<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q
(Mark One)

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

    For the quarterly period ended June 30, 2000
                                   -------------------------------------------

                                       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: 0-20244
                        ------------------------------------------------------

                         DATA RESEARCH ASSOCIATES, INC.
------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


MISSOURI                                              43-1063230
------------------------------------------------------------------------------
(State or other jurisdiction             (I.R.S. Employer Identification No.)
of incorporation or organization)

1276 NORTH WARSON RD.  ST. LOUIS, MISSOURI                   63132
------------------------------------------------------------------------------
(Address of principal executive offices)                   (Zip Code)

(314) 432-1100
------------------------------------------------------------------------------
(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
                                                  --     --

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

At July 14, 2000, there were 4,669,711 shares of the registrant's common stock
outstanding.


<PAGE>   2



                                     INDEX

                DATA RESEARCH ASSOCIATES, INC. AND SUBSIDIARIES



PART I.  FINANCIAL INFORMATION


Item 1.  Financial Statements (Unaudited)

         Consolidated balance sheets       -June 30, 2000
                                            and September 30, 1999

         Consolidated statements of income -Three months ended June 30,
                                            2000 and 1999
                                           -Nine months ended June 30,
                                            2000 and 1999

         Consolidated statements of cash flows -Nine months ended June 30,
                                                2000 and 1999


         Notes to the unaudited consolidated financial statements

Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations

Item 3.  Qualitative and Quantitative Disclosures About Market Risk


PART II. OTHER INFORMATION


Item 5.  Other Information

Item 6.  Exhibits and Reports on Form 8-K


SIGNATURES

EXHIBIT INDEX



<PAGE>   3

Part I.  FINANCIAL INFORMATION
Item 1.  Financial Statements


                DATA RESEARCH ASSOCIATES, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                       (In thousands, except per share data)

<TABLE>
<CAPTION>

                                                     June 30,     September 30,
                                                       2000            1999
                                                    (Unaudited)
                                                    -----------   -------------
                                     ASSETS
<S>                                                 <C>           <C>
CURRENT ASSETS
  Cash and cash equivalents                            $16,707       $17,022
  Short-term investments                                   983             -
  Accounts receivable less allowances
    of $83 at June 30, 2000
    and $212 at September 30, 1999:
      Billed                                             6,736         6,080
      Unbilled                                           1,141         1,919
                                                       -------        ------
                                                         7,877         7,999
  Inventories                                              153            67
  Prepaid expenses                                         965           680
  Deferred income taxes                                    210           212
  Other current assets                                     232           274
                                                       -------        ------
        TOTAL CURRENT ASSETS                            27,127        26,254
PROPERTY AND EQUIPMENT
  Land and improvements                                    504           504
  Buildings and improvements                             2,729         2,720
  Data processing equipment                              7,683         7,298
  Furniture, fixtures, and other                         4,458         4,384
                                                       -------        ------
                                                        15,374        14,906
  Less accumulated depreciation                          9,993         8,678
                                                       -------        ------
                                                         5,381         6,228
NOTE RECEIVABLE                                              -             3
DEFERRED SOFTWARE COSTS (net of accumulated
  amortization of $2,124 at June 30, 2000
  and $1,136 at September 30, 1999)                      5,549         5,181
INTANGIBLE ASSETS (net of accumulated
  amortization of $2,620 at June 30, 2000
  and $2,550 at September 30, 1999)                        359           436
                                                       -------        ------
                                                       $38,416       $38,102
                                                       =======        ======
</TABLE>



<PAGE>   4


(In thousands, except per share data)

<TABLE>
<CAPTION>

                                                         June 30,    September 30,
                                                          2000            1999
                                                       (Unaudited)
                                                       -----------   -------------

                      LIABILITIES AND SHAREHOLDERS' EQUITY
<S>                                                  <C>           <C>
CURRENT LIABILITIES
  Accounts payable                                        $   918       $   758
  Employee compensation                                       450           415
  Deferred revenue                                          5,546         4,439
  Customer deposits                                         1,731         1,201
  Other accrued liabilities                                   531           442
  Income taxes payable                                         77             -
                                                          -------       -------
        TOTAL CURRENT LIABILITIES                           9,253         7,255
DEFERRED INCOME TAXES                                       2,141         2,142
SHAREHOLDERS' EQUITY
  Preferred stock, par value $.01 per share
    1,000 shares authorized, no shares issued                   -             -
  Common stock, par value $.01 per share--10,000
    shares authorized, 5,557 shares issued at
    June 30, 2000 and September 30, 1999                       56            56
  Additional paid-in capital                                5,517         5,606
  Accumulated other comprehensive loss                       (219)         (162)
  Retained earnings                                        31,019        30,577
                                                          -------       -------
                                                           36,373        36,077
  Less cost of treasury stock, 887 shares
    at June 30, 2000, and 621 shares
    at September 30, 1999                                  (9,351)       (7,372)
                                                          -------       -------
        TOTAL SHAREHOLDERS' EQUITY                         27,022        28,705
                                                          -------       -------
                                                          $38,416       $38,102
                                                          =======       =======
</TABLE>



See notes to unaudited consolidated financial statements.




<PAGE>   5


                 DATA RESEARCH ASSOCIATES, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                        (In thousands, except share data)

<TABLE>
<CAPTION>

                                        Three months ended     Nine months ended
                                             June 30,               June 30,
                                          2000      1999         2000      1999
                                         ------    ------       ------    ------
<S>                                   <C>        <C>         <C>       <C>
REVENUES
  Hardware                              $   578    $  900      $ 1,521   $ 1,822
  Software                                1,161     1,874        3,237     5,031
  Service and other                       5,259     4,882       15,664    14,181
                                         ------    ------      -------   -------
                                          6,998     7,656       20,422    21,034
EXPENSES
  Cost of revenues
    Hardware                                415       668        1,141     1,312
    Software                                378       474          901     1,110
    Service and other                     1,464     1,275        4,298     3,874
                                         ------    ------      -------   -------
                                          2,257     2,417        6,340     6,296

  Salaries and employee benefits          2,609     2,574        8,290     7,913
  General and administrative expenses     1,196     1,273        3,789     4,425
  Depreciation and amortization             432       495        1,350     1,420
                                         ------    ------      -------   -------
                                          6,494     6,759       19,769    20,054

    INCOME FROM OPERATIONS                  504       897          653       980

OTHER INCOME                                238       193          844       608
                                         ------    ------      -------   -------
     Income before income taxes             742     1,090        1,497     1,588

PROVISION FOR INCOME TAXES                  235       354          475       516
                                         ------    ------      -------   -------
    NET INCOME                           $  507    $  736      $ 1,022   $ 1,072
                                         ======    ======      =======   =======

Basic and Diluted earnings per share     $  .11    $  .14      $   .21   $   .20
                                         ======    ======      =======   =======
Dividends per share                      $    -    $    -      $   .12   $   .12
                                         ======    ======      =======   =======
</TABLE>



See notes to unaudited consolidated financial statements.




<PAGE>   6


                 DATA RESEARCH ASSOCIATES, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                 (In thousands)

<TABLE>
<CAPTION>

                                                            Nine months ended
                                                                 June 30,
                                                               2000     1999
                                                             -------  -------
<S>                                                        <C>      <C>
OPERATING ACTIVITIES
 Net income                                                 $ 1,022   $ 1,072
  Adjustments to reconcile net income
    to net cash provided by operating activities:
      Depreciation and amortization                           2,416     2,543
      Provision for deferred income taxes                         -       (16)
      Loss on disposal of property and equipment                  -         7
      Changes in operating assets
        and liabilities:
          Accounts receivable                                    42     3,951
          Inventories                                           (87)     (243)
          Prepaid expenses and
            other current assets                               (251)       34
          Accounts payable and
            other current liabilities                         2,084    (1,444)
          Note receivable                                         3        30
                                                            -------   -------
            NET CASH PROVIDED BY
                OPERATING ACTIVITIES                          5,229     5,934
                                                            -------   -------

INVESTING ACTIVITIES
  Purchase of property and equipment                           (505)   (1,223)
  Purchased software                                              -      (513)
  Deferred software cost                                     (1,360)   (1,339)
  Purchase of short-term investments                           (983)  (22,828)
  Proceeds from sale of short-term investments                    -    31,321
                                                            -------   -------
            NET CASH PROVIDED BY
              (USED BY) INVESTING ACTIVITIES                 (2,848)    5,418
                                                            -------   -------

FINANCING ACTIVITIES
  Proceeds from options exercised                                88       245
  Purchase of treasury shares                                (2,155)   (3,664)
  Dividends paid                                               (581)     (644)
                                                            -------   -------
            NET CASH USED BY
              FINANCING ACTIVITIES                           (2,648)   (4,063)
                                                            -------   -------

            EFFECT OF EXCHANGE RATE CHANGES ON
              CASH AND CASH EQUIVALENTS                         (48)        9
                                                            -------   -------

 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS              (315)    7,298
                                                            -------   -------
            CASH AND CASH EQUIVALENTS
              AT BEGINNING OF PERIOD                         17,022     8,710
                                                            -------   -------
            CASH AND CASH EQUIVALENTS
              AT END OF PERIOD                              $16,707   $16,008
                                                            =======   =======
</TABLE>


See notes to unaudited consolidated financial statements.


<PAGE>   7


                 DATA RESEARCH ASSOCIATES, INC. AND SUBSIDIARIES
            NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2000
                      (In thousands, except per share data)

Note 1.  Basis of Presentation
The unaudited consolidated financial statements of Data Research Associates,
Inc. (the "Company") have been prepared in accordance with generally accepted
accounting principles for interim financial information. Accordingly, they do
not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements and, therefore, should
be read in conjunction with the Company's consolidated financial statements and
the notes thereto for the year ended September 30, 1999, contained in the
Company's annual report for the year ended September 30, 1999. In the opinion of
management, all adjustments (consisting only of normal recurring items)
considered necessary for a fair presentation have been included. The results of
operations for the nine months ended June 30, 2000, are not necessarily
indicative of the results that may be expected for the year ending September 30,
2000.

Note 2.  Inventories

Inventories consist primarily of computer equipment and supplies, which are
stated at the lower of cost (first-in, first-out method) or market. The Company
had only finished goods in inventory at June 30, 2000 and September 30, 1999.

Note 3.  Earnings per share

The following table sets forth the computation of basic and diluted earnings per
share:

<TABLE>
<CAPTION>

                                           Three Months            Nine Months
                                              Ended                   Ended
                                             June 30,                June 30,
                                        -----------------      -----------------
                                         2000       1999        2000       1999
                                        -----------------      -----------------
<S>                                   <C>        <C>         <C>        <C>
Numerator for basic earnings
per share and diluted earnings
per share:
  Net Income                            $  507     $  736      $1,022     $1,072
                                        ======     ======      ======     ======
Denominator:
  Basic earnings per share-
  Weighted-average shares                4,667      5,114       4,763      5,276

  Effect of dilutive securities:
    Stock options                            -          2           1         12
                                        ------     ------      ------     ------
  Denominator for diluted earnings
  per share--adjusted weighted-
  average shares and assumed
  conversions                            4,667      5,116       4,764      5,288
                                        ======     ======      ======     ======
Basic earnings per share                $  .11     $  .14      $  .21     $  .20
                                        ======     ======      ======     ======
Diluted earnings per share              $  .11     $  .14      $  .21     $  .20
                                        ======     ======      ======     ======
</TABLE>



<PAGE>   8


                 DATA RESEARCH ASSOCIATES, INC. AND SUBSIDIARIES
      NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 4. Comprehensive Income

The components of comprehensive income, net of related tax, for the three and
nine month periods ended June 30, 2000 and 1999 are as follows:

<TABLE>
<CAPTION>

                                             Three Months          Nine Months
                                                Ended                Ended
                                               June 30,             June 30,
                                           -------------------------------------
                                            2000     1999        2000      1999
                                           -------------------------------------
<S>                                      <C>       <C>        <C>       <C>
Net income                                  $507     $736       $1,022    $1,072
Foreign currency translation adjustment      (42)      54          (57)       83
                                           -------------------------------------
Comprehensive income                        $465     $790       $  965    $1,155
                                           -------------------------------------
                                           -------------------------------------
</TABLE>

The components of accumulated other comprehensive income, net of related tax, at
June 30, 2000 and September 30, 1999, are as follows:

<TABLE>
<CAPTION>

                                                   Jun 30, 2000    Sept 30, 1999
                                                   -----------------------------
<S>                                               <C>               <C>
Foreign currency translation adjustment               $(219)           $(162)
                                                   -----------------------------
Accumulated other comprehensive income                $(219)           $(162)
                                                   -----------------------------
                                                   -----------------------------
</TABLE>



<PAGE>   9



DATA RESEARCH ASSOCIATES, INC. AND SUBSIDIARIES


Item 2. Management's Discussion and Analysis of Financial Condition and
          Results of Operations

Overview

  The Company's revenue recognition policy is discussed in Note A to the 1999
consolidated financial statements in the Company's Form 10-K for the year ended
September 30, 1999. The components of the cost for development of software
primarily include salaries and employee benefits and are expensed as incurred
until such costs qualify as deferred software costs which are amortized over the
estimated useful life of the product. The amortization of capitalized software
is allocated as a direct cost of licensing DRA software. The Company typically
experiences greater gross margin on software licenses and services than on sales
of hardware. The Company's profitability depends in part on the mix of its
revenue components and not necessarily on total revenues.

The Company's revenues and earnings can fluctuate from quarter to quarter
depending upon, among other things, such factors as the complexity of customers'
procurement processes, new product and service introductions by the Company and
other vendors, delays in customer purchases due to timing of library
professional conferences and trade shows, installation scheduling and customer
delays in facilities preparation. In addition, a substantial portion of the
Company's revenues for each quarter is attributable to a limited number of
orders and tends to be realized towards the end of each quarter. Thus, even
short delays or deferrals of sales near the end of a quarter can cause quarterly
results to fluctuate substantially. In the future, the Company's revenues will
be increasingly dependent on sales of its next-generation system, Taos, which is
based on object-oriented client/server design. Certain modules of Taos went into
general release during the fourth quarter of fiscal 1999 and are currently in
use at customer sites. During the second quarter, one additional module went to
field test and will be released later this summer and an additional module is
expected to be released in fiscal 2001. The timing of the completion of these
additional modules may be affected by multiple factors, including rapid
technological change, dependence on third-party suppliers and the relative
scarcity of qualified technical staff. For additional factors that should be
read in conjunction with this disclosure, see Exhibit 99.1 "Cautionary
Statements - Additional Important Factors To Be Considered", in the Company's
Form 10-K for the year ended September 30, 1999.


<PAGE>   10



Year 2000 Readiness Disclosure

   The arrival of the year 2000 posed certain technological challenges resulting
from a reliance in computer technologies on two digits rather than four digits
to represent the calendar year (e.g., "99" for "1999"). The risks to the Company
and the Company's Y2K action plan and related mitigation efforts have been
described in the Company's most recent annual report on Form 10-K for the year
ended September 30, 1999. The Company completed its Y2K action plan prior to the
arrival of the Year 2000. Specifically, prior to December 31, 1999, the Company
had reviewed all of its proprietary software products and believed that all of
such software products were capable of accurately processing date data related
to the change from 1999 to 2000, if used with third party products that were
also capable of accurately processing such data. Also, by December 31, 1999, the
Company had identified, evaluated, tested and validated the ability to process
such data by the computer systems, applications and business processes used by
the Company to operate its business. The Company did not experience, and through
June of 2000 has not experienced, any material problems related to the
processing of date data related to the change from 1999 to 2000 in its own
proprietary software or any other software or systems that the Company uses. The
Company's total costs related to the Y2K issue were approximately $25,000, of
which $10,000 were external expenses.

Based on the lack of problems experienced by the Company in connection with the
arrival of the Year 2000, the Company currently does not expect any significant
disruptions in the future as a result of Y2K or the fact that 2000 is a leap
year. However, because the Company's continued Y2K compliance in calendar 2000
is in part dependent on the continued Y2K compliance of third parties, there can
be no assurance that the Company's efforts alone have resolved all Y2K issues or
that key third parties will not experience Y2K compliance failures as calendar
2000 progresses. The Company's oversight committee will continue to monitor the
Company's own systems and the preparedness of third parties throughout calendar
2000.

Forward Looking Statements

Except for the historical information and statements contained in Management's
Discussion and Analysis of Financial Condition and Results of Operations
("MD&A"), the matters and items contained in this document, including MD&A,
contain a substantial number of forward-looking statements, indicated by such
words as "expects," "believes," "estimates," "anticipates," "plans,"
"assessment," "should," "will," and similar words. These forward-looking
statements are based on the Company's and management's beliefs, assumptions,
expectations, estimates and projections, any or all of which are subject to
future change, depending on unknown developments and facts. These
forward-looking statements should be read in conjunction with the disclosures in
Exhibit 99.1 "Cautionary Statements - Additional Important Factors to Be
Considered," in the Company's Form 10-K for the year ended September 30, 1999.




<PAGE>   11


Results of Operations

Three Months Ended June 30, 2000 compared to Three Months Ended June 30, 1999

  Hardware revenues decreased $.3 million, or 36%, to $.6 million in the three
months ended June 30, 2000, compared to $.9 million for the three months ended
June 30, 1999. A portion of the decrease results from additional revenue
generated during the three months ended June 30, 1999, when the Company had a
program to facilitate the migration of specific existing customers to Taos by
implementing a hardware upgrade; most customers who could take advantage of the
program have already done so. The decrease in revenue was partially offset by
hardware shipments for two new contracts and two network upgrades during the
three months ended June 30, 2000. The gross margin percentage on hardware was
28% in the three months ended June 30, 2000 and 26% in the three months ended
June 30, 1999. The higher margin network hardware shipped to two network upgrade
sites contributed to the slight increase in margin.

  Software revenues decreased $.7 million, or 38%, to $1.2 million in the three
months ended June 30, 2000, compared to $1.9 million in the three months ended
June 30, 1999. The decrease in software license revenues is due primarily to
revenue in the three months ended June 30, 1999, generated by initial sales of
Web2 to existing customers following the release of version 1.2. The Company had
$.1 million in new contract revenues in each of the three month periods ended
June 30, 1999, and 2000, and in the three months ended June 30, 2000, had
revenue from several license upgrades for existing customers. The gross margin
percentage on software was 67% in the three months ended June 30, 2000, and 75%
in the three months ended June 30, 1999. The decrease in margin is primarily
attributable to the reduced revenue in the three months ended June 30, 2000,
which results in the amortization of the software development costs, which is
classified as a cost of software sales, being a higher percentage of sales.

  Service and other revenues increased $.4 million, or 8%, to $5.3 million in
the three months ended June 30, 2000, compared to $4.9 million in the three
months ended June 30, 1999. The primary reason for the increase is the continued
increase in software maintenance revenues, due to new customer sites moving past
the applicable warranty period. Management expects that software maintenance
revenues, a major component of service and other revenues, will continue to
increase as the base of licensed software products increases. The Company also
continues to expand the revenue stream generated from the Internet services
business. The gross margin percentage on service and other revenues was 72% in
the three months ended June 30, 2000, and 74% in the three months ended June 30,
1999.

  Salaries and employee benefits remained consistent at $2.6 million in the
three months ended June 30, 2000 and in the three months ended June 30, 1999.
Annual salary increases in the three months ended June 30, 2000, were mitigated
by open positions in the same quarter.

  General and administrative expenses decreased $.1 million, or 6%, to $1.2
million in the three months ended June 30, 2000, from $1.3 million in the three
months ended June 30, 1999. This decline is primarily attributable to a decrease
in travel expenses.

  Income from operations decreased $.4 million, or 44%, to $.5 million in the
three months ended June 30, 2000, from $.9 million in the three months ended
June 30, 1999. The primary contributor to the decline is the reduction of
revenue in the three months ended June 30, 2000 as compared to the three months
ended June 30, 1999, with no corresponding declines in salaries and benefits and
general and administrative expenses.

  The Company's consolidated effective tax rate was 32% for the three month
period ended June 30, 2000, and 33% for the three month period ended June 30,
1999. The decrease is a result of a favorable mix in rates from various state
taxing authorities, as well as a reduced foreign tax effect.



<PAGE>   12


Results of Operations

Nine Months Ended June 30, 2000 compared to Nine Months Ended June 30, 1999

  Hardware revenues decreased $.3 million, or 17%, to $1.5 million in the nine
months ended June 30, 2000, compared to $1.8 million for the nine months ended
June 30, 1999. Revenue streams from two new contract sites, as well as two
network upgrade sites, offset the completion of a program that was in place in
the nine months ended June 30, 1999, to facilitate the migration of specific
existing customers to the Taos system. The gross margin percentage on hardware
was 25% in the nine months ended June 30, 2000 and 28% in the nine months ended
June 30, 1999. A one time purchase of hardware equipment with no revenue stream
extending from it is the primary cause of the margin decline in the nine months
ended June 30, 2000.

  Software revenues decreased $1.8 million, or 36%, to $3.2 million in the nine
months ended June 30, 2000, from $5.0 million in the nine months ended June 30,
1999. The decrease is due primarily to one sale of $.8 million to a single
customer and to initial sales of Web2 to existing customers following the
release of version 1.2 in the nine months ended June 30, 1999, with no similar
sales in the nine months ended June 30, 2000. The gross margin percentage on
software was 72% in the nine months ended June 30, 2000, and 78% in the nine
months ended June 30, 1999. The decrease in margin is primarily attributable to
the reduced revenue in the nine months ended June 30, 2000, which results in the
amortization of the software development costs, which is classified as a cost of
software sales, being a higher percentage of sales.

  Service and other revenues increased $1.5 million, or 10%, to $15.7 million in
the nine months ended June 30, 2000, compared to $14.2 million in the nine
months ended June 30, 1999. The primary reason for the increase is the continued
increase in software maintenance revenues, due to new customer sites moving past
the warranty period. Management expects that software maintenance revenues, a
major component of service and other revenues, will continue to increase as the
base of licensed software products increases. The Company also continues to
expand the revenue stream generated from the Internet services business. The
gross margin percentage on service and other revenues was 73% in the nine months
ended June 30, 2000, and in the nine months ended June 30, 1999.

  Salaries and employee benefits increased $.4 million, or 5%, to $8.3 million
in the nine months ended June 30, 2000, from $7.9 million in the nine months
ended June 30, 1999. This increase is primarily attributable to annual salary
increases.

  General and administrative expenses decreased $.6 million, or 14%, to $3.8
million in the nine months ended June 30, 2000, from $4.4 million in the nine
months ended June 30, 1999. This decrease is primarily attributable to a
reduction in outside consulting expense, coupled with a decrease in travel
expenses.

  Income from operations decreased $.3 million, or 33%, to $.7 million in the
nine months ended June 30, 2000, from $1.0 million in the nine months ended June
30, 1999. The primary contributor to the decline is the reduction of revenue in
the nine months ended June 30, 2000 as compared to the nine months ended June
30, 1999, with no corresponding declines in salaries and benefits and general
and administrative expenses.

  The Company's consolidated effective tax rate was 32% for the nine month
period ended June 30, 2000 and for the nine month period ended June 30, 1999.


<PAGE>   13


Liquidity and Capital Resources

  The Company's cash needs are primarily for working capital and capital
expenditures and historically have been met by cash flows from operations, bank
borrowings, and equipment leases. At June 30, 2000, the Company's working
capital was $17.9 million and its ratio of current assets to current liabilities
was 2.9 to 1, as compared to working capital of $19.0 million and a ratio of
current assets to current liabilities of 3.6 to 1 at September 30, 1999.

  Net cash provided by operating activities was $5.2 million for the nine months
ended June 30, 2000, compared to $5.9 million for the nine months ended June 30,
1999. The decrease in net cash provided by operations was due primarily to a
decrease in cash receipts in the nine months ended June 30, 2000.

  Net cash used by investing activities was $2.8 million for the nine months
ended June 30, 2000, compared to net cash provided of $5.4 million for the nine
months ended June 30, 1999. The decrease in net cash provided by investing
activities is primarily due to the movement of cash from short-term investments
to more liquid funds to finance the repurchase of treasury stock, in the nine
months ended June 30, 1999.

  Net cash used by financing activities was $2.6 million for the nine months
ended June 30, 2000, compared to $4.1 million for the nine months ended June 30,
1999. Purchases of treasury stock in the amount of $2.2 million for the nine
months ended June 30, 2000, compared to $3.7 million for the nine months ended
June 30, 1999 accounted for the decrease in cash used.

  In January 2000, the Company renewed its $6.0 million line of credit, which
matures in January 2001 and is subject to annual renewal. The line of credit
bears interest at the federal funds rate plus 200 basis points payable monthly
on outstanding balances and is secured by the Company's accounts receivable,
inventory, and equipment. There have been no borrowings against the Company's
line of credit since May 1991.

  Management believes that, with the current cash position of $16.7 million,
short-term investments of $1.0 million, accounts receivable of $7.9 million,
continued cash flow from operations, availability of a $6.0 million line of
credit, and total current liabilities of $9.3 million, the Company will be able
to meet both its short-term liquidity needs and short-term capital expenditure
needs. Management believes that with total long-term liabilities of
approximately $2.1 million and no other known long-term commitments or demands,
the Company will be able to satisfy its known long-term liabilities and
liquidity needs through the funding sources identified above.


Item 3.  Qualitative and Quantitative Disclosures About Market Risk

The Company's exposure to potential near-term losses in future earnings, fair
value or cash flows resulting from reasonably possible changes in market rates
or prices is not material.



<PAGE>   14


                 DATA RESEARCH ASSOCIATES, INC. AND SUBSIDIARIES



PART II  OTHER INFORMATION

Item 5. Other Information.

The Company has released version 1.0 of some modules of its next generation
system, Taos, and is completing the developmental stage of other modules. During
the development of Taos, the Company has pursued contractual arrangements with
library systems desiring to purchase Taos once it is completed. Those contracts
include terms that are modified from time-to-time by agreement between the
parties, including terms with respect to the anticipated installation dates for
the various modules of the Taos system, but libraries are not obligated to agree
to such amendments. The Company has experienced some delays with certain
contractual installation schedules, which has resulted in the modification of
certain of these schedules and the termination of certain contracts. During the
quarter, the Company received notice from one customer that it wished to
terminate its contract with the Company. While the Company believes that it will
be able to substantially comply with the Taos installation schedules currently
in place with its customers, a variety of factors could add additional delays in
the final release of Taos, necessitating amendment of various contracts with
respect to the installation dates. Such factors include the difficulties
associated with incorporating rapid technological change into the Taos system,
the Company's dependence on third-party suppliers, and the relative scarcity of
qualified technical staff. For additional risk factors that should be read in
conjunction with this disclosure, see Exhibit 99.1 "Cautionary Statements -
Additional Important Factors to Be Considered" in the Company's Form 10-K for
the year ended September 30, 1999.

Effective May 1, 2000, the Company closed its Melbourne, Australia, office and
arranged for its Australian customers to be supported by an Australian
distributor with which the Company has had a previous relationship with.

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

    (a) Exhibits

        27 Financial Data Schedule

    (b) Reports on Form 8-K

        No reports on Form 8-K were required to be filed during the three months
        ended June 30, 2000.


<PAGE>   15


PART II.  OTHER INFORMATION

                 DATA RESEARCH ASSOCIATES, INC. AND SUBSIDIARIES


                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                            DATA RESEARCH ASSOCIATES, INC.



August 2, 2000                              /s/Michael J. Mellinger
----------------                            ------------------------------
Date                                        Michael J. Mellinger
                                            Chairman, President, and
                                            Chief Executive Officer
                                            (Principal Executive Officer)

August 2, 2000                              /s/Katharine W. Biggs
----------------                            ------------------------------
Date                                        Katharine W. Biggs
                                            Vice President, and
                                            Chief Financial Officer
                                            (Principal Accounting Officer)



<PAGE>   16


EXHIBIT INDEX

27  Financial Data Schedule