UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

           [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2000

                                       OR

            [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                For the transition period from _______ to _______
                             Commission file number: 333-58351

                             AREMISSOFT CORPORATION
             -------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

<TABLE>
     <S>                                      <C>                               <C>

                  Delaware                                 7372                      68-0413929
        -------------------------------        -----------------------------     --------------------
       (STATE OR OTHER JURISDICTION OF         (PRIMARY STANDARD INDUSTRIAL       (I.R.S. EMPLOYER
       INCORPORATION OR ORGANIZATION)              CLASSIFICATION CODE)           IDENTIFICATION NO.)

</TABLE>

                             AremisSoft Corporation
                               Sentry Office Plaza
                          216 Haddon Avenue, Suite 607
                               Westmont, NJ 08108
                                  856-869-0770
          (ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING
             AREA CODE, OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
           -------------------------------------------------------------

                           Dr. Lycourgos K. Kyprianou
                                    Chairman
                             AremisSoft Corporation
                               Sentry Office Plaza
                          216 Haddon Avenue, Suite 607
                               Westmont, NJ 08108
                                  856-869-0770
            (NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER,
                              INCLUDING AREA CODE)
             --------------------------------------------------------

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

Yes   [X]        No [ ]

The number of shares  outstanding of the  Registrant's  Common Stock on July 17,
2000 was 15,298,394 shares.





<PAGE>2

                             AREMISSOFT CORPORATION

                                      INDEX

<TABLE>
<S>                                                                                   <C>


PART I - FINANCIAL INFORMATION                                                          PAGE

Item 1.   Financial Statements:

          Consolidated Balance Sheets as at                                               3
          June 30, 2000 and December 31, 1999

          Consolidated Statements of Operations                                           5
          for the three months and six months ended June 30, 2000
          and June 30, 1999

          Consolidated Statements of Cash Flows                                           6
          for the six months ended   June 30, 2000 and June 30, 1999

          Notes to Interim Consolidated Financial Statements                              7


Item 2.   Management's Discussion and Analysis of Financial                               9
               Condition and Results of Operations


Item 3:     Quantitative and Qualitative disclosures about market risk                   15


PART  II - OTHER INFORMATION

Item 1--Legal Proceedings                                                                15

Item 2--Changes in Securities and Use of Proceeds                                        15

Item 3--Defaults upon Senior Securities                                                  15

Item 4--Submission of Matters to a Vote of Security Holders                              15

Item 5--Other Information                                                                15

Item 6--Exhibits and Reports on Form 8-K                                                 15

SIGNATURES                                                                               16

</TABLE>

<PAGE>3

                         PART I - FINANCIAL INFORMATION


Item 1.   FINANCIAL STATEMENTS

                             AREMISSOFT CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)

<TABLE>
<S>                                                                               <C>               <C>


                                                                                  AS AT DEC.31      AS AT JUNE 30
                                                                                      1999              2000
                                                                                 --------------     --------------
                                                                                                      (unaudited)
                                     ASSETS
Current assets
Cash and cash equivalents                                                         $    13,386         $    18,932
Accounts receivable, less allowances for doubtful accounts
of $507 at Dec 31,1999 and June 30, 2000                                               18,115              23,648
Accounts receivable - disposition proceeds                                              2,592                   -
Other receivables                                                                         705                 959
Inventory                                                                               1,603               1,207
Deposits paid on services and maintenance contracts                                     3,712               2,650
Prepaid expenses and other assets                                                       2,423               1,818
                                                                                 --------------     --------------
Total Current assets                                                                   42,536              49,214
                                                                                 ==============     ==============
Investments                                                                             1,803               1,689
Property and equipment, net                                                             1,847               2,003
Purchased and developed software, net of accumulated
Amortization of $5,893 and $6,043 at Dec. 31,1999 and
June 30, 2000 respectively.                                                               948                 798
Intangible assets, net of accumulated amortization of $ 11,534
and $13,836 at Dec 31, 1999 and June 30, 2000 respectively                             13,810              11,508
                                                                                 --------------     --------------
Total assets                                                                           60,944              65,212
                                                                                 ==============     ==============
                      LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities
Accounts payable                                                                        6,910               3,959
Accrued payroll taxes                                                                     574                 614
Accrued value added taxes                                                               1,055                 185
Accrued income taxes                                                                    6,572               8,452
Current portion of capital lease obligations                                               24                  26
Other accrued expenses                                                                  2,371               2,557
Deferred revenue                                                                        7,190               6,359
                                                                                 --------------     --------------
Total Current liabilities                                                              24,696              22,152
                                                                                 ==============     ==============
Capital lease obligations, less current portion                                             2                  78
Total  liabilities                                                                     24,698              22,230
                                                                                 ==============     ==============




<PAGE>4
                             AREMISSOFT CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)



                                                                                  AS AT DEC.31      AS AT JUNE 30
                                                                                      1999              2000
                                                                                 --------------     --------------
                                                                                                      (unaudited)

Stockholders' equity

Series-A convertible preferred stock, par value $0.001; Authorized 2,100 shares;
no shares issued and  outstanding  Liquidating  preference at par value Series-B
convertible  preferred  stock,  par value $0.001;  authorized  3,500 shares ; no
shares issued and outstanding, liquidating
Preference at par value                                                                     -                   -
Common stock, par value $0.001; authorized 85,000 shares;
15,193 and 15,298 shares issued and outstanding at Dec. 31,
1999 and June 30, 2000, respectively                                                       15                  15
Additional paid-in capital                                                             57,325              57,884
Accumulated deficit                                                                  (18,921)            (12,035)
Accumulated other comprehensive income                                                (2,173)             (2,882)
                                                                                 --------------     --------------
Total stockholders' equity                                                             36,246              42,982
                                                                                 ==============     ==============
Total liabilities and stockholders' equity                                             60,944              65,212
                                                                                 ==============     ==============

</TABLE>

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

<PAGE>5


                             AREMISSOFT CORPORATION
                      CONSOLIDATED STATEMENT OF OPERATIONS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)

<TABLE>
<S>                                                           <C>                 <C>               <C>           <C>

                                                                For three months ended June 30      For six months ended June 30
                                                                       1999          2000               1999            2000
                                                                ----------------  -------------     --------------- --------------
                                                                    (unaudited)   (unaudited)        (unaudited)     (unaudited)
Revenues
  Software Licenses                                                     8,890        15,456             14,250          26,593
  Maintenance and Services                                              6,590        10,440             12,864          19,572
  Hardware and Other                                                    1,262         1,111              2,740           2,359
                                                                ----------------  -------------     --------------- --------------
Total revenues                                                         16,742        27,007             29,854          48,524
                                                                ================  =============     =============== ==============
Cost of revenues
  Software Licenses                                                     1,061         1,610              1,777           2,802
  Maintenance and Services                                              2,059         3,248              4,046           6,070
  Hardware and Other                                                      884           839              1,921           1,827
  Amortization of purchased software and
  capitalized software development costs                                   62            76                124             150
                                                                ----------------  -------------     --------------- --------------
Total cost of revenues                                                  4,066         5,773              7,868          10,849
                                                                ================  =============     =============== ==============
Gross profit                                                           12,676        21,234             21,986          37,675
                                                                ================  =============     =============== ==============
Operating Expenses
   Sales and marketing                                                  5,774         9,386             10,639          17,439
   Research and development                                             1,197         2,256              2,661           4,109
   General and administrative                                           1,496         2,915              2,684           5,311
   Amortization of intangible assets                                       88         1,151                176           2,302
                                                                ----------------  -------------     --------------- --------------
Total operating expenses                                                8,555        15,708             16,160          29,161
                                                                ================  =============     =============== ==============
Profit from operations                                                  4,121         5,526              5,826           8,514
                                                                ================  =============     =============== ==============
Other income
Interest expense, net                                                    -341           269               -848             269
  Non operating income                                                      -             -                  -             131
                                                                ----------------  -------------     --------------- --------------
Income before income taxes                                              3,780         5,795              4,978           8,914
                                                                ================  =============     =============== ==============
   Income tax expense                                                   1,247         1,404              1,642           2,028
                                                                ----------------  -------------     --------------- --------------
Net Income                                                              2,533         4,391              3,336           6,886
                                                                ================  =============     =============== ==============
Basic net income per share                                               0.20          0.29               0.28            0.45
Diluted net income per share                                             0.20          0.26               0.28            0.40

Basic weighted average shares outstanding                              12,589        15,298             11,849          15,250
Diluted weighted average shares outstanding                            12,604        17,075             11,864          17,168


</TABLE>


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

<PAGE>6

                             AREMISSOFT CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
<TABLE>
<S>                                                                                           <C>               <C>

                                                                                              For six months ended June 30
                                                                                                   1999            2000
                                                                                             ---------------  -------------
                                                                                               (unaudited)     (unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                                                         3,336           6,886
Adjustments to reconcile net income to net cash
  Provided by operating activities:
Depreciation                                                                                         615             326
Amortization and write-off of capitalized software and Intangible assets                             300           2,452

Changes in assets and liabilities:
Accounts receivable                                                                                  (29)         (5,533)
Accounts receivable -disposition proceeds                                                              -           2,592
Other receivables                                                                                    (50)           (254)
Inventory                                                                                           (303)            396
Deposits paid on services and maintenance contracts                                                2,556           1,062
Prepaid expenses and other assets                                                                   (727)            605
Accounts payable                                                                                    (913)         (2,951)
Deferred revenue                                                                                  (1,346)           (831)
Accrued taxes payable                                                                                234           1,050
Other accrued expenses                                                                            (1,371)            186
                                                                                             ---------------  -------------
Net cash provided by operating activities                                                          2,302           5,986
                                                                                             ===============  =============
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment                                                                 (996)           (482)
Investments                                                                                            -             114
                                                                                             ---------------  -------------
Net cash (used in) investing activities                                                             (996)           (368)
                                                                                             ===============  =============
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of warrants and employee stock options                                     12,868             559
Principal repayments of long-term borrowings                                                      (7,622)              -
Loan from related party                                                                           (1,793)              -
Principal payments of capital lease obligations-net                                                  (16)            102
Short-term demand facility                                                                             -             (24)
                                                                                             ---------------  -------------
Net cash provided by financing activities                                                          3,437             637
                                                                                             ===============  =============
Net increase in cash and cash equivalents                                                          4,743           6,255
                                                                                             ===============  =============
Effect of foreign currency exchange rates on cash and cash equivalents                               (48)           (709)
                                                                                             ---------------  -------------
Cash and cash equivalents, at beginning of period                                                    149          13,386
                                                                                             ===============  =============
Cash and cash equivalents, at end of period                                                        4,844          18,932
                                                                                              ===============  =============
Supplemental disclosure:
Interest paid                                                                                        848               -
                                                                                             ===============  =============
</TABLE>

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

<PAGE>7

         NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


1.   BASIS OF PRESENTATION

The accompanying  unaudited  consolidated financial statements and notes thereto
have been prepared in accordance with generally accepted  accounting  principles
for interim  financial  information and pursuant to the rules and regulations of
the Securities and Exchange  Commission.  Interim  results of operations for the
three-month  and  six-month  period  ended  June 30,  2000  are not  necessarily
indicative of operating results for the full fiscal year.

In the opinion of management,  all  adjustments  consisting of normal  recurring
entries  necessary  for the  fair  presentation  of the  consolidated  financial
position,  results of  operations,  and  changes  in cash flows for the  periods
presented  have been  included.  The  preparation  of  financial  statements  in
conformity with generally accepted accounting  principles requires management to
make estimates and  assumptions  that affect the reported  amounts of assets and
liabilities at the date of the financial  statements and the reported amounts of
revenues and expenses during the reporting  period.  Actual results could differ
from those estimates.

The  balance  sheet at  December  31,  1999 has been  derived  from the  audited
financial  statements  at that date but does not include all of the  information
and footnotes required by generally accepted accounting  principles for complete
financial statements.


2.   FOREIGN CURRENCY TRANSLATION

The functional  currency of the Company and its United Kingdom  subsidiaries  is
the British pound. The functional currencies of the other subsidiaries are their
local currencies.

For reporting purposes,  the financial statements are presented in United States
dollars and in accordance  with Statement of Financial  Accounting  Standard No.
52,  "Foreign  Currency  Translation".   The  consolidated  balance  sheets  are
translated  into United States dollars at the exchange  rates  prevailing at the
balance  sheet  dates and the  statements  of  operations  and cash flows at the
average  rates  for the  relevant  periods.  Gains  and  losses  resulting  from
translation  are  included as a component  of  accumulated  other  comprehensive
income (loss).

Net gains and losses resulting from foreign  exchange  transactions are included
in the consolidated statements of operations


3.   NET INCOME PER SHARE

The following table sets forth the computation of basic and diluted earnings per
share (in thousands, except per share data):

<TABLE>
<S>                                                                            <C>             <C>

                                                                               For six Months Ended June 30
                                                                                    1999           2000
                                                                               -------------   -------------

Numerator used for both basic and diluted earnings per share                       3,336           6,886
Denominator for basic earnings per share;
  Weighted average shares outstanding                                             11,849          15,250
Denominator for diluted earnings per share:

<PAGE>8
                                                                               For six Months Ended June 30
                                                                                    1999           2000
                                                                               -------------   -------------

  Denominator for basic earnings per share                                        11,849          15,250
  Effect of dilutive securities:
     Options and Warrants                                                             15           1,918
                                                                               ------------     ------------
                                                                                  11,864          17,168
                                                                               ============     ============
Basic Earnings per share                                                           $0.28           $0.45
Diluted Earnings per share                                                         $0.28           $0.40

</TABLE>


4.   COMPREHENSIVE INCOME

During June 1997, the Financial  Accounting Standards Board issued SFAS No. 130,
"Reporting  Comprehensive  Income"  ("SFAS No. 130").  SFAS No. 130  establishes
standards  for  the  reporting  and  display  of  comprehensive  income  and its
components in a full set of general-purpose  financial  statements.  The Company
adopted  SFAS  No.  130  during  1999.   Included   within   accumulated   other
comprehensive income are the cumulative amounts for foreign currency translation
adjustments.


Comprehensive  income  for the six months  ended  June 30,  1999 and 2000 are as
follows (in thousands)
                                                          1999            2000
                                                        -------         -------

Net income                                              $ 3,336         $ 6,886
Foreign currency translation adjustments                   (48)           (709)
                                                        -------         -------

Comprehensive income                                    $ 3,288         $ 6,177
                                                        -------         -------


5.   SEGMENT REPORTING INFORMATION

The Company has adopted SFAS 131 "Disclosure about Segments of an Enterprise and
Related  Information"  during 1999,  which  changes the way the Company  reports
certain information about its operating segments.

The  Company  develops,   markets,   implements  and  supports   enterprise-wide
applications  software  targeted  at  mid-sized   organizations  mainly  in  the
manufacturing,  healthcare, hospitality, and construction industries. Management
considers  each  industry  to  be  a  reportable  segment,  with  each  industry
representing a strategic  business that offers  products and services to various
customers.  These  industries  are  managed  separately  because  each  requires
different product and marketing strategies.

Within each  industry,  the Company has  adopted  tailored  sales and  marketing
strategy.  This strategy includes  advertisements in leading trade publications,
participation  in trade shows and sponsorship of user groups.  In addition,  the
Company has developed corporate sales and marketing materials as well as general
financial and technical  materials that are distributed to each of the Company's
subsidiaries  for  inclusion  in their  sales  materials,  thereby  promoting  a
consistent  portrayal of the Company's  image and products.  The Company markets
its products  primarily  through a direct sales force in each of the industries.
In the manufacturing and hospitality  industries,  the Company also relies, to a
limited extent, on distributors to sell the Company's products.

<PAGE>9


The accounting policies adopted by each industry are the same as those described
in  the  summary  of  significant  accounting  policies.   Management  evaluates
performance  based on profit/(loss)  from operations  before interest and income
taxes.


Summarized financial information concerning the Company's reportable segments is
shown in the following table:

<TABLE>
     <S>                                <C>             <C>             <C>            <C>            <C>           <C>

                                         MANUFACTURING   HEALTHCARE     HOSPITALITY    CONSTRUCTION    OTHER        TOTAL

   Segmental analysis for the six
    months ended June 30, 2000

   Revenues from external customers          16,307       11,684          12,711           3,919        3,903       48,524
   Depreciation and amortization                537          562             546             115        1,018        2,778
   Profit (loss) from operations              4,511        1,464           1,858             564          117        8,514
   Total segment assets                      29,216       14,926          15,801           2,779        2,490       65,212


   Segmental analysis for the six
    months ended June 30, 1999

   Revenues from external customers                                                                    $1,123      $29,854
                                             $9,823       $8,716          $7,761          $2,431
   Depreciation and amortization                177                          180              38          335          915
                                                             185
   Profit (loss) from operations              3,261        1,101                                        (446)        5,826
                                                                           1,587             323
   Total segment assets                      13,886        7,284           7,539           1,342        1,242       31,293


</TABLE>


The following table  represents  revenue by country based on country of customer
domicile and long-lived assets by country on the location of the assets.

<TABLE>
     <S>                           <C>              <C>            <C>            <C>

                                               Revenues                  Long-Lived Assets
                                    -----------------------------  -----------------------------
                                    June 30,1999    June 30, 2000   June 30,1999   June 30, 2000
                                    -------------  --------------  -------------   -------------

     United Kingdom                    17,432         19,297          2,383            1,921
     Rest of Europe                     7,355         16,147            449              402
     United States                      1,178          1,502            120               91
     Asia                               1,035          4,261            514           13,571
     Rest of World                      2,944          7,317             10               13

                                       29,854         48,524          3,476           15,998
                                    -------------  --------------  -------------   -------------

</TABLE>


6.   INVESTMENTS

Investments comprise an approximate 7,64% percent interest in GlobalSoft.com, an
entity whose common  stock began  trading on the Cyprus stock  exchange in April
2000. The Company's ability to liquidate this investment and realize all profits
on a short term basis is restricted due to certain  governmental  regulations in
Cyprus. Management has determined that this investment does meet the criteria of
a marketable  equity  security as defined by  Statement of Financial  Accounting
Standards  No.  115  Accounting  for  Certain  Investments  In Debt  and  Equity
Securities,  and, therefore,  records it on the cost basis of accounting.  Based
upon the trading price of Global's  common stock on the Cyprus  exchange at June
30, 2000, the value of the Company's investment approximated $77 million.




<PAGE>10

Item 2: MANAGEMENT'  DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS
        OF OPERATIONS.


Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private
Securities Litigation Reform Act of 1995. The following Management's  Discussion
and Analysis of Financial  Condition and Results of Operations should be read in
conjunction with the Notes to the Condensed  Consolidated  Financial  Statements
included  in  Part  I,  Item  1, of this  report.  All  statements,  other  than
historical facts,  included in the following  discussion regarding the Company's
financial  position,  business  strategy,  and plans of  management  for  future
operations  are  "forward-looking  statements."  These  statements  are based on
management's beliefs and assumptions,  and on information currently available to
management.  Forward  looking  statements  include,  but  are  not  limited  to,
statements  in which words such as  "expect",  "anticipate",  "intend",  "plan",
"believe",   "estimate",   "consider",   or   similar   expressions   are  used.
Forward-looking  statements  are not  guarantees  of  future  performance.  They
involve risks,  uncertainties,  and  assumptions,  including the risks discussed
under Item 3 below and in "Risk Factors" in the Company's prospectus included in
its registration statement on Form S-1, SEC File No. 333-58351, all of which are
incorporated  herein by reference.  The Company's actual results and stockholder
values may  differ  materially  from those  anticipated  or  expressed  in these
forward-looking  statements.  Many of the  factors  that  will  determine  these
results  and  values are beyond  the  Company's  ability to control or  predict.
Readers  of  this  report  are  cautioned  not  to  put  undue  reliance  on any
forward-looking  statement.  The Company  undertakes  no  obligation to publicly
update these forward looking statements, whether as a result of new information,
future events or otherwise.

OVERVIEW

AremisSoft develops,  markets,  implements and supports enterprise-wide software
applications  primarily  for  mid-sized   organizations  in  the  manufacturing,
healthcare,  hospitality and construction industries. Our fully-integrated suite
of  Internet-enabled  products  allows  our  customers  to  manage  and  execute
mission-critical  functions  within their  organization,  including  accounting,
purchasing,  manufacturing,  customer  service,  and  sales and  marketing.  The
modular  design  of  our  products  enables  us  to  provide  customers  with  a
cost-effective  scalable solution which can be easily  implemented.  We focus on
mid-sized  organizations  with  annual  revenues  of less than $200  million  to
capitalize on a market we believe is receptive to our  cost-effective  solutions
and shorter  implementation  periods.  To date,  we have  licensed  our software
applications to more than 6,000 customers in over twenty countries.

Our software  applications  use our internally  developed  three-tiered,  object
oriented  software  architecture,  which we call the Aremis  architecture.  This
architecture   enables   us  to   develop   software   solutions   rapidly   and
cost-effectively  by taking advantage of the common requirements of customers in
our target markets.  In addition,  we believe that, with 212 developers based in
our  facilities  in  India,  we have  established  a  cost-effective  model  for
implementing, supporting and enhancing our software applications.



<PAGE>11

In the past six years, the Company has experienced rapid growth, both internally
and through acquisitions,  with revenues increasing from $6.4 million in 1994 to
$73.4 million in 1999. During this period, the Company successfully acquired and
integrated the operations of eleven businesses, which were principally operating
in the  United  Kingdom.  In each  acquisition,  the  Company  sought  to reduce
expenses,  rejuvenate  the  existing  products  of  the  acquired  business  and
transition the customers to products that utilize the Aremis  Architecture.  The
Company's  software  development  and  support  facility in India  provides  the
Company access to  highly-skilled  technical  personnel who are  responsible for
rejuvenating   the  acquired   products  and   developing   new  products  in  a
cost-effective manner.

The  Company's  objective  is  to  be  a  leading  provider  of  enterprise-wide
applications  software in the  Targeted  Markets.  The  Company's  strategy  for
achieving  this  objective  includes  (i)  targeting  mid-sized   organizations,
including  divisions and business  units of larger  companies,  (ii) focusing on
strategic  markets,   (iii)  leveraging  the  Company's   cost-efficient   India
operations,  (iv)  capitalizing  on  the  Company's  investment  in  the  Aremis
Architecture,  (v) expanding the Company's marketing, sales, support and service
capabilities  and  (vi)  acquiring  related  software  businesses,  products  or
technologies.

RESULTS OF OPERATIONS

Revenues

Total revenues  increased 61.3% to $27.0 million for the three months ended June
30, 2000 from $16.7  million for the three months  ended June 30, 1999.  For the
six months  ended  June  30,2000,  the total  revenue  increased  62.5% to $48.5
million from $29.9 million during the comparable  period in 1999.  This increase
was due to higher  software  license  revenues as a result of an increase in the
sale of higher margin licenses,  and associated maintenance and service contract
revenues and also the effect of additional revenue of  e-nnovations.com of $ 1.6
million  and $2.8  million  for the three  months and six months  ended June 30,
2000.  The effect of the  e-nnovations.com  acquisition  on  revenues  is mainly
reflected  in the six  months  ended  June 30,  2000  since the  acquisition  of
e-nnovations.com was recorded in AremisSoft books in December 1999.

Software license revenues  increased 73.9% to $15.5 million for the three months
ended June 30, 2000 from $8.9  million for the three months ended June 30, 1999.
For the six months ended June 30,2000,  the software  license revenue  increased
86.6% to $26.6 million from $14.3 million during the comparable  period in 1999.
This  increase  is  primarily  due to the  growth  in the  number  of  installed
customers,  increased  sales of licenses for the Company's  Aremis 4.0 products,
and  price  increases.  As a  percentage  of total  revenues,  license  revenues
increased  to 57.2% for the three  months ended June 30, 2000 from 53.1% for the
period  ended  June 30,  1999.  For the six-  months  ended  June 30,  2000 as a
percentage  of total  revenue,  license  revenue  increased  to 54.8% from 47.7%
during the comparable period in 1999.

Maintenance and service contract  revenues  increased 58.4% to $10.4 million for
the three  months  ended June 30, 2000 from $6.6  million  for the three  months
ended June 30, 1999.  For the six months  ended June  30,2000,  the  maintenance
revenue  increased  52.2%  to  $19.6  million  from  $12.9  million  during  the
comparable period in 1999. This increase is primarily due to the increase in the
number of installed customers and the growth in software license revenues.  As a
percentage  of  total  revenues,   maintenance  and  service  contract  revenues
decreased  to 38.7% for three  months  ended  June 30,  2000 from  39.4% for the
period  ended  June 30,  1999.  For the six-  months  ended  June 30,  2000 as a
percentage of total revenue,  maintenance  revenue decreased to 40.3% from 43.1%
during the comparable period in 1999.



<PAGE>12

Hardware and other revenues decreased 12.0% to $ 1.1 million for the three month
ended June 30, 2000 from $1.3  million for the three month ended June 30,  1999.
For the six months ended June 30,2000,  the hardware and other revenue decreased
13.9% to $2.4 million from $2.7 million during the comparable period in 1999. As
a percentage of total  revenues,  hardware and other revenues  decreased to 4.1%
for the three  months  ended June 30, 2000 from 7.5% for the three  months ended
June 30, 1999.  For the six months ended June 30, 2000, as a percentage of total
revenue  hardware  and  other  revenue  decreased  to  4.9%  from  9.2%  for the
comparable period in 1999,  reflecting the Company's strategy to reduce the sale
and installation of lower margin third-party hardware.

Cost of Revenues

Cost of revenues  increased  42.0 % to $5.8  million for the three  months ended
June 30, 2000 from $4.1 million for the three  months  ended June 30, 1999.  For
the six months ended June 30, 2000, the total cost of revenue increased 37.9% to
$10.8  million  from $7.9 million  during the  comparable  period in 1999.  As a
percentage of total revenues,  cost of revenues decreased to 21.4% for the three
month ended June 30, 2000 from 24.3% for the three  months  ended June 30, 1999.
For the six months ended June 30, 2000, as a percentage of total  revenue,  cost
of revenue  decreased to 22.4% from 26.4% during the comparable  period in 1999.
The effect of  e-nnovations.com  on the cost of revenue is $ 0.5 million for the
three months ended June 30, 2000 and $0.8 million for the six-months  ended June
30, 2000.

Software license cost increased 51.8% to $1.6 million for the three months ended
June 30, 2000 from $1.1 million for the three  months  ended June 30, 1999.  For
the six months ended June 30, 2000, the software license cost increased 57.7% to
$2.8  million  from $1.8  million  during the  comparable  period in 1999.  This
increase is primarily due to the growth in the number of installed customers and
increased  sales  of  licenses  for the  Company's  Aremis  4.0  products.  As a
percentage of total  revenues,  license cost decreased to 6.0% from 6.3% for the
period ended June, 1999. For the six months ended June 30, 2000, as a percentage
of total revenue, license cost decreased to 5.8% from 6.0% during the comparable
period in 1999.

Maintenance  and service  contract cost increased  57.7% to $3.2 million for the
three  months  ended June 30, 2000 from $2.1  million for the three months ended
June 30,  1999.  For the six months  ended June 30, 2000,  the  maintenance  and
service  contract cost increased  50.0% to $6.1 million from $4.0 million during
the  comparable  period in 1999.  This is due to the  increase  in the number of
installed customers and the growth in software license revenues. As a percentage
of total revenues,  maintenance and service contract cost decreased to 12.0% for
three months  ended June 30, 2000 from 12.3% for 1999.  For the six months ended
June 30,  2000,  as a  percentage  of total  revenue,  maintenance  and  service
contract  cost  decreased  to 12.5% from 13.6% during the  comparable  period in
1999.

Hardware  and other cost  decreased  5.0 % to $0.8  million  for the three month
ended June 30, 2000 from $0.9  million for the three month ended June 30,  1999.
For the six months  ended June 30, 2000,  the hardware and other cost  decreased
4.9% to $1.8 million from $1.9 million during the comparable  period in 1999. As
a percentage of total  revenues,  hardware and other cost  decreased to 3.1% for
the three  months  ended June 30, 2000 from 5.3% for the three months ended June
30,  1999.  For the six months ended June 30,  2000,  as a  percentage  of total
revenue,  hardware  and  other  cost  decreased  to 3.8% from  6.4%  during  the
comparable  period in 1999 reflecting the Company's  strategy to reduce the sale
and installation of lower margin third-party hardware.

<PAGE>13

Sales and Marketing

Sales and Marketing  expense consist  primarily of expenses related to sales and
marketing  personnel,  advertising,  promotion,  trade shows  participation  and
public relations.

The Company's sales and marketing  expenses  increased 62.6% to $9.4 million for
the three  months  ended June 30, 2000 from $5.8  million  for the three  months
ended June 30,  1999.  For the six months  ended  June 30,  2000,  the sales and
marketing  cost  increased  64.0% to $17.4 million from $10.6 million during the
comparable period in 1999, primarily due to the expansion of sales and marketing
activities principally in the United States and Europe. As a percentage of total
revenues, sales and marketing expenses increased to 34.8% for three months ended
June 30, 2000,  from 34.5% for the three months ended June 30, 1999. For the six
months  ended  June 30,  2000,  as a  percentage  of total  revenue,  sales  and
marketing  cost  increased to 35.9% from 35.6% during the  comparable  period in
1999,  primarily  due to  increased  efficiencies  in the  company's  sales  and
marketing operations.

Research and Development

The Company's Research and development  expenses increased 88.5% to $2.3 million
for the period ended June 30, 2000 from $ 1.2 million for the three months ended
June 30,  1999.  For the six  months  ended  June 30,  2000,  the  research  and
development  cost  increased  54.4% to $4.1 million from $2.7 million during the
comparable  period in 1999.  As a  percentage  of total  revenues,  research and
development  expenses increased to 8.4% for the three months ended June 30, 2000
from 7.2% for the three  months  ended June 30,  1999.  For the six months ended
June 30, 2000, as a percentage of total revenue,  research and development  cost
decreased to 8.5% from 8.9% during the comparable period in 1999.

General and Administrative

General and  administrative  expenses  increased  94.9% to $2.9  million for the
three  months  ended June 30, 2000 from $1.5  million for the three months ended
June  30,  1999.   For  the  six  months  ended  June  30,  2000,   general  and
administrative expenses increased 97.9% to $5.3 million from $2.7 million during
the comparable  period in 1999. As a percentage of total  revenues,  general and
administrative  expenses  increased to 10.8% for the three months ended June 30,
2000 from 8.9% for the three  months  ended  June 30,  1999.  The  increase  was
primarily due to increase in operational and geographical activities compared to
the  previous  period and a  write-off  of $0.55  million in  offering  expenses
related  to  the  Company's  follow-on  offering  which  has  been  indefinitely
postponed due to market conditions. For the six months ended June 30, 2000, as a
percentage of total revenue,  general and  administrative  expenses increased to
11.0% from 9.0% during the comparable period in 1999.

Amortization of Intangible assets

Amortization of intangible assets increased to $1.2 million for the three months
ended June 30, 2000 from  approximately  $88,000 for the three months ended June
30, 1999. For the six months ended June 30, 2000, the amortization of intangible
assets  increased  to  $2.3  million  from  approximately  $176,000  during  the
comparable  period in 1999. The increase in amortization of intangible assets is
due to the goodwill recorded on the acquisition of  e-nnovations.com in December
1999.


<PAGE>14

Net Interest Expense

Net interest expense reflects  interest on the Company's credit  facilities,  as
reduced by  interest  income on cash  balances.  Net  interest  expense was $0.0
million for the three months ended June 30, 2000 as compared to $0.3 million for
the three months  ended June 30,  1999.  For the six months ended June 30, 2000,
the net interest  expense was $0.0 million as compared to an interest expense of
$0.8 million during the comparable period in 1999.

The Company  received  approximately  $0.3  million net interest  from  deposits
during the six months ended June 30, 2000.

Income Tax Provision

The  provision  for  income  taxes  for the three  months  ended  June 30,  2000
increased  to $1.4  million  compared to $1.2 million for the three months ended
June 30, 1999.  For the six months ended June 30, 2000 the  provision for income
tax was $2.0  million as compared to $1.6 million for the  comparable  period in
1999.  The increase in the provision for income taxes resulted from the increase
in the Company's  profitability  in 2000.  The company's  effective tax rate was
assumed to be 20%.

Recoverability  of the deferred tax asset  derived  mainly from  operating  loss
carry  forwards in the United  Kingdom has been  reviewed at June 30, 2000,  and
although certain  subsidiaries  generated taxable income in the year ending June
30, 2000,  no assurances  can be given that the level of taxable  income will be
sustained  at an  adequate  level  in  the  appropriate  subsidiaries.  It  must
therefore be considered  more likely than not that the deferred tax benefit will
not be recognized at this stage.

LIQUIDITY AND CAPITAL RESOURCES

The  Company  has  funded  its  operations  since  inception  primarily  through
borrowings under bank credit facilities, private placements of equity securities
and equity contributions by its principal stockholder.  As of June 30, 2000, the
Company  had $18.9  million  of cash and cash  equivalents.  The  Company  had a
working capital surplus of $ 27.1 million as of June 30, 2000.

The  Company  believes  that the  existing  cash and cash  equivalents  will be
sufficient  to  meet  the  Company's   working  capital  and  currently  planned
expenditure  requirements  for the next 6 months.  The Company may, from time to
time,   consider   acquisitions  of   complementary   businesses,   products  or
technologies,  which may require additional  financing.  In addition,  continued
growth in the  Company's  business may,  from time to time,  require  additional
capital. No assurances can be given that additional capital will be available to
the  Company  at such  time or times as such  capital  may be  required  or,  if
available,  that it will be on commercially acceptable terms or would not result
in additional dilution to the Company's stockholders.

The  Company  had an  operating  cash flow  surplus of $6.0  million for the six
months  ended  June 30,  2000  compared  to a surplus  of $2.3  million  for the
comparable  period in 1999. This surplus was primarily due to operating  profits
and a decrease in accounts receivable - disposition  proceeds,  partially offset
by an increase in trade accounts receivable,  and a decrease in accounts payable
and deferred  revenue.  Operating  cash flow is affected by  seasonality,  among
other factors.


<PAGE>15

Accounts  receivable  increased  to $23.6  million  for June 30, 2000 from $16.2
million for June 30,  1999.  Accounts  receivable  as at December 31, 1999 was $
18.1 million.  The average days sales  outstanding was approximately 89 days for
the period  June 30,  2000  compared  to 98 days for the period  ending June 30,
1999. The increase in accounts  receivable was due to increases in the sales for
the period.  The decrease in average sales days outstanding  reflects the higher
collection rate of accounts receivable.

Accrued taxes increased from $4.5 million at June 30, 1999 to approximately $9.3
million at June 30, 2000.  The increase was primarily due to increases in income
taxes due to higher profits.

The Company  utilized cash for investing  activities of $0.4 million for the six
months ended June 30, 2000  primarily  resulting  from purchases of property and
equipment, marginally offset by exchange losses in Company's investments. Cash
used for  investing  activities  for the six months ended June 30, 1999 was $1.0
million.

Net Cash provided by financing  activities  was  approximately  $0.6 million and
$3.4  million  for the six  months  ended  June  30,  2000  and  June  30,  1999
respectively.  For the six months ended June 30, 2000 cash provided by financing
activities  resulted  from  proceeds  received from the exercise of warrants and
employee stock options and an increase in capital lease obligations.

EURO CONVERSION

In  January  1999,  the Euro  was  introduced  as the  currency  of a number  of
participating  nations in the European Union. Although the United Kingdom is not
currently a participating nation, the introduction of the Euro raises conversion
issues for business  transacted  with  entities in  participating  nations.  The
Company's  products either include or have been upgraded to include the Euro and
the Company  does not believe  that the Euro  conversion  has had or will have a
material adverse effect on its business. Because the Company's critical internal
systems have been modified to  accommodate a conversion to the Euro, the Company
believes it is adequately  prepared in the event the United Kingdom  converts to
the Euro in the future.


Item 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


Foreign Currency Exchange Rates

A significant portion of the Company's business is conducted in currencies other
than the United States dollar.  As a result,  the Company is subject to exposure
from  movements  in  foreign  currency  exchange  rates.  The  Company  does not
currently engage in hedging transactions designed to manage currency fluctuation
risks.

Interest Rate Sensitivity

The  Company's  exposure  related  to adverse  movements  in  interest  rates is
primarily  derived from the variable  rate on the Company's  credit  facilities.
Interest rates on the Company's  credit  facilities  range from either  Sterling
LIBOR plus 3% to Sterling LIBOR plus 4% or the lending bank's base rate plus the
applicable  margin.  Increases  in Sterling  LIBOR  result in  increases  in the
Company's  interest  expense.  At June 30, 2000 the  company  had no  borrowings
outstanding under its credit facilities.


<PAGE>16



PART II - OTHER INFORMATION

Item 1: LEGAL PROCEEDINGS

None


Item 2: CHANGES IN SECURITIES AND USE OF PROCEEDS.

The  Company  issued  8,764  shares  at $ 8.56  and  96,799  shares  at  $5.0 in
connection  with the exercise of warrants and employee  stock option  during the
six months ended June 30, 2000. Consequently, the Company received $ 0.6 million
from the proceeds of the warrants and employee  stock  options.  The Company has
deposited the proceeds.

Item 3: DEFAULTS UPON SENIOR SECURITIES.

None

Item 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None

Item 5: OTHER INFORMATION

None

Item 6: EXHIBITS AND REPORTS ON FORM 8-K

None


<PAGE>17


                                   SIGNATURES


Pursuant to the  requirements  of the Securities Act of 1934, the registrant has
duly  caused  this  registration  statement  to be signed  on its  behalf by the
undersigned,  thereunder duly  authorized,  in the City of Sacramento,  State of
California on July 2000.




                                    AREMISSOFT CORPORATION,
                                    a Delaware Corporation
Date: August  , 2000

                              /s/    DR. LYCOURGOS K KYPRIANOU
                                     ------------------------------
                                     Dr. Lycourgos K Kyprianou,
                                     Chairman of the Board



                              /s/    MICHAEL TYMVIOS
                                     ------------------------------
                                     Michael Tymvios,
                                     Chief Financial Officer