SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 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, 1997

                                       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  1-11624



                         HyperMedia Communications, Inc.
                         -------------------------------
             (Exact name of registrant as specified in its charter)

         California                                             94-3104247
-------------------------------                            -------------------
(State or other jurisdiction of                             (I.R.S. Employer
 incorporation or organization)                            Identification No.)


901 Mariner's Island Blvd., Suite 365,
        San Mateo, California                                     94404
----------------------------------------                       ----------
(Address of principal executive offices)                       (Zip Code)


                                 (415) 573-5170
              (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      
                                              -----       -----


As of August 4, 1997,  3,200,137  shares of the  Registrant's  common stock were
issued and outstanding.


<PAGE>

                                         PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
                                         HYPERMEDIA COMMUNICATIONS, INC.
                                                 BALANCE SHEET
                                                  (UNAUDITED)
<CAPTION>

                                                                                   June 30,      December 31,
                                                                                     1997            1996
                                                                                ------------    ------------
<S>                                                                             <C>             <C> 
ASSETS
Current assets:
        Cash                                                                    $    110,000    $    107,000
        Accounts receivable, net of allowance for
                 doubtful accounts of $108,000 and $180,000                        1,296,000       1,294,000
        Prepaid expenses and other assets                                            475,000         557,000
                                                                                ------------    ------------
                        Total current assets                                       1,881,000       1,958,000

Property and equipment, net                                                          532,000         622,000
Intangibles and other assets                                                               0           4,000
                                                                                ------------    ------------
                                                                                $  2,413,000    $  2,584,000
                                                                                ============    ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
        Accounts payable                                                        $    734,000    $    822,000
        Accrued liabilities                                                          282,000         326,000
        Deferred revenue                                                             151,000          33,000
        Note payable                                                                 225,000         335,000
                                                                                ------------    ------------
                        Total current liabilities                                  1,392,000       1,516,000
                                                                                ------------    ------------

Shareholders' equity:
        Convertible Preferred Stock, $.001 par value; 10,064,516
                shares authorized; 8,197,110 and 8,146,766 shares                  1,307,000       1,209,000
                issued and outstanding
        Common Stock, $.001 par value; 50,000,000 shares
                authorized; 3,200,137 and 3,019,004 shares                        10,427,000      10,377,000
                issued and outstanding
        Accumulated deficit                                                      (10,713,000)    (10,518,000)
                                                                                ------------    ------------
                        Total shareholders' equity                                 1,021,000       1,068,000
                                                                                ------------    ------------
                                                                                $  2,413,000    $  2,584,000
                                                                                ============    ============
<FN>

                         See the accompanying notes to these condensed financial statements.
</FN>
</TABLE>


<PAGE>

<TABLE>

                                            HYPERMEDIA COMMUNICATIONS, INC.
                                                STATEMENT OF OPERATIONS
                                                      (UNAUDITED)
<CAPTION>
                    
                                                                 Three months ended June 30,           Six months ended June 30,
                                                                 ---------------------------           -------------------------
                                                                  1997               1996               1997              1996
                                                               -----------        -----------        -----------       -----------
<S>                                                            <C>                <C>                <C>               <C>        
Revenues                                                       $ 1,801,000        $ 2,408,000        $ 3,716,000       $ 4,583,000
                                                               -----------        -----------        -----------       -----------

Expenses:
        Editorial                                                  284,000            332,000            575,000           676,000
        Production                                                 471,000            586,000            947,000         1,366,000
        Circulation                                                532,000            497,000          1,096,000         1,029,000
        Sales and marketing                                        384,000            911,000            804,000         1,404,000
        Product development                                         10,000              5,000             19,000            12,000
        General and administrative                                 210,000            174,000            453,000           403,000
                                                               -----------        -----------        -----------       -----------
                        Total expenses                           1,891,000          2,505,000          3,894,000         4,890,000
                                                               -----------        -----------        -----------       -----------

Loss from operations                                               (90,000)           (97,000)          (178,000)         (307,000)

Interest and other expense, net                                      7,000              2,000             17,000             6,000
                                                               -----------        -----------        -----------       -----------
Net loss                                                       $   (97,000)       $   (99,000)       $  (195,000)      $  (313,000)
                                                               ===========        ===========        ===========       ===========

Net loss per common share                                      $     (0.03)       $     (0.03)       $     (0.06)      $     (0.10)
         and equivalents (Note 2)                              ===========        ===========        ===========       ===========
        
Weighted average common shares
        and equivalents                                          3,200,137          3,019,004          3,200,137         3,019,004
                                                               ===========        ===========        ===========       ===========
<FN>

                                   See the accompanying condensed notes to these financial statements.
</FN>
</TABLE>


<PAGE>
                                               
<TABLE>
                                      HYPERMEDIA COMMUNICATIONS, INC.
                                          STATEMENT OF CASH FLOWS
                                        (Decrease) Increase in Cash
                                                (UNAUDITED)
<CAPTION>
                    
                                                                                  Six months ended June 30,
                                                                              --------------------------------
                                                                                 1997                  1996
                                                                              ---------             ---------
<S>                                                                           <C>                   <C>
Cash flow from operating activities:
        Net loss                                                              $(195,000)            $(313,000)
        Adjustments to reconcile net loss to net
                cash provided by (used in) operating activities:
                Depreciation and amortization                                   119,000               119,000
                Allowance for doubtful accounts                                 (73,000)             (131,000)
                Other                                                            20,000                42,000
                Change in assets and liabilities:
                        Accounts receivable                                      71,000               203,000
                        Prepaid expenses and other assets                        61,000               (29,000)
                        Accounts payable                                        (88,000)               47,000
                        Accrued liabilities                                     (44,000)              (38,000)
                        Deferred revenue                                        118,000               (82,000)
                                                                              ---------             ---------
Net cash used in operating activities                                           (11,000)             (182,000)
                                                                              ---------             ---------
Net cash used in investing activities for  purchase of
        fixed assets                                                            (24,000)              (72,000)
                                                                              ---------             ---------
Cash flows from financing activities:
        Proceeds from issuance of preferred stock                                98,000               211,000
        Proceeds from issuance of common stock                                   50,000                 2,000
        Repayment of note payable                                              (110,000)                 --
                                                                              ---------             ---------
Net cash provided by financing activities                                        38,000               213,000
                                                                              ---------             ---------
Net increase (decrease) in cash                                                   3,000               (41,000)

Cash at beginning of period                                                     107,000               275,000
                                                                              ---------             ---------
Cash at end of period                                                         $ 110,000             $ 234,000
                                                                              =========             =========
Supplemental disclosure of cash flow information:
        Cash paid during the period for interest                              $  17,000             $   6,000
                                                                              =========             =========


</TABLE>


<PAGE>


                         HYPERMEDIA COMMUNICATIONS, INC.
                     CONDENSED NOTES TO FINANCIAL STATEMENTS

NOTE 1 - GENERAL

The financial statements of HyperMedia  Communications,  Inc. (the "Company") as
of June 30,  1997 and 1996 and for the  three  and six  months  then  ended  are
unaudited, and in the opinion of management, all adjustments (consisting of only
normal  recurring  items)  necessary for the fair  presentation of the financial
position and results of operations  for the interim  periods have been included.
These  financial  statements  should be read in  conjunction  with the Financial
Statements  for the year ended  December 31, 1996 and notes thereto  included in
the Company's  Form 10-K. The results of operations for the three and six months
ended June 30, 1997 are not necessarily  indicative of the results  expected for
the entire year.

The  preparation  of these  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 the  reported  amounts  of  revenues  and  expenses  during  the
reporting period. Actual results could differ from those estimates.


NOTE 2 - NET INCOME (LOSS) PER SHARE

Net loss  per  common  share  is based  upon  the  weighted  average  number  of
outstanding  shares  of  Common  Stock.  Common  stock  equivalent  shares  from
Convertible  Preferred Stock (using the  if-converted  method) and stock options
and warrants  (using the treasury  stock  method)  have been  excluded  from the
computation  for the three month  periods  ending June 30, 1997 and 1996 and for
the six  month  periods  ended  June  30,  1997  and  1996 as  their  effect  is
anti-dilutive.

In February 1997, the Financial  Accounting  Standards Board issued Statement of
Accounting  Standards No. 128,  "Earnings Per Share" (SFAS 128). SFAS supersedes
Accounting  Principles  Board  Opinion  No.  15,  "Earnings  Per  Share"  and is
effective for financial  statements  for both interim and annual  periods ending
after  December 15,  1997.  Under SFAS 128, the pro forma net loss per share for
the three  month  period  ended June 30,  1997 was $(0.03) and for the six month
period  ended June 30, 1997 was $(0.06) for both basic and diluted  earnings per
share.

NOTE 3 - STATEMENT OF SHAREHOLDER'S EQUITY

In 1996, the Board of Directors  approved the issuance of the Series G Preferred
Stock. The Series G Preferred Stock ranks pari passu with the Series F Preferred
Stock.  50,344  Series G Preferred  Stock shares were issued  during the quarter
ended June 30, 1997.



<PAGE>


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

This  section  and other  parts of this  Quarterly  Report on Form 10-Q  contain
forward-looking  statements that involve risks and uncertainties.  The Company's
actual  results  may  differ  significantly  from  those  anticipated  in  these
forward-looking  statements  as a result of the  factors  set forth below and in
"Factors  Affecting  Operating  Results and Market Price of Stock".  Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. Forward-looking statements are indicated by an
asterisk (*).

General
HyperMedia  Communications,  Inc.  (the  "Company"  or  "HyperMedia")  publishes
NewMedia  Magazine  ("NewMedia"),  the first  periodical  publication  dedicated
solely to the  professional  market for new media  technology.  "New media" is a
term applied to a wide array of digital communications  technologies,  including
Internet   development  tools  and  services,   desktop  and  portable  personal
computers, workstations, servers, audio/video compression and editing equipment,
graphics  hardware  and  software,   high-density  storage  devices,  and  video
conferencing systems.  Professional new media technology is actively employed in
a broad  range of  communications-related  businesses  and  disciplines  such as
publishing,  advertising, sales, marketing, film production,  broadcasting, game
development,  education,  and  training.  Many  large  multinational  technology
corporations are developing and marketing products  specifically targeted to the
professional market.

HyperMedia also publishes Hyperstand,  an electronic service on the Internet for
professionals who develop new media content and applications, particularly World
Wide Web sites.  The Company also  produces an annual  awards  competition,  the
NewMedia  INVISION Awards  program,  which honors  professionals  who employ new
media technology in the development of communications applications.

NewMedia is published 16 times per year and is  distributed to more than 215,000
professionals  who develop new media content and  applications for the business,
government,  education  and consumer  markets.  According  to a recent  analysis
conducted by the Company of NewMedia  subscriber  demographic  data, the average
subscriber to the publication has represented that they are personally  involved
in the purchase of over $500,000 worth of new media-related hardware,  software,
and services in a  twelve-month  period.* The magazine's  primary  mission is to
rate and review new  professional-level  products used in the development of new
media content and applications.

---------------
* This statement is a forward looking statement reflecting current expectations.
There can be no assurance that the Company's  actual  performance  will meet the
Company's current expectations.  Investors are strongly encouraged to review the
sections  entitled  "Factors  Affecting  Operating  Results and Market  Price of
Stock" and  "Management's  Discussion  and Analysis of Financial  Condition  and
Results of  Operations"  for a discussion  of factors  that could affect  future
performance.



<PAGE>



Results of Operations

The Company's  gross  revenues were  $1,801,000  and $2,408,000 for the quarters
ended June 30, 1997 and 1996,  respectively,  and  $3,716,000 and $4,583,000 for
the six months then ended. There were two principal reasons for these decreases.
First,  in 1996, the NewMedia  INVISION Awards program was part of Spring Comdex
held  in June  1996  and  generated  sponsorship  (and  associated)  revenue  of
approximately  $580,000. In 1997, the NewMedia INVISION Awards program will be a
three-day festival presented November 10-12, 1997, at the Center for the Arts in
Yerba  Buena  Gardens  in San  Francisco.  *  Sponsors  for  the  event  include
Microsoft, Silicon Graphics, Ziff-Davis TV, Macromedia and others. Consequently,
revenues from the 1997 program will  not be recognized until the fourth quarter.
* Second,  the Company's  revenues in the quarters ended March 31, 1996 and June
30, 1996 reflected one-time advertising promotions from polybagging campaigns by
online  services.  The costs of these  promotions  were  passed  through  to the
customer and resulted in a disproportionate increase in revenues.

Excluding the revenues associated with the one-time promotions and the impact of
the change in dates and venue for the  NewMedia  INVISION  Awards  program,  net
revenue in NewMedia  Magazine  increased in the second fiscal quarter of 1997 by
10% and in the first six months of 1997 by 5% as  compared  to the year  earlier
comparable  periods.  This increase in the second  quarter of 1997 was primarily
attributable  to strong  advertising  in the  systems  category  from  customers
including DEC, IBM, Silicon  Graphics and others,  who are targeting the digital
professional  market that NewMedia  Magazine  serves.  In the second  quarter of
1997, systems advertising in NewMedia Magazine grew by 65 percent as compared to
the second  quarter of 1996. In the 1996  IntelliQuest  Computer  Industry Media
Study (CIMS(TM)),  NewMedia Magazine led other major technology  publications in
the  percent  of readers  who make  volume  purchases  of  Pentium  Pro  desktop
computers and workstations.

The Company's  total  expenses were  $1,891,000  and $2,505,000 for the quarters
ended June 30, 1997 and 1996,  respectively,  and  $3,894,000 and $4,890,000 for
the  six  months  then  ended.  After  factoring  out the  one-time  advertising
promotions,  change in dates and venue for the NewMedia  INVISION Awards program
and variable costs,  corporate  expenses decreased very slightly for the quarter
ended June 30, 1997 and by  approximately  5% for the six months then ended. The
decrease in corporate expenses year-over-year for both periods was primarily due
to continued expense control programs.

The net loss of $195,000  for the first six months of 1997  decreased  by 38% as
compared to the loss of $313,000  for the first six months of 1996.  The Company
posted a net loss of $97,000 in the second  quarter of 1997 as compared to a net
loss of $99,000 for the same period of 1996.  The increase in NewMedia  Magazine
net revenue  combined with  continued  strong cost controls in the first half of
1997 resulted a $118,000,  or 38%, decrease in net loss for the first six months
of 1997 as compared to the similar period in 1996.

---------------
* This statement is a forward looking statement reflecting current expectations.
There can be no assurance that the Company's  actual  performance  will meet the
Company's current expectations.  Investors are strongly encouraged to review the
sections  entitled  "Factors  Affecting  Operating  Results and Market  Price of
Stock" and  "Management's  Discussion  and Analysis of Financial  Condition  and
Results of  Operations"  for a discussion  of factors  that could affect  future
performance.


<PAGE>


Editorial  expenses,  comprised  principally  of  salaries  and fees paid to the
writers for the  Company's  publications,  were  $284,000  and  $332,000 for the
quarters ended June 30, 1997 and 1996,  respectively,  and $575,000 and $676,000
for the six  months  then  ended.  The  reductions  in  editorial  expenses  are
primarily  attributable to cost control  programs and the sale of the Macromedia
User Journal ("MUJ") in the third quarter of 1996, partially offset by increased
expenses associated with Hyperstand.  Editorial expenses represented 16% and 14%
of revenue  for the  quarters  ended June 30, 1997 and 1996,  respectively.  The
Company  expects  editorial  costs to rise in the balance of 1997 as a result of
higher paid  contributor  and staffing  costs  associated  with NewMedia and the
expansion of the Internet World Wide Web site, Hyperstand. *

Production expenses,  including costs for design,  materials and printing of the
Company's  publications,  were $471,000 and $586,000 for the quarters ended June
30, 1997 and 1996,  respectively  and $947,000 and $1,366,000 for the six months
then ended.  The decrease in production  expenses for the second fiscal  quarter
and first six months of 1997 as compared  to the same  quarter and six months of
1996 is primarily attributable to the absence in 1997 of the one time advertiser
promotion  costs  associated  with  polybagging  issues of NewMedia  for various
online  services in 1996.  Net production  expenses for NewMedia,  excluding one
time advertiser  promotion costs,  decreased  primarily as a result of decreased
year-over-year  paper costs.  Production expenses  represented 26% of revenue in
the second  quarter of 1997  compared  to 24% for the same  period in 1996.  Net
production  expenses  are  expected  to  increases  for the balance of 1997 as a
result of projected increase in advertising pages and increased paper prices. *

Circulation expenses, consisting primarily of costs associated with subscription
fulfillment,   mailing  and  the  direct  mail   promotions   of  the  Company's
publications,  were  $532,000 and $497,000 for the quarters  ended June 30, 1997
and 1996,  respectively,  and  $1,096,000 and $1,029,000 for the six months then
ended.   The  Company   currently   capitalizes  its   circulation   development
expenditures  and  amortizes  them  over a 12 month  period.  The  increases  of
$35,000, or 7%, in the second quarter of 1997 as compared to the same quarter in
1996 and  $67,000,  or 7%, in the first six  months of 1997 as  compared  to the
first six months of 1996 are  primarily  attributable  to the  larger  amount of
circulation development  expenditure  amortization included in the first quarter
and first six months of 1997 as compared to the same periods in 1996 as a result
of  the  Company's  publishing  strategy  to  increase  the  minimum  readership
qualifications to receive the magazine.  As a result of these new criteria,  the
purchasing  power of new media  products and services of the average  subscriber
increased to more than  $500,000 at the end of 1996 from less than  $200,000 for
1995, an increase of approximately 150 percent.  The Company intends to maintain
the higher  minimum  readership  qualifications  throughout  1997. * Circulation
expenses  represented 30% of revenues for the second quarter of 1997 as compared
to 21% of revenues for the same period of 1996. The Company expects  circulation
expenses to remain relatively flat for the balance of 1997.*

---------------
* This statement is a forward looking statement reflecting current expectations.
There can be no assurance that the Company's  actual  performance  will meet the
Company's current expectations.  Investors are strongly encouraged to review the
sections  entitled  "Factors  Affecting  Operating  Results and Market  Price of
Stock" and  "Management's  Discussion  and Analysis of Financial  Condition  and
Results of  Operations"  for a discussion  of factors  that could affect  future
performance.


<PAGE>



Sales and marketing  expenses were $384,000 and $911,000 for the quarters  ended
June 30, 1997 and 1996,  respectively,  and $804,000 and  $1,404,000 for the six
months then ended. The decrease of $600,000, or 43%, for the first six months of
1997 as compared to 1996 is  primarily  attributable  to the change in dates and
venue for the NewMedia  INVISION Awards program.  In 1996, the NewMedia INVISION
Awards program was part of Spring Comdex held during the second quarter of 1996.
In 1997,  the NewMedia  INVISION  Awards  program  will be a three-day  festival
presented  November  10-12,  1997,  at the  Center  for the Arts in Yerba  Buena
Gardens in San  Francisco.  Sponsors for the event  include  Microsoft,  Silicon
Graphics,  Ziff-Davis TV,  Macromedia and others.  After excluding the impact of
the  change  in dates  for the  NewMedia  INVISION  Awards  program,  sales  and
marketing expenses were relatively comparable in the second quarters of 1997 and
1996.  Sales and marketing  expenses  represented  21% of revenue for the second
quarter of 1997 as compared to 38% of revenue for the same period of 1996. Sales
and marketing expenses are expected to increase during the balance of 1997, both
for the  NewMedia  INVISION  Awards  program  and for  larger  commission  costs
associated  with  increased   advertising  pages,  higher  sales  and  marketing
management compensation expenses, and higher expenditures on sales and marketing
programs. *

Product development expenses, consisting of costs incurred in the development of
new  products,  including  the Internet  World Wide Web site,  Hyperstand,  were
$10,000 and $5,000 for the quarters ended June 30, 1997 and 1996,  respectively,
and $19,000 and  $12,000  for the six months  then ended.  The Company  plans to
continue its product development efforts during 1997. *

General and administrative  expenses were $210,000 and $174,000 for the quarters
ended June 30, 1997 and 1996,  respectively,  and  $453,000 and $403,000 for the
six months then ended. The increase of $50,000,  or 12%, in the first six months
of 1997 as compared to 1996 and $36,000,  or 21%, in the second  quarter of 1997
as compared  to the same  period in 1996  reflects  increased  bad debt  expense
offset  by  lower  consulting  costs.   General  and   administrative   expenses
represented  12% of revenue for the second quarter of 1997 as compared to 7% for
the same period in 1996. ~General and administrative  costs are expected to grow
in the balance of 1997 with  expected  increases  in general and  administrative
expenses that accompany anticipated revenue growth.*

----------------
* This statement is a forward looking statement reflecting current expectations.
There can be no assurance that the Company's  actual  performance  will meet the
Company's current expectations.  Investors are strongly encouraged to review the
sections  entitled  "Factors  Affecting  Operating  Results and Market  Price of
Stock" and  "Management's  Discussion  and Analysis of Financial  Condition  and
Results of  Operations"  for a discussion  of factors  that could affect  future
performance.


<PAGE>



Liquidity and Capital Resources

At June 30, 1997, the Company had approximately  $489,000 in net working capital
and its principal  sources of liquidity  consisted of approximately  $110,000 in
cash and a $1  million  line of  credit  limited  to 70% of  qualified  accounts
receivable.  At June 30, 1997, there was $225,000 outstanding under this line of
credit.  As a result  of the  conditions  of the line of  credit  and  financial
results of the 1997 second  fiscal  quarter,  the  Company had unused  borrowing
capacity  of  $498,000.  Partial  usage of unused  borrowing  capacity  could be
restricted by financial operating covenants.

The Company expects that it will continue to require significant amounts of cash
to finance  operations.*  The  Company  has not  committed  to make  significant
capital expenditures, but may make such expenditures in the future.* The Company
believes that the existing cash  balances,  together  with cash  generated  from
operations and borrowings available under its line of credit, will be sufficient
to meet its cash requirements through at least the end of 1997.* There can be no
assurance,   however,  that  the  Company's  anticipation  of  its  future  cash
requirements  will be  correct.  Thereafter,  the  Company  may  seek  to  raise
additional   working  capital,   primarily  through  sales  of  debt  or  equity
securities,  prior to the end of 1997 if it can raise such capital on acceptable
terms.*

The Company  signed an  agreement in July 1996 with an  associated  amendment in
November 1996 with its largest  shareholder,  MK Global  Ventures in association
with its MK GVD Fund, to invest in additional  capital of the Company to finance
operations.  Under the Series G Preferred Stock Purchase Agreement,  MK GVD Fund
agreed to invest up to $250,000 on or before June 30, 1997.  The price per share
of this Series G Preferred Stock, which the Company has not registered under the
Securities  Act of 1933,  as amended,  was 85% of the fair  market  value of the
Company's  common  stock based on the average of the closing bid price per share
for the ten trading  days ending  five  business  days before the closing of the
investment. In June 1997, the Company issued 50,344 shares of Series G Preferred
Stock under this agreement at a price of $1.99 per share, for aggregate proceeds
of approximately $100,000.

---------------
* This statement is a forward looking statement reflecting current expectations.
There can be no assurance that the Company's  actual  performance  will meet the
Company's current expectations.  Investors are strongly encouraged to review the
sections  entitled  "Factors  Affecting  Operating  Results and Market  Price of
Stock" and  "Management's  Discussion  and Analysis of Financial  Condition  and
Results of  Operations"  for a discussion  of factors  that could affect  future
performance.


<PAGE>



Factors Affecting Operating Results and Market Price of Stock
This  section  and other  parts of this  Quarterly  Report on Form 10-Q  contain
forward-looking  statements that involve risks and uncertainties.  The Company's
actual  results  may  differ  significantly  from  those  anticipated  in  these
forward-looking  statements  as a result of the  factors  set forth below and in
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations".  Readers  are  cautioned  not to  place  undue  reliance  on  these
forward-looking   statements,   which  speak  only  as  of  these  date  hereof.
Forward-looking statements are indicated by an asterisk (*).

Among the factors that could cause actual results to differ materially are those
listed  below and those  listed from time to time in the  Company's  SEC reports
including  but not limited to the annual  report on Form 10-K for the year ended
December 31, 1996 and quarterly  report on Form 10-Q for the quarter ended March
31, 1997.

History of Losses and Accumulated Deficits

The Company  incurred total net losses of  $10,713,000  from inception in August
1989 to June 30,  1997,  including  net  losses of  $291,000  for the year ended
December  31, 1996,  net losses of $98,000 for the quarter  ended March 31, 1997
and net losses of $97,000  for the  quarter  ended June 30,  1997.  The  Company
expects to incur  losses for at least the third  quarter of 1997 as it continues
to promote  and expand  its  current  publications  and  develop  and launch new
products.*  There can be no assurance that during 1997 or thereafter the Company
will be able to  increase  its  revenues  or become  profitable.  The  Company's
potential  future growth  depends on many factors,  including the ability of the
Company to attract sufficient  advertising customers for NewMedia,  maintain the
circulation base of NewMedia,  control its costs and successfully  implement its
marketing and product strategy.* There can be no assurance that the Company will
be successful in any of these efforts.

New Publishing Strategy; Sales and Marketing Strategy

The key  elements  of the  Company's  publishing  strategy  are to  focus on the
professional  market for new media  technology,  to publish at a frequency of 16
times per year, to maintain the stringent  minimum  qualification  criteria that
potential  subscribers  were  required to meet in 1996 in order to qualify for a
subscription,  and to  maintain  the  guaranteed  circulation  base  of  215,000
qualified  NewMedia  readers.*  There  can be no  assurance  that the  Company's
publishing  strategy  will result in  increased  revenues  or in  profitability.
Certain components of production,  circulation and editorial expenses associated
with this publishing strategy will increase.* The Company has been undergoing an
advertising  category  transition  since the second half of 1995,  away from the
consumer market and toward the above mentioned professional market for new media
technology. To replace these consumer market advertisers and to grow advertising
revenues, the Company needs to sell advertisements  oriented to the professional
market for new media technology. There can be no assurance that the Company will
be able to sell a sufficient number of advertisements to the professional market
to make  its  strategy  successful.  Until  the  circulation  direct  mail  (and
associated) campaigns for qualified readers using the new qualification criteria
is completed,  there can be no assurance that the estimated  purchasing power of
new media  products and services will be maintained  with a reasonable  level of
circulation  expenditures.  As a result,  the Company does not expect  growth in
NewMedia  advertising  revenues  until at least the third quarter of 1997, if at
all.*

---------------
* This statement is a forward looking statement reflecting current expectations.
There can be no assurance that the Company's  actual  performance  will meet the
Company's current expectations.  Investors are strongly encouraged to review the
sections  entitled  "Factors  Affecting  Operating  Results and Market  Price of
Stock" and  "Management's  Discussion  and Analysis of Financial  Condition  and
Results of  Operations"  for a discussion  of factors  that could affect  future
performance.


<PAGE>



Highly Competitive Market

     Revenues from NewMedia are derived  primarily  from the sale of advertising
in the magazine and will continue to be derived primarily from such sales in the
foreseeable  future.* The technology  publishing industry is highly competitive.
Many of the Company's  competitors have substantially  greater financial,  sales
and  marketing  resources  than the  Company.  Although the market for new media
products is an evolving  market,  the Company  competes for advertising  revenue
with numerous magazines and newspapers,  including personal computer  magazines.
There  can be no  assurance  that  the  Company  will not  experience  increased
competition from new or existing technology  periodicals or other media, such as
the Internet. Such increased competition, if experienced,  would have a material
adverse impact on the Company's ability to increase its advertising revenues.

     Growth of New Media Market

     NewMedia is targeted toward  professionals  users of new media products and
services in connection with computers.  The computer  industry has  historically
been  characterized by business cycles. To the extent that the computer industry
or professional new media market experiences a significant downturn, the Company
would expect a similar downturn in its business. The professional market for new
media  products  and  services  is in  the  early  stages  of  development,  and
predictions   as  to  its  size  and  the  factors  which  will  affect  it  are
inconclusive.  To the extent  that the  professional  new media  market does not
develop  as  quickly  as the  Company  anticipates  or  that  it  experiences  a
significant downturn following growth, the Company's ability to generate revenue
or profits may be adversely affected.  Furthermore, even if the professional new
media market does  develop as  anticipated,  there can be no assurance  that the
demand for NewMedia will also increase.

     Dependence on Key Personnel

     The  Company's  success  depends to a large  extent  upon the  efforts  and
abilities of key managerial  employees,  including without  limitation,  Richard
Landry,  Todd Hagen and Dan Ruby, the Chief Executive  Officer,  Chief Financial
Officer and Vice President, Editorial, respectively, of the Company. The loss of
any of these key managers  could have a material  adverse effect on the Company.
The  Company has not  entered  into  employment  agreements  with its  executive
officers and carries no key man  insurance  on their  lives.  The success of the
Company's  business will also depend upon its ability to continue to attract and
retain qualified  employees.  There can be no assurance that the Company will be
successful in attracting or retaining such personnel.

---------------
* This statement is a forward looking statement reflecting current expectations.
There can be no assurance that the Company's  actual  performance  will meet the
Company's current expectations.  Investors are strongly encouraged to review the
sections  entitled  "Factors  Affecting  Operating  Results and Market  Price of
Stock" and  "Management's  Discussion  and Analysis of Financial  Condition  and
Results of  Operations"  for a discussion  of factors  that could affect  future
performance.


<PAGE>



Possible Delisting of Securities from Nasdaq System

        The Common Stock is listed on the Nasdaq SmallCap Market and the Pacific
Stock  Exchange.  The  Company's  failure to meet Nasdaq's  listing  maintenance
criteria  in the future for any reason may result in the  discontinuance  of the
inclusion of the Company's  securities  on Nasdaq.  In order to remain quoted on
Nasdaq,  under the current Nasdaq rules,  a company must maintain  $2,000,000 in
assets,  a $200,000  market  value of the public float and  $1,000,000  in total
capital and surplus. In addition, continued inclusion requires two market-makers
and a minimum bid price of $1.00 per share except that if a company  falls below
such minimum bid price,  it will remain  eligible for inclusion in Nasdaq if the
market  value of the public  float is at least  $1,000,000  and the  Company has
$2,000,000 in capital and surplus.  In November 1996, Nasdaq announced  proposed
revisions to the listing and maintenance requirements,  which would increase the
requirements  for  continued  listing on the Nasdaq  Market.  Under the proposed
rules,  a listed  company will no longer be able to remain listed if its minimum
bid price falls below $1.00.  In  addition,  the Company will have to maintain a
$1,000,000  market  value or public  float and either  $2,000,000  net  tangible
assets, $35,000,000 market capitalization or net income in two of its last three
years of $500,000.  In the event of Nasdaq  delisting,  trading,  if any, in the
Company's  securities  may then  continue to be conducted on the OTC  Electronic
Bulletin Board or in the non-Nasdaq  over-the-counter  market.  As a result,  an
investor  may find it more  difficult  to  dispose  of,  or to  obtain  accurate
quotations as to the market value of the Company's securities.

---------------
* This statement is a forward looking statement reflecting current expectations.
There can be no assurance that the Company's  actual  performance  will meet the
Company's current expectations.  Investors are strongly encouraged to review the
sections  entitled  "Factors  Affecting  Operating  Results and Market  Price of
Stock" and  "Management's  Discussion  and Analysis of Financial  Condition  and
Results of  Operations"  for a discussion  of factors  that could affect  future
performance.


<PAGE>

                           PART II - OTHER INFORMATION


Item 4.  Submission of Matters to a Vote of Security Holders

         The Company held its annual  meeting of  shareholders  on May 22, 1997.
         The results of the items submitted for vote were as follows:

          1.       Election of directors to serve until the next annual meeting.

                   Nominee                  Votes for           Withheld
                   -------                  ---------           --------
                   Patrick Ferrell          2,725,020             11,400
                   John Griffin             2,724,020             12,400
                   Michael Kaufman          2,725,170             11,250
                   Greg Lahann              2,725,170             11,250
                   Richard Landry           2,725,020             11,400

          2.       Ratification and approval of an amendment to the 1994
                   Director Option Plan increasing the aggregate  number
                   of shares  of  Common  Stock  reserved  for  issuance
                   thereunder by 100,000 to 250,000.

                   Votes for:  2,587,275
                   Votes against:  133,395
                   Abstain:  15,750
                   Non-votes:  282,588

          3.       Ratify the appointment of Price Waterhouse LLP as independent
                   accountants  of  the  Company  for  the  fiscal  year  ending
                   December 31, 1997.

                   Votes for:  2,720,870
                   Votes against:  12,300
                   Abstain:  3,250
                   Non-votes:  0


<PAGE>



Item 6.  Exhibits and Reports on Form 8-K

         (a) No reports on Form 8-K were filed by the Company  during the fiscal
             quarter ended June 30, 1997.



Items 1, 2, 3, and 5 are not applicable and have been omitted.



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.

Date:    August 12, 1997              HyperMedia Communications, Inc.


                                      By: /s/     Todd Hagen
                                          ----------------------------------
                                          Todd Hagen
                                          Vice President of Finance and
                                             Administration and Chief Financial
                                             Officer (Principal Financial and
                                             Accounting Officer)