U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10QSB

(Mark One)

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

                 For the quarterly period ended March 31, 2001.

         [ ]      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                      EXCHANGE ACT

 For the transition period from ______________________ to ______________________

                         Commission file number 0-23858

                                 E.MERGENT, INC.

        (Exact name of small business issuer as specified in its charter)

Delaware                                              41-1726281
(State or other jurisdiction of                     (IRS Employer
incorporation or organization)                      Identification No.)

                             5960 Golden Hills Drive
                             Golden Valley, MN 55416
                    (Address of principal executive offices)

                                 (763) 542-0061
                           (Issuer's telephone number)

         Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
                                                                      ---    ---

                      APPLICABLE ONLY TO CORPORATE ISSUERS

         State the number of shares outstanding of each of the issuer's classes
of common equity, as of April 20, 2001: 5,780,441


Transitional Small Business Disclosure Format (check one):   Yes     No X
                                                                ---    ---


<PAGE>


                         PART 1 -- FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
                                 E.MERGENT, INC.
                  INTERIM CONDENSED BALANCE SHEETS - UNAUDITED
<TABLE>

                                                                                             MARCH 31,        DECEMBER 31,
                                                                                               2001               2000
                                                          ASSETS
<S>                                                                                       <C>                     <C>
Current assets
   Cash and cash equivalents..........................................................                            $1,230
   Accounts receivable, less allowance for doubtful accounts of  $180,264 on March 31,
     2001 and $150,000 on December 31, 2000...........................................    3,952,557            4,947,997
   Other receivables..................................................................       21,084               21,084
   Income tax receivable..............................................................       40,000                5,741
   Inventories (Note 4) ..............................................................    4,170,540            4,464,219
   Deferred income taxes..............................................................      460,000              460,000
   Prepaid expenses...................................................................      171,274              128,572
                                                                                      -------------           ----------
     Total current assets.............................................................    8,815,455           10,028,843

Property and equipment
   Office and computer equipment......................................................      803,057              780,446
   Machinery and equipment............................................................      329,377              329,378
   Tooling............................................................................      758,053              758,053
   Leasehold improvements.............................................................       59,100               59,100
                                                                                      -------------           ----------
   Total equipment....................................................................    1,949,587            1,926,977
       Less accumulated depreciation..................................................   (1,394,651)          (1,302,087)
                                                                                      --------------          -----------
       Net property and equipment.....................................................      554,936              624,890

Other assets
   Goodwill, net......................................................................    1,097,845            1,130,782
   Noncompete, net....................................................................      645,833              661,458
   Patents, net.......................................................................      114,286              121,429
   Notes receivable from Medcam.......................................................       69,000               78,000
   Investment in Medcam...............................................................      150,000              150,000
   Other..............................................................................                            15,000
                                                                                      -------------         ------------
       Total other assets.............................................................    2,076,964            2,156,669

       Total assets...................................................................  $11,447,355          $12,810,402
                                                                                      =============         ============

                                             LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
   Accounts payable...................................................................     $952,653           $2,112,247
   Bank line of credit (Note 3).......................................................      876,811            1,146,811
   Current maturities of unearned maintenance contracts...............................      531,652              703,073
   Current maturities of long-term debt...............................................      194,253              194,253
   Customer deposits and other liabilities............................................      175,416              102,064
   Accrued compensation...............................................................      259,700              244,359
   Reserves and other.................................................................      171,912              152,777
                                                                                      -------------           ----------
     Total current liabilities........................................................    3,162,397            4,655,584
Long-term debt, net of current maturities.............................................      608,008              654,136
Unearned maintenance contracts, net of current maturities.............................      500,359              232,488
Deferred income taxes.................................................................       41,431               78,000

Stockholders' equity
   Common stock, $.01 par value; Authorized 20,000,000 shares issued and outstanding,
   5,774,378 shares at March 31, 2001 and 5,760,440 shares at December 31, 2000.......       57,744               57,604
   Additional paid in capital.........................................................    7,703,654            7,698,793
   Accumulated deficit................................................................     (626,238)            (566,203)
                                                                                      -------------           -----------
     Total stockholders' equity.......................................................    7,135,160            7,190,194
                                                                                      -------------           ----------
       Total liabilities and stockholders' equity.....................................  $11,447,355          $12,810,402
                                                                                      =============          ===========
</TABLE>




                                     Page 2
<PAGE>


             INTERIM CONDENSED STATEMENTS OF OPERATIONS - UNAUDITED

<TABLE>
<CAPTION>
                                                             THREE MONTHS ENDED
                                                             ------------------
                                                                   MARCH 31
                                                                   --------
                                                          2001                 2000
                                                          ----                -----

<S>                                               <C>                  <C>
Sales.............................................$     4,923,661      $   4,660,821
Cost of goods sold................................      3,132,874          2,906,624
                                                  ---------------      -------------
Gross profit......................................      1,790,787          1,754,197
Selling, general and administrative expenses......      1,848,562          1,578,417
                                                  ---------------      -------------
Operating income (loss)...........................        (57,775)           175,780
Other expense, net................................        (42,260)           (23,144)
Income tax benefit................................         40,000
                                                  ---------------      -------------
Net income (loss).................................$       (60,035)     $     152,636
                                                  ================     =============

Basic earnings (loss) per common share............         ($0.01)             $0.03

Weighted average shares outstanding...............      5,774,378          5,747,940

Diluted earnings (loss) per common share..........         ($0.01)             $0.03

Diluted shares outstanding........................      5,774,378          6,123,603
</TABLE>



              INTERIM CONDENSED STATEMENTS OF CASH FLOWS- UNAUDITED

<TABLE>

                                                                            THREE MONTHS ENDED
                                                                                  MARCH 31
                                                                                  --------
                                                                       2001                     2000
                                                                       ----                     ----
<S>                                                                <C>                      <C>
Cash flows from operations:
     Net cash from (used for) operations........................   $332,508                 $(218,068)

Cash flows from investing:
     Capital expenditures.......................................    (22,610)                  (38,898)
     Investment in Medcam Technology, Inc.......................                             (150,000)
                                                                 ----------               ------------
     Net cash used for investing................................    (22,610)                 (188,898)

Cash flows from financing:
     Issuance of common stock and warrants......................     11,500                   119,480
     Borrowings on bank line of credit, net.....................   (270,000)                  382,954
     Payments on capital leases.................................     (4,919)                  (13,829)
     Term note payable..........................................    (41,209)
     Repurchase of common stock and warrants....................     (6,500)
                                                                 -----------              -----------
       Net cash from (used for) financing.......................   (311,128)                  488,605
                                                                 -----------              -----------

Net increase (decrease) in cash and cash equivalents............     (1,230)                   81,639

Cash and cash equivalents at beginning of period................      1,230                   212,435
                                                                 ----------               -----------

Cash and cash equivalents at end of period......................         $0                  $294,074
                                                                 ==========               ===========
</TABLE>



                                     Page 3
<PAGE>




FOOTNOTES TO CONDENSED FINANCIAL STATEMENTS

NOTE 1.  BASIS OF PRESENTATION

         The condensed balance sheets as of March 31, 2001, the condensed
statements of operations and the condensed statements of cash flows for the
three-month periods ended March 31, 2001 and 2000 have been prepared by the
Company without audit. In the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present fairly the
financial position, results of operations, and cash flows at March 31, 2001 and
2000 have been made.

         Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested these condensed
financial statements be read in conjunction with the financial statements and
notes thereto included in the Company's December 31, 2000 Annual Report to
Shareholders. The results of operations for the periods ended March 31 are not
necessarily indicative of the operating results for the entire year.

NOTE 2.  INCOME PER COMMON SHARE

         Basic earnings per share is computed by dividing net income by the
weighted average number of shares of common stock outstanding during the year.
Diluted earnings per common share is similar to the computation of basic
earnings per share, except that the denominator is increased for the assumed
exercise of dilutive options using the treasury stock method. Stock options and
warrants of 222,252 were not used in the 2001 calculation because their impact
would have been anti-dilutive due to the net loss incurred for the period. The
components of the earnings per share are as follows:

                                                      THREE MONTHS ENDING
                                                           MARCH 31,
                                                     2001              2000
                                                     ----              ----

Weighted average common shares outstanding for
      Basic earnings per share                     5,774,378         5,747,940
Effect of dilutive securities:
      Stock Options and Warrants                                       375,663
                                                   ---------        ----------

Shares used in diluted earnings per share          5,774,378         6,123,603
                                                   =========         =========

NOTE 3.  LINE OF CREDIT

         At March 31, 2001, the Company has available a $2,750,000 bank
revolving note, secured by substantially all assets, that expires April 30,
2002. Interest is computed on actual days elapsed, at an annual rate equal to
the prime rate as quoted by THE WALL STREET JOURNAL. At March 31, 2001 the
interest rate was 8%. The note is payable on demand. The terms of the note
require the Company to maintain certain financial ratios. The Company was in
compliance with all covenants as of March 31, 2001. The amount outstanding under
the note was $876,811 at March 31, 2001.

NOTE 4.  INVENTORY
<TABLE>

<S>                                                          <C>                    <C>
        Inventories consisted of the following on:           MARCH 31, 2001         DECEMBER 31, 2000
        Materials                                              $1,762,888              $1,695,726
        Work-in-process                                           571,428                 515,884
        Finished goods, including demonstration units           1,836,224               2,252,609
                                                                ---------               ---------
                                                               $4,170,540              $4,464,219
                                                               ==========               =========
</TABLE>



                                     Page 4
<PAGE>

NOTE 5.  SEGMENT INFORMATION

         The Company classifies its businesses into two segments: Products
Division (Videolabs), which designs, manufactures, and markets
collaboration-based peripherals; and Services Division (ACS), which specializes
in the design, installation, support, and service of multimedia systems.

         Information concerning the Company's operations by segment is presented
below.

<TABLE>

                                                  Products          Services
                                                  Division          Division         Corporate        Consolidated
THREE MONTHS ENDED MARCH 31, 2001:

<S>                                              <C>             <C>              <C>               <C>
          Sales                                  $  2,197,031    $   2,726,630                       $    4,923,661
          Cost of sales                             1,426,159        1,706,715                            3,132,874
                                                 ------------    -------------                       --------------
          Gross profit                                770,872        1,019,915                            1,790,787
          Operating expenses                          614,551          785,890     $     448,121          1,848,562
                                                 ------------    -------------     -------------     --------------
          Operating income (loss)                $    156,321    $     234,025     $    (448,121)    $      (57,775)
                                                 ============    =============     =============     ===============

          Depreciation and amortization          $      7,143    $      19,915     $     121,271     $      148,329
                                                 ============    =============     =============     ==============

THREE MONTHS ENDED MARCH 31, 2000:

          Sales                                  $  2,626,288    $   2,034,533                       $    4,660,821
          Cost of sales                             1,605,696        1,300,928                            2,906,624
                                                 ------------    -------------                       --------------
          Gross profit                              1,020,592          733,605                            1,754,197
          Operating expenses                          491,670          645,397     $     441,350          1,578,417
                                                 ------------    -------------     -------------     --------------
          Operating income (loss)                $    528,922    $      88,208     $    (441,350)    $      175,780
                                                 ============    =============     =============     ==============

          Depreciation and amortization          $      7,143    $      16,373     $     125,395     $      148,911
                                                 ============    =============     =============     ==============
</TABLE>



                                     Page 5
<PAGE>




ITEM 2:  MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

         As provided under the Private Securities Reform Act of 1995, the
Company wishes to caution investors of the following factors which could affect
the Company's results of operations and cause such results to differ materially
from those anticipated in forward-looking statements made in this document or
elsewhere by or on behalf of the Company: sales projections, technology changes,
new competitors, reduced current cost for items in inventory, changes in
currency valuations, government regulations and ongoing litigation.

         Sales for the quarter ended March 31, 2001 were $4,923,661 compared to
$4,660,821 for the first quarter of 2000, an increase of 6%. This increase is
attributed to an increase in sales in the Company's services division, Acoustic
Communication Systems (ACS). The Company's services division had an increase of
34%, while the Company's products division, VideoLabs had a decrease of 16% when
compared to the first quarter of 2000. Export sales of the products division
decreased 44% from approximately $925,000 in the first quarter of 2000 to
$518,000 in the first quarter on 2001. To promote international business the
Company has recently opened a distribution facility near Rotterdam, The
Netherlands. The Company began shipments on April 9, 2001 of its entire product
line to its European resellers. The Company believes that maintaining an
inventory overseas will allow the Company to provide customers with decreased
shipping charges and quick turn around times for better customer satisfaction.

         Gross margins of the Company are determined by deducting from sales all
materials, labor, packaging, manuals and overhead costs which are directly
attributable to the cost of manufacture and shipment of the Company's products.
Commission costs related to the sales of products are not included in cost of
goods, but are included in selling expenses. The Company's gross margin on sales
during the first quarter of 2000 was $1,754,197 or 38% as compared to $1,790,787
or 36% for the first quarter of 2001. This gross margin decrease is a result of
lower margin OEM and distributor customer sales along with higher material costs
due to warranty of service and maintenance contracts. The Company has a goal to
maintain gross margins in the 40% range, but there is no assurance that it will
be able to do so.

         Selling, general and administrative expenses include all costs of the
Company except those related directly to the manufacture of products described
above and other income and expense items below. These expenses increased from
$1,578,417 in the first quarter of 2000 to $1,848,562 in the first quarter of
2001. This increase is related to the Company's efforts to invest in sales and
marketing expenses related to new product introductions, additional sales staff,
and tradeshows.

         Operating loss for the first quarter of 2001 was $57,775 compared to
operating income of $175,780 for the same period in 2000. This decrease in
operating income is a result of the above mentioned decrease in gross margin
combined with the increase in selling, general and administrative expenses.
Earnings before interest, taxes, depreciation and amortization was $90,554 in
the three month period ending March 31, 2001.

         Other expenses for the first quarter consisted of interest expense on
the Company's line of credit and note payable.

         Net loss for the first quarter of 2001 was $60,035 compared to net
income of $152,636 for the first quarter of 2000. During the quarter an income
tax benefit of $40,000 was recognized as management believes that the loss will
be used to offset future taxable income.

LIQUIDITY AND CAPITAL RESOURCES

         Net cash provided by operating activities totaled $332,508 for the
three months ended March 31, 2001 compared to cash used for operating activities
of $218,068 for the three months ended March 31, 2000. This increase in cash
provided by operating activities is mainly attributed to the decrease of
receivables and inventory partially offset by the reduction of accounts payable.


                                     Page 6
<PAGE>


         Net cash used for investing activities totaled $22,610 for the three
months ended March 31, 2001 compared to cash used for investing activities of
$188,898 for the three months ended March 31, 2000.

         Net cash provided by financing activities in the first three months of
2000 was $488,605 compared to the cash used for financing activities in the
first three months of 2001 was $311,128. This decrease in net cash provided by
financing activities is attributable to the pay down of the line of credit and
note payable.

         During the first three months of 2001 certain option-holders exercised
a total of 11,000 options. The Company received a total of $11,500 in proceeds
from the exercise of these options.

         The board of directors of the Company approved in March of 1997 a stock
buy back of 100,000 shares and in May of 1998 a stock buy back of another
100,000 shares. In November 1998, the Company's Board of Directors approved a
third stock buy back of up to 1,000,000 shares of the Company's common stock.
The Company has repurchased approximately 400,000 shares of the Company's common
stock in private and public transactions under these authorizations and retired
all shares repurchased. Approximately 800,000 shares are available for
repurchase at March 31, 2001 under these authorizations.

         Working capital, which consists principally of cash, receivables and
inventories, was $5,653,058 at March 31, 2001 and $5,373,259 at December 31,
2000. The ratio of current assets to current liabilities was 2.8:1 at March 31,
2001 and 2.2:1 at December 31, 2000.

                           PART II--OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS
None.

ITEM 2.  CHANGES IN SECURITIES
None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES
None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None

ITEM 5.  OTHER INFORMATION
None

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
None


         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                   E.MERGENT, INC.

Date:   May 14, 2001               By:    /s/  James Hansen
      ---------------                     -----------------
                                          James W. Hansen
                                          President, CEO, Treasurer and Chairman



                                     Page 7