8-K

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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                               -------------------


                                    FORM 8-K


                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15 (d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                                 JANUARY 9, 2002
                Date of report: (Date of earliest event reported)



                         Commission File Number: 0-19024
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                                 FRONTSTEP, INC.
             (Exact name of registrant as specified in its charter)


          OHIO                                           31-1083175
(State or other jurisdiction of          (I.R.S. Employer Identification Number)
incorporation or organization)


    2800 CORPORATE EXCHANGE DRIVE                           43231
          COLUMBUS, OHIO                                  (Zip Code)
(Address of principal executive offices)


                                 (614) 523-7000
              (Registrant's telephone number, including area code)


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ITEM 5.       OTHER EVENTS.

       Reference is made to the press release issued to the public by the
registrant on January 9, 2002, which indicates that the registrant announces
preliminary results for the second quarter of fiscal 2002. The text of the press
release is attached hereto as an exhibit for further description of the event
reported pursuant to this Form 8-K.


ITEM 7.  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

(a)      Not applicable.

(b)      Not applicable.

(c)      Exhibits.

              The following exhibits are filed with this Form 8-K:

              99        Text of press release dated January 9, 2002.




                                   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 hereunto duly authorized.

                                    FRONTSTEP, INC.



Dated:  January 9, 2002             By: /s/ Daniel P. Buettin
        ---------------             ---------------------------------------
                                    Daniel P. Buettin
                                    Vice President and Chief Financial Officer
                                    (on behalf of the Registrant and as
                                    Principal Financial Officer)


                                INDEX TO EXHIBITS

        Exhibit
         Number       Description of Exhibit
         ------       ----------------------
            99        Text of press release dated January 9, 2002.

EX-99

EXHIBIT 99

FOR IMMEDIATE RELEASE

For more information, contact:

Daniel P. Buettin                                    Sharon Sulc, Frontstep
Vice President and Chief Financial Officer           614-523-7037
614-523-7299                                         sharon.sulc@frontstep.com
dan.buettin@frontstep.com


           FRONTSTEP ANNOUNCES PRELIMINARY RESULTS FOR SECOND QUARTER

        - Economic Uncertainties Continue to Delay Customer Agreements -

COLUMBUS, OHIO, JANUARY 9, 2002 - FRONTSTEP, INC. (NASDAQ: FSTP), a leading
global provider of business software and services for midsize manufacturers and
distributors, today announced that revenues and earnings for the fiscal second
quarter ended December 31, 2001 will fall short of previous expectations. The
company cited continued delays in closing new license agreements and sluggish
demand for its professional services, each a result of economic and political
uncertainties, as the main reason for the unexpected shortfall.

Revenues for the fiscal second quarter are now expected to be approximately
$23.0 to $23.5 million. As a result, the company expects to report a loss from
operations of $2.0 to $2.4 million, which will result in a net loss of between
$0.27 and $0.32 per share.

"After achieving profitability in the September quarter, we misjudged and were
surprised by the magnitude of deferral by our existing and potential new
customers," said Stephen A. Sasser, president and chief executive officer. "It
is clear that the risks and uncertainties associated with the weakened economic
climate, specifically for our midmarket manufacturing customers, are having a
much more dramatic impact on buying behavior and we now believe that this
pattern will continue for the foreseeable future."

"Given this new reality, we will immediately be reducing our operating costs
and aligning our revenue and costs to deliver profitability and positive cash
flows. We expect these cost savings to approximate $6.0 to $7.0 million
annually, in addition to the substantial cost reductions we have already made
in the last nine months. Although we are disappointed, we remain confident in
our solutions and our strategy and do not expect these cost reductions to
impact our product development plans." Sasser concluded.

The Company indicated that while the March quarter will not demonstrate the full
effect of the savings, the Company expects to return to profitability and
positive cash flows in the June quarter. The company also noted that expected
results for the quarter would place it in noncompliance with certain covenants
of its credit facility and that it will have additional near-term cash
availability requirements. However, the Company's primary lender has been
notified and preliminary discussions have been positive and are ongoing. The
company is optimistic that its lender will continue to support them during this
challenging period.

The Company is scheduled to report its final results for the December quarter
and will host a conference call with investors on January 29, 2002.

ABOUT FRONTSTEP

Frontstep is a leading provider of software and services for growing, midsize
manufacturers, distributors and subsidiaries of Fortune 500 companies. Frontstep
helps companies advance customer service, reduce costs, drive sales revenue,
outmaneuver the competition and grow market share. Founded in 1979, Frontstep is
headquartered in Columbus, Ohio and has over 4,400 customer sites and a
worldwide network of 28 offices in 16 countries.

Frontstep's ERP, CRM and supply chain solutions are quickly deployed to
integrate and manage order processing and fulfillment from the Internet to the
front, back and corner offices. These CustomerSynchronized(TM) Collaborative
Solutions provide visibility across multiple plants, distribution centers,
suppliers and buyers. Today's "movers and makers" can align with customer
expectations in real time to deliver products on time, every time. More
information about Frontstep is available at www.frontstep.com.

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Safe Harbor under the Private Securities Litigation Reform Act of 1995: This
press release may contain forward-looking statements that are not historical
facts and involve risks and uncertainties that could cause actual results to
vary materially from the forward-looking statements. These risks and
uncertainties include, but are not limited to, the demand for and market
acceptance of the company's products and services, the impact of competitive
products, the company's ability to increase sales and earnings, the current
economic climate, the worldwide political uncertainties and other factors
detailed in Frontstep's filings with the Securities and Exchange Commission. We
undertake no obligation to revise or update or publicly release the results of
any revision or update to these forward-looking statements.

Frontstep is a trademark of Frontstep Solutions Group, Inc. All other trademarks
mentioned are the property of their respective owners.