<PAGE>


                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                    FORM 10-Q

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

(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
                                 -----------------------------------------------

|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934.

For the transition period from ____________________ to _______________________

                         Commission file number 0-21705


                        SANCHEZ COMPUTER ASSOCIATES, INC.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in Its Charter)

            PENNSYLVANIA                                 23-2161560
-------------------------------------       ------------------------------------
(State or Other Jurisdiction of             (I.R.S. Employer Identification No.)
Incorporation or Organization)


40 VALLEY STREAM PARKWAY, MALVERN, PA                   19355
---------------------------------------------------------------
(Address of Principal Executive Offices)             (Zip Code)

Registrant's Telephone Number, Including Area Code:      (610) 296-8877
                                                   -----------------------------

                                N/A
--------------------------------------------------------------------------------
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

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
                             -----       -----


As of April 30, 2000, there were outstanding 24,934,354 shares of the issuer's
Common Stock, no par value.


<PAGE>


                       SANCHEZ COMPUTER ASSSOCIATES, INC.

                               INDEX TO FORM 10-Q
                      FOR THE QUARTER ENDED MARCH 31, 2000




                          PART I: FINANCIAL INFORMATION



ITEM 1:      FINANCIAL STATEMENTS

<TABLE>
<CAPTION>

                                                                            Page No.
                                                                            --------
<S>                                                                            <C>

CONSOLIDATED BALANCE SHEETS

     March 31, 2000 (Unaudited) and December 31, 1999                            3


CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

     Three Months Ended March 31, 2000 and 1999                                  4


CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

     Three Months Ended March 31, 2000 and 1999                                  5


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)                           6


ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF

             FINANCIAL CONDITION AND RESULTS OF OPERATIONS                       8


ITEM 3:  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK             12



                           PART II: OTHER INFORMATION

ITEM 6:     EXHIBITS AND REPORTS ON FORM 8-K                                    13

SIGNATURES                                                                      14
</TABLE>



                                       2
<PAGE>


                        SANCHEZ COMPUTER ASSOCIATES, INC.
                           CONSOLIDATED BALANCE SHEETS
                      (in thousands, except share amounts)

<TABLE>
<CAPTION>

                                  ASSETS                                 MARCH 31,         DECEMBER 31,
                                                                           2000                1999
                                                                          --------           --------
                                                                        (UNAUDITED)
<S>                                                                       <C>                  <C>
Current assets
   Cash and cash equivalents                                              $ 31,801             25,404
   Receivables, less allowance of $288                                      14,598             12,564
   Contracts in process                                                      3,905              3,227
   Deferred income taxes                                                       686                686
   Income tax refund receivable                                              3,694              2,948
   Prepaid and other current assets                                          1,301              1,187
                                                                          --------           --------
               Total current assets                                         55,985             46,016

Property and equipment
   Equipment                                                                 8,418              7,351
   Furniture and fixtures                                                    1,879              1,784
   Leasehold improvements                                                    2,081              2,020
                                                                          --------           --------
                                                                            12,378             11,155
Accumulated depreciation and amortization                                   (5,790)            (5,115)
                                                                          --------           --------
   Net property and equipment                                                6,588              6,040


Capitalized software costs, net                                              1,342              1,493
Intangible assets, net                                                       1,121              1,153
Investments                                                                  1,693              1,693
                                                                          --------           --------

               Total assets                                               $ 66,729             56,395
                                                                          ========           ========
                               LIABILITIES

Current liabilities
   Current debt obligations                                               $     47                 83
   Accounts payable, trade                                                   2,169              2,360
   Accrued expenses                                                          7,403              4,417
   Deferred revenue                                                          5,179              3,615
                                                                          --------           --------
               Total current liabilities                                    14,798             10,475

Deferred income taxes                                                          482                482
                                                                          --------           --------
               Total liabilities                                            15,280             10,957

                           SHAREHOLDERS' EQUITY

Common stock, no par value
   Authorized - 150,000,000 shares
   Issued and outstanding 24,868,105 and 24,357,351 respectively               249                244
Additional paid-in capital                                                  37,597             28,392
Retained earnings                                                           13,603             16,894
Notes due on common stock purchases                                                               (92)
                                                                          --------           --------
               Total shareholders' equity                                   51,449             45,438
                                                                          --------           --------

               Total liabilities and shareholders' equity                 $ 66,729             56,395
                                                                          ========           ========
</TABLE>



                                       3
<PAGE>


                        SANCHEZ COMPUTER ASSOCIATES, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                    (in thousands, except per share amounts)
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                                  THREE MONTHS ENDED
                                                                                       MARCH 31,
                                                                           ------------------------------
                                                                                 2000           1999
                                                                           -------------  ---------------
<S>                                                                        <C>              <C>
Revenues
   Products                                                                $       2,806    $       3,286
   Services                                                                        9,306            4,302
   Software maintenance and other                                                  2,765            2,067
                                                                           --------------  ---------------

      Total revenues                                                              14,877            9,655

Operating expenses
   Product development                                                             5,975            3,488
   Product support                                                                 1,062              823
   Services                                                                        6,565            2,139
   Sales and marketing                                                             3,315            1,852
   General, administrative and other                                               3,224              885
                                                                           --------------  ---------------

      Total operating expenses                                                    20,141            9,187
                                                                           --------------  ---------------

Earnings (loss) from operations                                                   (5,264)             468

Interest income, net                                                                 425              302
                                                                           --------------  ---------------

Earnings (loss) before income taxes                                               (4,839)             770

Income tax provision (benefit)                                                    (1,548)             277
                                                                           --------------  ---------------

Net earnings (loss)                                                        $      (3,291)    $        493
                                                                           ==============  ===============



Basic earnings (loss) per average common share                             $       (0.13)   $        0.02

Diluted earnings (loss) per average common share                           $       (0.13)   $        0.02

Weighted-average common shares outstanding                                        24,633           23,490

Weighted-average common and dilutive shares outstanding                           24,633           24,988
</TABLE>



                                       4
<PAGE>


                        SANCHEZ COMPUTER ASSOCIATES, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                        THREE MONTHS ENDED
                                                                             MARCH 31,
                                                                ---------------------------
                                                                    2000               1999
                                                                --------           --------
<S>                                                             <C>                <C>
Cash flows from operating activities
   Net earnings (loss)                                          $ (3,291)          $    493
   Adjustments to reconcile net earnings to cash
     provided by operating activities, net of effect
       from acquisition
        Depreciation and amortization                                871                493
        Stock based compensation                                   1,649
        Other                                                        (13)                (2)
   Cash provided (used) by changes in
     operating assets and liabilities
        Accounts receivable                                       (2,034)            (5,619)
        Contracts in process                                        (678)             1,550
        Income tax refund receivable                                (746)
        Prepaid and other current assets                            (114)              (306)
        Accounts payable and accrued expenses                      2,795             (1,756)
        Deferred revenues                                          1,564                747
                                                                --------           --------
Net cash provided (used) by operating activities                       3             (4,400)

Cash used in investing activities
        Investments                                                                     (48)
        Cost of acquisition, net of cash acquired                                      (499)
        Capitalized computer software costs                                            (158)
        Proceeds from sale of fixed assets                            47
        Capital expenditures                                      (1,270)            (1,066)
                                                                --------           --------
Net cash used in investing activities                             (1,223)            (1,771)

Cash flows from financing activities
      Repayment of notes due on common stock purchases                92                  1
      Purchase of treasury stock                                                       (592)
      Principal payments under current debt                          (36)               (73)
      Proceeds from exercise of stock options                      4,561                102
      Proceeds from equity investments                             3,000
                                                                --------           --------
Net cash provided (used) by financing activities                   7,617               (562)
                                                                --------           --------
Net increase (decrease) in cash and cash equivalents               6,397             (6,733)
Cash and cash equivalents at beginning of period                  25,404             27,177
                                                                --------           --------
Cash and cash equivalents at end of period                      $ 31,801           $ 20,444
                                                                ========           ========
Supplemental cash flow information
      Interest paid                                             $      2           $      5
      Income taxes paid                                         $    137           $  1,636
</TABLE>



                                       5
<PAGE>


                        SANCHEZ COMPUTER ASSOCIATES, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


(A.)   BASIS OF PRESENTATION

         The accompanying consolidated financial statements of Sanchez Computer
         Associates, Inc. ("Sanchez" or the "Company") include the accounts of
         all of the Company's wholly and majority owned subsidiaries. All
         significant intercompany transactions and balances have been eliminated
         in consolidation. Certain prior period amounts have been reclassified
         to conform with current period presentation. In the opinion of
         management, the consolidated financial statements reflect all normal
         and recurring adjustments which are necessary for a fair presentation
         of the Company's financial position, results of operations, and cash
         flows as of the dates and for the periods presented. The consolidated
         financial statements have been prepared in accordance with generally
         accepted accounting principles for interim financial information.
         Consequently, these statements do not include all the disclosures
         normally required by generally accepted accounting principles for
         annual financial statements nor those normally made in the Company's
         Annual Report on Form 10-K. Accordingly, reference should be made to
         the Company's Annual Report on Form 10-K for additional disclosures,
         including a summary of the Company's accounting policies, which have
         not changed. The consolidated results of operations for the three
         months ended March 31, 2000 are not necessarily indicative of results
         for the full year.

(B.)   CLIENT REVENUE DATA

         Revenue derived from customers in various geographic regions is as
         follows (in thousands):

<TABLE>
<CAPTION>

            ---------------------- -------------------------------------
                                            THREE MONTHS ENDED
                                                MARCH 31,
            ---------------------- -------------------------------------
                                         2000               1999
            ---------------------- ------------------ ------------------
<S>                                    <C>                 <C>
            U.S.and Caribbean          $  9,876            $ 4,112
            Western Europe                3,352              2,459
            Central Europe                  956              1,046
            Canada                          642              1,724
            Other                            51                314
                                   ------------------ ------------------
                                       $ 14,877            $ 9,655
            ---------------------- -------------------------------------
</TABLE>

(C.)  EARNINGS PER SHARE

         Basic earnings per share has been calculated as net earnings divided by
         weighted-average common shares outstanding, while diluted earnings per
         share has been computed as net earnings divided by weighted-average
         common and diluted shares outstanding which includes the dilutive
         effect of stock options and warrants. The following table provides a
         reconciliation of weighted-average common shares outstanding to
         weighted-average common and diluted shares outstanding (in thousands).

<TABLE>
<CAPTION>

          ----------------------------------------- ---------------------------
                                                        THREE MONTHS ENDED
                                                            MARCH 31,
          ----------------------------------------- ---------------------------

                                                            2000          1999
          ----------------------------------------- ------------- -------------
<S>                                                       <C>           <C>
          Weighted-average shares outstanding             24,633        23,490
          Dilutive effect of
            Warrants                                          --            --
            Options                                           --         1,498
                                                    ------------- -------------
          Total common and diluted shares                 24,633        24,988
                                                    ------------- -------------
          ----------------------------------------- ------------- -------------
</TABLE>

         At March 31, 2000, potentially dilutive common stock equivalents
         include warrants to purchase 66,000 shares of common stock and options
         to purchase 2,409,021 shares of common stock. All potentially dilutive
         common stock equivalents were excluded from the calculation of net loss
         per share for the three



                                       6
<PAGE>


         months ended March 31, 2000 as their effect is anti-dilutive as a
         result of the net loss incurred for the period.

  (D.) SEGMENTS

         The Company classifies its operations in two segments: Sanchez's
         traditional licensing business and the e-PROFILE outsourcing business.
         The Company evaluates the performance of its segments and allocates
         resources to them accordingly.

         The table below summarizes business segment:

<TABLE>
<CAPTION>

                     ----------------------------------------- ------------------------------
                                                                  THREE MONTHS ENDED MARCH
                                                                             31,
                     ----------------------------------------- ------------------------------
                                                                    2000           1999
                     ----------------------------------------- --------------- --------------
<S>                                                                    <C>             <C>
                     Revenues
                         Sanchez                                       10,094          9,159
                         e-PROFILE                                      4,783            496
                                                               --------------- --------------
                        Total                                          14,877          9,655
                                                               =============== ==============

                     Earnings (loss) from operations
                        Sanchez                                         (713)            287
                        e-PROFILE                                     (4,551)            181
                                                               --------------- --------------
                        Total                                         (5,264)            468
                     ----------------------------------------- =============== =============
</TABLE>

<TABLE>
<CAPTION>

                     ---------------------------------------- --------------- --------------
                                                                  MARCH 31,     DECEMBER 31,
                                                                    2000           1999
                     ---------------------------------------- --------------- --------------
<S>                                                                   <C>            <C>
                     Total Assets
                       Sanchez                                        51,773         49,809
                       e-PROFILE                                      14,956          6,586
                                                              --------------- --------------
                       Total                                          66,729         56,395
                     ---------------------------------------- =============== ==============
</TABLE>


(E.) RECENT ACCOUNTING PRONOUNCEMENTS

         In December 1999, the Securities and Exchange Commission ("SEC")
         issued Staff Accounting Bulletin ("SAB") No. 101, "Revenue Recognition
         in Financial Statements." SAB No. 101 expresses the views of the SEC
         in applying generally accepted accounting principles to certain
         transactions. The Company is still in the process of analyzing the
         impact of SAB No. 101 on its consolidated financial statements and
         related disclosures.



                                       7
<PAGE>


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

OVERVIEW

          Sanchez Computer Associates, Inc. ("Sanchez" or "the Company")
          designs, develops, markets, implements and supports comprehensive
          banking software called PROFILE-Registered Trademark- for financial
          services organizations worldwide. Sanchez's highly flexible PROFILE
          family of products is comprised of five integrated modules that
          operate on open, client/server platforms. The primary module, called
          PROFILE/ANYWARE, is a multi-currency, multi-language, multi-bank
          transaction processing system that supports deposit, loan, customer
          and bank management requirements through multiple distribution
          channels. The other modules are PROFILE/WEBCONSUMER, a Web-based,
          Internet front-end processor for retail and commercial banking
          applications; PROFILE/FMS, a multi-company, multi-currency, financial
          management and accounting system; PROFILE FOR WINDOWS ("PFW"), a
          native Windows-Registered Trademark- client application for
          PROFILE/ANYWARE'S customer service and teller functions; and
          PROFILE/ODBC, an open connectivity database driver.

          In order to expand its core competency as a product-oriented
          development company for financial services and to take advantage of
          opportunities in the financial services marketplace resulting from
          rapid technological changes and adoption of the Internet, the Company
          acquired ArTech Financial Technology Services, LLC, a banking
          technology service center located outside of Pittsburgh, Pennsylvania
          in the first quarter of 1999. In conjunction with the purchase, the
          Company announced the formation of a new subsidiary - e-PROFILE, Inc.
          ("e-PROFILE"), designed to be a vertical solutions provider ("VSP")
          for financial services. A VSP is a business-to-business entity that
          manages the technology and operational supply chain within an industry
          and integrates all of its components under a single, outsourced
          operating infrastructure. e-PROFILE provides customers with several
          advantages including: differentiated solutions by providing a choice
          of "best-in-class" partners; speed to market with predictable results
          by using a fast-track implementation methodology and working
          with a select group of pre-qualified partners; process re-engineering
          via optimized processes and workflows; and an annuity based,
          "pay-as-you-grow" pricing model which lowers the initial cost of entry
          for clients and allows them to invest in differentiating their on-line
          offering and increasing brand recognition. e-PROFILE is currently
          processing in excess of 500,000 accounts at its bank operations and
          data center for two clients.

          The Company derives its revenues from product fees, which include
          software license and product enhancement fees, service fees that
          include client implementation, processing and consulting fees, and
          software maintenance fees. For Sanchez' traditional software license
          contracts, product fees are paid in stages upon the completion, by the
          Company, of certain defined deliverables. The Company recognizes
          revenue from these fees using the percentage-of-completion contract
          accounting method. Service fees are generally recognized and billed
          monthly on a time and material basis. Maintenance fees are normally
          billed annually in advance and recognized into revenue ratably over
          the period covered. The Company's e-commerce projects generate
          implementation related service revenues for both Sanchez and
          e-PROFILE. In addition, these projects will generate on-going
          processing fee related services revenue for e-PROFILE. In lieu of
          up-front, one-time license fees, e-commerce contracts will generate
          license revenue for Sanchez on a per account/per month basis over the
          life of the contract after the client "goes live" with the solution.
          Under this model, as a client institution's e-commerce account base
          grows, Sanchez increases its revenue stream.

          Revenues for the quarter ended March 31, 2000 increased 54.1% to $14.9
          million, compared to $9.7 million recorded for the same period in
          1999. Net loss for the quarter totaled ($3.3) million or ($.13) per
          share, compared to net income of $493,000 or $.02 per share for the
          same period last year. As of May 15, 2000, the Company is engaged in
          12 e-commerce projects worldwide.

          The e-PROFILE business segment generated revenues of $4.8 million and
          a pre-tax loss of ($4.6) million. As previously announced, e-PROFILE
          plans to file a registration statement with the Securities and
          Exchange Commission in the coming months for a proposed public
          offering of common stock. The timing and size of the offering are
          dependent on market conditions and other factors.



                                       8
<PAGE>


RESULTS OF OPERATIONS

The following table sets forth for the periods indicated selected statement of
operations data:
<TABLE>
<CAPTION>

      ----------------------------------------------------------- --------------------------------
                                                                            QUARTER ENDED
                                                                              MARCH 31,
      ----------------------------------------------------------- --------------------------------
      DOLLARS IN THOUSANDS                                               2000             1999
                                                                  ----------------- --------------
      <S>                                                           <C>                <C>
      Revenues
         Products                                                   $   2,806          $   3,286
         Services                                                       9,306              4,302
         Software maintenance and other                                 2,765              2,067
                                                                  ----------------- --------------
           Total revenues                                           $  14,877          $   9,655
                                                                  ================= ==============

      Percentage Relationship to Total Revenues
      Revenues
         Products                                                        18.9%             34.0%
         Services                                                        62.5              44.6
         Software maintenance and other                                  18.6              21.4
                                                                  ----------------- --------------
           Total revenues                                               100.0             100.0

      Operating expenses
         Product development                                             40.2              36.1
         Product support                                                  7.1               8.5
         Services                                                        44.1              22.1
         Sales and marketing                                             22.3              19.2
         General, administrative and other                               21.7               9.2
                                                                  ----------------- --------------
           Total operating expenses                                     135.4              95.1

         Earnings (loss) from operations                                (35.4)              4.9
         Interest income, net                                             2.9               3.1
                                                                  ----------------- --------------
         Earnings (loss) before income taxes                            (32.5)              8.0
         Income tax provision (benefit)                                 (10.4)              2.9
                                                                  ----------------- --------------
         Net earnings (loss)                                            (22.1%)             5.1%
      ----------------------------------------------------------- ================= ==============
</TABLE>


THREE MONTHS ENDED MARCH 31, 2000, COMPARED TO THREE MONTHS ENDED MARCH 31, 1999

REVENUES. Revenues increased $5.2 million, or 54.1%, in the first quarter of
2000 as compared to the first quarter of 1999. The most significant growth was
in service revenue, which increased by $5.0 million, or 116.3%. Most of the
service growth is attributable to the increased levels of Sanchez and e-PROFILE
implementation activity associated with e-banking projects and processing
revenue from e-PROFILE. Product revenue decreased by $480,000 or 14.6% from the
first quarter of 1999 to the first quarter of 2000 reflecting the Company's
switch in its pricing model to usage-based pricing versus one-time license fees
to lower the initial investment for potential customers. Sales efforts have been
more focused on this pricing model versus the Company's traditional one-time
license fee model. This focus, and the resulting lower closure of one-time
license fee contract revenue, also contributed to the decline in product
revenues. Software maintenance and other revenue increased by $698,000, or
33.8%, in the first quarter of 2000, due primarily to an increase in the
Company's supported client base.

PRODUCT DEVELOPMENT. Product development expenses increased $2.5 million, or
71.3%, in the first quarter of 2000, due to costs associated with increased
staffing, e-PROFILE professional fees, expanded facilities and other overhead
costs. Staffing increased 30% for this area of the Company primarily due to the
Company's continued development focus on extending its technology into areas
that will become new revenue sources.

PRODUCT SUPPORT. Product support expenses increased by $239,000, or 29.0%, in
the quarter ended March 31, 2000, primarily due to the cost required to support
the larger converted client base.



                                       9
<PAGE>


SERVICES. Service expenses increased by $4.4 million, or 206.9%, during the
first quarter of 2000. The increase was primarily due to the additional
resources needed to support the increased service revenue for Sanchez and
e-PROFILE. The gross margin relative to associated revenues was 29.5% for the
first quarter of 2000, compared to 50.3% in the same period last year. This
decrease can be attributed to the increase in subcontractors for e-banking
projects and margins associated with processing revenues.

SALES AND MARKETING. Sales and marketing expenses increased by $1.5 million, or
79.0%, in the 1999 period due to the costs associated with increased staffing,
professional fees and advertising expenses.

GENERAL, ADMINISTRATIVE AND OTHER. These expenses increased by $2.3 million, or
264.0%, in 2000 due to increased staffing and professional fees at e-PROFILE, as
well as higher incentive pay.

INCOME TAX PROVISION. Taxes in the first quarter of 2000 were 32.0% of income
before income taxes, as compared to 36.0% in the same quarter last year. The
decrease is primarily due to the tax benefit derived from the foreign sales
corporation.


LIQUIDITY AND CAPITAL RESOURCES

Cash and cash equivalents were $31.8 million at March 31, 2000. Cash provided
by operating activities for the three months ended March 31, 2000 was $3,000
as compared to $4.4 million of cash used by operating activities during the
same period in 1999. Accounts receivable increased by $2.0 million in the
first quarter of 2000 primarily as a result of increased service revenues.
Income tax refund receivable increased by $746,000 as a net result of the
income tax benefit recognized in the first quarter of 2000, offset by the
receipt of refunds for prior periods. The above use of the cash was offset by
an increase in accounts payable and accrued expenses, deferred revenues and
stock based compensation. The Company continues to expect a certain amount of
variability in the payment timing for major contract milestones, which will
impact cash flow from operations during any given period.

During the first quarter of 2000, the Company used $1.2 million for investing
activities. The Company's use of cash was primarily dedicated to the purchase of
$1.3 million fixed assets due to increased staffing and equipment at the
e-PROFILE processing center.

Financing activities contributed $7.6 million of cash during the three months
ended March 31, 2000. The exercise of stock options during the first quarter of
2000 contributed $4.6 million and an investment in e-PROFILE from a venture
capital fund added $3.0 million in cash provided by financing activities.

The Company currently anticipates that cash generated from operations and
existing cash balances will be sufficient to satisfy its operating and
capital cash needs for the foreseeable future. Should the Company's business
expand more rapidly than expected, the Company believes that additional bank
credit, if necessary, would be available to fund such operating and capital
requirements.

The Company believes that its business is generally not seasonal; however, the
Company has historically experienced, and can be expected to continue to
experience, a certain degree of variability in its quarterly revenue, earnings
and cash flow patterns. This variability is typically driven by significant
events, which directly impact the recognition and billing of project-related
revenues. Examples of such events include the timing of new business contract
closings and the initiation of product and service fee revenue recognition,
one-time payments from existing clients relative to license expansion rights
(required to process a greater number of customer accounts or expand the number
of permitted users) and completion of implementation project roll outs and the
related revenue recognition. Because a high percentage of the Company's expenses
are relatively fixed, a variation in the timing of the initiation or the
completion of client projects, particularly at or near the end of any quarter,
can cause significant variations in operating results from quarter to quarter.
As noted earlier, however, the Company believes that over the course of time the
ongoing monthly revenue stream associated with the e-PROFILE outsourcing model
will result in more predictable quarter-to-quarter revenues.

FORWARD-LOOKING STATEMENTS

The Company's forward-looking statements about its revenues, earnings, market
predictions and business development have



                                       10
<PAGE>


been derived from its operating budgets and forecasts which are based upon
detailed assumptions about many important factors. Several important factors may
cause the Company's actual results to differ materially from those contemplated
by any forward-looking statements made by the Company. These factors include the
demand for products and services in the financial services industry, competition
among software and operational and technology outsourcing companies serving that
industry, the timing of new contract closings, the potential delays in the
implementation of products and services, the success of the Company's e-PROFILE
business model, e-PROFILE's limited operating history, the extent to which the
Internet will be used for financial services and products and other significant
events of revenue recognition affecting the Company's quarterly results, the
development of the top-tier and direct banking markets, market acceptance of the
Company's products and services within these markets, the Company's ability to
protect its intellectual property rights, the risks inherent in expansion, the
potential adverse impact of security breaches and the Company's ability to
continue to improve its products and services. Nothing in this Form 10-Q is
intended to constitute an offer to sell or solicit an offer to buy any
securities of e-PROFILE. The offering will be made only by means of prospectus
contained in a registration statement to be filed with the Securities and
Exchange Commission and will be sold through underwriters engaged by the
company.



                                       11
<PAGE>


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

INTEREST RATE RISK

The Company's exposure to market risk for changes in interest rates relate
primarily to the Company's cash equivalents. The Company does not have any
derivative financial instruments in its portfolio. The Company is averse to
principal loss and ensures the safety and preservation of its invested funds by
limiting default risk, market risk and reinvestment risk. The Company does not
expect any material loss with respect to its cash equivalents.

FOREIGN CURRENCY RISK

The Company does not use foreign exchange forward contracts. All contractual
arrangements with international customers are denominated in U.S. dollars.



                                       12
<PAGE>


                        SANCHEZ COMPUTER ASSOCIATES, INC.

PART II - OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

           (a)  Exhibits

                Exhibit 27 - Financial Data Schedule

           (b)  Reports on Form 8-K

                None

No other applicable items.



                                       13
<PAGE>


                                   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.

                                            SANCHEZ COMPUTER ASSOCIATES, INC.


                                             /s/  Thomas F. McElwee
                                             Thomas F. McElwee
                                             Senior Vice President and Chief
                                             Financial Officer

Date: May 15, 2000





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