UNITED STATES
                                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:  33-15370-D
                                                           -----------

                                       CUSA Technologies, Inc.
                   ------------------------------------------------------------
                      (Exact name of the registrant as specified in charter)

                         Nevada                         87-0439511
            ---------------------------        --------------------------------
                       State of Incorporation         IRS Identification Number

                    986 West Atherton Drive, Salt Lake City, Utah  84123
                -----------------------------------------------------------
                            (Address of principle executive offices)

                                          (801) 263-1840
                -----------------------------------------------------------
                         (Telephone of registrant including area code)

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

                                           Yes ___X___              No ________

                            APPLICABLE ONLY TO ISSUER INVOLVED IN BANKRUPTCY
                            PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the Issuer filed all documents and reports required to be filed by
Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by court.

                                                        Yes _______ No ________


                            APPLICABLE ONLY TO CORPORATE ISSUERS

As of November 25, 1996 the Issuer had 8,928,218 shares of its common stock, par
value $0.001 per share, issued and outstanding.


<PAGE>




                                PART I
                         FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

CUSA Technologies, Inc. (the "Company"), has included the consolidated
balance  sheets of the Company and its  subsidiaries  as of  September  30, 1996
(unaudited) and June 30, 1996 (the end of the Company's most recent fiscal year)
and unaudited consolidated statements of operations and cash flows for the 
three months ended  September  30, 1996 and 1995  together  with  unaudited  
condensed  notes thereto.

In the opinion of management of the Company,  the financial  statements  reflect
all  adjustments,  all of which are normal recurring  adjustments,  necessary to
fairly  present the financial  condition of the Company for the interim  periods
presented.  The financial statements included in this report on Form 10-Q should
be read in conjunction with the audited financial  statements of the Company and
the notes thereto  included in the annual report of the Company on form 10-K for
the year ended June 30, 1996.



<PAGE>

<TABLE>


                                                CUSA TECHNOLOGIES, INC.
                                              Consolidated Balance Sheets

<CAPTION>

                                                                                                  (Unaudited)
                                                                                                  September 30,         June 30,
                                                                                                      1996               1996
                                                                                               -----------------  ------------------
<S>                                                                                          <C>                  <C>
                                                       Assets
Current Assets:
                 Cash and cash                                                            $        171,230.00          583,080.00
                 equivalents
                 Trade accounts receivable, net of allowance for 
                 doubtful accounts                                                               3,610,968.00        2,987,680.00
                 Inventories                                                                       256,170.00          140,402.00
                 Prepaid expenses and other assets                                                 600,949.00          425,148.00
                 Net assets of discontinued operations                                                    --         5,081,383.00
                 
                                                                                             -----------------  ------------------

     Total current assets                                                                       4,639,317.00        9,217,693.00

Property and equipment :
                 Land                                                                             297,688.00          297,688.00
                 Buildings and improvements                                                     2,496,520.00        2,423,416.00
                 Furniture, fixtures and equipment                                              2,885,576.00        2,672,653.00
                 Other                                                                            639,642.00          668,405.00
                                                                                             -----------------  ------------------

      Total property and equipment                                                              6,319,426.00        6,062,162.00
                                  

   Less accumulated depreciation and amortization                                               1,568,261.00        1,371,761.00
                                                                                             -----------------  ------------------

       Net property and equipment                                                               4,751,165.00        4,690,401.00

Equipment under capital lease obligations, net                                                    190,316.00          233,816.00

Receivables from related parties                                                                  457,948.00          362,849.00

Software development and acquisition costs, net                                                 1,513,923.00        1,531,158.00

Other assets                                                                                      210,443.00          220,084.00

                                                                                             =================  ==================
                                                                                         $     11,763,112.00       16,256,001.00
                                                                                             =================  ==================
</TABLE>


The accompanying notes are an integral part of these statements.


<TABLE>

                                                                   CUSA TECHNOLOGIES, INC.
                                                                 Consolidated Balance Sheets
<CAPTION>

                                                                                    (Unaudited)
                                                                                    September 30,         June 30,
                                                                                       1996               1996
                                                                                 -----------------  ------------------
<S>                                                                              <C>                  <C>
                                                                                 
                                        Liabilities and Stockholders' Deficit
Current liabilities:
                 Line of credit with bank                                      $      1,128,063.00          891,022.00
                 Current installments of long-term debt                               2,800,435.00        3,258,269.00
                 Current installments of obligations under capital leases               215,165.00          205,888.00
                 Accounts payable                                                     2,188,883.00        3,823,560.00
                 Accrued liabilities                                                  2,662,994.00        3,309,083.00
                 Customer deposits                                                    1,737,442.00        1,690,973.00
                 Income taxes payable                                                    12,676.00           18,081.00
                 Payables to related parties                                                     -        1,167,398.00
                 Deferred revenue                                                     4,545,160.00        5,057,444.00
                 Net liabilities of discontinued operations                           1,159,737.53                  -
                                                                                 -----------------     ----------------
                                  Total current liabilities                           16,450,555.53       19,421,718.00
                                  liabilities

Long-term debt with related parties                                                    2,445,000.00        2,445,000.00

Long-term debt, excluding current installments                                            11,565.00          430,894.00

Obligations undern capital leases, excluding current installments                        149,774.00          193,977.00

                                                                                   -----------------  ------------------
                                  Total liabilities                                   19,056,894.53       22,491,589.00

Commitments and contingent liabilities                                                     -                  -

Stockholders' deficit:
                 Series A convertible preferred stock, $.001 par value;
                 authorized 1,500,000 shares; issued and outstanding
                 1,000,000 shares                                                          1,000.00            1,000.00
                                 
                 Common stock, $.001 par value; authorized 25,000,000 shares;
                 issued and outstanding 8,917,718 shares at September 30, 1996
                 and 8,916,438 shares at June 30, 1996                                     8,918.00            8,916.00
                                  
                 Additional paid-in capital                                           10,530,307.00       10,530,308.00
                 Accumulated deficit                                                 (17,834,008.00)     (16,775,812.00)
                                                                                   -----------------  ------------------
                                  Total stockholders' deficit                         (7,293,783.00)      (6,235,588.00)
                                 

                                                                                   =================  ==================
                                                                                $     11,763,111.53       16,256,001.00
                                                                                   =================  ==================

</TABLE>
The accompanying notes are an integral part of these statements.

<TABLE>


                                                                   CUSA TECHNOLOGIES, INC.
                                                            Consolidated Statements of Operations
                                                                         (Unaudited)
                                                              Three months ended September 30,
<CAPTION>


                                                                                      1996                1995

                                                                                -----------------   -----------------
<S>                                                                             <C>                 <C>

Net revenues:
                   Hardware and software sales                                $      1,797,616.37        3,279,015.00
                   Support, maintenance and other services                           4,210,892.00        3,771,491.00
                   Other revenue                                                       181,493.00          216,414.00
                                                                                -----------------   -----------------
                                     Total revenues                                  6,190,001.37        7,266,920.00
                                                                                -----------------   -----------------

Cost of goods sold and other direct costs:
                   Hardware and software                                               801,261.37        1,395,623.00
                   Support, maintenance and other services                           2,756,675.00        2,209,646.00
                   Other                                                                82,967.00           85,727.00
                                                                                -----------------   -----------------
                                     Total cost of goods sold and other 
                                     direct costs                                    3,640,903.37        3,690,996.00
                                                                                -----------------   -----------------

                                     Gross profit                                    2,549,098.00        3,575,924.00

Product development costs                                                              601,819.00          288,456.00
Selling, general and administrative expenses                                         2,726,504.00        2,982,681.00

                                                                                -----------------   -----------------
                                     Operating income (loss)                          (779,225.00)         304,787.00

Other income (expense):
     Interest expense                                                                 (160,712.00)         (82,051.00)
     Other, net                                                                         (6,537.00)           1,476.00

                                                                                 -----------------   -----------------
                                     Income (loss) from continuing operations 
                                     before income taxes                              (946,474.00)         224,212.00

Income tax expense                                                                           -             134,871.00

                                                                                 -----------------   -----------------
Income (loss) from continuing operations                                              (946,474.00)          89,341.00

Loss from discontinued operations, net of income taxes                                       -            (126,522.00)

Loss from disposal of discontinued operations, net of income taxes                     (81,721.00)                -

                                                                                  =================   =================
                                     Net loss                                    $  (1,028,195.00)         (37,181.00)
                                                                                  =================   =================

Income (loss) per common and common equivalent share :

                                     From continuing operations                  $          (0.11)                0.01
                                     From discontinued operations                $          (0.01)              (0.01)


Weighted average common and common equivalent shares                                 8,917,718.00        8,509,697.00


</TABLE>

The accompanying notes are an integral part of these financial statements.



<TABLE>

                             CUSA TECHNOLOGIES, INC.
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
                        Three months ended September 30,
<CAPTION>

                                                                                       1996               1995
                                                                                  ----------------   ----------------
<S>                                                                              <C>                  <C>
Cash flows from operating activities:
Income (loss) from continuing operations                                       $     (946,474.00)          89,341.00

Adjustments to reconcile income (loss) from continuing operations
  to net cash used in operating activities:
                    Depreciation and amortization                                     381,930.00          479,547.00
                    Provision for doubtful accounts                                  (177,496.00)         137,245.00
                    Net change in current assets and liabilities:
                                    Trade accounts receivable                        (445,792.00)          28,770.00
                                    Inventories                                      (115,768.00)         227,118.00
                                    Prepaids expenses and other assets               (175,801.00)         (47,569.00)
                                    Accounts payable and accrued liabilities       (2,280,766.00)         137,751.00
                                    Customer deposits                                  46,469.00         (376,395.00)
                                    Income taxes payable                               (5,405.00)         (20,061.00)
                                    Deferred income taxes                                    -            134,200.00
                                    Deferred revenue                                 (512,284.00)        (657,034.00)
                                    Net cash provided by (used in)                ----------------   ----------------
                                    continuing operating activities                (4,231,387.00)         132,913.00

Net cash used in discontinued operations                                           (1,490,600.47)        (407,616.00)
                                                                                   ----------------   ----------------

                                    Net cash used in operating activities          (5,721,987.47)        (274,703.00)

Cash flows from investing activities:
                    Software development costs                                       (124,695.00)        (190,513.00)
                    Capital expenditures                                             (257,264.00)        (325,357.00)
                    Cash paid for acquisitions                                               -            (50,450.00)
                    Advances to related parties                                       (95,099.00)             -
                    Decrease in other assets                                            9,641.00           35,994.00
                    Net cash provided by (used in) investing activities of
                       discontinued operations
                                                                                    7,650,000.00         (312,371.00)
                                                                                  ----------------   ----------------
                    Net cash provided by (used in) investing activities             7,182,583.00         (842,697.00)

Cash flows from financing activities:
                    Net borrowings under lines of credit                              237,041.00          121,207.00
                    Repayments of obligations under capital leases                    (34,926.00)         (46,278.00)
                    Repayment of long-term debt with related parties               (1,167,398.00)        (408,053.00)
                    Proceeds from long-term debt with related parties                       -           1,100,000.00
                    Issuance of common stock and exercise of stock options                  -                 543.00
                    Repayments of long-term debt                                     (877,163.00)         (67,092.00)
                    Preferred dividend distributions                                  (30,000.00)         (30,000.00)
                                           
                                                                                   ----------------   ----------------
                                    Net cash provided by (used in) 
                                    financing activities                          (1,872,446.00)          670,327.00

                                    Net decrease in cash                            (411,850.47)         (447,073.00)

Cash and cash equivalents at beginning of period                                     583,080.00           818,883.00


                                                                                  ================   ================
Cash and cash equivalents at end of period                                                                         
                                                    $                                171,229.53           371,810.00

                                                                                ================     ================



</TABLE>

The accompanying notes are an integral part of these financial statements.





<PAGE>



                                CUSA TECHNOLOGIES, INC.
                      Notes to Consolidated Financial Statements
                                       (Unaudited)

(1) Basis of Presentation

The   accompanying   unaudited   consolidated   financial   statements  of  CUSA
Technologies, Inc. (the Company) have been prepared in accordance with generally
accepted  accounting  principles for interim financial  information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly,  these
financial  statements  do  not  include  all  of the  information  and  footnote
disclosures  required by generally accepted  accounting  principles for complete
financial statements. These financial statements and footnote disclosures should
be read in conjunction with the audited  consolidated  financial  statements and
the notes thereto  included in the Company's  latest report on Form 10-K for the
year  ended  June 30,  1996.  In the  opinion of  management,  the  accompanying
unaudited consolidated financial statements contain all adjustments  (consisting
of only normal recurring  adjustments) necessary to fairly present the Company's
consolidated  financial  position as of September 30, 1996 and its  consolidated
results of  operations  and cash flows for the three months ended  September 30,
1996 and 1995.  The results of operations  for the three months ended  September
30, 1996 may not be  indicative of the results that may be expected for the year
ending June 30, 1997.


(2) Liquidity

During the three months ended  September 30, 1996,  the Company  incurred a loss
from continuing operations of $946,474,  incurred a net loss of $1,028,195, used
cash in operating  activities  of  $5,721,987,  and at September  30, 1996 had a
stockholders'  deficit  of  $7,293,783.  These  losses  have  also  resulted  in
violations  of certain  debt  covenants  with the  Company's  primary  financial
institution,  which  have  been  waived  by the  financial  institution  through
September  30,  1996.  The Company is  negotiating  to amend such  covenants  to
conform to  currently  anticipated  future  operating  results.  Management  has
formulated  plans to return the Company to  profitable  operations  and positive
cash flow.  In the  opinion of  management,  implementation  of these plans will
permit the Company to meet its  operating and debt cash  requirements,  at least
through the next fiscal year. The Company is subject to many  uncertainties over
which  management has limited  control,  any one of which could adversely affect
the Company's  operating cash flows,  and thus create cash flow problems for the
Company.


(3) Discontinued Operations

In June 1996, the Board of Directors of the Company  committed to dispose of the
business and assets of the medical and  commercial  divisions.  On July 2, 1996,
the Company  entered into an asset purchase  agreement  with Physician  Computer
Network,  Inc.  (PCN)  whereby  PCN agreed to acquire  substantially  all of the
assets and assume certain  liabilities of the medical and commercial  divisions.
Terms of the purchase agreement,  as subsequently  modified on October 15, 1996,
provided for the purchase of certain specified assets for $9,350,000, payable as
follows: 1) $4,500,000 at closing, 2) cancellation of $1,500,000 note payable to
PCN  incurred on June 13,  1996,  3)  $3,150,000  within five  business  days of
receipt of audited  financial  statements,  and 4) $200,000 due upon transfer of
certain assets of one of the subsidiaries of the Company which were subject to a
court ordered receivership at the date of closing.

<PAGE>

Also, according to the asset purchase agreement,  PCN 1) assumed the balances of
the  Company's  liabilities  related to accounts  and notes  payable to Versyss,
Inc., a subsidiary of PCN,  deferred  software support and hardware  maintenance
obligations,  accrued  liabilities,  and customer  deposits  associated with the
medical and commercial divisions,  and 2) assumed liability for certain real and
personal property leases of the Company with terms through October 1999.

The medical and commercial  divisions  have been  accounted for as  discontinued
operations, and accordingly, the results of their operations are segregated from
continuing  operations in the  accompanying  statements of operations.  Revenue,
operating  costs and  expenses,  other income and  expense,  and income taxes of
these  divisions for the three months ended  September  30, 1996 and 1995,  have
been reclassified as discontinued operations. No allocation of general corporate
overhead has been made to discontinued operations related to these divisions.

In June 1996, upon adoption of the plan to dispose of the medical and commercial
divisions,  the  Company  recorded a  provision  for the  estimated  loss on the
disposal of the divisions in the amount of $2,494,451 (net of income tax benefit
of $-0-). This provision relates to the expected gain on the sale to PCN, net of
disposal costs,  severance  benefits to division  employees,  certain  occupancy
costs under  noncancelable  leases,  and  anticipated  future losses  related to
assets  and  operations  not sold to PCN until  their  ultimate  disposition  is
completed.  The estimation of the loss on the disposal of the divisions requires
management to make estimates and assumptions  that affect the reported amount of
the loss on disposal.  Actual results could differ from those estimates. As such
estimates  are  adjusted or as actual  results  occur,  the  adjustments  to the
estimates  are  reported in the  current  period as  additional  gain or loss on
disposal. During the three months ended September 30, 1996, the Company recorded
additional  loss on the disposal of the  divisions in the amount of $81,721 (net
of income tax benefit of $-0-).

The remaining assets and liabilities related to the discontinued operations have
been  separately  classified  on the  balance  sheets  as  net  assets  (or  net
liabilities)  of  discontinued   operations.  A  sumamry  of  these  assets  and
liabilities as of September 30, 1996 is as follows:

         Assets:
           Trade accounts receivable, net             $ 310,928
           Prepaid expenses and other assets            250,000
                                                       --------
                  Total assets                          560,928
                                                       --------

         Liabilities:
           Accrued liabilities                          663,212
           Customer deposits                            293,064
                                                        -------
           Liability for estimated loss on disposal     764,390
                                                        -------
                  Total liabilities                   1,720,666
                                                      ---------

         Net liabilities of discontinued operations  $1,159,738
                                                      ---------
                                                      ---------

<PAGE>

(4) Income (loss) per Share

Income or loss per common and common  equivalent  share is  computed by dividing
net income (loss) by the weighted average common shares  outstanding  during the
period,  including common  equivalent  shares (if dilutive).  Common  equivalent
shares include stock options,  convertible preferred stock and convertible debt.
Income used in this  calculation is reduced (loss is increased) by the dividends
paid to preferred stockholders.


(5) Contingent Liabilities

The Company is  involved  in certain  legal  matters in the  ordinary  course of
business.  In the opinion of management and legal counsel, such matters will not
have a material effect on the financial position or results of operations of the
Company.




<PAGE>



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
RESULTS OF OPERATIONS

General

In June of 1994,  the Company  entered into the credit union  software  business
through the  acquisition  of CUSA,  Inc.  ("CUSA") and the credit union software
division of CUSA's largest  distributor.  From June of 1994 to July of 1995, the
Company  acquired most of the  distributors of the CUSA software,  some of which
were  distributors  of software  products in the  medical  and  commercial  open
systems markets. In June of 1996, the Board of Directors voted to dispose of the
business and assets of the Company's medical and commercial  divisions through a
sale of assets to Physician Computer Network, Inc. ("PCN"). With the divestiture
of the  medical  and  commercial  divisions  the  Company  plans to  devote  its
resources  primarily  to the  development  and  expansion  of its  credit  union
software business. (In this item, all references to the "first quarter" refer to
the first quarter of the Company's fiscal year (quarter ended September 30.))

Net revenues

The Company's net revenues from continuing  operations decreased 15 percent from
$7.3 million in the first  quarter of 1996 to $6.2 million in the first  quarter
of 1997.  Revenues  from hardware and software  sales  decreased 45 percent from
$3.3 million in the first  quarter of 1996 to $1.8 million in the first  quarter
of 1997.  The  decrease  is the  result of  slower  than  expected  sales of the
Company's  core systems in the first  quarter of 1997.  Revenues  from  support,
maintenance  and other  services  increased  12% from $3.8  million in the first
quarter of 1996 to $4.2 million in the first  quarter of 1997.  The increase was
due to  increased  sales of the  Company's  statement  processing  services  and
increased software and hardware maintenance.  Revenues are derived from computer
system  sales,  hardware  maintenance  and  software  support,  and the  sale of
products  which are  related to the  Company's  core  computer  systems  such as
statement printing, disaster recovery, and microfiche services.

Gross margin

The hardware and software  gross margin  decreased from 57 percent in 1995 to 55
percent in 1996. In the same period, the gross margin from support,  maintenance
and other services revenue decreased from 41 percent to 35 percent. The decrease
in the  hardware and software  gross margin is primarily attributable  to the 
increase in third party software and operating system fees related to sales of 
the Company's Reliance  system.  The  decrease  in  the  gross  profit  margin 
from  support, maintenance and other services revenue is due to decreased 
software and hardware sales, resulting in a decrease in the amount of revenue to
cover the fixed costs of the Company's installation and training departments,
an increase in software support  costs  as the  Company  began to build  up
support  resources  for its Reliance software product,  and an increase of lower
margin statement processing services as a percentage of support,  maintenance 
and other services  revenue in 1996 when compared to 1995.  Costs of goods sold
consist of the cost of hardware and software  purchased for resale,  the  
amortization  of capitalized  software development  costs,  and the expense of 
supporting  and  installing  the systems sold.

Product development costs

Product  development costs include research and development,  system operational
error fixes and maintenance software upgrades. As expected,  product development
costs  increased from $.3 million in the first quarter of 1996 to $.6 million in
the first quarter of 1997.  The increase  reflects the  Company's  commitment to
continue to improve  current  products and to invest in the  development  of new
products,   with  an  increased   emphasis  on  research  and  development  over
capitalized expenditures.

<PAGE>

Selling, general and administrative costs

The selling,  general, and administrative  expenses for the Company decreased 9%
from $3.0 million in the first  quarter of 1996, to $2.7 in the first quarter of
1997.  This decrease was due to the reduction,  in the first quarter of 1997, of
general  corporate  overhead  and the  elimination  of the  amortization  of
goodwill,  which was written off as a nonrecurring charge in fiscal 1996. In the
remainder of 1997,  the Company  plans to further  reduce  selling,  general and
administrative  expenses  as  part of an  overall  plan  to  decrease  corporate
overhead expenses. These expense reductions will be achieved through the gradual
reduction  of  overhead  and  administrative  personnel.  Although  the  Company
believes  that  these  efforts  will  result in  reduced  selling,  general  and
administrative  costs in the remainder of fiscal 1997, no assurance can be given
that such efforts will be successful.

Interest and income tax expense

Interest expense increased 96 percent in the first quarter of 1997 when compared
to the first  quarter of 1996.  The increase was due primarily to an increase in
average debt outstanding.

Income tax expense was $134,871 in 1996  (resulting  in an effective tax rate of
60.2 percent)  compared to a tax expense of zero in 1997.  The difference in the
tax expense is due to the losses incurred in the first quarter of 1997 for which
no income tax benefit has been recorded.

Discontinued Operations

In June of 1996,  the  Company  adopted a plan to  dispose  of the assets of its
medical and commercial software divisions (the "Discontinued  Operations").  The
liability for the estimated loss on the disposal of the Discontinued  Operations
was established in June of 1996. The disposal of the assets of the  Discontinued
Operations  (except those assets  related to the medical  records  software) was
completed on July 2, 1996. No material adjustments are currently  anticipated to
the estimated  loss on disposal as previously  provided for in June of 1996. The
$126,522 loss from discontinued operations in the first quarter of 1996
represented the operating results of the Discontinued Operations, prior to their
disposal.

Capital Resources and Liquidity

At  September  30,  1996,  the Company had  current  assets of $4.6 million and
current  liabilities  of $16.5  million.  The current  liabilities  include $4.5
million of deferred  revenue which primarily  represents  payments  received for
services  to be  provided  over the  remaining  term of  software  and  hardware
maintenance contracts (generally one year).

<PAGE>

The Company has two term loans in the original  aggregate  amount of  $2,000,000
and a line of credit with its principal  bank (the "Bank").  The line of credit,
$1,500,000  as of  September  30, 1996 (of which  $1,128,063  was advanced as of
September  30,  1996),  is secured by accounts  receivable,  inventory,  general
intangibles  and a trust deed on real  estate,  bears an interest  rate of prime
plus one and one half  percent,  and matures in January of 1997.  In December of
1994,  the Company was  advanced  $995,000  from  certain  individual  investors
through a loan company which is affiliated  with an officer,  director and major
shareholder of the Company  pursuant to a  subordinated  line of credit which is
secured by accounts receivable.

From June 20, 1995 to October 6, 1995, the Company received  $1,450,000 pursuant
to the issuance of  debentures to an entity  controlled by an officer,  director
and major  shareholder of the Company.  The  debentures,  which are due June 30,
1998,  are  convertible  into  shares  of  the  Company's  common  stock  at the
discretion  of the  holder at a rate of $3.50 per  share  through  June 1997 and
$4.00 per share  through June 30, 1998,  and bear an interest  rate of 8 percent
per annum, payable quarterly.

From March to May of 1996,  the  Company  received  $1,481,023  from the Bank to
finance the purchase of computer equipment.  The loan, which bears interest at a
rate of prime plus 1.5%, is secured by a first lien on all assets purchased with
the proceeds of the loan plus accounts receivable and inventory.

On July 2, 1996 the Company sold its medical and commercial divisions to PCN for
$10,100,000 cash and the assumption of certain related liabilities. To date, the
Company has received  $9,150,000  of the total  purchase  price.  Pursuant to an
October 15, 1996  amendment to the asset  purchase  agreement,  of the remaining
purchase price of $950,000, $750,000 will be retained by PCN in consideration of
their assumption of certain  additional  liabilities  related to the medical and
commercial customer accounts. The remaining $200,000 will be paid to the Company
upon the delivery of certain assets which are currently subject to a court order
restricting such transfer pending the settlement of certain judgments.  The cash
received  pursuant  to the asset  purchase  agreement  has been used to settle a
$500,000  note owed to a hardware  maintenance  company,  to pay amounts owed to
certain former owners of entities  acquired in 1996 and 1995 in accordance  with
the applicable  acquisition  documents,  to pay restructuring  costs,  severance
fees,  certain bonuses and professional  fees related to the sale, and to reduce
accrued liabilities and accounts payable.

On October 21, 1996  pursuant to a  promissory  note,  the Company was  advanced
$100,000 from a director, officer and major shareholder of the Corporation.  The
note bears interest at 10% per annum and is due on December 20, 1996.

The Company  anticipates that these financing  sources,  together with cash flow
from operations,  will be sufficient to permit it to meet its cash  requirements
through at least June 30, 1997.

<PAGE>

The loan  documents,  pursuant to which funds were  advanced by the Bank for the
line of credit,  term loans,  and  equipment  loan (the  "Loans"),  each include
certain  covenants  related  primarily to the Company's  quarterly income before
interest, depreciation,  amortization and taxes. Pursuant to such covenants, the
Bank has the right to demand full and immediate  payment of amounts  outstanding
on the  Loans  upon  violation  of any of the  covenants.  In the past  when the
Company was not in  compliance,  the Bank has waived its right to  exercise  its
rights under such  covenants,  but there is no assurance  that the Bank will not
exercise its rights under such covenants in the future.  However, the Company is
negotiating  with the Bank to amend  such  covenants  to  conform  to  currently
anticipated future operating results.  Additionally, in 1997 the Company expects
operating  results to improve as the  Company  turns its focus from  acquisition
activity  to  operations,  with an  emphasis  on  improving  staging,  delivery,
installation  and  training  processes  and on  implementing  an overall plan to
reduce selling,  general and administrative  expenses. As current loan covenants
are renegotiated and anticipated improvements in the results from operations are
realized,  management expects to comply with such covenants in the second, third
and fourth quarters of 1997.

In 1996, the Company recorded  nonrecurring  charges of approximately $7 million
in connection with the revaluation of certain  balance sheet  intangible  assets
and the accrual of  restructuring  costs.  Also in 1996, the Company  recorded a
total loss from  discontinued  operations of $7.6 million.  As a result of these
nonrecurring  charges,  the loss from  discontinued  operations  and a loss from
continuing  operations in 1996 and the first quarter of 1997,  retained earnings
decreased  from $.8  million  at June 30,  1995 to a $16.8  million  accumulated
deficit at June 30, 1996 and further  decreased to a $17.9  million  accumulated
deficit as of September 30, 1996,  resulting in a shareholders'  deficit of $7.4
at June 30,  1996.  The Company is  exploring  various  options to increase  its
equity in 1997, including private and public financing.



<PAGE>



                                PART II
                            OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS

The Company is  involved  in certain  legal  matters in the  ordinary  course of
business.  In the opinion of management and in-house legal counsel, the ultimate
resolution  of these  matters will not have a material  effect on the  financial
position or results of operations of the Company.


ITEM 5.  OTHER INFORMATION

None.

<PAGE>



ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K


(a) Exhibits

The following exhibits are included as part of this report:

Exhibit              SEC Ref
Number                Number                  Title of Document
-------              -------                  -------------------

27.01                 27                      Financial Data Schedule

(b)   Reports on Form 8K.

                   Report on Form 8K dated July 17, 1996  reporting  the sale of
         the assets of the  Company's  credit  union and  medical  divisions  to
         Physician's Computer Network.


<PAGE>



SIGNATURES

Pursuant  to the  requirements  of  section  13 or 15(d) of the  Securities  and
Exchange  Act of 1934 as amended,  the Company has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.


Dated:  November 27, 1996


CUSA Technologies, Inc.


/s/ D. Jeff Peck
------------------------------------------------------
D. Jeff Peck, Principal Accounting Officer