Real-time condition-based analysis is performed on a machine for providing diagnostic and prognostic outputs indicative of machine status includes a signal processor for receiving signals from sensors adapted for measuring machine performance parameters. The signal processor conditions and shapes at least some of the received signals into an input form for a neural network. A fuzzy adaptive resonance theory neural network receives at least some of the conditioned and shaped signals, and detects and classifies a state of the machine based upon the received conditioned and shaped signals, and upon a predetermined ontology of machine states, diagnostics, and prognostics. The neural network can also determine from the machine state a health status thereof, which can comprise an anomaly, and output a signal representative of the determined health status. A Bayesian intelligence network receives the machine state from the neural network and determines a fault probability at a future time.