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

---

**FORM 10-Q**

---

(MARK ONE)

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

**For the quarterly period ended March 31, 2000**

**OR**

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

**For the transition period from ________to _________**

**333-71369**

**SAGENT TECHNOLOGY, INC.**
(Exact name of registrant as specified in its charter)



|**Delaware**                                                   | **94-3225290**                      
|-------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number)

**800 W. El Camino Real, Suite 300Mountain View, CA     94040**(Address of principal executive offices including zip code)

**(650) 815-3100**(Registrant's 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 reports), and (2) has been subject to such filing
requirements for the past 90 days. YES [X] NO [  ],

The number of shares of the Registrant's Common Stock, $.001 par value per share,
outstanding at March 31, 2000 was 28,217,825.







**SAGENT TECHNOLOGY, INC.
      QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD ENDED MARCH 31, 2000
                                INDEX**



|**PART I.   CONSOLIDATED CONDENSED FINANCIAL INFORMATION**                                                            | **Page No.**
|--------------------------------------------------------------------------------------------------------------------- | ------------
|                                                                                                                      |             
|Item 1.   Unaudited Consolidated Condensed Financial Statements:                                                      |             
|                                                                                                                      |             
|Consolidated Condensed Statements of Operations
          
               Three months ended March 31, 2000 and 1999  | **          
|                                                                                                                      |             
|Consolidated Condensed Balance Sheets
          
        March 31, 2000 and December 31, 1999                         | **          
|                                                                                                                      |             
|Consolidated Condensed Statements of Cash Flows
          
               Three months ended March 31, 2000 and 1999  | **          
|                                                                                                                      |             
|Notes to Unaudited Consolidated Condensed Financial Statements                                                        | **          
|                                                                                                                      |             
|Item 2.   Management's Discussion and Analysis of Financial
                      Condition and Results of Operations | **          
|                                                                                                                      |             
|Item 3.   Quantitative and Qualitative Disclosures About Market Risk                                                  | **          
|                                                                                                                      |             
|**PART II.  OTHER INFORMATION**                                                                                       |             
|                                                                                                                      |             
|Item 1.   Legal Proceedings                                                                                           | **          
|                                                                                                                      |             
|Item 2.   Changes in Securities and Use of Proceeds                                                                   | **          
|                                                                                                                      |             
|Item 3.   Defaults Upon Senior Securities                                                                             | **          
|                                                                                                                      |             
|Item 4.   Submission of Matters to a Vote of Security Holders                                                         | **          
|                                                                                                                      |             
|Item 5.   Other Information                                                                                           | **          
|                                                                                                                      |             
|Item 6.   Exhibits and Reports on Form 8-K                                                                            | **          
|                                                                                                                      |             
|**Signatures**                                                                                                        | **          
|**Exhibits**                                                                                                          | **          

---

**PART I -- FINANCIAL INFORMATION**

Item 1. Financial Statements

---

**SAGENT TECHNOLOGY, INC.**
                     CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                    (In thousands, except per share data)
                                 (Unaudited)

`Three Months Ended
                                                       March 31,
                                                ---------------------
                                                   2000       1999
                                                ---------- ----------
Revenues:
  Licenses.....................................    $9,060     $6,623
  Services.....................................     5,477      2,375
                                                ---------- ----------
     Total revenues, net.......................    14,537      8,998
                                                ---------- ----------
Cost of revenues:
  Licenses.....................................       434        576
  Services.....................................     2,272      1,652
                                                ---------- ----------
     Total cost of revenues....................     2,706      2,228
                                                ---------- ----------
Gross profit...................................    11,831      6,770
                                                ---------- ----------
Operating expenses:
  Sales and marketing..........................     8,793      5,636
  Research and development.....................     4,038      3,102
  General and administrative...................     1,483      1,169
                                                ---------- ----------
     Total operating expenses..................    14,314      9,907
                                                ---------- ----------
Loss from operations...........................    (2,483)    (3,137)
Interest income (expense), net ................       474       (161)
                                                ---------- ----------
Loss before income taxes.......................    (2,009)    (3,298)
Income tax expense (benefit)...................        10         72
                                                ---------- ----------
Net loss.......................................   ($2,019)   ($3,370)
                                                ========== ==========

Basic net loss per share.......................    ($0.07)    ($0.53)
                                                ========== ==========

Diluted net loss per share.....................    ($0.07)    ($0.55)
                                                ========== ==========

Number of shares used in calculation of
  Basic net loss per share.....................    28,040      6,389
  Diluted net loss per share...................    27,823      6,092`

See accompanying notes to
                  consolidated condensed financial statements.

---

**SAGENT TECHNOLOGY, INC.**
                          CONSOLIDATED CONDENSED BALANCE SHEETS
                    (In thousands, except per share data)
                                 (Unaudited)

`March 31,    December 31,
                                                       --------------------------
                                                           2000           1999
                                                       ------------  ------------
                               Assets
Current assets:
  Cash and cash equivalents.........................       $10,349       $15,910
  Marketable securities.............................        20,160        22,309
  Accounts receivable, net .........................        13,020        11,027
  Other current assets..............................         6,596         4,576
                                                       ------------  ------------
     Total current assets...........................        50,125        53,822
Property and equipment, net.........................         2,726         3,676
Goodwill and other non-current assets...............        10,347         9,206
                                                       ------------  ------------
     Total assets...................................       $63,198       $66,704
                                                       ============  ============

                 Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable..................................        $1,437        $1,151
  Accrued liabilities...............................         6,803        10,034
  Deferred revenue..................................         8,229         5,910
  Accrued merger costs..............................         3,586         4,109
  Current portion of capital lease
     obligations....................................           514           635
                                                       ------------  ------------
     Total current liabilities......................        20,569        21,839
Deferred revenue....................................           128         1,140
Long-term portion of capital lease
   obligations......................................           304           351
                                                       ------------  ------------
     Total liabilities..............................        21,001        23,330
                                                       ------------  ------------

Stockholders' equity:
  Common stock, par value $.001 per share;
     Authorized: 70,000 shares;
     Issued and outstanding: 28,218
     shares and 27,896 shares at March 31, 2000
     and December 31, 1999, respectively............            28            28
  Additional paid-in capital........................        89,942        89,135
  Notes receivable from stockholders................        (2,647)       (2,625)
  Accumulated translation adjustment................           131            73
  Accumulated deficit...............................       (45,257)      (43,237)
                                                       ------------  ------------
     Total stockholders' equity.....................        42,197        43,374
                                                       ------------  ------------
     Total liabilities and stockholders'
       equity.......................................       $63,198       $66,704
                                                       ============  ============`

See accompanying notes to
                  consolidated condensed financial statements.

---

**SAGENT TECHNOLOGY, INC.**
                     CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                (In thousands)
                                      (Unaudited)

`Three Months Ended
                                                           March 31,
                                                   ------------------------
                                                       2000         1999
                                                   -----------  -----------
Cash flows from operations:
 Net loss.......................................      ($2,019)     ($3,370)
  Adjustments to reconcile net loss to net
  cash used in operating activities:
   Depreciation and amortization................        1,432        1,088
   Stock option compensation....................           --          514
   Change in operating assets and
     liabilities:
        Accounts receivable.....................       (1,993)      (1,380)
        Other assets current....................       (2,019)      (2,224)
        Other assets............................           71        1,582
        Accounts payable........................          286         (149)
        Accrued liabilities.....................       (3,232)         801
        Deferred revenue........................        1,307        2,290
        Accrued merger costs....................         (523)          --
                                                   -----------  -----------
 Net cash used in operating activities..........       (6,690)        (848)
                                                   -----------  -----------
Cash flows from investing activities:
 Sale of marketable securities..................        2,149           --
 Purchase of property and equipment.............       (1,250)        (859)
 Investment in subsidiaries.....................       (1,177)          --
 Investment in joint venture....................         (500)          --
 Disposals of property and equipment............        1,210           --
                                                   -----------  -----------
 Net cash provided by (used in) investing
   activities...................................          432         (859)
                                                   -----------  -----------
Cash flows from financing activities:
 Proceeds from capital lease financing..........           --        1,483
 Payments of principal under capital lease
   obligations..................................         (168)         (35)
 Proceeds from exercise of stock options........          807          365
                                                   -----------  -----------
 Net cash provided by financing activities......          639        1,813
                                                   -----------  -----------
Effect of exchange rate changes.................           58          (13)
                                                   -----------  -----------
Net increase (decrease) in cash and
   cash equivalents.............................       (5,561)          93
Cash and cash equivalents, beginning
  of the period..................................      15,910        3,383
                                                   -----------  -----------
Cash and cash equivalents, end of the period.....     $10,349       $3,476
                                                   ===========  ===========`

See accompanying notes to
                  consolidated condensed financial statements.

---

**SAGENT TECHNOLOGY, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



Business.  Sagent Technology, Inc., (Sagent), develops, markets and supports software designed to address
organizations' information access, analysis and delivery needs.   Sagent, formerly Savant Software, Inc., was incorporated under the
laws of the State of California in April 1995 and reincorporated in Delaware in 1998.



Basis of Presentation.The unaudited consolidated condensed financial statements have been
prepared pursuant to the rules and regulations of the Securities and Exchange Commission.  Certain information and footnote
disclosures, normally included in financial statements prepared in accordance with generally accepted accounting principles, have
been condensed or omitted pursuant to such rules and regulations.  Certain prior year amounts have been reclassified to conform to
the current year presentation.  In the opinion of Sagent, the financial statements reflect all adjustments, consisting only of normal
recurring adjustments necessary for a fair presentation of the financial position at March 31, 2000 and December 31, 1999, the
operating results for the three months ended March 31, 2000 and 1999 and cash flows for the three months ended March 31, 2000 and
1999.  These financial statements and notes should be read in conjunction with Sagent's audited financial statements  and notes
thereto for the year ended December 31, 1999, included in the Company's Form 10-K filed with the Securities and Exchange Commission
on March 16, 2000. The results of operations for the three months ended  March 31, 2000 are not necessarily indicative of the results
that may be expected for the year ending December 31, 2000.



Principles of consolidation.The unaudited consolidated condensed financial statements include the
accounts of Sagent Technology, Inc. and its wholly-owned subsidiaries, Qualitative Marketing Software, Inc. (QMS), Sagent U.K., Ltd.,
Sagent Technology GmbH, Sagent France, S.A., Sagent Technology Japan KK, Sagent Technology Canada Inc., and Sagent do Brazil. All
intercompany accounts and transactions have been eliminated.



Use of estimates.  The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent 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.



Cash and cash equivalents.  Sagent considers all highly liquid investments with an original maturity of three
months or less at the time of purchase to be cash equivalents. Sagent's cash and cash equivalents at March 31, 2000 and 1999
consisted of deposits in domestic banks and money market funds.



Supplemental cash flow Information.  Selected cash payments and non-cash activities were as follows:



`Three Months Ended
                                                           March 31,
                                                   ------------------------
                                                       2000         1999
                                                   -----------  -----------
Supplemental disclosure of cash flow information:
   Cash payments for interest...................          $31         $111
   Cash payments for taxes......................          $10       $1,133`

Marketable securities.  Management determines the appropriate classifications of investments in debt and
equity securities at the time of purchase. At March 31, 2000, Sagent's investments consist of commercial paper corporate debt
securities, are classified as available-for-sale, and are carried at fair value. The fair value of Sagent's available-for-sale
securities is based on quoted market prices at the balance sheet dates. Realized gains and losses and declines in value judged to be
other-than-temporary on available-for-sale securities are included in interest and other income (expense),  in the accompanying
consolidated statements of operations. The cost of securities sold is based on the specific identification method. Interest on
securities classified as available-for-sale is included in interest and other income (expense), in the accompanying consolidated
statements of operations.



Business risk and concentration of credit risk.  Financial instruments which potentially
subject Sagent to concentrations of credit risk consist primarily of marketable securities and trade accounts receivable. Sagent
places its cash investments with four major financial institutions and has investment policies that limit investments to investment
grade securities. Sagent maintains allowances for potential credit losses and such losses to date have been within management's
expectations. There were no customers with balances due to Sagent in excess of 10% of aggregate accounts receivable at March 31, 2000
or 1999.



Current assets and liabilities.  All current assets and current liabilities are stated at cost due to their
short maturities. The carrying value of capital lease obligations approximates fair value.



Property and equipment.  Property and equipment are stated at cost and depreciated on a straight-line basis
over the estimated useful lives of the related assets, generally one to five years. Leased assets are amortized on a straight-line
basis over the lesser of the estimated useful life or the lease term. Gains and losses upon asset disposal are taken into income in
the year of disposition.



Goodwill and other intangible assets.  The costs of businesses acquired in excess of the fair value of net
assets acquired (goodwill), are amortized over their estimated useful lives of three to ten years. If events or changes in
circumstances indicate that the goodwill will not be recoverable, as determined based on the undiscounted cash flows of the acquired
business over the remaining amortization period, the carrying value is reduced to net realizable value. There were no such reductions
in carrying value during the three months ended March 31, 2000 or 1999.



Revenue recognition.  Sagent's revenues are derived from two sources, licenses and services. License
revenues include product sales, Internet sales, royalties and data updates. Service revenues
include consulting, training, and maintenance.



License revenues from product sales directly to end user customers are recognized upon shipment of the product, after
execution of a signed license agreement or a definitive purchase order, provided no significant vendor obligation exists , the fee is
fixed and determinable, and collection is deemed probable. If an acceptance period is provided, revenue is recognized upon the
earlier of customer acceptance or the expiration of that period.   Generally, Sagent recognizes license revenues from enterprise
application vendors based on sell-through of Sagent's products.  If, however, the contract stipulates an advance, non-refundable
royalty payment, revenue is recognized upon execution of the contract.

Internet sales are recognized upon the customer's download of data from Sagent's Internet site, provided payment has been
received in advance. If payment is not received in advance, revenue from Internet sales is recognized upon download of data, but only
if a signed contract exists, the fee is fixed and determinable, and collection is deemed probable.

Revenues from data updates are recognized on a straight-line basis over the term of the related agreements.

Service revenues from consulting and training are recognized as the services are provided. Service revenues from
maintenance agreements are recognized on a straight-line basis over the term of the related agreement, which are typically one
to three years.   Service revenues are charged separately from licenses.

Statement of Position, 97-2, "Software Revenue Recognition" (SOP 97-2) was issued in 1997 by the American
Institute of Certified Public Accountants (AICPA) and amended by Statements of Position 98-4 and 98-9.  Sagent adopted SOP 97-2
effective January 1, 1998.  Based on our reading and interpretation of SOPs 97-2, 98-4 and 98-9 we believe our current revenue
recognition policies and practices are materially consistent with SOPs 97-2, 98-4, and 98-9.

Deferred revenue.  Deferred revenue represents amounts received from customers under certain license, maintenance and
service agreements for which the revenue earnings process has not been completed. In situations where the services are not expected
to be provided and revenue recognized within twelve months of the balance sheet date, such amounts are classified as noncurrent
deferred revenue.



Stock-based compensation.  Sagent accounts for stock-based compensation in accordance with SFAS No. 123,
"Accounting for Stock-based Compensation," prescribing companies may account for such costs in accordance with APB No. 25,
"Accounting for Stock Issued to Employees." Under APB No. 25, compensation expense is based on the difference, if any, on the
date of the grant, between the fair value of common stock and the exercise price. Additionally, pursuant to SFAS No. 123, stock
issued to non-employees is accounted for at the fair value of the equity instruments issued, or at the fair value of the
consideration received, whichever is more reliably measurable.



Research and development expense.  Costs related to research, design and development of products are charged
to research and development expense as incurred. Software development costs are capitalized beginning when a product's technological
feasibility has been established and ending when a product is available for general release to customers.



Income taxes.  Sagent accounts for income taxes in accordance with SFAS No. 109, "Accounting for Income
Taxes." Deferred tax assets are established where it is more likely than not such assets will be realized. A valuation allowance
has been recorded for the total deferred tax assets as a result of uncertainties regarding the realization of the assets based on
limited operating history, lack of profitability to date, and uncertainty of future profitability.



Net loss per share.  Sagent computes net loss per share in accordance with SFAS No. 128, "Earnings per Share.
Under the provisions of SFAS No. 128, basic net loss per share is computed by dividing the net loss available to common stockholders
for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed
by dividing the net loss for the period by the weighted average number of common and common equivalent shares outstanding during the
period. Options, warrants and convertible preferred stock were not included in the computation of diluted net loss per share because
the effect would be antidilutive.



Comprehensive income.  Sagent adopted SFAS No. 130, "Reporting Comprehensive Income" SFAS No. 130 in 1997.
Differences between total comprehensive net loss and net loss related to cumulative translation adjustments and are reported as a
separate component of stockholders' equity.



Recent accounting pronouncements.



In March 2000, the Emerging Issues Task Force reached a consensus on Issue
00-2, "Accounting for the Costs of Developing a Web Site" (EITF 00-2). In
general, EITF 00-2 states that the costs of developing a web site should be
accounted for under the provisions of Statement of Position (SOP) 98-1,
"Accounting for the Costs of Computer Software Developed or Obtained for
Internal Use." We are currently evaluating EITF 00-2 and do not believe that the
pronouncement will have a significant impact on our financial position, results
of operations or cash flows. EITF 00-2 is effective for costs incurred after
June 30, 2000.

In March 2000, the Emerging Issues Task Force reached a consensus on
Issue 00-3, "Application of AICPA Statement of Position 97-2, `Software Revenue
Recognition,' to Arrangements That Include the Right to Use Software Stored on
Another Entity's Hardware" (EITF 00-3).  In general, EITF 00-3 states
that if the customer does not have the option to physically take possession of
the software, the transaction is not within the scope of SOP 97-2 and revenue
should be recognized ratably over the hosting period as a service arrangement.
However, if the customer has the option to take physical delivery of the
software and specific pricing information is available for both the software and
hosting components of the arrangement, then the software revenue may be
recognized when the customer first has access to the software and revenue from
the hosting component should be recognized ratably over the hosting period. We
are currently evaluating EITF 00-3 and do not expect that the pronouncement will
have a significant impact on our financial position, results of operations or
cash flows. We will be required to implement EITF 00-3 for the year ending
December 31, 2000.



In March 2000 the Financial Accounting Standards Board
("FASB") issued FASB Interpretation No. 44 ("FIN 44") Accounting for Certain Transactions involving Stock
Compensation an interpretation of APB Opinion No. 25. FIN 44 clarifies the application of Opinion 25 for (a) the definition of
employee for purposes of applying Opinion 25, (b) the criteria for determining whether a plan qualifies as a noncompensatory plan,
(c) the accounting consequence of various modifications to the terms of a previously fixed stock option or award, and (d) the
accounting for an exchange of stock compensation awards in a business combination.

FIN 44 is effective July 1, 2000, but certain conclusions cover specific events that occur after either December 15, 1998,
or January 12, 2000.  Management believes that that the impact of FIN 44 will not have a material effect on the financial position or
results of operations of the Company.

In November 1999, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin (SAB) No. 100,
"Restructuring and Impairment Charges." In December 1999, the SEC issued SAB No. 101, "Revenue Recognition in Financial Statements."
SAB No. 100 expresses the views of the SEC staff regarding the accounting for and disclosure of certain expenses not commonly
reported in connections with exit activities and business combinations. This includes the accrual of exit and employee termination
costs and the recognition of impairment charges. SAB No. 101 expresses the views of the SEC staff in applying generally accepted
accounting principles to certain revenue recognition issues. The Company does not anticipate that these SABs will have a material
impact on its financial position, results of operations,or cash flows.

In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities."  The Statement establishes accounting and reporting standards requiring every derivative instrument (including
certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either and asset or liability
measured at its fair value.  SFAS No. 133 is effective for fiscal years beginning after June 15, 2000.  Management believes the
adoption of SFAS No. 133 will not have a material effect on Sagent's financial statements.





NOTE 2.  MERGER RESERVE



On December 11, 1999, Sagent completed its merger with Qualitative Marketing Software, Inc. (QMS). The
merger was accounted for as a pooling-of-interests. Sagent issued 2.1 million shares of common stock in exchange for all outstanding
stock of QMS. Sagent also assumed all options to purchase QMS stock which were converted into options to purchase 428 shares of
Sagent stock.

Costs incurred in connection with the merger were charged to the results of operations for the year ended
December 31, 1999.  Activity in the merger reserve during the three months ended March 31, 2000 was as follows:

`December 31,           March 31,
                                          1999       Costs      2000
                                        Balance      Paid     Balance
                                      ------------ --------- ----------
Severance and other personnel costs..        $878      $160       $718
Transaction costs....................       2,663       201      2,462
Elimination of duplicate systems
  and equipment......................         118        48         70
Other................................         450       114        336
                                      ------------ --------- ----------
                                           $4,109      $523     $3,586
                                      ============ ========= ==========`

Severance and other personnel costs consists of severance pay and outplacement for nine employees.
Transaction costs consists of professional service fees.



NOTE 3.   SEGMENT REPORTING



In 1998, Sagent adopted SFAS No. 131, "Disclosures About Segments of an Enterprise and Related
Information."  Sagent is organized and operates as one operating segment:  the design, development, marketing, and support of
software designed to address organizations' information access, analysis and delivery needs.  Sagent sells its products domestically
and internationally.  Revenues by geographic area are:

`Three Months Ended
                                           March 31,
                                    --------- ---------
                                       2000      1999
                                    --------- ---------
United States and Canada............      94%       91%
Rest of World.......................       6%        9%`

No one country in the rest of the world comprised more than 10% of total revenues during the three month periods ended March
31, 2000 and 1999.  None of Sagent's international operations have material long-lived assets.

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

All statements, trend analysis and other information contained in the following discussion relative to markets for Sagent's
products and trends in revenues, gross margins and anticipated expense levels, as well as other
statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend" and other similar expressions
constitute forward-looking statements. These forward-looking statements are subject to business and
economic risks and uncertainties, including those set forth in "Factors Affecting Results of  Operations" on page 17 and
Sagent's actual results of operations may differ materially from those contained in the forward-looking statements.



OVERVIEW



Sagent develops, markets, and supports products and services that help businesses collect, analyze, understand, and
act on customer and operational information in real-time. Sagent's products and services provide a way for an organization's
employees, customers, and partners to use the World Wide Web to examine the internal data they already have and to supplement that
data with external, value-added information such as demographic, geographic, or other content. We refer to our products as "Real-time
eBusiness Intelligence" solutions because they enable organizations to use our software and services to rapidly make more informed,
intelligent decisions and to spread that ability across the enterprise. Sagent was incorporated in April 1995, and began selling the
first products during the fourth quarter of 1996.

Sagent sells its software products directly to end user customers through our direct sales force and
through indirect
channel partners such as enterprise application vendors, resellers and distributors. Enterprise application vendors
generally integrate our products with their applications and will embed them into their products or resell them with their
products. Our other indirect channel partners, principally resellers and distributors, sell our software products to end user
customers. Sagent's revenues are derived primarily from license fees for software products and to a lesser extent, fees for services
relating to the software products, including consulting, training, software and data updates, technical support and real time
marketing services on the web.

Sagent's revenues are derived from two sources, licenses and services. License revenues include product sales,
Internet sales, royalties and data updates. Service revenues include consulting, training,  and maintenance.



License revenues from product sales directly to end user customers are recognized upon shipment of the product, after
execution of a signed license agreement or a definitive purchase order, provided no significant vendor obligation exists , the fee is
fixed and determinable, and collection is deemed probable. If an acceptance period is provided, revenue is recognized upon the
earlier of customer acceptance or the expiration of that period.   Generally, Sagent recognizes license revenues from enterprise
application vendors based on sell-through of Sagent's products.  If, however, the contract stipulates an advance, non-refundable
royalty payment, revenue is recognized upon execution of the contract.

Internet sales are recognized upon the customer's download of data from Sagent's Internet site, provided payment has been
received in advance. If payment is not received in advance, revenue from Internet sales is recognized upon download of data, but only
if a signed contract exists, the fee is fixed and determinable, and collection is deemed probable.
Revenues from data updates are recognized on a straight-line basis over the term of the related agreements.

Service revenues from consulting and training are recognized as the services are provided. Service revenues from
maintenance and data updates are recognized on a straight-line basis over the term of the related agreement, which are typically one
to three years.   Service revenues are charged separately from licenses.

Statement of Position, 97-2, "Software Revenue Recognition" (SOP 97-2) was issued in 1997 by the American
Institute of Certified Public Accountants (AICPA) and amended by Statements of Position 98-4 and 98-9. Sagent adopted SOP 97-2
effective January 1, 1998. Based on our reading and interpretation of SOPs 97-2, 98-4 and 98-9, we believe our current revenue
recognition policies and practices are materially consistent with SOPs 97-2, 98-4, and 98-9.

Sagent sells its products outside of the United States through its subsidiaries located in the United
Kingdom, France,
Germany, Japan, Brazil and through our distributors in Benelux, Spain, South Africa, and the Pacific Rim. Revenues from licenses
and services to customers outside the United States represented approximately $0.8 million, for the each of three months ended March
31, 2000 and 1999.

Historically, as a result of the comparatively lower international sales activities and the absence of
significant
exchange rate fluctuation, Sagent's business, financial condition and operating results have not been materially affected by
exchange rates.

Sagent has agreements with its distributors in Spain, Benelux, South Africa, and the Pacific Rim under which the Sagent
has an option to acquire such distributors. Any such acquisition may have the effect of diluting existing stockholders, reducing
Sagent's available cash for working capital and other purposes, requiring substantial management attention, or increasing operating,
amortization and integration expenses.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999



The following table sets forth for the periods indicated certain financial data, derived from Sagent's unaudited consolidated
statements of operations, as a percentage of total revenues for the periods indicated:

`Three Months Ended
                                                       March 31,
                                                ---------------------
                                                   2000       1999
                                                ---------- ----------
Revenues:
  Licenses......................................       62%        74%
  Services......................................       38%        26%
                                                ---------- ----------
     Total revenues, net........................      100%       100%

Cost of revenues:
  Licenses......................................        3%         6%
  Services......................................       16%        19%
                                                ---------- ----------
     Total cost of revenues.....................       19%        25%

Gross profit....................................       81%        75%

Operating expenses:
  Sales and marketing...........................       60%        63%
  Research and development......................       28%        34%
  General and administrative....................       10%        13%
                                                ---------- ----------
     Total operating expenses...................       98%       110%
                                                ---------- ----------
Loss from operations............................      -17%       -35%
Interest income (expense), net .................        3%        -2%
                                                ---------- ----------
Loss before income taxes........................      -14%       -37%
Income tax expense (benefit)....................        0%         0%
                                                ---------- ----------
Net loss........................................      -14%       -37%
                                                ========== ==========`

REVENUES

Sagent's total revenues increased 62% to $14.5 million for the three months ended March 31, 2000 from
$9.0 million for the three months ended March 31, 1999.  Sagent had no customer that accounted for more than 10% of its revenues
during the three-month periods ended March 31, 2000 or 1999.

License revenues increased 37% to $9.0 million for the three months ended March 31, 2000 from $6.6
million for the three months ended March 31, 1999.  This increase was primarily due to increased acceptance of the Sagent Solution,
expansion in the domestic sales organization and expansion in the reseller channels resulting in increases in the number of licenses
sold and average transaction size.  Sagent anticipates that license revenues, which have represented a significant portion of
Sagent's total revenues, will continue to represent the substantial majority of its revenues for the foreseeable future.

Service revenues increased 131% to $5.5 million for the three months ended March 31, 2000 from $2.4
million for the three months ended March 31, 1999.  This increase was due to increases in all components of service revenues -
consulting, training and maintenance related to the increase in the number of licenses sold and the increased average transaction
size.

COST OF REVENUES

Cost of revenues from license sales consists primarily of royalties, product packaging, shipping, media,
documentation and fees to data providers for data updates. Cost of revenues from license sales was $0.4 and $0.6 million for the three months ended March 31, 2000 and 1999,
respectively, representing 5% and 9% of license revenue in the respective periods.
Sagent expects these costs will continue to grow in absolute
dollars in the foreseeable future.

Cost of services consists primarily of costs associated with personnel and third parties performing
these services. Cost of service revenues was $2.3 million and $1.7 million for the three
months ended March 21, 2000 and 1999, respectively, representing 41% and 70% of services revenue in the respective periods.
The improvement in service costs as a percentage of service revenues was primarily due to improved utilization of consulting
personnel and a reduced reliance on outside consultants to provide consulting and training services.  Sagent expects these costs will
continue to grow in absolute dollars for the foreseeable future.

OPERATING EXPENSES

Sales and marketing expenses consist primarily of compensation, travel, marketing programs, and
facilities. Sales and marketing expenses were $8.8 and $5.6 million for the three months ended March 31, 2000 and 1999, respectively,
representing 60% and 63% of total revenue in the respective periods. The absolute dollar increase reflects the hiring of additional
personnel in connection with building the direct and reseller channels, and increased sales commissions associated with increasing
revenues.  The percentage decrease resulted from increasing revenues.  Sagent believes that as it continues to expand its direct
sales and presales support organization, its third-party partnering relationships and its indirect channel sales organization on a
worldwide basis, sales and marketing expenses will continue to increase in absolute dollars, although such expenses may vary as a
percentage of total revenues.

Research and development expenses consist primarily of personnel and related costs associated with the
development of new products, the enhancement and localization of existing products, quality assurance, testing and facilities.
Research and development expenses were $4.0 and $3.1 million, respectively, representing 28% and 35% of total revenues in the
respective periods. The dollar increase was due to a significant investment in the form of additional personnel to develop
localization enhancements of existing products for foreign countries and the development of other software products. The percentage
decrease resulted from increasing revenues. Sagent believes that significant investment for research and development is essential to
the Company's future success and will continue to commit substantial resources to research and development in the future. Sagent
anticipates that research and development expenditures will continue to increase in absolute dollars, although such expenses may vary
as a percentage of total revenues.

General and administrative expenses consist primarily of personnel costs for Sagent's finance, human
resources,
information systems and general management as well as legal and bad debt reserves. General and administrative expenses were $1.5
and $1.2 million, respectively, representing 10% and 13% of total revenues in the respective periods. The absolute dollar increase
was primarily due to increased personnel costs associated with increased operating levels.  The percentage decrease was attributable
to reduced costs combined with increased revenues. Sagent expects general and administrative expenses to rise in absolute dollars as
it expands staffing to support operations, but to decrease as a percentage of total revenue.

LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2000, Sagent had cash, cash equivalents and marketable securities totaling $30.5 million, a
decrease of $7.7 million from December 31, 1999. Since inception, Sagent has funded its operations primarily through private sales of
equity securities, the use of equipment leases and a bank line of credit and the subsequent initial public offering of its common stock, not
from cash generated by the business.

Net cash used in operating activities was $6.7 and $0.8 million for the three months ended March 31, 2000
and 1999, respectively.  For such periods, net cash used in operating activities was primarily a result of funding ongoing
operations, including increases in accounts receivable and other assets and decreases in various liabilities.

Sagent's investing activities have primarily consisted of investments in and maturities of marketable
securities,
purchases and sales of property and equipment and acquisitions. Net cash provided by investing activities was $0.4 million for the
three months ended March 31, 2000.  Net cash used in investing activities was $0.8 million during the three months ended March 31,
1999.  Investing activities included $1.2 related to the formation of Sagent do Brazil and $0.5 million related to a joint venture
which provides distributor services in the Pacific Rim.  Sagent will pay approximately $0.6 million in 2000 associated with the 1999
acquisition of its distributors in France and Germany and $1.0 million associated with the investment in the joint venture in the Pacific Rim.  Sagent
expects that such acquisitions will continue if business conditions warrant in countries where Sagent has a presence.

Sagent's financing activities have primarily included sales of stock and the use of equipment lease
lines.  Proceeds from the exercise of stock options and warrants totaled $0.8 and $0.4 million for the three months ended March 31,
2000 and 1999, respectively.  During the three months ended March 31, 1999 capital leases financed the acquisition of property and
equipment, primarily computer hardware and software, and leasehold improvements and furniture. Proceeds from such leases totaled $1.5
million, for the three months ended March 31, 1999.

Sagent believes that the net proceeds from the initial public offering, together with existing sources of liquidity,
will be
sufficient to meet its working capital and anticipated capital expenditure requirements for at least the next 12
months. Thereafter, Sagent may require additional funds to support its working capital requirements or for other purposes, and may
seek, even before such time, to raise additional funds through public or private equity financing or from other sources. There can be
no assurance that additional financing will be available at all, or that if available, such financing will be obtainable on terms
acceptable to Sagent or that are not dilutive to its stockholders.

**Item 3.  Quantitative and Qualitative Disclosures about Market Risk**

The information required by this Item 3 is incorporated by reference to the information set
forth in the Form 10-K filed on March 16, 2000.



PART II.  OTHER INFORMATION



**ITEM 1.   Legal Proceedings**

On March 22, 1999 Timeline, Inc. filed a complaint against Sagent in Federal District Court alleging that
Sagent's DMS product suite infringes one or more of the claims of a Timeline patent. Sagent filed its original answer to the
complaint on April 19, 1999 denying the material allegations of Timeline's complaint asserting, among other things, that the
Timeline patent was invalid and unenforceable.  Timeline filed an amended complaint on February 18, 2000 wherein it contends that
Sagent's DMS Product Suite infringes one or more claims of three of Timeline's patents.  Sagent filed its answer to the new complaint
on March 6, 2000, denying the material allegations in Timeline's complaint and asserting that all three of the patents asserted by
Timeline are invalid and unenforceable.  As a result , the trial date in this matter has been reset for January 29, 2001.  Sagent is
presently vigorously defending the suit and at this point we cannot reasonably determine the outcome of the dispute.

On December 23, 1999, QMS and Sagent were served with a demand for arbitration prepared by the Corum
Group Ltd. ("Corum"). In its demand, Corum claims that QMS breached an agreement to convey to
Corum a certain percentage of the  consideration received by QMS as a result of its acquisition
by Sagent. QMS had terminated the contract in question, which had  involved the provision of
strategic counseling services by Corum to QMS, in 1998.  On April 27, 2000 the parties agreed
to settle the  claim in exchange for 125,000 shares of Sagent common stock.

From time to time, Sagent may be involved in litigation relating to claims arising out of its ordinary
course of business. Sagent provides for costs relating to these matters when a loss is probable
and the amount is reasonably estimable. Appropriate reserves have been established for such
claims. Sagent believes that, including the matters described  above, there are no claims or
actions pending or threatened against Sagent, the ultimate disposition of which would have a
material  impact on Sagent's financial position or results of operations.

**ITEM 2.   Changes in Securities and Use of Proceeds**

None.



**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**



(a) Exhibits





|**Exhibit Number** | **Exhibit Description**
|------------------ | -----------------------
|27.1               | Financial Data Schedule



(b) Reports on Form 8-K

None

---

**SAGENT TECHNOLOGY, INC.
                               SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.



| |                        
| | -----------------------
| | SAGENT TECHNOLOGY, INC.

| |             
| | ------------
| | (Registrant)



| |     |                    
| | --- | -------------------
| | By: | /s/ KEITH F. JENSEN

| |                                             
| | --------------------------------------------
| |                                             
| | Keith F. Jensen                             
| | Vice President, Finance                     
| | (Principal Financial and Accounting Officer)

---