<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 March 31, 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 May 9, 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 March 31, 2001 (unaudited) and
                 September 30, 2000                                            3

             Condensed Consolidated Statements of
                 Operations for the three and six months
                 ended March 31, 2001 and 2000, (unaudited)                    4

             Condensed Consolidated Statements of Cash
                 Flows for the six months ended
                 March 31, 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                                            16

        Item 6.  Exhibits and Reports on Form 8-K                             16

SIGNATURES                                                                    17


                                       2
<PAGE>

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

                                     ASSETS
<CAPTION>
                                                        March 31,     September 30,
                                                         2001             2000
                                                       ---------       ---------
                                                      (UNAUDITED)
<S>                                                    <C>             <C>
Current assets:
     Cash                                              $ 23,664        $ 17,862
     Marketable securities                                3,000          11,872
     Accounts receivable                                    870           1,455
     Other current assets                                   528             220
                                                       ---------       ---------
         Total current assets                            28,062          31,409

Property and equipment, net                               1,612           1,723
Other assets                                                323             344
                                                       ---------       ---------
                                                       $ 29,997        $ 33,476
                                                       =========       =========


                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Accounts payable                                  $    976        $    855
     Deferred revenue                                       967             921
     Accrued expenses and other
       current liabilities                                2,848           3,773
                                                       ---------       ---------
         Total current liabilities                        4,791           5,549

Other liabilities                                            17              17
                                                       ---------       ---------
                                                          4,808           5,566
                                                       ---------       ---------

Stockholders' equity
     Common stock at par value                                9               9
     Additional paid in capital                          80,208          80,081
     Treasury stock                                     (41,347)        (41,347)
     Cumulative translation adjustment                      (61)            (70)
     Accumulated deficit                                (13,620)        (10,763)
                                                       ---------       ---------
         Total stockholders' equity                      25,189          27,910
                                                       ---------       ---------
                                                       $ 29,997        $ 33,476
                                                       =========       =========

</TABLE>

      See accompanying notes to 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     Six Months Ended
                                                 March 31,             March 31,
                                            -------------------   -------------------
                                              2001       2000       2001       2000
                                            --------   --------   --------   --------
<S>                                         <C>        <C>        <C>        <C>
Net revenues                                $ 1,855    $ 2,084    $ 3,781    $ 5,262

Cost of revenues                                159        453        334        706
                                            --------   --------   --------   --------

Gross margin                                  1,696      1,631      3,447      4,556
                                            --------   --------   --------   --------

Operating expenses:
    Research and development                    928      1,175      2,016      2,514
    Sales and marketing                       2,146      2,557      3,798      4,477
    General and administrative                  754        618      1,358      1,216
                                            --------   --------   --------   --------

        Total operating expenses              3,828      4,350      7,172      8,207
                                            --------   --------   --------   --------

Operating loss                               (2,132)    (2,719)    (3,725)    (3,651)

Interest income                                 384        410        868        830
                                            --------   --------   --------   --------

Loss before income taxes                     (1,748)    (2,309)    (2,857)    (2,821)

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


Net loss                                    $(1,748)   $(2,309)   $(2,857)   $(2,759)
                                            ========   ========   ========   ========


Loss per common share, basic and diluted:   $ (0.26)   $ (0.36)   $ (0.42)   $ (0.44)

Weighted average common shares,
         basic and diluted                    6,850      6,336      6,845      6,212


Net loss                                    $(1,748)   $(2,309)   $(2,857)   $(2,759)
Cumulative translation adjustment                 4          2          9          3
                                            --------   --------   --------   --------

Comprehensive loss                          $(1,744)   $(2,307)   $(2,848)   $(2,756)
                                            ========   ========   ========   ========

</TABLE>

      See accompanying notes to condensed consolidated financial statements

                                       4
<PAGE>

                                  PREVIO, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (IN THOUSANDS; UNAUDITED)
                                                             Six Months Ended
                                                                 March 31,
                                                           ---------------------
                                                              2001       2000
                                                           ---------   ---------
Cash flows from operating activities:
     Net loss                                              $ (2,857)   $ (2,759)
     Adjustments required to reconcile net loss
        to net cash used by operating activities:
        Depreciation and amortization                           520         635
        Stock-based compensation                                (25)          -
     Changes in assets and liabilities:
        Accounts receivable                                     585       1,497
        Inventories                                               -         226
        Other assets                                           (307)        (97)
        Accounts payable                                        121         596
        Income taxes payable                                    (52)          -
        Deferred revenue                                         46        (238)
        Accrued expenses and other current liabilities         (873)        107
                                                           ---------   ---------
           Net cash used by operating activities             (2,842)        (33)
                                                           ---------   ---------

Cash flows from investing activities:
     Purchases of marketable securities                     (26,628)     (8,261)
     Sales of marketable securities                          35,500      26,000
     Purchases of property and equipment                       (389)       (610)
                                                           ---------   ---------
           Net cash provided by investing activities          8,483      17,129
                                                           ---------   ---------

Cash flows from financing activities:
     Issuance of common stock                                   152       1,667
                                                           ---------   ---------
           Net cash provided by financing activities            152       1,667
                                                           ---------   ---------

Effect of exchange rates on cash and cash equivalents             9           3

Net increase in cash and cash equivalents                     5,802      18,766

Cash and cash equivalents at beginning of period             17,862       9,079
                                                           ---------   ---------
Cash and cash equivalents at end of period                 $ 23,664    $ 27,845
                                                           =========   =========

Supplemental non-cash activities:

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

      See accompanying notes to 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 condensed consolidated unaudited 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 condensed consolidated unaudited financial statements contain
all adjustments, consisting of only normal recurring items, necessary for a fair
presentation of the Company's financial position as of March 31, 2001 and its
results of operations for the three and six month periods ended March 31, 2001
and 2000, respectively. These condensed consolidated unaudited 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:
171,956 and 920,956 for the quarters ended March 31, 2001 and March 31, 2000,
respectively, and 190,140 and 783,454 for the six month periods ended March 31,
2001 and March 31, 2000, respectively. A reconciliation of the numerators and
denominators of the basic and diluted EPS calculations for the three and six
months ended March 31, 2001 and 2000 is presented below.

                                       6
<PAGE>

                                  PREVIO, INC.
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
                             Three Months Ended              Six Months Ended
                               March 31, 2001                 March 31, 2001
                      ------------------------------   ----------------------------

                                            Per-Share                       Per-Share
                      Net Loss    Shares     Amount    Net Loss    Shares    Amount
                      --------   --------   --------   --------   --------  --------
<S>                   <C>        <C>        <C>        <C>        <C>       <C>
Net Loss              $(1,748)                         $(2,857)

Basic EPS                          6,850     ($0.26)                6,845    ($0.42)

Dilutive Securities                    -                                -
                                 --------                         --------
Diluted EPS                        6,850     ($0.26)                6,845    ($0.42)
                                 ========                         ========

</TABLE>
<TABLE>
<CAPTION>
                             Three Months Ended              Six Months Ended
                               March 31, 2000                 March 31, 2000
                      ------------------------------   ----------------------------

                                            Per-Share                       Per-Share
                      Net Loss    Shares     Amount    Net Loss    Shares    Amount
                      --------   --------   --------   --------   --------  --------
<S>                   <C>        <C>        <C>        <C>        <C>       <C>
Net Loss              $(2,309)                         $(2,759)

Basic EPS                          6,336     ($0.36)                6,212    ($0.44)

Dilutive Securities                    -                                -
                                 --------                         --------
Diluted EPS                        6,336     ($0.36)                6,212    ($0.44)
                                 ========                         ========

</TABLE>


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

The following is a summary of stock options outstanding at March 31, 2001:

                                                    OPTIONS OUTSTANDING
                                       -----------------------------------------
                                                         WEIGHTED-
                                                          AVERAGE      WEIGHTED-
                                                         REMAINING     AVERAGE
                                                        CONTRACTUAL    EXERCISE
                                          NUMBER        LIFE (YEARS)    PRICE
                                       -----------   ----------------  ---------
   Price Range
        $1.64 - $3.19..............        387,721         6.00         $2.82
        $3.33 - $3.36..............        311,266         5.05         $3.36
        $3.50 - $4.68..............        551,828         8.84         $3.88
        $4.72 - $7.13..............        450,149         8.61         $5.76
        $7.25 - $12.88.............        459,502         7.69         $8.78
                                       -----------
        $1.64 - $12.88.............      2,160,466         7.49         $5.05
                                       ===========


                                       7
<PAGE>

                                  PREVIO, INC.
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



The following is a summary of stock options exercisable at March 31, 2001:


                                                  OPTIONS EXERCISABLE
                                                 -----------------------
                                                               WEIGHTED-
                                                                AVERAGE
                                                               EXERCISE
                                                  NUMBER         PRICE
               Price Range
                     $1.64 - $3.19               250,643         $2.66
                     $3.33 - $3.36               288,413         $3.36
                     $3.50 - $4.68               178,797         $3.94
                     $4.72 - $7.13               110,220         $5.55
                     $7.25 - $12.88              249,477         $8.21
                                               ---------
                     $1.64 - $12.88            1,077,550         $4.64
                                               =========


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. During the quarter and six month periods ended March 31, 2001,
the Company experienced decreased revenues and operating results and expects to
experience decreased revenues in the future, due to the discontinuation of its
ReachOut and Replica Tape software products. The Company expects its quarterly
results to fluctuate due to the re-focus of the Company and the 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, 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.

                                       8
<PAGE>

OVERVIEW

         Previo's business is focused on developing and marketing software
products that provide automated resolutions to personal computer and laptop
computer problems, and protection/recovery of data for desktop and notebook
computers used by corporate enterprises. These solutions are aimed at assisting
information technology and computer support organizations within these companies
to rapidly resolve their end user systems and recovery problems and to better
manage the functionality of these systems over their life cycles. Previo's
products are sold through a variety of domestic and international channels. 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 of use, 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 it will integrate Miramar's Desktop DNA(TM) system
migration technology into Previo's eSupport Essentials product. This integrated
product will permit enterprise users to automate the transfer and preservation
of all software attributes of a PC or laptop computer when upgrading to a new
computer, operating system or both. The Company expects to begin shipping its
new product feature, Fast Forward DNA, during the third quarter of fiscal 2001.

         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. The sales of this product have been significantly
lower than expected. 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.

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

                                       9
<PAGE>

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:

                                          Three Months Ended    Six Months Ended
                                              March 31,             March 31,
                                          -----------------     ----------------
                                           2001       2000       2001      2000
                                          ------     ------     ------    ------

Revenues                                   100%       100%       100%      100%
Cost of revenues                             9         22          9        13
                                          ------     ------     ------    ------
Gross margin                                91         78         91        87
                                          ------     ------     ------    ------

Research and development                    50         56         53        48
Sales and marketing                        116        123        101        85
General and administrative                  40         30         36        23
                                          ------     ------     ------    ------
Total operating expenses                   206        209        190       156
                                          ------     ------     ------    ------

Operating loss                            (115)      (131)       (99)      (69)
Interest income                             21         20         23        16
                                          ------     ------     ------    ------

Loss before income taxes                   (94)      (111)       (76)      (53)

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

Net loss                                   (94)%     (111)%      (76)%     (52)%
                                          ======     ======     ======    ======


         REVENUES. Revenues decreased 11% to $1.9 million for the quarter ended
March 31, 2001 from $2.1 million in the quarter ended March 31, 2000, and 28% to
$3.8 million for the six months ended March 31, 2001 from $5.3 million for the
six months ended March 31, 2000. Included in revenues for the three and six
months ended March 31, 2001, are $0.9 million and $1.4 million, respectively,
from eSupport Essentials enterprise licenses, maintenance and HP OEM royalties.
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 March 31, 2001 quarter and six month periods
include $1.0 and $2.4 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 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 March 31, 2001 quarter and six month period. The Company expects current
and future revenues to be significantly lower than the comparable prior periods
due to the discontinuance of the ReachOut and Replica Tape products.

         International sales were $0.4 million, or 21% of revenues for the
quarter ended March 31, 2001, and $0.5 million or 24% of revenues for the
quarter ended March 31, 2000, and were $0.9 million or 24% of revenues for the
six months ended March 31, 2001 and $1.3 million and 25% of revenues for the six
months ended March 31, 2000. The decrease in international revenues in the March
31, 2001 quarter and six 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 markets and sells to its European accounts
from its office in the United Kingdom and markets and sells to the other
principal international markets through sales personnel in its San Diego office.
International sales were made to customers in Canada, Japan, England, France,
Ireland, Germany, Italy and Switzerland.

                                       10
<PAGE>

         The Company has decided to begin offering its software products for
sale on a subscription basis, and to offer a managed service product
(incorporating Previo's software products), also on a subscription basis.
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 June 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 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.

         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 91% for the quarter ended March 31, 2001, compared to 78% in the
comparable quarter of the prior fiscal year, and were 91% for the six months
ended March 31, 2001 compared to 87% for the six months ended March 31, 2000.
The lower gross margins in the fiscal 2000 quarter and six 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 $1.2 million for the quarters ended March 31, 2001 and March 31, 2000,
respectively, and were $2.0 million and $2.5 million for the six months ended
March 31, 2001 and March 31, 2000, respectively. The decrease in research and
development costs from the prior year's quarter is primarily due to lower costs
for product localization and salary expense in the quarter ended in March 31,
2001 than in the comparable period of the prior fiscal year. The higher salary
costs in the March 31, 2000 quarter were related to a targeted employee
retention program the Company implemented for its development facility. The
lower costs for the six month period ended March 31, 2001 than for the six
months ended March 30, 2000, were primarily due to lower consulting costs,
related to consultants who had been retained to assist the Company with certain
non-recurring engineering in the prior fiscal year, as well as lower costs for
product localization in the current periods and the lower salary expense
discussed above. The Company expects to continue to invest in the development of
products 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 $2.1 million for the quarter ended March 31, 2001
and $2.6 million for the quarter ended March 31, 2000 and were $3.8 million and
$4.5 million for the six month periods ended March 31, 2001 and March 31, 2000,
respectively. The decrease in expenses in the quarter and six months ended March
31, 2001 compared to those of the quarter and six months ended March 31, 2000 is
primarily due to less spending on marketing programs during the fiscal 2001
quarter and six month period combined with a larger portion of ongoing customer
support costs being allocated to cost of sales during the 2001 periods,
consistent with the revenue generating activities they directly support.
Consolidated sales and marketing expenses are expected to remain a significant
ongoing operating expense and are expected to increase in future quarters.

                                       11
<PAGE>

         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 March 31, 2001, $0.6 million for the quarter ended March
31, 2000, and $1.4 million and $1.2 million for the six months ended March 31,
2001 and March 31, 2000, respectively. The increase in general and
administrative expenses in the three and six months ended March 31, 2001 over
those in the three and six months ended March 31, 2000 are primarily due to
higher costs for salaries, legal services associated with current litigation,
consulting and corporate franchise taxes. General and administrative expenses
are expected to increase throughout the current fiscal year.

         INTEREST INCOME. Interest income was $0.4 million for the quarters
ended March 31, 2001 and 2000, respectively, and $0.9 million and $0.8 million
for the six months ended March 31, 2001 and March 31, 2000, respectively.

         INCOME TAXES. The effective tax rates for the March 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 six months ended March
31, 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 asset.
The benefit recorded in the March 31, 2000 six 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 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 may have 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. Additionally, as
discussed above under "Revenues," the Company has decided to offer its software
products for sale on a subscription basis, which could result in lower revenues
in the short term. Also, Hewlett-Packard ("HP") partners with the Company to
produce a network appliance (HP SureStore AutoBackup). HP is responsible for the
marketing, sale and distribution of the SureStore AutoBackup product. The
Company receives royalties for each appliance sold by HP. The sales of this
product have been lower than expected. The Company is unable to predict the
future sales of these products, and therefore is uncertain what future royalty
revenues it may receive, if any. The Company expects that the combination of
transitioning to subscription pricing, anticipated lower royalties from HP, and
increased operating expenses as the Company broadens its reach in the eSupport
market, will likely postpone the Company's profitability into the following
fiscal year.

                                       12
<PAGE>

         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 and Windows 2000 Professional. The Company expects to support
Windows 2000 server and Windows XP during calendar 2001. Future versions of
Microsoft's Windows operating systems may require significant changes to the
Company's products in order to maintain compatibility.

         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. The Company has entered
into an OEM license with HP that authorizes HP to resell core eSupport
Essentials technology under certain conditions (see discussion in "Quarterly
Trends" section above). The Company expects to realize less revenue per unit
than it would if it sold the products itself. As a result, the Company could
realize less revenue from its relationship with HP than it might have otherwise
obtained by only directly selling eSupport Essentials. 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, 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.

                                       13
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

         The Company's cash and marketable securities decreased by $3.1 million
to $26.7 million at March 31, 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
$2.6 million to $23.3 million at March 31, 2001 from that at September 30, 2000.

         The Company 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.


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.


                                       14
<PAGE>

                            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 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.

              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
              The Company's Annual Meeting of Stockholders (the "Annual
              Meeting") was held on March 7, 2001. At the Annual Meeting, the
              stockholders of the Company (i) elected each of the persons listed
              below to serve as a director of the Company until the 2002 Annual
              Meeting of Stockholders or until his successor is elected and (ii)
              ratified the selection of PricewaterhouseCoopers, LLP as the
              Company's independent accountants for the fiscal year ending
              September 30, 2001.

              The Company had 6,843,803 shares of Common Stock outstanding as of
              January 18, 2001, the record date for the Annual Meeting. At the
              Annual Meeting, holders of a total of 6,391,184 shares of Common
              Stock were present in person or represented by proxy. The
              following sets forth information regarding the results of the
              voting at the Annual Meeting:

                                       15
<PAGE>

              Proposal 1:  Election of Directors
              ----------------------------------
                                             Voting Shares        Voting Shares
                 Director                    In Favor             Withheld
                 --------                    --------             --------

                 Gary W. Clow                6,372,324            18,860
                 Robert W. Johnson, Ph.D.    6,372,324            18,860
                 Antonio Perez               6,372,324            18,860
                 Peter D. Schleider          6,372,324            18,860
                 Corey M. Smith              6,372,324            18,860
                 Tom Dilatush                6,373,324            18,860

              There were no votes cast against the election of any of the
              directors listed above.


              Proposal 2: Ratification of Selection of PricewaterhouseCoopers,
              LLP as Independent Accountants
              ------------------------------------------------------------------

                 Votes in favor:                              6,381,391
                 Votes against:                                   3,277
                 Abstentions:                                     6,516




ITEM 5.  OTHER INFORMATION
            Not Applicable

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

          None




                                       16

<PAGE>



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



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