<PAGE>   1
                                 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

                  Commission file number: __________

                                LANDACORP, INC.
             (Exact name of registrant as specified in its charter)

            DELAWARE                                            94-3346710
  (State or other jurisdiction                               (I.R.S. Employer
of incorporation of organization)                         Identification Number)

            4151 ASHFORD DUNWOODY RD., SUITE 505, ATLANTA, GA 30319
              (Address of principal executive offices) (ZIP Code)

       Registrant's telephone number, including area code: (404) 531-9956

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 [ ]

Number of shares of Common stock, par value of $0.001, outstanding as of June
30, 2000: 13,698,432
<PAGE>   2
                                LANDACORP, INC.

                              INDEX FOR FORM 10-Q

                                 JUNE 30, 2000
<TABLE>
<CAPTION>
                                                                         PAGE
                                                                        NUMBER
                                                                        ------
<S>       <C>                                                           <C>
PART I    FINANCIAL INFORMATION

Item 1.   Financial Statements and Notes

          Balance Sheets as of December 31, 1999 and June 30, 2000          1

          Statements of Operations for the six months and for
          the three months ended June 30, 1999 and June 30, 2000            2

          Statements of Cash Flows for the six months ended
          June 30, 1999 and June 30, 2000                                   3

          Notes to Financial Statements                                     4

Item 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations                               7

Item 3.   Quantitative and Qualitative Disclosures about Market Risk       14

PART II   OTHER INFORMATION                                                14

Item 1.   Legal Proceedings

Item 2.   Changes in Securities

Item 3.   Defaults in 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
</TABLE>



<PAGE>   3

LANDACORP, INC.

BALANCE SHEET
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                         December 31,         June 30,
                                                                                             1999               2000
                                                                                         ------------      -------------
                                                                                                             (unaudited)
<S>                                                                                      <C>               <C>
                            ASSETS
Current assets:
  Cash and cash equivalents                                                              $  1,884,000       $ 32,776,000
  Accounts receivable and costs and estimated
   earnings in excess of billings on uncompleted
   contracts, net                                                                           2,090,000          2,935,000
  Other current assets                                                                        164,000            369,000
                                                                                         ------------       ------------
    Total current assets                                                                    4,138,000         36,080,000

Property and equipment, net                                                                 1,057,000          1,477,000
Intangible assets, net                                                                             --          1,026,000
Capitalized software, net                                                                      61,000             47,000
Deferred offering costs                                                                       595,000                 --
Other assets                                                                                    8,000             13,000
                                                                                         ------------       ------------
                                                                                         $  5,859,000       $ 38,643,000
                                                                                         ============       ============
               LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                                                                       $    463,000       $    411,000
  Accrued expenses                                                                          1,804,000          1,712,000
  Deferred revenue and billings in excess of costs
   and estimated earnings on uncompleted contracts                                          2,637,000          2,563,000
  Current portion of long-term debt                                                           277,000            258,000
                                                                                         ------------       ------------
    Total current liabilities                                                               5,181,000          4,944,000

Long-term debt, net of current portion                                                        164,000            157,000
                                                                                         ------------       ------------
                                                                                            5,345,000          5,101,000
                                                                                         ------------       ------------
Stockholders' equity:
  Preferred Stock, $0.001 par value, aggregate liquidation amount $8,160,000 at
   December 31, 1999; 8,000,000 shares authorized; 6,800,000 shares issued
   and outstanding at December 31, 1999; none at June 30, 2000                                  7,000                 --
  Common Stock, $0.001 par value, 15,000,000 shares
   authorized; 2,610,000 and 13,699,000
   shares issued and outstanding                                                                3,000             14,000
  Additional paid-in capital                                                               16,955,000         52,604,000
  Notes receivable from officers                                                             (189,000)          (187,000)
  Unearned stock-based compensation                                                        (2,645,000)        (2,091,000)
  Accumulated deficit                                                                     (13,617,000)       (16,798,000)
                                                                                         ------------       ------------
    Total stockholders' equity                                                                514,000         33,542,000
                                                                                         ------------       ------------
                                                                                         $  5,859,000       $ 38,643,000
                                                                                         ============       ============
</TABLE>



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



                                       1
<PAGE>   4

LANDACORP, INC.

STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                      Three Months Ended June 30,          Six Months Ended June 30,
                                    -------------------------------     -------------------------------
                                        1999               2000             1999               2000
                                    ------------       ------------     ------------       ------------
                                              (unaudited)                        (unaudited)
<S>                                 <C>                <C>              <C>                <C>
Revenues:
  System sales                      $  2,037,000       $  2,652,000     $  3,725,000       $  4,370,000
  Support services                       482,000            611,000          926,000          1,305,000
                                    ------------       ------------     ------------       ------------
    Total revenues                     2,519,000          3,263,000        4,651,000          5,675,000
                                    ------------       ------------     ------------       ------------
Cost of revenues:
  System sales                           722,000          1,048,000        1,477,000          2,095,000
  Support services                       147,000            191,000          296,000            376,000
                                    ------------       ------------     ------------       ------------
    Total cost of revenues               869,000          1,239,000        1,773,000          2,471,000
                                    ------------       ------------     ------------       ------------
Gross profit                           1,650,000          2,024,000        2,878,000          3,204,000
                                    ------------       ------------     ------------       ------------
Operating expenses:
  Sales and marketing                    752,000          1,643,000        1,504,000          3,327,000
  Research and development               381,000            814,000          771,000          1,492,000
  General and administrative             784,000          1,188,000        1,556,000          2,325,000
                                    ------------       ------------     ------------       ------------
    Total operating expenses           1,917,000          3,645,000        3,831,000          7,144,000
                                    ------------       ------------     ------------       ------------
Loss from operations                    (267,000)        (1,621,000)        (953,000)        (3,940,000)

Interest and other income, net            27,000            512,000           49,000            783,000
Interest expense                              --            (17,000)              --            (25,000)
                                    ------------       ------------     ------------       ------------
Net loss                            $   (240,000)      $ (1,126,000)    $   (904,000)      $ (3,182,000)
                                    ============       ============     ============       ============
Net loss per share:
  Basic and diluted                 $      (0.20)      $      (0.09)    $      (0.81)      $      (0.30)
                                    ============       ============     ============       ============
  Weighted average shares              1,176,000         12,867,000        1,113,000         10,432,000
                                    ============       ============     ============       ============
</TABLE>



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



                                       2
<PAGE>   5

LANDACORP, INC.

STATEMENTS OF CASH FLOWS
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                       Six Months Ended June 30,
                                                                        1999               2000
                                                                    ------------       ------------
                                                                              (unaudited)
<S>                                                                 <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                          $   (904,000)      $ (3,182,000)
  Adjustments to reconcile net loss to net
   cash provided by (used in) operating activities:
    Depreciation and amortization                                        170,000            474,000
    (Recovery of) allowance for doubtful accounts                        (20,000)            56,000
    Amortization of unearned stock-based compensation                    980,000          1,029,000
    Changes in assets and liabilities,
      net of effects of acquisition:
         Accounts receivable and costs and
          estimated earnings in excess of billing
          on uncompleted contracts, net                                  411,000           (901,000)
         Other assets                                                      5,000           (210,000)
         Accounts payable                                                 77,000            (52,000)
         Accrued expenses                                                350,000           (110,000)
         Deferred revenue and billings in excess of costs
          and estimated earnings on uncompleted contracts               (490,000)           (74,000)
                                                                    ------------       ------------
           Net cash provided by (used in) operating activities           579,000         (2,970,000)
                                                                    ------------       ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and equipment, net                              (210,000)          (585,000)
  Capitalized software development costs                                 (39,000)           (51,000)
                                                                    ------------       ------------
           Net cash used in investing activities                        (249,000)          (636,000)
                                                                    ------------       ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from borrowing on line of credit                                   --            217,000
  Proceeds from borrowing on long term debt                                   --             15,000
  Payments on long-term debt                                                  --         (1,508,000)
  Collection on notes receivable from officers                                --              2,000
  Proceeds from issuance of common stock, net                              8,000         35,772,000
                                                                    ------------       ------------
           Net cash provided by financing activities                       8,000         34,498,000
                                                                    ------------       ------------
Increase in cash and cash equivalents                                    338,000         30,892,000
Cash and cash equivalents, beginning of period                         2,032,000          1,884,000
                                                                    ------------       ------------
Cash and cash equivalents, end of period                            $  2,370,000       $ 32,776,000
                                                                    ============       ============
</TABLE>



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



                                       3
<PAGE>   6


LANDACORP, INC.

NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

1.     THE COMPANY AND BASIS OF PRESENTATION

       Landacorp, Inc. (the Company) was established in 1982 for the purpose of
       developing health care quality and resource management systems that
       target cost containment and quality improvement for hospitals and managed
       care organizations. The Company maintains offices in Chico, California,
       Portland, Oregon and Atlanta, Georgia and derives all of its revenues
       from customers in the United States.

       The accompanying unaudited financial statements of the Company have been
       prepared pursuant to the rules of the Securities and Exchange Commission
       (the "SEC"). 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. These unaudited financial statements should
       be read in conjunction with the audited financial statements and notes
       thereto included in the Company's Annual Report on Form 10-K for the year
       ended December 31, 1999. The balance sheet at December 31, 1999 is
       derived from the audited financial statements included in form 10-K for
       the year ended December 31, 1999, however, does not include all
       disclosures required by general accepted accounting principles in the
       United States. In the opinion of management, the accompanying unaudited
       financial statements reflect all adjustments, which are of a normal
       recurring nature, necessary for a fair presentation of the results for
       the periods presented.

       The results of operations presented for the three month and six month
       periods ended June 30, 2000 are not necessarily indicative of the results
       to be expected for any other interim period or any future fiscal year.

2.     RECENT ACCOUNTING PRONOUNCEMENTS

       In December 1999, the Securities and Exchange Commission ("SEC") issued
       Staff Accounting Bulletin No. 101 ("SAB 101"), "Revenue Recognition in
       Financial Statements." SAB 101 summarizes certain of the SEC's views in
       applying generally accepted accounting principles to revenue recognition
       in financial statements. In June 2000, the SEC issued SAB 101B to defer
       the effective date of implementation of SAB 101 until no later than the
       fourth fiscal quarter of fiscal years beginning after December 15, 1999
       with earlier application encouraged. The Company is currently assessing
       the impact, if any, of the adoption of SAB 101 on the Company's financial
       position or results of operations.

       In March 2000, the FASB issued Interpretation No. 44, ("FIN 44"),
       Accounting for Certain Transactions Involving Stock Compensation--an
       Interpretation of APB 25. This Interpretation clarifies (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, however certain conclusions in this
       Interpretation cover specific events that occur after either December 15,
       1998, or January 12, 2000. To the extent that this Interpretation covers
       events occurring during the period after December 15, 1998, or January
       12, 2000, but before the effective date of July 1, 2000, the effects of
       applying this Interpretation are recognized on a prospective basis from
       July 1, 2000. The Company is currently assessing the impact, if any, of
       adopting this interpretation.

       In June 1998, the Financial Accounting Standards Board ("FASB") issued
       Statement of Financial Accounting Standards ("SFAS") No. 133,
       "Accounting for Derivative Instruments and Hedging Activities." SFAS 133
       establishes methods of accounting for derivative financial instruments
       and hedging activities related to those instruments as well as other
       hedging activities, and is effective for fiscal years beginning after
       June 15, 2000, as amended by SFAS No. 137. The Company believes the
       adoption of this pronouncement will have no material impact on the
       Company's financial position and results of operations.

3.     ASSET ACQUISITION

       On January 31, 2000, the Company acquired the net assets of Interactive
       Healthcare Division (IHD) of High Technology Solutions, Inc. (HTS). The
       acquisition has been accounted for using the purchase method of
       accounting and accordingly, the purchase price has been allocated to the
       tangible and intangible assets acquired on the basis of their respective
       fair values on the acquisition date. The fair value of intangible assets
       was determined based upon preliminary valuations and other available
       information.

       Of the total purchase price of $1,268,000, the Company assumed
       liabilities of $18,000 and paid $250,000 at closing, with the remaining
       balance paid in April 2000. Of the purchase price of $1,250,000 plus
       $18,000 of assumed liabilities, approximately $63,000 has been allocated
       to property and equipment, and the remainder has been allocated to
       intangible assets, including intellectual property ($165,000), work force
       ($160,000), and goodwill ($880,000). The acquired intangible assets will
       be amortized over their estimated useful lives of twenty-four to
       thirty-six months.

       The historical operations of IHD are not material to the Company's
       financial position or results of operations, therefore, the results of
       operations on a proforma basis have not been presented. Results of
       operations of IHD are included with those of the Company for periods
       subsequent to the acquisition date.


                                       4
<PAGE>   7

LANDACORP, INC.

NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

4.     NET LOSS PER SHARE

       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 potential common shares outstanding during the
       period if their effect is dilutive. Potential common shares comprise
       common stock subject to repurchase and incremental common shares issuable
       upon the exercise of stock options. The potential common shares, which
       are excluded from the determination of diluted net loss per share as the
       effect of such shares on a weighted average basis is anti-dilutive, at
       June 30, 1999 and June 30, 2000 are 2,094,000 and 1,783,000,
       respectively.


5.     UNEARNED STOCK-BASED COMPENSATION

       In connection with certain stock option grants during the six months
       ended June, 2000, the Company recognized unearned compensation totaling
       $497,000, which is being amortized over the vesting periods, using the
       multiple option approach prescribed by FIN No. 28.

       Amortization expense in connection with unearned stock-based compensation
       recognized during the three month and six month periods ended June 30,
       2000, totaled $507,000 and $1,029,000, respectively, and has been
       allocated to operating expenses.

       The Company expects to amortize $710,000 during the remainder of 2000,
       $909,000 in 2001, $369,000 in 2002, $88,000 in 2003, and $15,000 in 2004.
       The Company will reduce unearned compensation expense for future periods
       to the extent that options terminate prior to full vesting. During the
       six months ended June 30, 2000, unearned compensation was reduced by
       $23,000 as a result of options which terminated prior to vesting.


6.     INITIAL PUBLIC OFFERING

       On February 14, 2000, the Company completed its initial public offering
       of 3,500,000 shares of common stock. In addition, 525,000 shares (375,000
       shares sold by the Company and 150,000 shares sold by existing
       shareholders) were sold pursuant to the exercise of the underwriters'
       over-allotment option. Net proceeds to the Company after commission and
       offering related expenses, were approximately $35 million.



                                       5
<PAGE>   8

LANDACORP, INC.

NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

       In conjunction with the offering, 6,800,000 shares of Preferred Stock
       were converted into Common stock on a one-for-one basis. Additionally,
       the holders of warrants to purchase 350,000 shares of Common stock
       exercised the warrants in a cashless exercise resulting in a net issuance
       of 308,000 shares of common stock.

7.     Line of Credit

       In April 2000, the Company renewed its line of credit that allows
       maximum borrowings of $2.0 million. Advances on the line of credit are
       collateralized by all of the Company's tangible and intangible personal
       property. At June 30, 2000, $217,000 was drawn against the renewed line
       of credit.


                                       6
<PAGE>   9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

All statements, trend analyses and other information contained in the following
discussion relative to markets for our products and trends in revenues, gross
margins and anticipated expense levels, as well as other statements including
words such as "anticipate," "believe," "could," "estimate," "expect," "intend"
and "plan" and other similar expressions, constitute forward-looking statements.
These forward-looking statements are subject to business and economic risks and
uncertainties, and our actual results of operations may differ materially from
the forward-looking statements. Factors that could cause or contribute to such
differences include, but are not limited to, those discussed in "Risk Factors"
as well as other risks and uncertainties referenced in our S-1 prospectus and
other forms filed periodically with the SEC.

OVERVIEW

We offer business-to-business electronic medical management solutions to
healthcare payers and providers that are designed to help our clients control
the cost and improve the quality of healthcare delivery. Our applications
automate and streamline administrative and business processes and enable
real-time interaction among various healthcare participants. As of June 30,
2000, 7 payers who claim to have a combined membership of eight million
participants were using our maxMC solution, and approximately 160 hospital
providers were using our Maxsys solutions. We recently began offering e-maxMC,
our Internet-based medical management solution for payers. We have successfully
tested e-maxMC internally and expect to complete a customer test of the
application in 2000.

We have historically derived revenues from the installation and licensing of our
MaxMC and Maxsys solutions, sublicensing third-party software applications as
part of system implementations and delivery of post-contract customer support,
training and consulting services. We are currently focusing our primary
development, sales and marketing efforts on our e-maxMC, maxMC and Maxsys II
solutions. Although we do not anticipate future system sales or enhancements of
Maxsys I, we continue to provide maintenance services to, and receive
maintenance fees from, customers who purchased this product in the past. We plan
to continue to support Maxsys I for the foreseeable future as a service to such
customers and pursuant to ongoing contractual obligations.

Traditionally, we have recognized system sales revenues and associated costs
using the percentage-of-completion method, with labor hours incurred relative to
total estimated contract hours as the measure of progress towards completion. We
recognize revenues from sublicensing of third-party software upon installation
of such software. We recognize revenues from support services ratably over the
support period. We recognize revenues from training and consulting as such
services are delivered.

We have introduced a new subscription-based fee structure for our e-maxMC and
maxMC solutions that provides for implementation services at a fixed hourly rate
and the licensing of installed systems and post consumer contract support
through a monthly subscription fee based upon the number of members covered by
the payer organization. Subscription-based contracts allow us to recognize the
fair value of the implementation services as such services are delivered and
recognize subscription fees on a monthly basis.

We expect to expand our operations and employee base, including our sales,
marketing, research and development, implementation, and support services
resources. In the first quarter of 2000 we expanded our sales force
significantly. To accelerate the implementation of elements of our strategy, we
intend to target and pursue strategic acquisitions and


                                   7
<PAGE>   10
relationships, such as marketing alliances with vendors of complementary
products and services and partnerships with Internet providers of healthcare
content, disease management and health-related e-commerce services.
Investigating or entering into any such strategic relationships could lead to
additional expenditures.

On January 31, 2000, we purchased from High Technology Solutions, Inc. the
assets of the iHealthmedia.com division related to its business of providing Web
site services to healthcare payers. The purchase price for the assets is
$1,268,000 (including an estimated $18,000 in assumed liabilities) of which we
paid $250,000 at the closing. We paid the balance of the purchase price of
$1,000,000 in April 2000. The acquired assets include equipment, know how,
trademarks and other intangible rights used by High Technology Solutions, Inc.
in the operation of its business of providing Web site services to healthcare
payers, as well as contracts, none of which are material. In connection with the
acquisition we hired a number of former employees of High Technology Solutions,
Inc. who we believe possess valuable expertise and relationships with potential
healthcare payer customers. We believe the acquisition benefits Landacorp by
providing us with valuable expertise and strategic relationships in the area of
providing Web site services to healthcare payers faster and more
cost-effectively than we would have been able to develop internally. As a
result, the acquisition will allow us to accelerate the implementation of our
strategy of providing Web site services to healthcare payers.

The purchase price of $1,268,000 (including an estimated $18,000 in assumed
liabilities) has been allocated to the various tangible and intangible assets
acquired. The acquired intangible assets will be amortized over their estimated
useful lives of twenty-four to thirty-six months. Factors considered by the
Company in determining estimated useful lives of the intangible assets include,
service life expectancies of the workforce based on anticipated option vesting
schedules of eighteen months and other short-lived incentive compensation
arrangements, effects of obsolescence on intellectual property, and the effects
of competition and other economic factors on goodwill, such as our intention to
assimilate the acquired business into our operations rather than operate it as a
separate business.

During the six months ended June 30, 2000, we recorded unearned stock-based
compensation totaling $497,000 in connection with the grant of stock-based
awards to certain employees. We are amortizing these amounts over the four-year
vesting period of the related options. We issued these options to create
incentives for continued performance. Of the total unearned compensation, we
amortized $1,029,000 during the six months ended June 30, 2000 and it has been
allocated to operating expense. We expect to amortize $710,000 during the
remainder of 2000, $909,000 in 2001, $369,000 in 2002, $88,000 in 2003 and
$15,000 in 2004. We will reduce unearned compensation expense for future periods
to the extent that options terminate prior to full vesting. During the six
months ended June 30, 2000, unearned compensation was reduced by $23,000 as a
result of options which terminated prior to vesting.

RESULTS OF OPERATIONS

The following table presents the statement of operations data as a percentage of
total revenues:


                                       8
<PAGE>   11

<TABLE>
<CAPTION>
                                          Three Months Ended June 30,
                                 ----------------------------------------------
                                         Dollars                % of Revenues
                                 -------------------------     ----------------
                                    1999           2000         1999      2000
                                 ----------    -----------     ------    ------
                                        (unaudited)
<S>                              <C>           <C>             <C>       <C>
Revenues:
  System sales                   $2,037,000    $ 2,652,000      80.9 %    81.3 %
  Support services                  482,000        611,000      19.1 %    18.7 %
                                 ----------    -----------
    Total revenues                2,519,000      3,263,000     100.0 %   100.0 %
                                 ----------    -----------

Cost of revenues:
  System sales                      722,000      1,048,000      28.7 %    32.1 %
  Support services                  147,000        191,000       5.8 %     5.9 %
                                 ----------    -----------
    Total cost of revenues          869,000      1,239,000      34.5 %    38.0 %
                                 ----------    -----------
Gross profit                      1,650,000      2,024,000      65.5 %    62.0 %
                                 ----------    -----------

Operating expenses:
  Sales and marketing               752,000      1,643,000      29.9 %    50.4 %
  Research and development          381,000        814,000      15.1 %    24.9 %
  General and administrative        784,000      1,188,000      31.1 %    36.4 %
                                 ----------    -----------
    Total operating expenses      1,917,000      3,645,000      76.1 %   111.7 %
                                 ----------    -----------
Loss from operations               (267,000)    (1,621,000)    (10.6)%   (49.7)%

Interest and other income, net       27,000        512,000       1.1 %    15.7 %
Interest expense                          -        (17,000)      0.0 %    (0.5)%
                                 ----------    -----------
Net loss                         $ (240,000)   $(1,126,000)     (9.5)%   (34.5)%
                                 ==========    ===========
</TABLE>

<TABLE>
<CAPTION>

                                          Six Months Ended June 30,
                                 ----------------------------------------------
                                         Dollars                % of Revenues
                                 -------------------------     ----------------
                                    1999           2000         1999      2000
                                 ----------    -----------     ------    ------
                                        (unaudited)
<S>                              <C>           <C>             <C>       <C>
Revenues:
  System sales                   $3,725,000    $ 4,370,000      80.1 %    77.0 %
  Support services                  926,000      1,305,000      19.9 %    23.0 %
                                 ----------    -----------
    Total revenues                4,651,000      5,675,000     100.0 %   100.0 %
                                 ----------    -----------
Cost of revenues:
  System sales                    1,477,000      2,095,000      31.7 %    36.9 %
  Support services                  296,000        376,000       6.4 %     6.6 %
                                 ----------    -----------
    Total cost of revenues        1,773,000      2,471,000      38.1 %    43.5 %
                                 ----------    -----------
Gross profit                      2,878,000      3,204,000      61.9 %    56.5 %
                                 ----------    -----------
Operating expenses:
  Sales and marketing             1,504,000      3,327,000      32.3 %    58.6 %
  Research and development          771,000      1,492,000      16.6 %    26.3 %
  General and administrative      1,556,000      2,325,000      33.5 %    41.0 %
                                 ----------    -----------
    Total operating expenses      3,831,000      7,144,000      82.4 %   125.9 %
                                 ----------    -----------
Loss from operations               (953,000)    (3,940,000)    (20.5)%   (69.4)%

Interest and other income, net       49,000        783,000       1.1 %    13.8 %
Interest expense                        -          (25,000)      0.0 %    (0.4)%
                                 ----------    -----------
Net loss                         $ (904,000)   $(3,182,000)    (19.4)%   (56.0)%
                                 ==========    ===========
</TABLE>

                                       9
<PAGE>   12

           MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS


Comparison of quarters and six month periods ended June 30, 1999 and 2000

       Revenues. System sales revenues increased by $615,000 or 30% from
$2,037,000 for the second quarter of 1999 to $2,652,000 in the second quarter of
2000. For the six months ended June 30, 2000 system sales revenue increased to
$4,370,000 from $3,725,000 in the corresponding period of the previous fiscal
year. Of the $645,000 increase in system sales revenue for the six month period
ended June 30, 2000 compared to the corresponding period in the prior year, an
increase of $1,661,000 related to revenues from the implementation of systems,
offset by a decrease of $1,016,000 related to license fees. This decrease in
license fees is related to the changes we made for contracts beginning in 2000
by only selling to health plan customers on a subscription basis instead of on a
perpetual license fee basis. The effect of this change prevents subscription fee
revenues from being recognized during the course of an implementation until
either the customer goes live, or a specific time after the contract has been
signed. Under the subscription license fee type sale, the license fee is
recognized ratably over the subscription term, which ranges from 3 to 5 years.
Under our historical perpetual license fee type sale to health plans, the
license fee was recognized over the implementation period by percentage of
completion in accordance with SOP 81-1. During the six months ended June 30,
2000, three customers accounted for 33%, 20% and 10% of the systems sales. Two
customers accounted for 14% and 12% of system sales revenues during the
corresponding period of 1999.

       Support services revenues increased by $129,000 or 27% from $482,000 in
second quarter of 1999 to $611,000 in second quarter of 2000. During the six
months ended June 30, 2000 support service revenues increased 41% to $1,305,000
compared to $926,000 during the corresponding period of the previous year. The
increase in support services revenue resulted from additional support contracts
obtained as a result of the completion of maxMC and Maxsys II software
implementations, partially offset by a decline in Maxsys I support revenues
resulting from a continued decline in the total number of Maxsys I support
customers. No customers accounted for 10% or more of the support services
revenues during either the quarter ended June 30, 1999 and 2000 or during the
six month periods ended June 30, 1999 and 2000.

       Cost of Revenues. Cost of system sales consists principally of costs
incurred in the implementation of our software products, including personnel
costs, amortization of unearned stock-based compensation, non-reimbursed travel
expenditures, related department overhead, amortization of capitalized software
development costs, costs of third party software products, and depreciation on
equipment. During the quarter ended June 30, 2000 these costs were $1,048,000 or
32% of system sales revenues, compared to costs of $722,000 representing 29% of
system sales revenue during the second quarter of 1999. Cost of system sales
increased by $618,000 or 42% from $1,477,000, representing 32% of system sales
revenues, during the six months ended June 30, 1999 to $2,095,000, representing
37% of system sales revenues, during the six months ended June 30, 2000. This
cost increase resulted from an increase in personnel costs as we added employees
to perform software implementations, stock-based compensation expense further
discussed below, and additional costs associated with iHealthMedia.com's
implementation staff and other associated costs. iHealthMedia.com was acquired
by the company as a new division at the end of January 2000. The decrease in the
gross margin on system sales from 60% for the six months ended June 30, 1999 to
52% during the corresponding period in 2000 resulted from an increase in
headcount as we added personnel in anticipation of increases in the volume of
systems contracts, together with a decrease in the revenue recognized for health
plan contracts per implementation day expended on a customer, resulting from the
change in the way we sell systems to health plans, as outlined above.

Cost of support services revenues increased by $44,000 or 24% from
$147,000 to $191,000, representing 31% of support services revenues during the
second quarters of both 1999 and 2000. Cost of support services increased by
$80,000 or 27% from $296,000 representing 32% of support services revenues
during the six months ended June 30, 1999 to $376,000 representing 29% of
support services revenue during the six months ended June 30, 2000. This
increase in dollars resulted from an increase in salaries, benefits, stock-based
compensation expense further discussed below, and other personnel-related
expenses as we increased the size of the support services staff due to the
increased volume of customers purchasing support contracts. The increase in the
gross margin on support services from 68% during the first six months of

                                       10
<PAGE>   13

1999 to 71% for the first six months of 2000 resulted from efficiencies realized
from additional support contracts sold for completed Maxsys II and maxMC
contracts. We expect that cost of support services revenues will continue to
increase in dollar amount as we continue to expand our customer support
department to meet anticipated customer demand. We cannot yet determine the
impact of these increased costs on our gross margins.

       Research and Development. Research and development expenses consist of
personnel costs, amortization of unearned stock-based compensation, related
department overhead and depreciation on equipment. Research and development
expenses totaled $814,000 or 25% of total revenues during the quarter ended June
30, 2000, an increase of $433,000 or 114% compared to expenses totaling $381,000
representing 15% of total revenues during the quarter ended June 30, 1999.
Research and development expenses increased by $721,000 or 93% from $771,000,
representing 17% of total revenues, during the six months ended June 30, 1999 to
$1,492,000, representing 26% of total revenues, during the six months ended June
30, 2000. This increase resulted from the inclusion of the iHealthMedia.com
division from January 2000 together with an increase in headcount, salaries,
benefits and other personnel-related expenses, including stock-based
compensation expense further discussed below, as we increased the size of the
research and development staff. We anticipate that we will continue to devote
substantial resources to research and development and that such expenses will
increase in dollar amounts. We cannot yet determine the impact of these
increased costs on our total operating expenses.

       Sales and Marketing. Sales and marketing expenses consists principally of
compensation for our sales and marketing personnel, amortization of unearned
stock-based compensation, advertising, trade show and other promotional costs,
and departmental overhead. Sales and marketing expenses during the quarter ended
June 30, 2000 amounted to $1,643,000 representing 50% of total revenues, in
comparison with $752,000 representing 30% of total revenues during the
corresponding quarter of the previous year. Sales and marketing expenses
increased by $1,823,000 or 121% from $1,504,,000, representing 32% of total
revenues, during the six months ended June 30, 1999 to $3,327,000, representing
59% of total revenues, during the six months ended June 30, 2000. This increase
resulted from increased salaries, benefits and other personnel-related expenses
due to growth in the number of sales and marketing personnel, stock-based
compensation expense further discussed below, increases in sales commissions due
to an increase in the volume of customer contracts, increases in travel costs
due to the increased headcount, and increases in trade shows and other marketing
expenses incurred to build additional product awareness. There was also a one
time bonus of $335,000 paid to the Chief Marketing Officer during the first
quarter of 2000 in connection with deferred compensation that became payable in
the event the company went public. As a result of the company completing its
Initial Public Offering in the first quarter of 2000, this amount was booked to
Sales and Marketing expenses in this period. Further disclosure of this
non-recurring item can be found in our S-1 prospectus filed with the SEC. Other
than this non-recurring item, we expect that sales and marketing expenses will
continue to increase in dollar amounts as we continue to expand our sales and
marketing efforts, continue to add personnel and increase promotional
activities. We cannot yet determine the impact these increases in expenses will
have on our total operating expenses.

       General and Administrative. General and administrative expenses consist
of compensation for personnel, fees for outside professional services, costs
associated with maintaining the company as a public corporation, amortization of
unearned stock-based compensation, and allocated occupancy and overhead costs.
General and administrative expenses increased by $404,000 or 52% from $784,000,
representing 31% of total revenues, in the second quarter of 1999 to $1,188,000,
representing 36% of total revenues, in the second quarter of 2000. General and
administrative expenses amounted to $2,325,000 representing 41% of total
revenues during the six months ended June 30, 2000, an increase of $769,000 or
49% from expenses totaling $1,556,000 representing 34% of total revenues, for
the corresponding six month period in the previous year. The increase was due to
an increase in the number of employees due to the inclusion of iHealthMedia.com
as a division from January 2000, higher professional service fees, stock-based
compensation expense further discussed below, together with costs associated
with operating as a public company. Also, we had increased occupancy costs due
to our expanded facility in Chico that started in September 1999 and the
commencement of our Portland office lease from February 2000 in connection with
our iHealthMedia.com acquisition. Finally, we incurred a goodwill expense
arising from the acquisition of iHealthMedia.com in January 2000 of $87,000 for
the second quarter of 2000, and $138,000


                                       11
<PAGE>   14

during the six months ended June 30, 2000. We believe that our general and
administrative expenses will continue to increase in dollar amounts as a result
of our growing operations and the expenses associated with operating as a public
company. We cannot yet determine the impact of these increased expenses on our
total operating expenses.

       Stock-based Expenses. In connection with certain stock option grants and
common stock issuance during the years ended December 31, 1998 and 1999, and for
the six months ended June 30, 2000, the Company recognized unearned compensation
totaling $4,166,000, $1,610,000 and $497,000 respectively, which is being
amortized over the vesting periods or as the Company's repurchase rights lapse
(See Note 8 of Notes to Financial Statements for year ended December 31, 1999),
as applicable, using the multiple option approach prescribed by FIN No. 28.
Amortization expense recognized during the second quarter of 1999 and 2000
totaled $480,000 and $507,000, respectively, and for the first six months of
1999 and 2000 totaled $980,000 and $1,029,000, respectively, and has been
allocated to the various operating expenses based on the associated personnel.

       Interest and Other Income and Interest Expense. Interest and other income
consists primarily of earnings on our cash and cash equivalents. Interest and
other income amounted to $27,000 and $512,000 for the quarters ended June 30,
1999 and 2000, respectively. Interest and other income totaled $49,000 and
$783,000 during the six months ended June 30, 1999 and 2000, respectively. The
substantial increase in income in 2000 is due to the higher levels of cash and
cash equivalents held during the period arising from funds generated from the
initial public offering in February 2000. Interest expense of $17,000 during the
second quarter of 2000 and $25,000 for the six months ended June 30, 2000 arises
from financing certain fixed assets through a finance lease program together
with interest on a loan note for the purchase of iHealthMedia.com that was paid
off in April 2000. Neither the finance lease program nor the loan note was in
operation during the first two quarters of 1999, therefore there is no interest
expense for those periods.

       Income Taxes. We recorded no current provision or benefit for federal or
state income taxes for the either the first quarter of 1999 or 2000, as the
Company had incurred net operating losses and had no carry-back potential. As of
June 30, 2000, we had net operating loss carry-forwards for federal tax purposes
in excess of $10 million and for state tax purposes, in excess of $3 million.
These federal and state tax loss carry-forwards are available to reduce future
taxable income. Utilization of such carry-forwards may be limited in certain
circumstances including, but not limited to, cumulative stock ownership changes
of more than 50 percent over a three-year period and will expire at varying
amounts during the period from December 31, 2000 to 2014. The Company believes
that there were cumulative changes of ownership of greater than 50 percent in
February 1998. Accordingly, the amount of loss carry-forwards that may be
utilized to reduce future taxable income for federal and state income tax
purposes may be limited. The amount of the limitation has not yet been
calculated. We have not recognized a deferred tax asset on our balance sheet.


                                       12
<PAGE>   15

LIQUIDITY AND CAPITAL RESOURCES


Since inception, we have financed our operations through net cash generated from
operating activities, and private sales of common and preferred stock, with net
proceeds totaling $11.1 million. During February 2000, we completed our initial
public offering through which we raised net proceeds of approximately $35
million. As of June 30, 2000, we had $32.8 million in cash and cash equivalents
and $31.0 million in working capital with outstanding debt totaling $0.4
million.

Net cash provided by (used in) operating activities was $579,000 and
($2,970,000) during the six months ended June 30, 1999 and 2000, respectively.
Net cash used to fund operating activities in 2000 reflects net losses before
non-cash charges for depreciation, amortization of intangible assets and stock
based compensation, increases in net accounts receivable and other current
assets and a decrease in deferred revenue, partially offset by an increase in
accrued expenses. Net cash provided by operating activities in 1999 consists of
net losses before non-cash charges for depreciation and amortization of
intangible assets and stock based compensation, increases from accounts
receivable and accrued expenses partially offset by decreases from deferred
revenue.

Net cash used in investing activities was $249,000 in 1999 and $636,000 in 2000.
Investing activities consist primarily of purchases of computer equipment,
office furniture and leasehold improvements, and additions to capitalized
software development costs.

Net cash generated from financing activities was $8,000 in 1999 and $34.5
million in 2000. Net cash generated from financing activities in 1999 resulted
from the issuance of common stock. Net cash generated from financing activities
in 2000 resulted from the issuance of common stock in connection with the
Company's initial public offering that was completed during February 2000 less
the payment for the acquisition of iHealthMedia.com, as described below, and
additional notes paid off.

We purchased assets from High Technology Solutions, Inc. on January 31, 2000. At
the closing, we paid High Technology Solutions, Inc. $250,000 and delivered a
promissory note in the principal amount of $1,000,000. We paid the remaining
balance of the promissory note in April 2000. The promissory note was
collateralized by the assets we purchased.

In February 1998, the Company entered into an agreement with Brian Lang whereby
the Company agreed to pay a bonus of $335,000 to Mr. Lang upon the successful
completion of an initial public offering. This amount was paid on March 1, 2000
following our Initial Public Offering and the expense was recorded as operating
expense for that period.

In April, 2000 we renewed a line of credit that allows maximum borrowings of
$2.0 million. Advances on the line of credit are collateralized by all of our
tangible and intangible personal property. At December 31, 1999, we had not
drawn against the previous line of credit, but $233,000 was outstanding on a
term note, which we used to finance the purchase of certain fixed assets. The
previous line of credit and term note contain various restrictive covenants, one
of which the Company was not in compliance with at December 31, 1999. From
January 2000 through April 2000, the Company obtained waivers for all financial
covenants for the period beginning September 30, 1999 through April 30, 2000. At
June 30, 2000, there was $217,000 drawn down against the renewed line of credit
without breach of any covenant.

We signed a lease for a new principal facility in March 1999. We began making
lease payments in September 1999 and we will continue to make such payments for
eighty-four months, resulting in aggregate lease expenses of approximately
$34,000 per quarter.

We expect to experience significant growth in our operating expenses for the
foreseeable future in order to execute our business plan. As a result, we
anticipate that operating expenses and planned capital expenditures will
constitute a material use of our cash resources. In addition, we may utilize
cash resources to fund acquisitions or investments in other businesses,
technologies or product lines. We believe that


                                       13
<PAGE>   16

available cash and cash equivalents and the net proceeds from the sale of the
common stock in our recent offering will be sufficient to meet our working
capital and operating expense requirements for at least the next twelve months.
Thereafter, we may require additional funds to support our working capital and
operating expense requirements or for other purposes and may seek to raise such
additional funds through public or private debt or equity financings. Such
additional financing may be unavailable, or if it is available, it may only be
available on unreasonable terms and may be dilutive to our stockholders.

RECENT ACCOUNTING PRONOUNCEMENTS

In December 1999, the Securities and Exchange Commission ("SEC") issued Staff
Accounting Bulletin No. 101 ("SAB 101"), "Revenue Recognition in Financial
Statements." SAB 101 summarizes certain of the SEC's views in applying generally
accepted accounting principles to revenue recognition in financial statements.
In June 2000, the SEC issued SAB 101B to defer the effective date of
implementation of SAB 101 until no later than the fourth fiscal quarter of
fiscal years beginning after December 15, 1999 with earlier application
encouraged. The Company is currently assessing the impact, if any, of the
adoption of SAB 101 on the Company's financial position or results of
operations.

In March 2000, the FASB issued Interpretation No. 44, ("FIN 44"), Accounting for
Certain Transactions Involving Stock Compensation--an Interpretation of APB 25.
This Interpretation clarifies (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, however certain conclusions in this
Interpretation cover specific events that occur after either December 15, 1998,
or January 12, 2000. To the extent that this Interpretation covers events
occurring during the period after December 15, 1998, or January 12, 2000, but
before the effective date of July 1, 2000, the effects of applying this
Interpretation are recognized on a prospective basis from July 1, 2000. The
Company is currently assessing the impact, if any, of adopting this
interpretation.

In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative
Instruments and Hedging Activities." SFAS 133 establishes methods of accounting
for derivative financial instruments and hedging activities related to those
instruments as well as other hedging activities, and is effective for fiscal
years beginning after June 15, 2000, as amended by SFAS No. 137. The Company
believes the adoption of this pronouncement will have no material impact on the
Company's financial position and results of operations.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The primary objective of our investment activities is to preserve principal
while, at the same time, maximizing the yields without significantly increasing
risk. To achieve this objective, we invest in highly liquid and high-quality
money market accounts that invest in debt securities. Our investment in debt
securities is subject to interest rate risk. To minimize the exposure due to
adverse shifts in interest rates, we invest in money market accounts that invest
only in short-term securities that maintain an average maturity of less than one
year and debt securities that also have an average maturity of less than one
year. As a result, we do not believe we are subject to significant market risk.


PART II OTHER INFORMATION

Item 1.  Legal Proceedings
         None

Item 2.  Changes in Securities
         None

Item 3.  Defaults in 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)   The following exhibits have been filed with this report:
               27.1 Financial Data Schedule

         (b)   Reports on Form 8-K
               No reports on Form 8-K were filed during the quarter ended
               June 30, 2000

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.

Dated: August 4, 2000

                                   LANDACORP, INC.
                                   (Registrant)

                                   /s/  Eugene Santa Cattarina
                                   ---------------------------------------------
                                   President, Chief Executive Officer,
                                   (principal executive officer)


                                   /s/  Stephen P. Kay
                                   ---------------------------------------------
                                   Chief Operating Officer and
                                   Chief Financial Officer


                                       14
<PAGE>   17

INDEX TO EXHIBITS

27.1 Financial Data Schedule