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

                                   FORM 10-QSB

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

                  For the quarterly period ended March 31, 1999

                                       OR

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

              For the transition period from          to
                                             ---------   ---------

                         Commission File Number: 0-23952

                                   AVERT, INC.
        (Exact name of small business issuer as specified in its charter)

          Colorado                                        84-1028716
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization

                      301 Remington, Fort Collins, CO 80524
                    (Address of principal executive offices)

                                  970/484-7722
              (Registrant's telephone number, including area code)

                                    No Change
         (Former name, former address and former fiscal year, if changed
                               from last report).

     Check whether the registrant (1) 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 issuer was required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days.

                                [ X ] Yes [ ] No

As of May 10,  1999 the  issuer had  3,323,025  shares of Common  Stock,  no par
value, outstanding.

                 Transitional Small Business Disclosure Format.
                                [ ] Yes [ X ] No


<PAGE>

Form 10-QSB
Quarter Ended March 31, 1999


                                      INDEX


                                                                            PAGE
                                                                            ----
PART I - FINANCIAL INFORMATION

     ITEM 1.  Financial statements

              Unaudited balance sheets......................................  3

              Unaudited statements of income................................  4

              Unaudited statements of cash flows............................  5

              Notes to unaudited financial statements........................ 6

     ITEM 2.  Management's Discussion and Analysis or
              Plan of Operations............................................  7


PART II - OTHER INFORMATION

     ITEMS 1, 2, 3, 4, 5 and 6                                   Not applicable


     Signatures...........................................................   11










                                        2

<PAGE>

<TABLE>
<CAPTION>
                         PART I - FINANCIAL INFORMATION
                                   AVERT, INC.
                                 BALANCE SHEETS

                                     ASSETS

                                                               MARCH 31,     DECEMBER 31,
                                                                  1999          1998
                                                              (unaudited)
                                                               ---------     ----------
<S>                                                         <C>            <C>        
Current assets:
         Cash and cash equivalents .......................   $   494,000   $   531,000
         Marketable securities ...........................     6,078,000     6,006,000
         Accounts receivable, net of allowance ...........     1,147,000     1,061,000
         Prepaid expenses and other ......................       188,000       172,000
                                                             -----------   -----------
                  Total current assets ...................   $ 7,907,000     7,770,000

Property and equipment, net ..............................     2,998,000     3,138,000
Other assets .............................................         6,000             0
                                                             -----------   -----------
Total assets .............................................   $10,911,000   $10,908,000
                                                             ===========   ===========

                      LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
         Accounts payable ................................   $   481,000   $   297,000
         Accrued expenses ................................       104,000       119,000
         Deferred revenue ................................         3,000         5,000
                                                             -----------   -----------
                  Total current liabilities ..............       588,000       421,000

         Deferred Taxes ..................................       476,000       476,000
                                                             -----------   -----------
                  Total liabilities ......................   $ 1,064,000   $   897,000


Shareholders' equity:
         Preferred shares, no par value; authorized
           1,000,000 shares; none outstanding ............          --            --
         Common stock, no par value; authorized
           9,000,000 shares; 3,323,025 shares issued
           and outstanding ...............................     4,462,000     4,462,000
         Retained earnings ...............................     5,385,000     5,549,000
                                                             -----------   -----------
                  Total shareholders' equity .............   $ 9,847,000   $10,011,000
                                                             -----------   -----------

Total liabilities and shareholders' equity ...............   $10,911,000   $10,908,000
                                                             ===========   ===========
</TABLE>

               See accompanying notes to the financial statements.


                                       3
<PAGE>

<TABLE>
<CAPTION>


                                   AVERT, INC.
                              STATEMENTS OF INCOME
                                   (unaudited)

                                                         Three Months Ended
                                                              March 31,
                                                       -----------------------
                                                         1999           1998
<S>                                                  <C>            <C>  
Net revenues:
         Search and product fees .................   $ 2,416,000    $ 2,147,000
         Interest and other income ...............        76,000         86,000
                                                     -----------    -----------
                                                       2,492,000      2,233,000
Expenses:
         Search and product costs ................     1,099,000      1,042,000
         Marketing ...............................       349,000        379,000
         General and administrative ..............       343,000        353,000
         Software development ....................       132,000         73,000
         Depreciation and amortization............       149,000        111,000
                                                     -----------    -----------
                                                       2,072,000      1,958,000
                                                     -----------    -----------
Income before income taxes .......................       420,000        275,000

         Income tax expense ......................      (165,000)      (108,000)
                                                     -----------    -----------

Net income .......................................   $   255,000    $   167,000
                                                     ===========    ===========
Net income per common share ......................   $       .08    $       .05
                                                     ===========    ===========
Weighted average common
         shares outstanding ......................     3,323,024      3,546,124
                                                     ===========    ===========
</TABLE>









               See accompanying notes to the financial statements.



                                       4
<PAGE>

<TABLE>
<CAPTION>
                                   AVERT, INC.
                            STATEMENTS OF CASH FLOWS
                                   (unaudited)
                               THREE MONTHS ENDED
                                                                                          MARCH 31,
                                                                                     ------------------
                                                                                      1999         1998
<S>                                                                                <C>          <C>    
Cash Flows From Operating Activities:
    Net income .................................................................   $ 255,000    $ 167,000
    Adjustments to reconcile net income to net cash
      provided by operating activities:
         Depreciation and amortization .........................................     149,000      111,000
         Bad debt expense ......................................................      17,000       16,000
         Increase/(decrease) in marketable securities and
                  other gains ..................................................     (72,000)     (80,000)
         Changes in operating assets and liabilities:
              Accounts receivable ..............................................    (103,000)      73,000
              Prepaid expenses and other current assets ........................     (22,000)    (116,000)
              Accounts payable .................................................     184,000      210,000
              Accrued expenses .................................................     (21,000)     (70,000)
              Income taxes payable .............................................       6,000      108,000
              Deferred revenue and deposits ....................................      (2,000)      (1,000)
                                                                                   ---------    ---------
         Net cash provided by operating activities .............................   $ 391,000    $ 418,000

Cash Flows from Investing Activities:
     Additions to furniture and equipment ......................................      (9,000)    (215,000)
     Proceeds from sale of furniture and equipment .............................        --           --
                                                                                   ---------    ---------
           Net cash provided by investing activities ...........................      (9,000)    (215,000)
                                                                                   ---------    ---------
Cash Flows from Financing Activities:
         Purchase of Treasury Stock ............................................        --        (23,000)
         Dividends declared ....................................................    (419,000)     350,000
                                                                                   ---------    ---------
           Net cash provided by financing activities ...........................    (419,000)    (373,000)


Increase/(Decrease) in Cash and Cash Equivalents ...............................     (37,000)    (170,000)

Cash and Cash Equivalents, beginning of period .................................     531,000      580,000
                                                                                   ---------    ---------
Cash and Cash Equivalents, end of period .......................................   $ 494,000    $ 410,000
                                                                                   =========    =========
</TABLE>

               See accompanying notes to the financial statements.


                                       5
<PAGE>


                                   AVERT, INC.
                          NOTES TO FINANCIAL STATEMENTS


     The financial information  contained herein is unaudited,  but includes all
adjustments (consisting of only normal recurring accruals) which, in the opinion
of management,  are necessary to present fairly the information  set forth.  The
financial  statements  should be read in conjunction with the Notes to Financial
Statements which are included in the Annual Report on Form 10-KSB of the Company
for the year ended December 31, 1998.

     The results for interim periods are not  necessarily  indicative of results
to be expected for the fiscal year of the Company ending  December 31, 1999. The
Company   believes  that  the  three  month  report  filed  on  Form  10-QSB  is
representative of its financial position, its results of operations and its cash
flows as of and for the periods ended March 31, 1999 and 1998 covered thereby.

     "The Company" or "Avert" is used in this report to refer to Avert, Inc. The
Company may from time to time make written or oral  forward-looking  statements,
including  statements contained in the Company's filings with the Securities and
Exchange  Commission and its reports to shareholders.  This document may contain
forward-looking   statements  that  are  made  pursuant  to  the  "safe  harbor"
provisions  of the  Private  Securities  Litigation  Reform  Act of 1995.  These
statements include,  without  limitation,  statements relating to Avert's growth
and business  strategies,  regulatory  matters affecting Avert,  other plans and
objectives of Avert, management for future operations and activities,  expansion
and growth of Avert's  operations and other such matters.  The words "believes,"
"expects,"  "intends,"  "strategy,"  "considers"  or  "anticipates"  and similar
expressions identify forward-looking  statements. The Company does not undertake
to update, revise or correct any of the forward-looking information.

New  Pronouncement.  SFAS No. 133,  "Accounting  for Derivative  Instruments and
Hedging  Activities,"  was  issued  in June  1998.  This  statement  establishes
accounting and reporting  standards for derivative  instruments  and for hedging
activities.  It requires  that an entity  recognize  all  derivatives  as either
assets or liabilities  in the statement of financial  position and measure those
instruments  at fair  value.  This  statement  is  effective  for the  Company's
financial  statements  for the year ended June 30, 2001 and the adoption of this
standard is not expected to have a material  effect on the  Company's  financial
statements.

SFAS No. 132,  "Employers'  Disclosures about Pensions and Other  Postretirement
Benefits,"  was issued in February 1998.  This statement  revises the disclosure
requirement for pensions and other  postretirement  benefits.  This statement is
effective for the  Company's  financial  statements  for the year ended June 30,
1999 and the adoption of this standard is not expected to have a material effect
on the Company's financial statements.

SFAS  No.  131,  "Disclosures  about  Segments  of  an  Enterprise  and  Related
Information," was issued in June 1997. This statement  establishes standards for
the way public business enterprises report information about operating segments.
It  also  establishes  standards  for  related  disclosure  about  products  and
services,  geographical  areas and major customers.  This statement is effective
for the company's financial  statements for the year ended June 30, 1999 and the
adoption  of this  standard  is not  expected  to have a material  effect on the
Company's financial statements.

SFAS No. 130,  "Reporting  Comprehensive  Income" was issued in June 1997.  This
statement  establishes  standards  for  reporting  and display of  comprehensive
income, its components and accumulated balances. Comprehensive income is defined
to include all changes in equity  except those  resulting  from  investments  by
owners and  distributions  to owners.  Among other  disclosures,  Statement  130
requires that all components of  comprehensive  income shall be classified based
on their nature and shall be reported in the financial  statements in the period
in which they are recognized.  A total amount for comprehensive  income shall be
displayed  in  the   financial   statements   where  the   components  of  other
comprehensive income are reported. This statement is effective for the Company's
financial  statements  for the year ended June 30, 1999 and the adoption of this
standard is not expected to have a material  effect on the  Company's  financial
statements.



                                       6
<PAGE>


ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


Results of Operations

Comparison of quarters ended March 31, 1999 and March 31, 1998

     Total net revenues  increased  from  $2,233,000  for the three month period
ended March 31, 1998 to $2,492,000 for the comparable three month period in 1999
or approximately 11.6%. This increase was primarily due to the overall growth of
its customer  base and their use of its criminal  history  products.  There were
5701 customers that actually used Avert services the first three months of 1999,
as compared to 4,574 the first three months of 1998, representing  approximately
a 24.6% increase.  However,  the dollars spent per customer in the first quarter
1999 was $424 as compared to $456 in the first quarter 1998,  representing  a 7%
decrease.   The  Company  believes  that  there  continues  to  be  a  very  low
unemployment rate job market where there are substantially  fewer job applicants
to screen than in a higher  unemployment  rate job market.  The sales categories
that  experienced  the largest  increases  had quick  turnaround,  and addressed
employers' need to fill positions quickly in the current job market.

     Another key element in the improved  first quarter 1999 revenue  growth was
that  the  Company  was  able  to  focus  on  obtaining   customers,   implement
improvements  in order  processing,  and other  features and  enhancements  made
possible by the new computer system implemented in April, 1998. The breakdown of
net  revenues,  exclusive of product  discounts and other  miscellaneous  income
items, is as follows:

<TABLE>
<CAPTION>

                                      Three Months Ended           Three Months Ended
                                        March 31, 1999               March 31, 1998        Percent of
                                     --------------------          --------------------     Increase
                                     Revenues     % total          Revenues     % total    (Decrease)
                                     --------     -------          --------     -------    ---------
<S>                                <C>              <C>          <C>             <C>        <C>  
Products:
  Workers compensation histories   $  205,000       8.2%         $  242,000      10.8%      (15.3)%
  Criminal history reports .....   $1,404,000      56.3%         $1,115,000      49.9%       25.9%
  Previous employment reports/ .   $  241,000       9.7%         $  296,000      13.3%      (18.6)%
     credit reports
  Motor vehicle driving records    $  282,000      11.3%         $  251,000      11.2%       12.4%
  Other products ...............   $  125,000       6.5%         $  118,000       5.3%        5.9%
Services: ......................   $  187,000       5.0%         $  125,000       5.6%       49.6%

Interest income ................   $   74,000       3.0%             84,000       3.8%      (11.9)%


         NET REVENUES ..........   $2,492,000                    $2,233,000                  11.6%

</TABLE>

     The largest  product  growth of  approximately  25.9%  occurred in Criminal
history reports.  This product line accounted for  approximately  56.3% of total
net  revenues  in three  month  period  ended  March 31,  1999,  as  compared to
approximately  49.9%  in the same  three  month  period  of  1998.  The  product
contributed  $1,404,000  to total net  revenues in the first  quarter  1999,  as
compared to  $1,115,000  to total new revenues in the first  quarter  1998.  The
Company believes there continues to be a trend  nationwide to check  prospective
employees' criminal records and it continues to focus on obtaining the quickest,
most accurate data available.

     Motor vehicle  driving  records  enjoyed an  approximate  12.4% increase in
total net  revenues  from the first three months of 1998 as compared to the same
period in 1999. Internal  enhancements  specific to this product line, improving
turnaround time were implemented in first quarter 1999, positively impacting the
customer base in their quest for quicker hiring decisions.



                                       7
<PAGE>


     There was approximately  18.6% decrease in growth for revenues generated in
the  areas  of  education/credential  verification  and  credit  reports,  which
decreased  from  $296,000 in the first  quarter of 1998 to $241,000 in the first
quarter of 1999. This was primarily a result of a change of ordering behavior of
the  Company's  largest  customer  to  other  products  shown  above  in  "Other
Products".  In  addition,  there was an  increase as a  percentage  of total net
revenues of approximately 5.9% in "Other Products", representing $118,000 in the
three month period of 1998, and $125,000 in the three month period of 1999. This
increase was primarily due to a new product  called Instant  Address Link,  just
introduced  in first quarter  1999.  Through its links with the service  bureaus
this  products  offers an address  locator  service that  identifies up to three
known  addresses  for an  applicant,  based on  social  security  number  usage.
Customers can match the findings of the report with information  provided by the
applicant.  Additionally,  Instant Address Link "builds" a ready to go order for
criminal  records  searches that match the addresses  identified.  Customers can
order the criminal records on-line with just a click of the mouse.

     Workers' compensation histories continued to decline as a percentage of net
revenues as previously  predicted.  In first quarter, 1998 workers' compensation
reports,  represented $242,000 or approximately 10.8% of total net revenues,  as
compared to $205,000 for the first three months of 1999, or  approximately  8.2%
of total net  revenues.  The Company  believes it will continue to decrease as a
percentage of total net revenues.

     Service sales experienced  approximately 49.6% revenue growth from $125,000
in the three  month  period  ended March 31, 1998 to $187,000 in the three month
period ended March 31, 1999.  This is  primarily  attributable  to growth of the
customer base  membership in the Avert Advantage  program,  which increased from
$57,000 in revenues for the first quarter 1998 to $107,000 for the first quarter
in 1999.

     Income before income taxes  increased  from $275,000 in first quarter 1998,
to  $420,000  in first  quarter  1999 or  approximately  52.7%  and  represented
approximately  12.3% in 1998, as compared to  approximately  16.9% in 1999.  The
Company  believes  that  decreases in some expense  areas and  relatively  small
increases in other expense  categories was a direct result of increased internal
efficiencies  and capacity made possible by the new computer system  implemented
in April 1998.

     Total  expenses,  when  expressed  as a percentage  of total net  revenues,
decreased  from  approximately  87.7% in the first  quarter  1998,  representing
$1,958,000  to  approximately  83.1  in  the  first  quarter  1999  representing
$2,072,000. A breakdown in expenses is as follows:

<TABLE>
<CAPTION>
                                                Three Months Ended         Three Months Ended       Increase (Decrease)
                                                  March 31, 1999             March 31, 1998            % of Revenues
                                             ------------------------   ------------------------    ------------------
                                             Expenses    % of Revenue   Expenses    % of Revenue      1999 over 1998

<S>                                         <C>              <C>       <C>              <C>               <C> 
Search and product ......................   $1,099,000       44.0%     $1,066,000       47.7%             (3.7)%
Marketing ...............................      349,000       14.0         443,000       19.8              (5.8)
General and administration ..............      343,000       13.8         265,000       11.9               1.9
Software development ....................      132,000        5.3          73,000        3.3               2.0
Depreciation and amortization ...........      149,000        6.0         111,000        5.0               1.0
                                            ----------      -----      ----------      -----              ---- 

         Expenses .......................   $2,072,000       83.1%     $1,958,000       87.7%             (4.6)%
                                            ==========      -====      ==========      =====              ====
</TABLE>


                                       8
<PAGE>


     Search and product fees decreased approximately 3.7% as a percentage of net
revenues in the first quarter 1999 over the first quarter 1998.  The majority of
the decrease was attributable to the improved automation of the Company's supply
chain,  specifically  decreasing costs of obtaining criminal history information
from sources. Despite the level of increased product growth mentioned above, the
Company  was able to only  increase  head  count in the  operations  area by 1.5
full-time  equivalents in first quarter 1999, as compared to first quarter 1998.
This was also due to improved  internal  efficiencies  brought  about by the new
computer system.

     There  was an  approximate  5.8%  decrease  as a  percentage  of total  net
revenues in marketing expenses, in the first three months of 1999 as compared to
the first three months of 1998.  This resulted  primarily from a decrease in 1.7
full-time equivalents,  as well as decreased use of outside marketing consulting
in the first quarter 1999 as compared to first quarter 1998.  Additionally,  the
company has reduced  expenditures in certain lead generation  activities such as
yellow pages  advertising  and  broadcast  fax as it  transitions  its marketing
activities to web-based  lead  generation  programs.  Examples of web-based lead
generation   activities  include  web  site  links  with  other  human  resource
providers,  banner advertisements,  listings on Internet portals, email messages
sponsored by human resource publications, and additional information services on
our own web site.

     General and Administrative expenses increased slightly in first three-month
period  ended  March 31,  1999,  representing  approximately  13.8% of total net
revenues,  as  compared  to the first  three-month  period  ended March 31, 1998
representing 11.9% of total net revenues.

     As predicted, there was an increase in software development and maintenance
expenses expressed as a percentage of total net revenues from approximately 5.3%
in first quarter 1999 to  approximately  3.3% in the comparable  period of 1998.
The primary reason for the increase is that personnel costs directly  associated
with the development and  implementation of the computer system were capitalized
with the software  project in the first three months of 1998, but all costs were
expensed in the first three  months of 1999.  The Company  continues to focus on
making technology its strategic  advantage in its relationships  with customers,
partners and suppliers.  There was an increase in depreciation  and amortization
expenses  when   expressed  as  a  percentage   of  total  net  revenues,   from
approximately  5.0% in the first three months of 1998, to approximately  6.0% in
the comparable period of 1999. The increase was due to the increased capitalized
costs  associated  with the  software  development  project,  which  were  fully
amortized in first quarter 1998, and expensed in 1999.

     Income  taxes  for the  combined  federal  and  state  statutory  rate  was
approximately  39% in first  quarter  1999 and  approximately  34% in the  first
quarter  1998.  The  result  was net  income  of  $255,000  or $.08 per share on
3,323,024 shares (weighted average shares plus common stock equivalents) for the
first three months  ended March 31, 1999,  as compared to net income of $182,000
or $.05 per share on 3,366,320 shares (weighted average shares plus common stock
equivalents) for the first three months ended March 31, 1998.


Liquidity and Capital Resources

     The Company's  financial  position at March 31, 1999  remained  strong with
working  capital at that date of  $7,319,000  compared to $7,349,000 at December
31,1998.  Cash and cash equivalents and marketable  securities at March 31, 1999
were  $6,572,000  and increased  from  $6,537,000 at December 31, 1998. Net cash
provided  from  operations  for the three month  period ended March 31, 1999 was
$391,000 and consisted primarily of net income of $255,000,  a $103,000 increase
in accounts receivable, and a $184,000 increase in accounts payable. The Company
had capital  expenditures  of $9,000 for the three month  period ended March 31,
1999 as compared to $215,000  for the three  months  ended March 31,  1998.  The
majority of the capital  expenditures  during the three  months  ended March 31,
1998 was attributable to the development of new software and upgrade of existing
hardware and software  implemented  in April,  1998.  Net cash used in financing
activities  for the three month  period  ended March 31, 1999 was  $419,000  and
consisted of a cash  dividend of $.12 per common share payable on March 24, 1999
to shareholders of record on March 15, 1999.







                                       9
<PAGE>



                           PART II - OTHER INFORMATION


ITEM 1.   Legal Proceedings

          NONE


ITEM 6.   Exhibits and Reports on Form 8-K

          (a)   NONE

          (b)   NONE














                                       10
<PAGE>


                                   SIGNATURES


In accordance with 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.


                                       AVERT, INC.


DATE:   May 11, 1999                   BY: /s/ Dean A. Suposs
                                          --------------------------------------
                                          Dean A. Suposs, President



DATE:   May 11, 1999                   BY: /s/ Jamie M. Burgat
                                          --------------------------------------
                                          Jamie M. Burgat, Vice President of
                                          Operations and Chief Financial Officer








                                       11