<PAGE>

                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   ----------

                                    FORM 10-Q

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

                  For the Quarterly Period Ended June 30, 2001

                                       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 0-20095


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

           DELAWARE                                             95-3825313
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                              Identification No.)


            12636 High Bluff Drive, San Diego, California 92130-2093
           (Address of principal executive office, including zip code)

                                 (858) 794-3789
              (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                  YES  X                          NO
                      ----                           ---

Indicate the number of shares outstanding of each of the registrant's classes of
common stock as of August 3, 2001.

Common Stock, par value $0.001 per share                        6,867,648 shares

<PAGE>

                                  PREVIO, INC.



                                      INDEX


PART I.          FINANCIAL INFORMATION

        Item 1.  Financial Statements                                      Page
                                                                           ----
                 Condensed Consolidated Balance Sheets
                        as of June 30, 2001 (unaudited) and
                        September 30, 2000                                   3

                 Condensed Consolidated Statements of
                        Operations for the three and nine months
                        ended June 30, 2001 and 2000, (unaudited)            4

                 Condensed Consolidated Statements of Cash
                        Flows for the nine months ended
                        June 30, 2001 and 2000, (unaudited)                  5

                 Notes to Unaudited Condensed Consolidated Financial
                        Statements                                           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                                      14


PART II.         OTHER INFORMATION

        Item 1.  Legal Proceedings                                          15

        Item 2.  Changes in Securities and Use of Proceeds                  15

        Item 3.  Defaults Upon Senior Securities                            15

        Item 4.  Submission of Matters to a Vote of Security Holders        15

        Item 5.  Other Information                                          15

        Item 6.  Exhibits and Reports on Form 8-K                           15

SIGNATURES                                                                  16

                                       2
<PAGE>

                                  PREVIO, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (IN THOUSANDS)

                                     ASSETS

                                                       June 30,    September 30,
                                                         2001           2000
                                                      ---------      ---------
                                                     (UNAUDITED)

Current assets:
     Cash and cash equivalents                        $ 21,676       $ 17,862
     Marketable securities                               1,982         11,872
     Accounts receivable                                   374          1,455
     Other current assets                                1,156            220
                                                      ---------      ---------
         Total current assets                           25,188         31,409

Property and equipment, net                              1,486          1,723
Other assets                                               295            344
                                                      ---------      ---------
                                                      $ 26,969       $ 33,476
                                                      =========      =========


                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Accounts payable                                 $    960       $    855
     Deferred revenue                                      455            921
     Accrued expenses and other
       current liabilities                               2,586          3,773
                                                      ---------      ---------
         Total current liabilities                       4,001          5,549

Other liabilities                                           17             17
                                                      ---------      ---------
                                                         4,018          5,566
                                                      ---------      ---------

Stockholders' equity
     Common stock at par value                               9              9
     Additional paid in capital                         80,245         80,081
     Treasury stock                                    (41,347)       (41,347)
     Cumulative translation adjustment                     (55)           (70)
     Accumulated deficit                               (15,901)       (10,763)
                                                      ---------      ---------
         Total stockholders' equity                     22,951         27,910
                                                      ---------      ---------
                                                      $ 26,969       $ 33,476
                                                      =========      =========

See accompanying notes to unaudited condensed consolidated financial statements

                                       3
<PAGE>
<TABLE>

                                            PREVIO, INC.
                           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                              (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                             (UNAUDITED)

<CAPTION>

                                                  Three Months Ended            Nine Months Ended
                                                       June 30,                      June 30,
                                                       --------                      --------
                                                  2001           2000           2001           2000
                                                  ----           ----           ----           ----
<S>                                            <C>            <C>            <C>            <C>
Net revenues                                   $  1,628       $  1,096       $  5,409       $  6,358

Cost of revenues                                    196            143            530            849
                                               ---------      ---------      ---------      ---------

Gross margin                                      1,432            953          4,879          5,509
                                               ---------      ---------      ---------      ---------

Operating expenses:
    Research and development                        943          1,279          2,959          3,793
    Sales and marketing                           2,285          2,891          6,083          7,368
    General and administrative                      758            928          2,116          2,144
                                               ---------      ---------      ---------      ---------

        Total operating expenses                  3,986          5,098         11,158         13,305
                                               ---------      ---------      ---------      ---------

Operating loss                                   (2,554)        (4,145)        (6,279)        (7,796)

Interest income                                     273            473          1,141          1,303
                                               ---------      ---------      ---------      ---------

Loss before income taxes                         (2,281)        (3,672)        (5,138)        (6,493)

Benefit from income taxes                             -              -              -            (62)
                                               ---------      ---------      ---------      ---------

Net loss                                       $ (2,281)      $ (3,672)      $ (5,138)      $ (6,431)
                                               =========      =========      =========      =========


Loss per common share, basic and diluted:      $  (0.33)      $  (0.56)      $  (0.75)      $  (1.02)

Weighted average common shares,
         basic and diluted                        6,863          6,503          6,851          6,288


Net loss                                       $ (2,281)      $ (3,672)      $ (5,138)      $ (6,431)
Cumulative translation adjustment                     6             46             15             49
                                               ---------      ---------      ---------      ---------

Comprehensive loss                             $ (2,275)      $ (3,626)      $ (5,123)      $ (6,382)
                                               =========      =========      =========      =========
</TABLE>

See accompanying notes to unaudited condensed consolidated financial statements

                                       4
<PAGE>

                                  PREVIO, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (IN THOUSANDS; UNAUDITED)


                                                           Nine Months Ended
                                                                June 30,
                                                                --------
                                                           2001          2000
                                                           ----          ----
Cash flows from operating activities:
     Net loss                                           $ (5,138)      $ (6,431)
     Adjustments required to reconcile net loss
        to net cash used by operating activities:
        Depreciation and amortization                        749            977
        Stock-based compensation                             (25)            57
     Changes in assets and liabilities:
        Accounts receivable                                1,081          1,861
        Inventories                                            -            240
        Other assets                                        (917)          (222)
        Accounts payable                                     105             34
        Income taxes payable                                 (52)             -
        Deferred revenue                                    (466)           269
        Accrued expenses and other current liabilities    (1,135)           (39)
                                                        ---------      ---------
           Net cash used by operating activities          (5,798)        (3,254)
                                                        ---------      ---------

Cash flows from investing activities:
     Purchases of marketable securities                  (28,610)        (8,289)
     Sales of marketable securities                       38,500         29,000
     Purchases of property and equipment                    (482)        (1,281)
                                                        ---------      ---------
           Net cash provided by investing activities       9,408         19,430
                                                        ---------      ---------

Cash flows from financing activities:
     Issuance of common stock                                189          2,487
                                                        ---------      ---------
           Net cash provided by financing activities         189          2,487
                                                        ---------      ---------

Effect of exchange rates on cash and cash equivalents         15             49

Net increase in cash and cash equivalents                  3,814         18,712

Cash and cash equivalents at beginning of period          17,862          9,079
                                                        ---------      ---------
Cash and cash equivalents at end of period              $ 21,676       $ 27,791
                                                        =========      =========

Supplemental non-cash activities:

   Conversion of deferred compensation to equity upon
      exercise of common stock options                  $      -       $    110
                                                        =========      =========

 See accompanying notes to unaudited condensed consolidated financial statements

                                       5
<PAGE>

                                  PREVIO, INC.
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1.  Basis of Presentation:
         ---------------------

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
reported amounts of revenue and expenses during the reporting period. Actual
results could differ from those estimates.

The accompanying unaudited condensed consolidated financial statements of
Previo, Inc. ("Previo" or the "Company") have been prepared pursuant to the
rules and regulations of the Securities and Exchange Commission regarding
interim financial reporting. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements and should be read in conjunction with the
consolidated financial statements and notes thereto included in the Company's
annual report for the year ended September 30, 2000. (On April 25, 2000, the
Company changed its name from Stac Software, Inc., to Previo, Inc. Therefore,
some filings and financial statements that are referenced were originally filed
or reported under the Stac Software, Inc. name.) In the opinion of management,
the accompanying unaudited condensed consolidated financial statements contain
all adjustments, consisting of only normal recurring items, necessary for a fair
presentation of the Company's financial position as of June 30, 2001 and its
results of operations for the three and nine month periods ended June 30, 2001
and 2000, respectively. These unaudited condensed consolidated financial
statements are not necessarily indicative of the results to be expected for the
entire year.


NOTE 2. Loss Per Share: (table amounts in thousands, except per share amounts)
        --------------

Basic EPS is calculated by dividing net loss by the weighted average number of
common shares outstanding for the period, without consideration for the dilutive
impact of potential common shares ("dilutive securities") that were outstanding
during the period. Diluted EPS is computed by dividing net loss by the weighted
average number of common shares outstanding for the period, increased by
dilutive securities that were outstanding during the period unless the effect of
these securities is anti-dilutive. Net loss remains the same for the
calculations of basic EPS and diluted EPS. The following common stock
equivalents were excluded from the calculation because they are anti-dilutive:
345,175 and 658,107 for the quarters ended June 30, 2001 and June 30, 2000,
respectively, and 150,673 and 748,273 for the nine month periods ended June 30,
2001 and June 30, 2000, respectively. These calculations are the same for basic
and diluted EPS for the three and nine months ended June 30, 2001 and 2000.

                                       6
<PAGE>

                                  PREVIO, INC.
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 3. Stock Option Plan Summary
        -------------------------

The following is a summary of stock options outstanding at June 30, 2001:

                                                  OPTIONS OUTSTANDING
                                      ------------------------------------------
                                                        WEIGHTED-
                                                         AVERAGE      WEIGHTED-
                                                        REMAINING      AVERAGE
                                                       CONTRACTUAL    EXERCISE
                                         NUMBER       LIFE (YEARS)      PRICE
                                         ------       ------------      -----
Price Range
     $1.64 - $3.19..............        420,032          6.06           $2.78
     $3.33 - $3.36..............        311,266          4.80           $3.36
     $3.50 - $3.76..............        395,617          8.92           $3.69
     $3.80 - $7.13..............        562,660          8.16           $5.33
     $7.25 - $12.88.............        365,788          7.12           $8.18
                                    -----------
     $1.64 - $12.88.............      2,055,363          7.18           $4.70
                                    ===========


The following is a summary of stock options exercisable at June 30, 2001:


                                                  OPTIONS EXERCISABLE
                                              --------------------------
                                                              WEIGHTED-
                                                               AVERAGE
                                                              EXERCISE
                                               NUMBER          PRICE
                                               ------          -----
Price Range
      $1.64 - $3.19                           261,893         $2.68
      $3.33 - $3.36                           295,477         $3.36
      $3.50 - $3.76                           130,492         $3.67
      $3.80 - $7.13                           234,205         $5.24
      $7.25 - $12.88                          266,260         $8.24
                                            ---------
      $1.64 - $12.88                        1,188,327         $4.71
                                            =========

                                       7
<PAGE>

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

         Except for the historical information contained herein, the following
discussion contains forward-looking statements that involve risk and
uncertainties. Previo's future results could differ materially from those
discussed here. The Company expects its quarterly results to fluctuate due to
the re-focus of the Company into the eSupport market and the related
discontinuation and divestiture of its legacy products. Additional factors that
could cause or contribute to differences in future results include but are not
limited to: fluctuations in the Company's operating results, market acceptance
of the Company's eSupport Essentials product and other new product
introductions, the Company's decision to begin offering its software products
for sale on a subscription basis during the June 2001 quarter, which could
result in lower revenues in the short term, the results of the Company's recent
restructurings, new product introductions by competitors, technological changes
in the personal computer and communications industries, uncertainties regarding
intellectual property rights, the impact of any strategic transactions the
Company may enter into and the other factors referred to herein (including, but
not limited to, the factors discussed below under "Revenues," "Quarterly Trends"
"Seasonality," "Operating Systems," "Competition and Risks Associated with New
Product Introductions," and "Stock Price Volatility") and in the Company's Form
10-K for the year ended September 30, 2000. Due to these fluctuations and the
Company's discontinuation and divestiture of its legacy products, historical
results and percentage relationships are not necessarily indicative of the
operating results for any future period.

OVERVIEW

         Previo's business is focused on developing and marketing software
products that improve the reliability, resiliency, and flexibility of business
information technology (IT). Within these businesses, IT organizations
(including support organizations) use Previo's products to automatically resolve
IT problems, to remotely repair IT problems, to migrate users from one computer
or operating system to another, and for other related purposes. The Company has
in the past evaluated various possible strategic transactions, including the
potential acquisitions of products, technologies and companies, and it expects
to continue to do so in the future.

         Previo's initial eSupport software offering, which became commercially
available in May 2000, is eSupport Essentials. eSupport Essentials implements
patented technology that permits the return of an inoperable desktop or notebook
computer back to working condition with relative ease, while providing for the
automated recovery of an entire computer system including the operating system,
applications, individual user preferences and all end user data. The results are
increased end-user uptime and service levels, faster problem resolution, and
significant reductions in support costs and efforts. eSupport Essentials is
partially based on the technology used in the Company's former product, Replica
NDM. eSupport Essentials builds on the technology introduced in Replica NDM and
expands on it by adding features such as system roll-back, which allows users to
restore their applications, data and user preferences to an earlier
point-in-time as well as adding remote access capabilities (using the technology
formerly used in the Company's ReachOut product), which provides additional
functionality targeted at the enterprise help-desk market. In addition, the
Company entered into an agreement with Miramar Systems, Inc. ("Miramar")
pursuant to which has integrated Miramar's Desktop DNA(TM) system migration
technology into Previo's eSupport Essentials product. This integrated product
permits enterprise users to automate the transfer and preservation of user data
and settings when upgrading to a new computer, operating system or both. The
Company began shipping its new product feature, Fast ForwarDNA, powered by
Miramar's Desktop DNA technology, during the third quarter of fiscal 2001.

                                       8
<PAGE>

         On August 6, 2001, the Company announced its intention to restructure
its worldwide business. This restructuring includes the closure of the Company's
United Kingdom facility and reductions in staff in its Estonian and San Diego
offices. Restructuring charges associated with these reductions are expected to
be between $1.0 million and $1.2 million. Consistent with generally accepted
accounting principles, the restructuring charge will be taken during the
Company's fourth fiscal quarter, ending on September 30, 2001. The intention of
the restructuring is to allow the Company to decrease its expenses and to use
its resources to focus on the increased number of marketing leads (as is
evidenced by numbers of potential customers registering on the Company's
website) in North America.

         The following discussion should be read in conjunction with the
unaudited condensed consolidated financial statements included elsewhere within
this quarterly report.


RESULTS OF OPERATIONS

         The following table sets forth the Company's results of operations and
the percentage relationship of certain items to revenues during the periods
shown:

<TABLE>
<CAPTION>
                                   Three Months Ended                  Nine Months Ended
                                        June 30,                            June 30,
                                        --------                            --------
                                2001               2000               2001             2000
                                ----               ----               ----             ----
<S>                               <C>                <C>                 <C>              <C>
Revenues                           100%               100%               100%              100%
Cost of revenues                    12                 13                 10                13
                             ----------         ----------         ----------        ----------
Gross margin                        88                 87                 90                87
                             ----------         ----------         ----------        ----------

Research and development            58                117                 55                59
Sales and marketing                140                264                112               116
General and administrative          47                 84                 39                34
                             ----------         ----------         ----------        ----------
Total operating expenses           245                465                206               209
                             ----------         ----------         ----------        ----------

Operating loss                    (157)              (378)              (116)             (122)
Interest income                     17                 43                 21                20
                             ----------         ----------         ----------        ----------

Loss before income taxes          (140)              (335)               (95)             (102)

Benefit from income taxes            -                  -                  -                (1)
                             ----------         ----------         ----------        ----------

Net loss                          (140)%             (335)%              (95)%            (101)%
                             ==========         ==========         ==========        ==========
</TABLE>

                                       9
<PAGE>

         REVENUES. Revenues increased 49% to $1.6 million for the quarter ended
June 30, 2001 from $1.1 million in the quarter ended June 30, 2000 primarily due
to increased sales of the Company's eSupport Essentials product ($0.8 million in
the June 30, 2001 quarter, compared to $0.4 million in the June 30, 2000
quarter) as well as the recognition of previously deferred amounts related to
legacy products. Revenues decreased 15% to $5.4 million for the nine months
ended June 30, 2001 from $6.4 million for the nine months ended June 30, 2000.
Included in these amounts are revenues from enterprise and OEM customers for
eSupport Essentials products which totaled $2.7 million and $1.4 million, for
the nine-month periods ended June 30, 2001 and June 30, 2000, respectively.

         As discussed above, the Company initiated significant changes to its
business strategy, including the planned discontinuation of sales of the
ReachOut and Replica Tape products, in order to focus on positioning the Company
in the eSupport market. Although the Company is no longer actively marketing
these products, the revenues for the June 30, 2001 quarter and nine-month
periods include $0.8 and $2.8 million, respectively, in revenues generated by
ReachOut and Replica Tape sales, primarily from the recognition of previously
deferred revenues related to license fees and the expiration of return rights
for product sold through the distributor/retail channel. The Company expects to
recognize declining amounts of revenues related to the ReachOut and Replica Tape
products during the remainder of the fiscal year ended September 30, 2001. This
change in business focus coupled with a decline in revenues from a major OEM
partner for royalties associated with the Replica Tape product contributed to
the decrease in revenues for the June 30, 2001 nine-month period. The Company
expects current and future revenues to be significantly lower than historical
prior periods due to the discontinuance of the ReachOut and Replica Tape
products.

         International sales were $0.2 million, or 14% of revenues for the
quarter ended June 30, 2001, and $0.2 million or 22% of revenues for the quarter
ended June 30, 2000, and were $1.1 million or 21% of revenues for the nine
months ended June 30, 2001 and $1.5 million and 23% of revenues for the nine
months ended June 30, 2000. The decrease in international revenues in the June
30, 2001 quarter and nine months from those in the comparable periods of the
prior fiscal year was primarily due to the planned discontinuation of sales of
the ReachOut and Replica Tape products, and the reduction in Replica Tape
royalties as discussed above. Previo previously marketed and sold to its
European accounts from its office in the United Kingdom. The Company closed its
office in the United Kingdom in August 2001 and intends to focus its marketing
and selling efforts on North America. International sales in fiscal 2001 were
made to customers in Canada, Japan, England, France, Ireland, Germany, Italy and
Switzerland. Because the Company has decided to focus its marketing and selling
efforts in North America, it anticipates a decline in future international
sales.

         The Company began offering its software products for sale on a
subscription basis during the June 2001 quarter. Selling on a "subscription
basis" means either a fee per user for a period of time or per use of the
product. It is possible that a portion of the Company's future sales will be on
a subscription basis beginning in the September 2001 quarter. As the Company
phases in the subscription pricing model, it is likely to experience a decline
in revenues in the short term. This could occur because one-time perpetual
license sales generally result in immediately recognizable revenue, whereas a
comparable sale to an enterprise of the same size on a subscription basis would
result in smaller per month revenues recognized pro-rata over the duration of
the agreement. This pro-rata recognition of revenues and the resultant short
term decline in revenues is likely to be further accentuated by the fact that
historically the majority of the Company's sales take place late in the fiscal
quarter. Although the Company expects the value of a subscription sale over its
lifetime will exceed that of a one-time perpetual license sale for any given
customer, the short-term impact on the Company's revenues will likely be
negative.

                                       10
<PAGE>

         COST OF REVENUES AND GROSS MARGIN. Cost of revenues consists primarily
of license fees and the costs of rendering product support services. Gross
margins were 88% for the quarter ended June 30, 2001, compared to 87% in the
comparable quarter of the prior fiscal year, and were 90% for the nine months
ended June 30, 2001 compared to 87% for the nine months ended June 30, 2000. The
lower gross margins in the fiscal 2000 nine-month period are primarily due to
obsolescence reserves taken for discontinued box product inventory, related to
the Company's discontinuation of sales of its ReachOut and Replica Tape
products, as discussed above.

         RESEARCH AND DEVELOPMENT. Research and development costs consist
primarily of salaries, employee benefits, overhead, fees paid to outside
contractors and non-recurring engineering fees. Such expenses were $0.9 million
and $1.3 million for the quarters ended June 30, 2001 and June 30, 2000,
respectively, and were $3.0 million and $3.8 million for the nine months ended
June 30, 2001 and June 30, 2000, respectively. The decrease in research and
development costs from the prior year's quarter and nine month period were
primarily due to lower consulting costs, related to consultants who had been
retained to assist the Company with certain non-recurring engineering related to
the Company's Replica Tape product in the prior fiscal year, as well as lower
costs for product localization in the current periods. The Company expects to
continue to invest in development for which it believes there is a need in the
eSupport market; however, the research and development programs invested in by
the Company may not be successful and any products resulting from such programs
may not achieve market acceptance.

         SALES AND MARKETING. Sales and marketing expenses consist primarily of
the salaries, commissions and employment benefits of sales and marketing
personnel, and consulting, advertising, promotion, travel and other overhead
expenses. Such expenses were $2.3 million for the quarter ended June 30, 2001
and $2.9 million for the quarter ended June 30, 2000 and were $6.1 million and
$7.4 million for the nine-month periods ended June 30, 2001 and June 30, 2000,
respectively. Expenses in the June 2001 quarter were less than those in the June
2000 quarter primarily due to lower spending on salaries and commissions,
marketing programs and recruiting in the June 2001 quarter. Also, the June 2000
quarter included a charge taken for anticipated rent expense related to
abandonment of a European facility. The decrease in expenses in the nine-month
period ended June 30, 2001 compared to those of the nine-month period ended June
30, 2000 is primarily due to lower spending on marketing programs and recruiting
during the fiscal 2001 nine-month period as well as the charge to rent expense
mentioned above. Additionally, a larger portion of ongoing customer support
costs is being allocated to cost of sales in the fiscal 2001 nine-month period,
consistent with the revenue generating activities they directly support. In
light of the Company's current focus on marketing and sales efforts in North
America, consolidated sales and marketing expenses are expected to remain a
significant ongoing operating expense.

         GENERAL AND ADMINISTRATIVE. General and administrative expenses are
comprised primarily of salaries for administrative and corporate services
personnel, legal, and other professional fees. Such expenses were $0.8 million
for the quarter ended June 30, 2001, $0.9 million for the quarter ended June 30,
2000, and $2.1 million for each of the nine months ended June 30, 2001 and June
30, 2000, respectively. The decrease in expenses in the quarter ended June 30,
2001 from the quarter ended June 30, 2000 is primarily due to one-time salary
and legal charges recorded in the quarter ended June 30, 2000. General and
administrative expenses are expected to remain a significant ongoing operating
expense.

                                       11
<PAGE>

         INTEREST INCOME. Interest income was $0.3 million for the quarter ended
June 30, 2001 $0.5 million for the quarter ended June 30, 2000, and $1.1 million
and $1.3 million for the nine months ended June 30, 2001 and June 30, 2000,
respectively. The decrease in interest income in both the quarter and nine
months ended June 30, 2001 from the quarter and nine months ended June 30, 2000
was is due to lower invested cash balances, combined with lower interest rates.

         INCOME TAXES. The effective tax rates for the June 2001 and 2000
quarters were based on the Company's forecasted taxable results for the year and
the anticipated carry-back benefit for income taxes paid in previous years, if
any. The effective income tax rate for the quarter and nine months ended June
30, 2001 was 0% as the Company does not project taxable income for the current
fiscal year and has a full valuation allowance against its deferred tax assets.
The benefit recorded in the June 30, 2000 nine month period reflected refunds
the Company recognized as a result of net operating loss carry-backs.

         QUARTERLY TRENDS. Fluctuations in quarterly results are expected to be
significantly impacted by the cessation of revenues from discontinued product
lines, ReachOut and Replica Tape. Management does not expect the revenue streams
from its eSupport Essentials products to offset the decrease from the
discontinued product lines until at least fiscal 2002. In addition, the Company
historically has experienced significant fluctuations in its revenues and
operating results, including net income (loss), and anticipates that these
fluctuations will continue. The Company operates with relatively little backlog
of its perpetual software license sales, and the majority of its software
revenues each quarter result from orders received in that quarter. Consequently,
if near-term demand for the Company's products weakens in a given quarter, the
Company's operating results for that quarter would be adversely affected. In
addition, when the Company announces enhanced versions of its software products,
the announcement historically has had the effect of slowing sales of the current
version of the product as buyers delay their purchase. Quarterly results have
been or may in the future be influenced by the timing of announcements or
introductions of new products and product upgrades by the Company or its
competitors, delays in product development and licensing of the Company's
products and core technology. In addition, the Company's eSupport Essentials
product offering often has a lengthy evaluation period before any purchase is
made.

         SEASONALITY. The software industry has typically experienced some
seasonal variations in demand. The Company believes that its software sales are
subject to similar seasonal variations which, when combined with the other
factors described above, are likely to result in fluctuations in the Company's
quarterly results. As a result, historical quarter-to-quarter comparisons should
not be relied upon as indicative of future performance.

         OPERATING SYSTEMS. eSupport Essentials server component runs on Windows
NT 4.0 Server with client support for Windows 98, Windows 95, Windows NT
Workstations, Windows 2000 Professional and Windows 2000 server. The Company
expects to support Windows XP during calendar 2002. Future versions of
Microsoft's Windows operating systems may require significant changes to the
Company's products in order to maintain compatibility.

                                       12
<PAGE>

         COMPETITION AND RISKS ASSOCIATED WITH NEW PRODUCT INTRODUCTIONS. The
market for eSupport Essentials is intensely competitive, rapidly changing and
significantly affected by new product introductions and other market activities
of industry participants. Companies such as Support.com, Connected Corporation
and Motive Communications, Inc. are also marketing products in the eSupport
arena. Competition for eSupport Essentials and any new products the Company may
offer could result in a failure to establish significant sales volume, and/or
price concessions that could prevent the Company from ever becoming profitable.

         Also, the Company's eSupport Essentials product may be perceived to
compete with well-established back-up products from Computer Associates, Inc.,
Veritas Software Corporation and Legato Systems, Inc., all of which have
established channels of distribution and installed customer bases. Also,
eSupport Essentials is being introduced into sophisticated server environments
and, while the Company has invested significant resources in testing eSupport
Essentials under a variety of conditions, configurations and circumstances,
there are likely to be environments which have not been anticipated for which
additional development of eSupport Essentials will be necessary.

         STOCK PRICE VOLATILITY. Due to the factors noted above, and general
market conditions, the Company's future earnings and therefore, its stock price
has been and may be subject to significant volatility, particularly on a
quarterly basis. Any shortfall in earnings from levels expected by securities
analysts could have an immediate and significant adverse effect on the trading
price of the Company's common stock in any given period. Shortfalls in the
Company's earnings could be caused by shortfalls in revenues and/or increased
levels of expenditures. Additionally, the Company participates in a highly
dynamic industry, which often results in significant volatility of the Company's
stock price.

LIQUIDITY AND CAPITAL RESOURCES

         The Company's cash, cash equivalents and marketable securities
decreased by $6.1 million to $23.7 million at June 30, 2001 from those at
September 30, 2000. The decrease was primarily due to cash used in general
operations, partially offset by the liquidation of accounts receivable balances.
Working capital decreased by $4.7 million to $21.2 million at June 30, 2001 from
that at September 30, 2000.

         The Company expects operating expenses to decline to approximately $3.0
million per quarter beginning with the December 31, 2000 quarter, and believes
that existing cash balances and funds provided by operations will be sufficient
to finance the working capital requirements of the consolidated company for at
least the next twelve months.

         On May 1, 2000, the Company announced an exclusive OEM agreement with
Hewlett-Packard Company ("HP"). Under this agreement, Previo's eSupport
Essentials serves as the software application core for a network appliance (HP
SureStore AutoBackup) and the Company is entitled to receive royalties based on
the sales of these products, if any. The sales of this product have been
significantly lower than expected, and the Company is receiving less revenue per
unit than it would if it sold the product itself. HP is solely responsible for
all marketing efforts associated with these products and the Company cannot
predict the future sales of these products, and therefore is unable to determine
the future royalty revenues it will receive, if any. Under the agreement with
HP, HP can decide at any time to discontinue selling the HP SureStore AutoBackup
product, and, if it does so, the Company will not receive any future royalties.

                                       13
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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

         The Company is exposed to a variety of risks, including foreign
currency fluctuations and changes in the market value of its investments. In the
normal course of business, the Company employs established policies and
procedures to manage its exposure to fluctuations in foreign currency values and
changes in the market value of its investments.

         The Company's foreign currency risks are mitigated principally by
maintaining only nominal foreign currency cash balances. Working funds necessary
to facilitate the short term operations of the Company's subsidiary in the
United Kingdom are kept in the local currencies for the European countries in
which they do business, with excess funds transferred to Previo's offices in the
United States for investment. The Company closed its subsidiary in the United
Kingdom in August 2001.

                                       14
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                            PART II-OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         On March 15, 2001, the Company filed suit in the U.S. District Court
         for the Northern District of California against Support.com for
         infringement of Previo's U.S. Patent No. 5,778,395. In the suit, Previo
         alleges that Support.com is selling software products that infringe
         Previo's valuable patent. Previo seeks compensation and a permanent
         injunction against Support.com's continuing infringement.

         On May 1, 2001, the Company filed suit in the U.S. District Court for
         the Northern District of California against Connected Corporation
         ("Connected") for infringement of Previo's U.S. Patent No. 5,778,395.
         In the suit, Previo alleges that Connected Corporation is selling
         software products that infringe Previo's valuable patent. Previo seeks
         compensation and a permanent injunction against Connected's continuing
         infringement. On July 3, 2001 Connected filed a separate suit against
         Previo, claiming the Company is selling software products that infringe
         on its Patent No. 5,765,163, and seeking preliminary and permanent
         injunctions. The Company believes this suit is retaliatory and without
         merit and has asked the court to combine it with the suit it previously
         filed.

         In addition, from time to time the Company is involved in certain
         litigation arising out of its operations.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS
            Not Applicable

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES
            Not Applicable

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
            Not Applicable

ITEM 5.  OTHER INFORMATION
            Not Applicable

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

                                       15
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Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed by the undersigned
thereunto duly authorized.






                                                        Previo, Inc.


Date:  August 13, 2001                             /s/ Clifford L. Flowers
                                              ----------------------------------
                                                     Clifford L. Flowers
                                                 (Vice President of Finance,
                                                 Chief Financial Officer and
                                              rincipal Financial and Accounting
                                                          Officer)



Date:  August 13, 2001                                /s/ Tom Dilatush
                                              ----------------------------------
                                                        Tom Dilatush
                                                (Chief Executive Officer and
                                                  Duly Authorized Officer)