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                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                            ------------------------
                                    FORM 10-Q

[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities
    Exchange Act of 1934
    For the quarter ended December 31, 2001.

                                       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 0-27798

                        WORKGROUP TECHNOLOGY CORPORATION
             (Exact name of registrant as specified in its charter)

               Delaware                                 04-3153644
    (State or other jurisdiction            (I.R.S. Employer Identification No.)
  of incorporation or organization)

One Burlington Woods Drive, Burlington, Massachusetts                    01803
      (Address of principal executive offices)                        (Zip code)


       Registrant's telephone number, including area code: (781) 270-2600

                            ------------------------
                     91 Hartwell Avenue, Lexington, MA 02421
                 (Former address of principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes  X   No ____
    ---



Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.

                 Class                         Outstanding at January 22, 2002
      ----------------------------             -------------------------------
      Common Stock, $.01 par value                       1,841,121

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                        WORKGROUP TECHNOLOGY CORPORATION
                                      Index

                                                                         Page(s)
                                                                         ------
Part I. Financial Information:

            Item 1.    Condensed Consolidated Balance Sheets
                            at December 31, 2001 and March 31, 2001           2

                       Consolidated Statements of Operations for the
                            three and nine month periods ended
                            December 31, 2001 and 2000                        3

                       Consolidated Statements of Cash Flows for the
                            nine month periods ended
                            December 31, 2001 and 2000                        4

                       Notes to Consolidated Financial Statements           5-6

            Item 2.    Management's Discussion and Analysis of Financial
                            Condition and Results of Operations            7-10

Part II. Other Information:

            Item 1.    Legal Proceedings                                     11

            Item 5.    Other Information                                     11

            Item 6.    Exhibits and Reports on Form 8-K                      11

Signatures                                                                   12

<PAGE>

                        WORKGROUP TECHNOLOGY CORPORATION
                      Condensed Consolidated Balance Sheets
                                 (in thousands)

                                                        December 31,  March 31,
                                                           2001        2001
                                                        (unaudited)

  Assets
  ----------------------------------------------------------------------------
  Current assets:
        Cash and cash equivalents                       $   3,557     $ 7,019
        Accounts receivable, net                              382         556
        Prepaid expenses and other current assets             165         123
                                                        ---------    --------
               Total current assets                         4,104       7,698
                                                        ---------    --------

  Property and equipment, net                                 590       1,084
                                                        ---------    --------
                                                        $   4,694     $ 8,782
                                                        =========    ========


  Liabilities and Stockholders' Equity
  ----------------------------------------------------------------------------
  Current liabilities:
        Accounts payable                                $     207     $   756
        Accrued expenses                                      267         592
        Accrued royalties                                     206          51
        Deferred revenue                                    1,881       2,247
                                                        ---------    --------
               Total current liabilities                    2,561       3,646
                                                        ---------    --------

  Stockholders' equity:
        Common stock                                           22          22
        Additional paid-in capital                         44,479      44,479
        Treasury stock                                     (1,757)     (1,753)
        Accumulated deficit                               (40,611)    (37,612)
                                                        ---------    --------
               Total stockholders' equity                   2,133       5,136
                                                        ---------    --------
                                                        $   4,694     $ 8,782
                                                        =========    ========

The accompanying notes are an integral part of the consolidated financial
statements.

                                        2

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                        WORKGROUP TECHNOLOGY CORPORATION
                      Consolidated Statements of Operations
                      (in thousands, except per share data)


                                            Three months ended Nine months ended
                                               December 31,      December 31,
                                              2001     2000     2001     2000
                                                (unaudited)      (unaudited)
--------------------------------------------------------------------------------

Revenue
  Software licenses                          $  344  $   319  $   965  $   970
  Maintenance and services                    1,639    1,471    4,649    4,430
                                             ------  -------  -------  -------
    Total revenue                             1,983    1,790    5,614    5,400

Cost of revenue
  Cost of software licenses                      63       82      208      227
  Cost of maintenance and services              708      768    2,546    1,918
                                             ------  -------  -------  -------
    Total cost of revenue                       771      850    2,754    2,145

                                             ------  -------  -------  -------
Gross profit                                  1,212      940    2,860    3,255


Operating expenses
  Selling and marketing                         546      949    2,040    2,279
  Research and development                      744    1,055    2,683    3,298
  General and administrative                    462      614    1,256    1,768
                                             ------  -------  -------  -------
    Total operating expenses                  1,752    2,618    5,979    7,345

                                             ------  -------  -------  -------
Loss from operations                           (540)  (1,678)  (3,119)  (4,090)

Interest income                                  29      140      120      468

                                             ------  -------  -------  -------
Net loss                                     $ (511) $(1,538) $(2,999) $(3,622)
                                             ======  =======  =======  =======


Basic and diluted net loss per common share  $(0.28) $ (0.80) $ (1.63) $ (1.84)
                                             ======  =======  =======  =======

Weighted average basic and diluted shares
outstanding                                   1,841    1,915    1,842    1,967
                                             ======  =======  ======== =======

The accompanying notes are an integral part of the consolidated financial
statements.

                                       3

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                        WORKGROUP TECHNOLOGY CORPORATION
                      Consolidated Statements of Cash Flows
                                 (in thousands)

                                                  Nine months ended December 31,
                                                      2001             2000
                                                           (unaudited)
--------------------------------------------------------------------------------
Cash flows from operating activities:
  Net loss                                          $  (2,999)      $ (3,622)
  Adjustments to reconcile net loss to net cash
        used in operating activities:
     Depreciation and amortization                        509            435
     Loss on disposal of property and equipment             5              2
     Provision for doubtful accounts                      (25)           (10)
     Changes in operating assets and liabilities:
        Accounts receivable                               199            280
        Prepaid expenses and other current assets         (42)            97
        Accounts payable                                 (549)           633
        Accrued expenses                                 (320)          (336)
        Accrued royalties                                 155            123
        Deferred revenue                                 (366)          (754)
                                                     ---------       --------
        Net cash used in operating activities          (3,433)        (3,152)

Cash flows from investing activities:
        Purchases of property and equipment               (20)          (598)

Cash flows from financing activities:
        Proceeds from issuance of common stock              -              5
        Payments for common stock repurchases              (4)          (318)
        Payments of capital lease obligations              (5)            (8)

                                                     ---------       --------
        Net cash used in financing activities              (9)          (321)

                                                     ---------       --------
Net decrease in cash and cash equivalents              (3,462)        (4,071)

Cash and cash equivalents, beginning of period          7,019         12,406

                                                     ---------       --------
Cash and cash equivalents, end of period             $  3,557        $ 8,335
                                                     =========       ========




The accompanying notes are an integral part of the consolidated financial
statements.

                                        4

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                        WORKGROUP TECHNOLOGY CORPORATION
                   Notes to Consolidated Financial Statements

1.    Nature of Business

      Workgroup Technology Corporation (the "Company"), incorporated on May 11,
      1992, provides collaborative product data management solutions through its
      WTC ProductCenter family of products. The Company's products and services
      provide product development organizations with product content management
      and process automation to optimize the product development process
      throughout the extended enterprise, including customers, partners and the
      supply chain.

      During the past year and in the last several quarters, the Company has
      continued to invest in its flagship PDM product, WTC ProductCenter. In
      part, because of this continued investment, the Company has generated
      continued losses from operations which has reduced its cash balances.
      Management has taken actions to reduce discretionary spending and has the
      intent and ability to manage expenditures commensurate with the level of
      sales expected over the next year to ensure adequate cash balances to fund
      operations during the next year.

2.    Summary of Significant Accounting Policies

      Basis of Presentation

      As permitted by the rules of the Securities and Exchange Commission
      applicable to Quarterly Reports on Form 10-Q, these notes are condensed
      and do not contain all disclosures required by generally accepted
      accounting principles. Reference should be made to the consolidated
      financial statements and related notes included in the Company's Annual
      Report on Form 10-K for the fiscal year ended March 31, 2001. In the
      opinion of the management of the Company, the accompanying consolidated
      unaudited financial statements contain all adjustments (consisting of only
      normal, recurring adjustments) necessary to present fairly the Company's
      financial position at December 31, 2001, and the results of its operations
      for the three and nine months ended December 31, 2001 and 2000, and
      statements of cash flows for the nine months ended December 31, 2001 and
      2000. The results for the three and nine month periods ended December 31,
      2001 are not necessarily indicative of the results to be expected for the
      full fiscal year.

      Risks and Uncertainties

      The preparation of financial statements in conformity with generally
      accepted accounting principles requires management to make estimates and
      assumptions that affect the reported amounts of assets and liabilities and
      disclosures of contingent assets and liabilities at the date of the
      financial statements and the reported amounts of revenue and expenses
      during the reporting period. Actual results could differ from those
      estimates and could impact future results of operations.

3.    Basic and Diluted Earnings Per Share

      The Company's basic net loss per common share is computed by dividing net
      loss by the weighted average number of shares of common stock outstanding.
      Potential common shares include shares issuable upon the exercise of stock
      options or warrants, net of shares

                                        5

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                        WORKGROUP TECHNOLOGY CORPORATION
                   Notes to Consolidated Financial Statements

      assumed to have been purchased by the Company with the related proceeds.
      Potential common shares, which consisted only of stock options, were
      antidilutive for the three and nine month periods ended December 31, 2001
      and 2000 and therefore the diluted net loss per common share was the same
      as basic net loss per common share for those periods.

      Options to purchase weighted average shares of the Company's common stock
      of approximately 451,000 and 457,000 were outstanding for the periods
      ended December 31, 2001 and 2000, respectively, at weighted average prices
      of $4.56 and $5.42, respectively, but were not included in the computation
      of diluted earnings per share because they were antidilutive.

                                        6

<PAGE>

                        WORKGROUP TECHNOLOGY CORPORATION
                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations

RESULTS OF OPERATIONS
---------------------

Revenue. The Company's revenue consists of license fees for its WTC
ProductCenter family of software products, and fees for professional services
and software maintenance. Revenue for the third quarter of fiscal 2002 increased
11% to $1,983,000 from $1,790,000 compared with the same period of fiscal 2001.
Revenue for the nine month period ended December 31, 2001 increased 4% to
$5,614,000 from $5,400,000 in the comparable period of fiscal 2001.

Software license revenue for the three month period ended December 31, 2001
increased to $344,000 from $319,000 in the comparable period of fiscal 2001.
Software license revenue for the nine month period ended December 31, 2001
decreased slightly to $965,000 from $970,000 in the comparable period of fiscal
2001.

Maintenance and services revenue for the three month period ended December 31,
2001 increased 11% to $1,639,000 from $1,471,000 in the comparable period of
fiscal 2001. Maintenance and services revenue for the nine month period ended
December 31, 2001 increased 5% to $4,649,000 from $4,430,000 in the comparable
period of fiscal 2001. This increase resulted primarily from catch-up
maintenance payments received from certain customers whose maintenance contracts
had previously expired which may not continue at the same level, partially
offset by a decrease in services revenue.

Cost of Revenue and Gross Profit. The Company's cost of software license revenue
consists primarily of third party royalties payable upon the license of products
for which another party is entitled to receive compensation, as well as costs
associated with media, packaging, documentation and delivery of the Company's
products. Gross profit associated with software license revenue for the third
quarter of fiscal 2002 increased to $281,000 or 82% of software license revenue
from $237,000 or 74% of software license revenue in the third quarter of fiscal
2001. This increase in gross profit is due primarily to higher software license
revenue and lower employee related expenses. For the nine months ended December
31, 2001, gross profit from software license revenue increased slightly to
$757,000 or 78% of software license revenue from $743,000 or 77% for the same
period of fiscal 2001.

Cost of maintenance and services revenue consists primarily of personnel and
related costs for the Company's customer support and professional services
organizations. The Company's gross profit from maintenance and services revenue
increased to $931,000 or 57% of maintenance and services revenue in the third
quarter of fiscal 2002 from $703,000 or 48% of maintenance and service revenue
in the third quarter of fiscal 2001. This increase resulted primarily from
additional maintenance payments (as described above) and lower employee related
expenses, partially offset by a decrease in services revenue and a higher
utilization of existing engineering resources for maintenance support in the
current quarter. For the nine months ended December 31, 2001, gross profit from
maintenance and services revenue decreased to $2,103,000 or 45% from $2,512,000
or 57% of the associated revenue in the comparable period of fiscal 2001. This
decrease in gross profit is due primarily to a higher utilization of existing
engineering resources for maintenance support, partially offset by additional
maintenance payments (as described above) in the nine month period.

                                       7

<PAGE>

                        WORKGROUP TECHNOLOGY CORPORATION
                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations

Selling and Marketing. Selling and marketing expenses decreased 42% and 10% for
the three and nine month periods ended December 31, 2001 to $546,000 and
$2,040,000, respectively, from $949,000 and $2,279,000, respectively, for the
same periods of fiscal 2001. These decreases resulted primarily from lower
employee related expenses in the sales organization and reduced marketing
related activities in the third fiscal quarter ended December 31, 2001. As a
result of these decreases, selling and marketing expenses as a percentage of
revenue decreased to 28% and 36% in the three and nine month periods of fiscal
2002 from 53% and 42% in the same periods of fiscal 2001.

Research and Development. Research and development expenses decreased 29% and
19% for the three and nine month periods ended December 31, 2001 to $744,000 and
$2,683,000, respectively, from $1,055,000 and $3,298,000, respectively, for the
same periods of fiscal 2001. This decrease resulted primarily from lower
headcount in the development organization mostly due to a higher utilization of
existing engineering resources for maintenance support included in cost of
maintenance and services. As a result of these decreases, research and
development expenses as a percentage of revenue decreased to 38% and 48% in the
three and nine month periods of fiscal 2002 from 59% and 61% in the same periods
of fiscal 2001.

General and Administrative. General and administrative expenses decreased 25%
and 29% for the three and nine month periods ended December 31, 2001 to $462,000
and $1,256,000, respectively, from $614,000 and $1,768,000, respectively, for
the same periods of fiscal 2001. This decrease resulted primarily from lower
employee related and professional advisor costs, partially offset by expenses of
approximately $163,000 associated with the Company's relocation to its new
corporate headquarters in Burlington, Massachusetts in the quarter ended
December 31, 2001. As a result of these decreases, general and administrative
expenses as a percentage of revenue decreased to 23% and 22% for the three and
nine month periods of fiscal 2002 from 34% and 33% in the same periods of fiscal
2001.

Interest Income. Interest income consists primarily of interest earned on cash
and cash equivalents. Interest income for the three and nine month periods ended
December 31, 2001 decreased $111,000 or 79% and $348,000 or 74%, respectively,
from the same periods of fiscal 2001. These decreases are primarily the result
of lower interest income due to lower cash and cash equivalent balances during
fiscal 2002.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

Cash and cash equivalents at December 31, 2001 decreased $3,462,000 to
$3,557,000 from $7,019,000 at March 31, 2001. This decrease resulted primarily
from cash used for operating activities of $3,433,000 and capital expenditures
of $20,000 during the nine month period ended December 31, 2001. Working capital
decreased $2,509,000 to $1,543,000 at December 31, 2001 from $4,052,000 at
fiscal 2001 year end.

In June, 2000, the Board of Directors authorized the repurchase of an additional
250,000 shares of the Company's outstanding common stock. This program is in
addition to previously authorized

                                       8

<PAGE>

                        WORKGROUP TECHNOLOGY CORPORATION
                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations

repurchases of up to 187,500 shares. During the first three quarters of fiscal
2002, the Company repurchased approximately 4,000 shares of its common stock for
$4,000. At December 31, 2001, the Company had repurchased approximately 333,000
shares of the 437,500 shares authorized by the Board of Directors.

The Company has generated continued losses from operations which has reduced its
cash balances. Management has taken actions to reduce discretionary spending and
has the intent and ability to manage expenditures commensurate with the level of
sales expected over the next year to ensure adequate cash balances to fund
operations during the next year.

To date, neither foreign currency exposure nor inflation has had a material
impact on the Company's financial results.

CERTAIN FACTORS THAT MAY AFFECT FUTURE RESULTS
----------------------------------------------

The Company does not provide forecasts of its future financial performance.
However, from time-to-time information provided by the Company or statements
made by its employees may contain "forward-looking" information that involves
risks and uncertainties. In particular, statements contained in filings with the
Securities and Exchange Commission (including this Form 10-Q), press releases
and oral statements which are not historical facts constitute forward-looking
statements and are made under the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The Company's actual results of
operations and financial condition have varied and may in the future vary
significantly from those stated in any forward-looking statements and there can
be no assurance that the results set forth in those statements will be achieved.
Factors that may cause such differences include, but are not limited to, the
factors discussed below. Each of these factors, and others, are discussed from
time to time in the Company's filings with the Securities and Exchange
Commission, including the Company's Form 10-K filed in June 2001.

On August 31, 2001, the Company received notice from The Nasdaq Stock Market,
Inc. that it was subject to possible delisting by The Nasdaq SmallCap Market on
November 29, 2001 unless, anytime before November 29, 2001, the bid price of the
Company's common stock was at least $1.00 for a minimum of ten (10) consecutive
trading days. On September 27, 2001, The Nasdaq Stock Market announced that it
had suspended the minimum bid and public float requirements for continued
listing on Nasdaq until January 2, 2002. Under the temporary relief provided by
the new rules, companies were not cited for bid price or market value of public
float deficiencies. Companies that were under review for deficiencies or in the
hearings process were taken out of the process with respect to the bid price or
market value of public float requirements. On October 10, 2001, the Company
received notice that the possible delisting matter referenced in Nasdaq's notice
dated August 31, 2001 was closed. There can be no assurance that the Company's
common stock will remain listed on The Nasdaq SmallCap Market. Delisting of the
common stock could have an adverse effect on the market price of, and the
efficiency of the trading market for, the Company's common stock. Also, if in
the future the Company determines that it needs to seek additional equity
capital, it could have an adverse effect on its ability to raise capital in the
public equity markets. As further described in the Company's Annual Report on
Form 10-K filed in June 2001, the listing of the Company's securities was
transferred to The Nasdaq SmallCap Market on October 30, 2000.

                                       9

<PAGE>

                        WORKGROUP TECHNOLOGY CORPORATION
                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations

The Company's future results are subject to substantial risks and uncertainties.
Because the Company derives a substantial portion of its revenue from software
license fees, the Company's quarterly and annual operating results are sensitive
to the size, timing and shipment of individual orders, customer order deferrals
in anticipation of new products or the lengthening of the sales cycle either
generally or with respect to individual customers. In addition, the Company's
growth is dependent on achieving broader market acceptance of its products, the
growth of the product data management market and the ability of the Company to
introduce enhancements and additional integrations to its products in a timely
manner to meet the evolving needs of its customers. The Company also relies on
certain intellectual property protections to preserve its intellectual property
rights. Any invalidation of the Company's intellectual property rights or
lengthy and expensive defense of those rights could have a material adverse
effect on the Company. The segment of the software industry in which the Company
is engaged is extremely competitive. Certain current and potential competitors
of the Company are more established and benefit from greater market recognition
and have substantially greater financial, development and marketing resources
than the Company.

The Company's quarterly and annual operating results are impacted by a variety
of factors that could materially adversely affect revenues and profitability,
including the timing and shipment of enhancements to the Company's products and
changes or anticipated changes in economic conditions. Because the Company's
operating expenses are relatively fixed, an unanticipated shortfall in revenue
in a quarter may have an adverse impact on the Company's results of operations
for that quarter. As a result of the foregoing and other factors, the Company
may experience material fluctuations in future operating results on a quarterly
or annual basis which could materially and adversely affect its business,
financial condition and stock price.

                                       10

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                        WORKGROUP TECHNOLOGY CORPORATION
                            Part II Other Information

Item 1.      Legal Proceedings

             The Company is not a party to any litigation that it believes would
             have a material impact on its business.

Item 5.      Other Information

             Proposals of stockholders intended for inclusion in the proxy
             statement to be furnished to all stockholders entitled to vote at
             the next Annual Meeting of Stockholders of the Company must be
             received at the Company's principal executive offices not later
             than February 26, 2002. The deadline for providing timely notice to
             the Company of matters that stockholders otherwise desire to
             introduce at the next annual meeting of stockholders of the Company
             is February 26, 2002, provided, however, notice shall not be given
             prior to January 27, 2002. Further, any proposals must comply with
             the other procedural requirements set forth in the Company's
             By-laws, a copy of which is on file with the SEC, and as set forth
             by the SEC. In order to curtail any controversy as to the date on
             which a proposal was received by the Company, it is suggested that
             proponents submit their proposals by Certified Mail, Return Receipt
             Requested to Workgroup Technology Corporation, One Burlington Woods
             Drive, Burlington, Massachusetts, 01803, Attention: Corporate
             Secretary.

Item 6.      Exhibits and Reports on Form 8-K

             (a) Exhibits

                    10.1 Master Lease Agreement between the Company and
                         Burlington Woods Office Trust No. 1 dated November 21,
                         2001

                    10.2 Amendment No. 1 to Employment Agreement between the
                         Company and Patrick H. Kareiva effective as of December
                         31, 2001

             (b) Reports on Form 8-K

                    No December 31, 2001 reports on Form 8-K were filed during
                    the quarter ended.


                                       11

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                                   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.

                                      WORKGROUP TECHNOLOGY CORPORATION
                                      Registrant

Date:  January 25, 2002               /s/ Patrick H. Kareiva
      -----------------               ---------------------------------
                                      Patrick H. Kareiva
                                      President, Chief Executive Officer, Chief
                                      Financial Officer, Treasurer and Secretary

                                       12