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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Form 10-Q

(Mark one)

For the transition period from                      to                     .

Commission file number 0-20034

ELITE INFORMATION GROUP, INC.

(323) 642-5200

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 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 [   ].

As of July 31, 2002 there were 8,233,074 shares of Common Stock, $.01 par value, outstanding.

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Elite Information Group, Inc.
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			Page
			Number
Part I Financial Information:
Item 1. Financial Statements (Unaudited)
	Consolidated Statement of Operations - Three and six months ended June 30, 2002 and June 30, 2001			3
	Consolidated Balance Sheet - June 30, 2002 and December 31, 2001			4
	Consolidated Statement of Cash Flows - Six months ended June 30, 2002 and June 30, 2001			5
	Notes to Consolidated Financial Statements			6 - 9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations				9 - 13
Item 3. Quantitative and Qualitative Disclosures about Market Risk				13
Part II Other Information:
Item 1. Legal Proceedings				14
Item 4. Submission of Matters to a Vote of Security Holders				14
Item 6. Exhibits and Reports on Form 8-K				14
Signature				15

PRODUCTS MENTIONED IN THIS REPORT ARE USED FOR IDENTIFICATION PURPOSES ONLY AND MAY BE TRADE NAMES OR TRADEMARKS OF ELITE INFORMATION GROUP, INC., ITS SUBSIDIARIES OR THIRD PARTIES.

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PART I — Financial Information:

Item 1. Financial Statements

Elite Information Group, Inc.
Consolidated Statement of Operations
(In thousands, except per share data)
(Unaudited)

The accompanying notes are an integral part of these consolidated financial statements

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Elite Information Group, Inc.
Consolidated Balance Sheet
(In thousands, except share and per share data)

The accompanying notes are an integral part of these consolidated financial statements

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Elite Information Group, Inc.
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)

The accompanying notes are an integral part of these consolidated financial statements

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Notes to Consolidated Financial Statements
(Unaudited)

NOTE 1 — Basis of Presentation

The consolidated financial statements of Elite Information Group, Inc. (“Elite” or the “Company”) for the periods presented reflect the results of operations and financial position of the Company’s wholly owned operating subsidiaries, Elite Information Systems, Inc. (“EIS”) and Law Manager, Inc. (“LMI”). All significant inter-company balances and transactions have been eliminated in consolidation.

The unaudited consolidated financial statements of the Company include all adjustments of a normal recurring nature which, in the opinion of management, are necessary for a fair presentation of financial position as of June 30, 2002 and results of operations and cash flows for the interim periods presented. The results of operations for the three and six months ended June 30, 2002 are not necessarily indicative of the results to be expected for the entire year.

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnotes required by generally accepted accounting principles (“GAAP”) in annual financial statements have been omitted or condensed in accordance with quarterly requirements of the Securities and Exchange Commission. Management believes that the disclosures included in the accompanying interim consolidated financial statements and footnotes are adequate to make the information not misleading but should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2001 as reported by the Company in its Annual Report on Form 10-K.

Certain prior year amounts have been reclassified to conform to current year presentation.

NOTE 2 — Segment Information and Customer Concentration

The Company’s two reportable segments are the businesses of its operating subsidiaries, EIS and LMI. EIS customers are primarily comprised of law firms and other professional services firms. LMI customers primarily include large corporate legal departments and government agencies. The table below presents revenue, gross profit and total assets for these reportable segments for the interim periods presented:

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The Company evaluates performance of its segments based on revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA). EBITDA is a non-GAAP disclosure but is presented for informational purposes and is reconciled to income before income taxes below.