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 December 31, 1997

                       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 principal 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 February 17, 1998 the Issuer had  15,289,437  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 December 31, 1997  (unaudited)
and June 30,  1997 (the end of the  Company's  most  recent  fiscal  year),  the
unaudited  consolidated  statements  of  operations  and cash  flows for the six
months  ended  December  31,  1998  and  1997  and  the  unaudited  consolidated
statements of operations  for the three months ended  December 31, 1998 and 1997
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, 1997.



<PAGE>
<TABLE>
                             CUSA TECHNOLOGIES, INC.
                           Consolidated Balance Sheets
<CAPTION>

                                                       (Unaudited)
                                                       December 31,    June 30,
                                                           1997          1997
                                                       -----------   -----------
                                     Assets
                                     ------
<S>                                                    <C>             <C>      
Current Assets:
     Cash                                              $ 1,490,169     2,861,994
     Trade accounts receivable, net of allowance for
        doubtful accounts                                4,391,475     2,489,176
     Inventories                                           661,576       370,479
     Prepaid expenses and other assets                     308,517       313,991
     Net assets of discontinued operations                 573,745          --
                                                       -----------   -----------

        Total current assets                             7,425,482     6,035,640

Property and equipment :
     Buildings and improvements                            134,836       134,836
     Furniture, fixtures and equipment                   2,303,698     2,332,357
     Other                                                 776,355       721,450
                                                       -----------   -----------

        Total property and equipment                     3,214,889     3,188,643

     Less accumulated depreciation and amortization      1,781,617     1,528,951
                                                       -----------   -----------

        Net property and equipment                       1,433,272     1,659,692

Equipment under capital lease obligations, net             216,860       259,255

Receivables from related parties                            54,369        52,440

Software development and acquisition costs, net          1,945,410     1,659,398

Other assets                                                48,814        73,047
                                                       ===========   ===========
                                                       $11,124,207     9,739,472
                                                       ===========   ===========
</TABLE>

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

<PAGE>

<TABLE>
                                                    CUSA TECHNOLOGIES, INC.
                                                  Consolidated Balance Sheets
<CAPTION>

                                                                                        (Unaudited)
                                                                                        December 31,             June 30,
                                                                                            1997                   1997
                                                                                     -------------------    --------------------
                     Liabilities and Stockholders' Deficit
                     -------------------------------------
<S>                                                                               <C>                                    <C>   
Current liabilities:
     Current installments of long-term debt                                       $                --                    29,367
     Current installments of obligations under capital leases                                   142,326                 163,148
     Accounts payable                                                                         1,543,882               1,760,421
     Accrued liabilities                                                                      1,053,232               1,698,865
     Customer deposits                                                                        2,689,226               1,622,469
     Income taxes payable                                                                       350,597                 485,480
     Net liabilities of discontinued operations                                                    --                   304,464
     Deferred revenue                                                                         5,982,291               5,506,377
                                                                                     -------------------    --------------------
        Total current liabilities                                                            11,761,554              11,570,591


Obligations under capital leases,  excluding current installments                                58,505                 118,241
                                                                                     -------------------    --------------------
        Total liabilities                                                                    11,820,059              11,688,832

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                   1,000
     Common stock,  $.001 par value; authorized 25,000,000 shares;
        issued and outstanding 15,289,437 shares at December 31, 1997 and
        June 30, 1997                                                                            15,289                  15,289
     Additional paid-in capital                                                              16,347,576              16,347,576
     Accumulated deficit                                                                    (17,059,717)            (18,313,225)
                                                                                     -------------------    --------------------
        Total stockholders' deficit                                                            (695,852)             (1,949,360)
                                                                                     -------------------    --------------------
                                                                                 $           11,124,207               9,739,472
                                                                                     ===================    ====================
</TABLE>

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





<PAGE>

<TABLE>
                             CUSA TECHNOLOGIES, INC.
                      Consolidated Statements of Operations
                                   (Unaudited)

<CAPTION>

                                                                  Three months ended                     Six months ended
                                                                     December 31,                          December 31,
                                                         -------------------------------------  ------------------------------------
                                                               1997                1996               1997               1996
                                                         -----------------   -----------------  -----------------  -----------------
<S>                                                      <C>                        <C>                <C>                <C>      
Net revenues:
     Hardware and software sales                         $      2,830,642           2,611,661          5,324,093          4,297,460
     Support, maintenance and other services                    4,173,873           4,380,825          8,258,944          8,366,926
                                                         -----------------   -----------------  -----------------  -----------------
        Total revenues                                          7,004,515           6,992,486         13,583,037         12,664,386
                                                         -----------------   -----------------  -----------------  -----------------

Cost of goods sold and other direct costs:
     Hardware and software                                      1,023,244           1,041,112          1,992,630          1,752,666
     Support, maintenance and other services                    2,576,465           2,729,117          5,233,417          5,370,375
                                                         -----------------   -----------------  -----------------  -----------------
        Total cost of goods sold and other direct costs         3,599,709           3,770,229          7,226,047          7,123,041
                                                         -----------------   -----------------  -----------------  -----------------

        Gross profit                                            3,404,806           3,222,257          6,356,990          5,541,345

Product development costs                                         622,087             592,239          1,313,240          1,087,728
Selling, general and administrative  expenses                   1,971,292           2,429,194          3,777,568          4,981,502

                                                         -----------------   -----------------  -----------------  -----------------
        Operating income (loss)                                   811,427             200,824          1,266,182           (527,885)

Other income (expense):
     Interest income (expense), net                                60,759             (51,196)            47,089           (151,934)
     Other, net                                                   (41,258)              5,931            (11,364)              (637)

                                                         -----------------   -----------------  -----------------  -----------------
        Income (loss) from continuing operations
             before income taxes                                  830,928             155,559          1,301,907           (680,456)

Income tax expense                                                    -                   -                  -                  -

                                                         -----------------   -----------------  -----------------  -----------------
Income (loss) from continuing operations                          830,928             155,559          1,301,907           (680,456)

Loss from discontinued operations, net of income taxes                -               (32,920)                -            (143,379)

Income (loss) from disposal of discontinued operations,
     net of income taxes                                            8,262             (78,455)            11,601           (160,176)

                                                         =================   =================  =================  =================
        Net Income (loss)                                $        839,190              44,184          1,313,508           (984,011)
                                                         =================   =================  =================  =================

Income (loss) per common and common equivalent share:
     Basic earnings per share
        Continuing operations                            $           0.05                0.01               0.08              (0.08)
        Discontinued operations                          $           0.00               (0.01)              0.00              (0.03)
        Net Income (loss)                                $           0.05                0.00               0.09              (0.11)
     Diluted earnings per share 
        From continuing operations                       $           0.05                0.01               0.08              (0.08)
        From discontinued operations                     $           0.00               (0.01)              0.00              (0.03)
        Net Income (loss)                                $           0.05                0.00               0.08              (0.11)

Weighted average common and common equivalent shares:
     Basic                                                     15,289,437           8,917,718         15,289,437          8,917,718
     Diluted                                                   16,289,437           9,917,718         16,289,437          8,917,718
</TABLE>


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



<PAGE>

<TABLE>
                                                CUSA TECHNOLOGIES, INC.
                                         Consolidated Statements of Cash Flows
                                                      (Unaudited)
                                             Six months ended December 31,
<CAPTION>

                                                                                      1997                1996
                                                                                -----------------   -----------------
<S>                                                                          <C>                           <C>      
Cash flows from operating activities:
Income (loss) from continuing operations                                     $         1,301,907           (680,456)
Adjustments to reconcile income (loss) from continuing operations
     to net cash used in operating activities:
        Depreciation and amortization                                                    599,369             681,142
        Provision for doubtful accounts                                                  (86,854)             (7,710)
        Loss on sale of fixed assets                                                      11,364               --
        Net change in current assets and liabilities:
            Trade accounts receivable                                                 (1,815,445)         (2,096,482)
            Inventories                                                                 (291,097)            (89,045)
            Prepaids expenses and other assets                                             5,474             (30,919)
            Accounts payable and accrued liabilities                                    (924,102)         (2,208,019)
            Customer deposits                                                          1,066,757           1,812,035
            Income taxes payable                                                        (134,882)             (5,441)
            Deferred revenue                                                             475,914           1,041,307
                                                                                -----------------   -----------------
            Net cash provided by (used in) continuing operating activities               208,405          (1,583,588)

Net cash used in discontinued operations                                                (883,279)         (2,044,432)
                                                                                -----------------   -----------------

            Net cash used in operating activities                                       (674,874)         (3,628,020)

Cash flows from investing activities:
        Software development costs                                                      (538,470)           (221,119)
        Capital expenditures                                                             (97,406)           (260,374)
        Advances to related parties                                                        --               (102,546)
        Proceeds from the sale of fixed assets                                             7,946               --
        Decrease (increase) in other assets                                               24,233              (9,941)
        Net cash provided by investing activities of discontinued operations              16,671           7,700,000
                                                                                -----------------   -----------------
            Net cash provided by (used in) investing activities                         (587,026)           7,106,020

Cash flows from financing activities:
        Repayments of obligations under capital leases                                   (80,558)            (79,694)
        Net borrowings under lines of credit                                               --               (662,005)
        Repayment of long-term debt with related parties                                   --             (1,167,398)
        Preferred dividend distributions                                                   --                (60,000)
        Repayments of long-term debt                                                     (29,367)           (824,722)
        Net cash used in financing activities of discontinued operations                   --               (155,128)
                                                                                -----------------   -----------------
            Net cash used in financing activities                                       (109,925)         (2,948,947)

            Net increase (decrease) in cash                                           (1,371,825)            529,053

Cash at the beginning of the period                                                    2,861,994             583,080

                                                                                -----------------   -----------------
Cash at the end of the period                                                $         1,490,169           1,112,133
                                                                                =================   =================
</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,  1997.  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 December  31, 1997 and its  consolidated
results of operations  and cash flows for the six months ended December 31, 1997
and 1996.  The results of operations for the three and six months ended December
31, 1997 may not be  indicative of the results that may be expected for the year
ending June 30, 1998.


(2) Liquidity
-------------

During the six months  ended  December  31,  1997,  the  Company had income from
continuing  operations of $1,301,907,  income from the disposal of  discontinued
operations  of  $11,601,  and used cash in  operating  activities  of  $674,874,
including  cash  used  in  discontinued  operations  of  $883,279.   During  the
six-months  ending  December 31, 1997, the accrued  liabilities of  discontinued
operations  were  substantially  reduced  through cash  settlements.  These cash
settlements  have  reduced  the  uncertainty  surrounding  estimates  of accrued
contingent obligations associated with discontinued operations.  At December 31,
1997 the net assets of  discontinued  operations  were $573,745  compared to net
liabilities   of   discontinued   operations  of  $304,464  at  June  30,  1997,
representing  a  net  decrease  in  the  accrued   liabilities  of  discontinued
operations of $878,209 during the six months ended December 31, 1997.

At December 31, 1997 the Company had a stockholders' deficit of $695,852. During
fiscal 1997,  management  implemented a plan to return the Company to profitable
operations and a positive cash flow through focusing operations and resources on
the credit union  software  business.  Although the Company has a  stockholders'
deficit at  December  31, 1997 and used cash from  operations  in the six months
ended  December 31, 1997, in the opinion of management the Company will meet its
operating and debt cash  requirements,  at least through the next twelve months.
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.


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



(3) Discontinued Operations
---------------------------

As part of an overall  business  plan,  the Board of  Directors  and  management
decided to  concentrate  the Company's  business  activities on the credit union
business. Consequently, the following divisions have been discontinued:

      (a) Medical and Commercial Software Divisions
      ---------------------------------------------

         In June  1996,  the Board of  Directors  of the  Company  committed  to
         dispose  of the  business  and  assets of the  medical  and  commercial
         software 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 software divisions.

         In June 1996,  upon  adoption of the plan to dispose of the medical and
         commercial software divisions, the Company recorded a provision for the
         estimated  loss on the  disposal  of the  divisions  in the  amount  of
         $2,494,451.  The provision  related to the expected loss on the sale to
         PCN (net of disposal costs),  severance benefits to division employees,
         certain occupancy costs under  non-cancelable  leases,  and anticipated
         future losses  related to assets and  operations  not sold to PCN until
         their  ultimate  disposition.  The reported loss provision was based on
         certain  management  estimates  and  assumptions.  In the past,  actual
         results have  differed  from the estimated  loss  provision  originally
         recorded,  however management believes that all material  contingencies
         related to the discontinued  operations have been adequately accrued at
         December 31,  1997..  As estimates and  assumptions  are adjusted or as
         actual results occur,  the loss provision is adjusted and  accordingly,
         is  reported in the current  period as  additional  gain or loss on the
         disposal  of  discontinued  operations.  During the three and six month
         periods  ended  December 31, 1997 no additional  losses  related to the
         medical or commercial  software  divisions  were  recorded.  During the
         three and six month  periods  ended  December  31,  1996,  the  Company
         recorded  additional  losses on the  disposal of the  divisions  in the
         amount of $78,455 and $160,176, respectively.

      (b) Rental Software and Real-estate Rental Divisions
      ----------------------------------------------------

         In March of 1997,  the Board of Directors  of the Company  committed to
         dispose of the business and assets of the equipment rental software and
         real  estate  rental  divisions.   In  the  accompanying   consolidated
         statements of operations, net losses from these divisions for the three
         and six month periods ending December 31, 1996 were  reclassified  from
         continuing operations to discontinued  operations to be consistent with
         the December 31, 1997  presentation.  All assets and  liabilities  from
         these  divisions  were  disposed of prior to June 30, 1997. At December
         31, 1997, there were $459,193 in notes and other receivables related to
         the sale of the equipment  rental software  division which are included
         in the net assets of discontinued operations.

      (c) Surgery Centers
      -------------------

         Since March of 1997,  the Company  has been  searching  for a buyer for
         it's surgery center  business.  In June of 1997, the Board of Directors
         of the Company  committed  to dispose of the business and assets of the
         Ford  Center  for  Foot  Surgery,  Inc.  and the Bean  Center  for Foot
         Surgery, Inc. (Surgery Centers). As of October 1, 1997 the Company sold
         the assets  related to the  Surgery  Centers to an entity  owned by the
         Chief  Executive  Officer,  majority  shareholder  and  chairman of the
         board,  and  two  shareholders  of the  Company,  one of whom is also a
         member of the board (the Surgery  Center  Purchasers).  The assets were
         sold for  $450,000,  represented  by two  promissory  notes  secured by
         400,000  shares of the  Company's  common  stock.  The  notes  carry an
         interest rate of eight percent.  On December 31, 1997, the Company sold
         100% of the common stock of the Surgery  Centers to the Surgery  Center
         Purchasers  for $10,000.  As of December  31,  1997,  the Company had a
         $460,000  receivable,  which  has been  included  in the net  assets of
         discontinued operations.


<PAGE>


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



         During the three months ended December 31, 1997,  the Company  recorded
         an $8,262 gain from the sale of the Surgery Centers. The gain, combined
         with  $3,339 of net  income  from the  operations  of the  discontinued
         Surgery  Centers  during the three months  ending  September  30, 1997,
         amounts to $11,601 of income from disposal of  discontinued  operations
         for the six-months  ended  December 31, 1997.  During the three and six
         month periods  ending  December 31, 1996, the Company  recorded  income
         from the surgery centers of $34,110 and $55,868, respectively, which is
         included in the loss from discontinued operations, net of income taxes.


     Summary  operating  results of  discontinued  operations  for the  medical,
     commercial,  and equipment rental software, the real estate rental, and the
     surgery  center  divisions  for the  three  and six  month  periods  ending
     December 31, 1997 and 1996 are as follows:
<TABLE>
<CAPTION>
                                      Three Months Ending           Six Months Ending
                                      -------------------           -----------------
                                    December 31,  December 31,  December 31,  December 31,
                                        1997          1996          1997          1996
                                        ----          ----          ----          ----
<S>                                 <C>              <C>            <C>        <C>      
Revenues                            $        0       587,505        77,553     1,136,091
Gross Profit                                 0       306,360        10,630       561,266
Income/(loss) before income taxes            0      (111,375)        3,339      (303,555)
Income tax benefit                           0             0             0             0
                                    ----------    ----------    ----------    ----------

Income/(loss) from discontinued
operations                          $    8,262      (111,375)       11,601      (303,555)
                                    ----------    ----------    ----------    ----------
</TABLE>

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. At December 31, 1997, the net assets of
discontinued operations totaled $573,745,  consisting of $919,193 in receivables
from  the  purchasers  of  the  various  discontinued  operations  less  accrued
liabilities  related  to the  closure of the  medical  and  commercial  software
divisions of $345,448.


<PAGE>

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




(4) Income (loss) per Share
---------------------------

Basic  earnings per share (Basic EPS) is computed by dividing net income  (loss)
available  to  common   shareholders  by  the  weighted  average  common  shares
outstanding  during the period.  Net Income (loss) used in this  calculation  is
reduced (loss is increased)  by the  dividends  paid to preferred  stockholders.
During  each of the three  month  periods  ending  December  31,  the  preferred
dividends  paid  were  $30,000.  During  each of the six  month  periods  ending
December 31, the preferred  dividends  paid were $60,000.  Diluted  earnings per
share  (Diluted  EPS) is computed by dividing  net income  (loss)  available  to
common shareholders by the weighted average common shares outstanding during the
period as adjusted for dilutive potential common shares.

(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.

(6) Merger
----------

On  November  4,  1997 the  Company  announced  the  execution  of a  definitive
Agreement and Plan of Merger,  which provides for the acquisition of the Company
by Fiserv, Inc. (Fiserv) in an all-stock transaction valued at approximately $25
million (the Merger).  Under the terms of the agreement  Fiserv will acquire all
of the outstanding  shares of the Company (estimated to number 18,452,000 at the
closing) for approximately $1.35 per share, subject to a "holdback" of an amount
of Fiserv shares worth  approximately $3 million.  The "holdback" shares will be
placed in escrow in respect of any claims  arising from  certain  contingencies.
The  transaction  will be  accounted  for as a pooling of  interests.  The exact
number of Fiserv  shares to be exchanged  for each CUSA share will be determined
by dividing  approximately $1.35 by the average closing price of Fiserv's common
stock during the 20 trading  days-ending  on the second trading day prior to the
effective date of the Merger.  The agreement is subject to all normal conditions
to  closing  including  receipt of all  necessary  regulatory  consents  and the
Company's shareholder approval.  The obligation of Fiserv to complete the Merger
is subject to certain conditions  including,  but not limited to, the redemption
by the Company of the 1994 Series Preferred Stock

In  connection  with the  execution  of the  definitive  agreement,  Richard  N.
Beckstrand  (chief executive  officer,  chairman of the Board of Directors,  and
principal shareholder,  "the Investor"),  executed an irrevocable proxy allowing
Fiserv the power to vote the Investor's sixty nine percent beneficial  ownership
in favor of the Merger Agreement.

The Merger is structured as a tax-free reorganization under Section 368(a)(1)(A)
and (a)(2)(D) of the Internal Revenue Code of 1986, as amended, and thus will be
tax free to the CUSA  shareholders.  However,  if the all stock merger cannot be
accounted for as a "pooling of interests," the Merger will be converted from all
stock to cash-for-stock and will be taxable to the CUSA shareholders.

As of December  31, 1997,  Fiserv and the Company  were  preparing a joint proxy
statement/prospectus  to be filed with the Securities and Exchange Commission on
Form S-4. It is anticipated that a shareholders meeting will take place and that
the merger will be approved and finalized in March of 1998.


<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, commercial, and equipment
rental markets. In June of 1996, the Company disposed of the business and assets
of the Company's  medical and commercial  software  divisions  through a sale of
assets to Physicians  Computer Network,  Inc. ("PCN"). In 1997, the Company sold
the equipment rental software  division and an office rental complex,  which was
acquired by the Company in June of 1994.  During the quarter ending December 31,
1997 the Company also disposed of its surgery center business, which it acquired
in 1993 prior to entering the credit union  market.  With the  completion of the
divestiture of the medical, commercial, and equipment rental software divisions,
the office rental complex, and the surgery center business, the Company will now
focus its  resources  on the  development  and  expansion  of its  credit  union
software  business.  In this  item,  all  references  to the  "first  and second
quarters"  refer to the first and second  quarters of the Company's  fiscal year
(quarters ended September 30, and December 31, respectively).

On  November 4, 1997 the Company  and Fiserv  Incorporated  signed a  definitive
Agreement and Plan of Merger which  provides for the  acquisition of the Company
by Fiserv. Any statements herein,  which refer to plans or intentions for future
fiscal years, assume that the Fiserv transaction is not consummated and that CTI
continues under current management.


Net revenues
------------

The Company's net revenues  increased less than 1 percent from $6,992,486 in the
second quarter of 1997 to $7,004,515 in the second quarter of 1998 and increased
7 percent from  $12,664,386  in first six months of 1997 to  $13,583,037  in the
first six months of 1998.  Revenues from hardware and software sales increased 8
percent  from  $2,611,661  in the second  quarter of 1997 to  $2,830,642  in the
second quarter of 1998 and increased 24 percent from $4,297,460 in the first six
months of 1997 to  $5,324,093  in the first six months of 1998.  The increase is
the result of additional  software sales as credit unions begin to upgrade their
systems to prepare for the year 2000 issues. Revenues from support,  maintenance
and other services  decreased 5 percent from $4,380,825 in the second quarter of
1997 to $4,173,873 in the second  quarter of 1998 and 1 percent from  $8,366,926
in the first six months of 1997 to  $8,258,944  in the first six months of 1998.
The decrease was due mainly to a decrease in installation and training  revenues
and sales of the Company's statement processing  services.  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  increased from 60 percent in the second
quarter of 1997 to 64 percent in the second  quarter of 1998 and from 59 percent
in the first six  months of 1997 to 63  percent in the first six months of 1998.
In the same  periods,  the gross  margin  from  support,  maintenance  and other
services  revenue  remained  fairly  level.  The  increases  in the hardware and
software  gross margin are  primarily  attributable  to a shift in the sales mix
towards more profitable  software sales. 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.


<PAGE>



Product development costs
-------------------------

Product  development costs include research and development,  system operational
error fixes and maintenance software upgrades. As expected,  product development
costs  increased  5 percent  from  $592,239  in the  second  quarter  of 1997 to
$622,087 in the second quarter of 1998 and increased 21 percent from  $1,087,728
in the first six months of 1997 to  $1,313,240  in the first six months of 1998.
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.

Selling, general and administrative costs
-----------------------------------------

The selling,  general, and administrative  expenses for the Company decreased 19
percent from  $2,429,194  in the second  quarter of 1997,  to  $1,971,292 in the
second quarter of 1998 and 24 percent from $4,981,502 in the first six months of
1997 to  $3,777,568 in the first six months of 1998.  The decreases  were due to
the reduction,  in the first and second  quarters of 1997, of general  corporate
overhead expenses as part of an overall plan by management.  Management does not
anticipate  further reductions in selling,  general and administrative  costs in
the future.

Interest and income tax expense
-------------------------------

Interest  income  (expense),  net decreased 219 percent in the second quarter of
1998 when  compared  to the second  quarter of 1997 and 131 percent in the first
six months of 1998 when  compared to the first six months of 1997.  The decrease
was due primarily to a decrease in the average debt  outstanding and an increase
in cash earning interest income.

Income tax  expense  was zero in the second  quarter of 1998 and 1997 and in the
first six months of 1998 and 1997. No tax was recorded due to the use of certain
net  operating  loss tax carry  forwards  which are  available  to the  Company.
Alternative minimum tax expense was considered insignificant and not recorded in
any of the periods presented.

Discontinued Operations
-----------------------

The income from the  disposal of  discontinued  operations,  net of income taxes
reported in the second quarter of 1998 and for the six months ended December 31,
1997,  include income from the sale and operations of the  discontinued  surgery
center division. The loss from discontinued operations, net of income taxes, and
the loss from disposal of discontinued operations, net of income taxes, reported
in the second  quarter of 1997 and for the six months  ended  December 31, 1996,
include the medical,  commercial,  and equipment rental software divisions,  the
office rental complex division,  and the surgery center division.  There were no
operations  or losses  recorded  in loss from  discontinued  operations,  net of
income  taxes in the  second  quarter of 1998 or in the first six months of 1998
related to these  divisions.  Additional  income  and/or  losses  related to the
disposed  divisions are not anticipated,  however no assurance can be given that
unexpected costs related to the discontinued divisions will not occur.

The medical,  commercial, and equipment rental software divisions and the office
rental  complex were sold prior to June 30, 1997.  Although the decision to sell
the surgery  center  division was made prior to June 30, 1997,  the sale was not
completed until October 1, 1997.  Since June 30, 1997, the activities of each of
the  discontinued  divisions  have  been  recorded  in  loss  from  disposal  of
discontinued  operations,  net of income taxes in the accompanying  consolidated
statements of operations.


<PAGE>



Capital Resources and Liquidity
-------------------------------

At December 31, 1997, the Company had current assets of $7.4 million and current
liabilities of $11.8 million.  The current  liabilities  include $6.0 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).

 Losses from operations in 1996 and the first quarter of 1997 caused the Company
to be in violation of certain loan  covenants with its primary lender and raised
concerns among employees,  stockholders, and some customers. In order to address
these  concerns,  the board of directors  decided to seek equity  financing.  On
January 24, 1997,  the Company  entered into a Stock Purchase and Sale Agreement
(the  Agreement),  with its Chief  Executive  Officer,  major  shareholder,  and
Chairman  of the Board,  (the  "Investor")  whereby it agreed to sell  8,648,649
shares of its common  stock,  representing  49 percent of the common stock to be
outstanding  after the  completion  of the sale,  for $8.0  million in cash.  In
February 1997, the Company received $6.0 million of the purchase price which was
used to retire  certain  current  liabilities  and long-term  debt.  The Company
anticipates  that the  remaining  $2.0  million  will be received in fiscal 1998
which the Company plans to use to redeem the 1994 Series  Convertible  Preferred
Stock. Upon completion of the transaction,  the Investor's  beneficial ownership
interest  increased to approximately 66 percent.  The transaction was negotiated
between the Investor  and an  independent  committee of the board of  directors.
During the past eighteen months,  the Company reduced its total liabilities from
$20.3 million at June 1996 to $11.8 million at December 1997.

As part of the overall business plan implemented during 1997, management reduced
the overall corporate  overhead included in selling,  general and administrative
expenses $1.2 million from $5.0 million for the first six months of 1997 to $3.8
million  for the first six months of 1998.  Income  from  continuing  operations
increased  from a loss of $680,456 for the first six months of 1997 to income of
$1,290,572 in the first six months of 1998. In the fiscal year ending June 1998,
the Company  expects  operating  results and cash flows to improve as management
focuses on the credit union business.  The Company  believes that cash flow will
be sufficient to permit the Company to meet its cash requirements through the up
coming year.


<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

On November 4, 1997,  the Company and Fiserv  Incorporated  signed a  definitive
Agreement  and Plan of Merger (the  "Merger  Agreement)  which  provides for the
acquisition  of the  Company  by Fiserv in an  all-stock  transaction  valued at
approximately  $25  million  (the  "Merger").  Under the  agreement  each of the
Company's  shares  (estimated  to  number  18,452,000  at the  closing)  will be
exchanged  for  approximately  $1.35  worth  of  Fiserv  shares,  subject  to  a
"holdback" of an amount of Fiserv  shares worth  approximately  $3,000,000.  The
"holdback"  shares are to be placed in escrow in  respect of any claims  arising
from certain  contingencies.  The exact number of Fiserv  shares to be exchanged
for each CUSA share will be  determined by dividing  approximately  $1.35 by the
average  closing  price of Fiserv stock during the 20 trading days ending on the
second trading day prior to the effective date of the Merger.

Each party's  obligation to complete the Merger is subject to certain conditions
precedent  including the affirmative vote of the shareholders of the Company and
the effectiveness of a Registration  Statement  covering the Fiserv shares to be
used in the Merger.  The  obligation of Fiserv to complete the Merger is subject
to certain conditions precedent,  including but not limited to the redemption by
the  Company  of the 1994  Series  Preferred  Stock  and the  completion  of the
previously approved disposal of the Company's surgery center business unit. (The
Surgery Center was disposed of during the quarter ending December 31, 1997).

In  connection  with the  execution of the  definitive  agreement,  the Investor
executed an irrevocable  proxy allowing  Fiserv the power to vote the Investor's
sixty nine percent beneficial ownership in favor of the Merger Agreement.

The Merger is structured as a tax-free reorganization under Section 368(a)(1)(A)
and (a)(2)(D) of the Internal Revenue Code of 1986, as amended, and thus will be
tax free to the CUSA  shareholders.  However,  if the all stock merger cannot be
accounted for as a "pooling of interests," the Merger will be converted from all
stock to cash-for-stock and will be taxable to the CUSA shareholders.

Fiserv  is   currently   preparing  a   registration   statement,   including  a
proxy/prospectus,  prepared by the  Company,  for review by the  Securities  and
Exchange Commission.  Following such review, the registration  statement will be
mailed to each of the Company's shareholders,  and a meeting of the shareholders
of the Company will be held. A majority vote of the Company's outstanding shares
is required for approval.  The Company  expects the  transaction to be completed
around the end of March 1998.

Fiserv, Inc. is an independent provider of financial data processing systems and
related  information  management services and products to more than 5,000 banks,
credit  unions,  mortgage  firms  and  savings  institutions  worldwide.  Fiserv
currently  employs   approximately   10,000  financial   service   professionals
company-wide,   skilled  in  providing  information   management  and  financial
services. A publicly held company  headquartered in Brookfield,  Wis., Fiserv is
traded on the NASDAQ National Market under the symbol FISV.



<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
-------            -------                 -------------------
 
                   None.

(b) Reports on Form 8K.

                   None.


<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:  February 17, 1998


CUSA Technologies, Inc.


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