

         For the three months ended  September  30, 1996 the  effective tax rate
         was 23% compared to a tax provision on a loss for the equivalent period
         of fiscal 1995. The effective income tax rate is based on the Company's
         projected mix of the profits of its subsidiaries operating in different
         countries.


                                        7

<PAGE>



Item 2.

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

                 THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995

Revenue for the Company's  first quarter of fiscal year 1996 was $12.8  million,
an increase of 24% over the  comparable  period of the prior year.  The increase
was principally  due to a 27% improvement in the Company's  PRECISE and Premiere
revenues.  The revenue  increases were spread across  substantially all markets.
Excluding adverse currency movements revenue increased by 26%.

Production  costs in the  first  quarter  were  $4.9  million  (38% of  revenue)
compared with $4.5 million (43% ) in the comparable quarter of fiscal year 1995.
The decline in production  costs as a percentage of total  revenues  reflect the
company's operating leverage.

Selling,  general and  administrative  expenses in the first  quarter  were $6.0
million  (47% of  revenue),  compared  with $5.0 million (48% of revenue) in the
comparable  quarter  of the prior  year.  The 22%  increase  is due to sales and
marketing  expenditure  associated with the newly launched Premiere product plus
increased investment in senior sales personnel.

Research  and  development  costs were $1.0  million  (8% of  revenues)  for the
quarter  compared with $0.9 million (9% of revenues) for the comparable  quarter
of fiscal 1995 reflecting the continued  investment in research and development.
1995 levels were higher as a percentage  of revenue due to external  consultancy
for the impending Premiere launch. The percentage of software  development costs
capitalized has remained at similar rates in each period.

Net interest  income for the quarter ended  September 30, 1996 was $0.1 million,
compared to a net  interest  expense of $0.3 million for the  comparable  fiscal
1995 period, as a result of the repayment of the debentures following the IPO.

The effective  tax rate for the quarter  ended  September 30, 1996 was 23% which
compares to a provision on a loss for the comparable fiscal 1995 period.

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

                                        8

<PAGE>

                         LIQUIDITY AND CAPITAL RESOURCES



At September 30, 1996,  the Company's  cash and cash  equivalents  totalled $6.5
million,  a decrease of $2.2 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 plus some adverse timing  differences  in the settlement of receivables  and
payables.

The  Company  additionally  holds  $10.2  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.

                                        9


<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.


                                       10


<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:                                      Walsh International Inc.





                                           By /s/Martyn D Williams
                                              -------------------------

                                               Martyn D Williams
                                               Chief Financial Officer

                                          
                                           On behalf of the registrant and
                                           as principal financial officer.

                                       11

<PAGE>
                               INDEX TO EXHIBITS
<TABLE>
<CAPTION>

     Exhibit   Description                                                             
     -------   -----------                                                             
<S>            <C>                                                                     
      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                      
</TABLE>















                                       12