<PAGE>

 ______________________________________________________________________________
 ______________________________________________________________________________

                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 June 30, 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
    of incorporation or organization)                  Identification No.)



91 Hartwell Avenue, Lexington, Massachusetts                  02421
 (Address of principal executive offices)                   (Zip code)


      Registrant's telephone number, including area code:  (781) 674-2000

                            _______________________

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 July 25, 2001
             -----                             ----------------------------
   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 June 30, 2001 and March 31, 2001                       2

           Consolidated Statements of Operations for the
               three month periods ended
               June 30, 2001 and 2000                                    3

           Consolidated Statements of Cash Flows for the
               three month periods ended
               June 30, 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                       7-9


Part II.  Other Information:

  Item 1.  Legal Proceedings                                             10

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


Signatures                                                               11

<PAGE>

                       WORKGROUP TECHNOLOGY CORPORATION
                     Condensed Consolidated Balance Sheets
                                (in thousands)


                                                  June 30,       March 31,
                                                   2001            2001
                                                (unaudited)
ASSETS
--------------------------------------------------------------------------------
Current assets:
       Cash and cash equivalents                 $  4,755        $  7,019
       Accounts receivable, net                       580             556
       Prepaid expenses and other current assets      224             123
                                                 --------       ---------
              Total current assets                  5,559           7,698
                                                 --------       ---------

Property and equipment, net                           920           1,084
                                                 --------       ---------
                                                 $  6,479       $   8,782
                                                 ========       =========


LIABILITIES AND STOCKHOLDERS' EQUITY
--------------------------------------------------------------------------------
Current liabilities:
       Accounts payable                          $    298       $     756
       Accrued expenses                               537             592
       Accrued royalties                               95              51
       Deferred revenue                             1,917           2,247
                                                 --------       ---------
              Total current liabilities             2,847           3,646
                                                 --------       ---------

Stockholders' equity:
       Common stock                                    22              22
       Additional paid-in capital                  44,479          44,479
       Treasury stock                              (1,757)         (1,753)
       Accumulated deficit                        (39,112)        (37,612)
                                                 --------       ---------
              Total stockholders' equity            3,632           5,136
                                                 --------       ---------
                                                 $  6,479       $   8,782
                                                 ========       =========




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

                                       2
<PAGE>

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


                                                           Three months ended
                                                                 June 30,
                                                            2001         2000
                                                               (unaudited)
--------------------------------------------------------------------------------
Revenue
     Software licenses                                    $   289       $  334
     Maintenance and services                               1,472        1,430
                                                          -------      -------
            Total revenue                                   1,761        1,764

Cost of revenue
     Cost of software licenses                                 70           58
     Cost of maintenance and services                       1,023          590
                                                          -------      -------
            Total cost of revenue                           1,093          648
                                                          -------      -------

Gross profit                                                  668        1,116

Operating expenses
     Selling and marketing                                    762          644
     Research and development                               1,017        1,156
     General and administrative                               451          542
                                                          -------      -------
            Total operating expenses                        2,230        2,342
                                                          -------      -------

Loss from operations                                       (1,562)      (1,226)

Interest income                                                62          163
                                                          -------      -------

Net loss                                                  $(1,500)     $(1,063)
                                                          =======      =======


Basic and diluted net loss per common share               $ (0.81)     $ (0.53)
                                                          =======      =======

Weighted average basic and diluted shares outstanding       1,843        2,014
                                                          =======      =======


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

                                       3
<PAGE>

                       WORKGROUP TECHNOLOGY CORPORATION
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in thousands)

                                                            Three months ended
                                                                June 30,
                                                            2001         2000
                                                              (unaudited)
--------------------------------------------------------------------------------
Cash flows from operating activities
     Net loss                                             $(1,500)     $(1,063)
     Adjustments to reconcile net
      loss to net cash used in
      operating activities:
         Depreciation and amortization                        179          150
         Loss on disposal of property and equipment             3            -
         Changes in operating assets and liabilities:
             Accounts receivable                              (24)         332
             Prepaid expenses and other current assets       (101)          (3)
             Accounts payable                                (458)          46
             Accrued expenses                                 (52)        (159)
             Accrued royalties                                 44           53
             Deferred revenue                                (330)        (553)
                                                          -------      -------

             Net cash used in operating activities         (2,239)      (1,197)

Cash flows from investing activities:
             Purchases of property and equipment              (18)         (68)

Cash flows from financing activities:
             Proceeds from issuance of common stock             -            1
             Payments for common stock repurchases             (4)         (55)
             Payments of capital lease obligations             (3)          (3)
                                                          -------      -------

             Net cash used in financing activities             (7)         (57)
                                                          -------      -------

Net decrease in cash and cash equivalents                  (2,264)      (1,322)

Cash and cash equivalents, beginning of period              7,019       12,406
                                                          -------      -------
Cash and cash equivalents, end of period                  $ 4,755      $11,084
                                                          =======      =======



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

                                       4
<PAGE>

                       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 quarter the Company has continued to
   invest in its flagship PDM product, WTC ProductCenter.  In part because of
   this, 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
   Workgroup Technology Corporation, 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 June 30, 2001, and the results of its operations for the three
   months ended June 30, 2001 and 2000, and statements of cash flows for the
   periods presented.  The results for the three month period ended June 30,
   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

   On December 21, 2000, the Company effected a one-for-four reverse stock split
   of the Company's common stock.  All references to the number of common and
   per common share amounts have been restated to give retroactive effect to the
   stock split for all periods presented.  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
   assumed to

                                       5
<PAGE>

                       WORKGROUP TECHNOLOGY CORPORATION
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


   have been purchased by the Company with the related proceeds.  Potential
   common shares, which consisted only of stock options, were antidilutive for
   the three month period ended June 30, 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 512,000 and 420,000 were outstanding for the periods ended June
   30, 2001 and 2000, respectively, at weighted average prices of $4.79 and
   $7.13, 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 three month period ended June 30,
2001 remained relatively constant when compared with the same period of fiscal
2001.  Revenue for the first quarter of fiscal 2002 decreased slightly to
$1,761,000 from $1,764,000 compared with the same period of fiscal 2001.

Software license revenue for the three month period ended June 30, 2001
decreased 13% to $289,000 from $334,000, in the same period of fiscal 2001.
This decrease during the past quarter was substantially due to several of our
current customers and major prospects delaying purchasing decisions.

Maintenance and services revenue for the three month period ended June 30, 2001
increased 3% to $1,472,000 from $1,430,000 in the comparable period of fiscal
2001.  This increase resulted primarily from higher consulting revenue partially
offset by a decline in maintenance and training 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 first quarter of fiscal 2002 decreased to $219,000 or 76% of software
license revenue from $276,000 or 83% of software license revenue in the first
quarter of fiscal 2001.  This change resulted primarily from lower software
license revenue in fiscal 2002.

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
decreased to $449,000 or 31% of maintenance and services revenue in the first
quarter of fiscal 2002 from $840,000 or 59% of maintenance and service revenue
in the first quarter of fiscal 2001.  This decrease in gross profit is due
primarily to a higher allocation of engineering headcount and related personnel
costs to maintenance support.

Selling and Marketing. Selling and marketing expenses increased 18% for the
three month period ended June 30, 2001 to $762,000 from $644,000 for the same
period of fiscal 2001.  This increase resulted primarily from an increase in
headcount and related expenses in the sales organization.  As a result of this
increase, selling and marketing expenses as a percentage of revenue increased to
43% in the three month period of fiscal 2002 from 37% in the same period of
fiscal 2001.

Research and Development. Research and development expenses decreased 12% for
the three month period ended June 30, 2001 to $1,017,000 from $1,156,000 for the
same period of fiscal 2001.  This decrease resulted primarily from lower
headcount in the development organization mostly due to a higher allocation of
engineering headcount and related personnel costs to maintenance support
included in cost of maintenance and services.  As a result of this decrease,
research and development expenses as a percentage of revenue decreased to 58% in
the three month period of fiscal 2002 from 66% in the same periods of fiscal
2001.

                                       7
<PAGE>

                        WORKGROUP TECHNOLOGY CORPORATION
                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 Financial Condition and Results of Operations


General and Administrative. General and administrative expenses decreased 17%
for the three month period ended June 30, 2001 to $451,000 from $542,000 for the
same period of fiscal 2001.  This decrease resulted primarily from lower
employee related and professional advisor costs.  As a result of this decrease,
partially offset by lower revenue, general and administrative expenses as a
percentage of revenue decreased to 26% for the three month period of fiscal 2002
from 31% in the same period of fiscal 2001.

Interest Income.  Interest income consists primarily of interest earned on cash
and cash equivalents. Interest income for the three month period ended June 30,
2001 decreased $101,000 or 62% from the same periods of fiscal 2001. This
decrease is 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 June 30, 2001 decreased $2,264,000 to $4,755,000
from $7,019,000 at March 31, 2001.  This decrease resulted primarily from cash
used for operating activities of $2,239,000, capital expenditures of $18,000 and
stock repurchases of $4,000 during the three month period ended June 30, 2001.
Working capital decreased $1,340,000 to $2,712,000 at June 30, 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 repurchases of up to 187,500 shares.  During
the first quarter of fiscal 2002, the Company repurchased approximately 4,000
shares of its common stock for $4,000.  At June 30, 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.

                                       8
<PAGE>

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


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.

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. 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.

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.

                                       9
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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 6.  Exhibits and Reports on Form 8-K

         (a) Exhibits

             None

         (b) Reports on Form 8-K

             No reports on Form 8-K were filed during the quarter ended
             June 30, 2001.

                                       10
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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: July 27, 2001              /s/ Patrick H. Kareiva
      -------------              ----------------------
                                 Patrick H. Kareiva
                                 President, Chief Executive Officer, Chief
                                 Financial Officer, Treasurer and Secretary

                                       11