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 February 28, 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 0-21192


             CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.
         ------------------------------------------------------------
           (Exact Name of Registrant as Specified in its Charter)


         LOUISIANA                                       72-0721367
-------------------------------                      ------------------- 
(State or Other Jurisdiction of                       (I.R.S. Employer 
 Incorporation or Organization)                      Identification No.)

109 NORTH PARK BLVD., COVINGTON, LOUISIANA                 70433
-------------------------------------------              ----------
(Address of Principal Executive Offices)                 (Zip Code)

                                (504) 867-5000
             --------------------------------------------------
             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  


At April  9,  1997,  there  were  5,566,906 shares of common stock, $.10 par
value, outstanding.



             CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.

                                   INDEX


Part I.    Financial Information                                     Page

           Item 1.  Financial Statements

           Statements of Operations -
             Three and Six Months Ended February  28, 1997 
             and February 29, 1996                                     3
           
           Balance Sheets -
             February 28, 1997, August 31, 1996 and February 
             29, 1996                                                  4

           Statements of Cash Flows -
             Six Months Ended February 28, 1997 and February 
             29, 1996                                                  5

           Notes to Financial Statements                               6

           Item 2.  Management's Discussion and Analysis of
                    Financial Condition and Results of Operations      8

Part II.   Other Information

           Item 1.  Legal Proceedings                                 14

           Item 6.  Exhibits and Reports on Form 8-K                  14

           Signatures                                                 15


             CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.

                    STATEMENTS OF OPERATIONS (UNAUDITED)

 FOR THE THREE AND SIX MONTHS ENDED FEBRUARY 28, 1997 AND FEBRUARY 29, 1996

<TABLE>
<CAPTION>
                                      Three Months Ended           Six Months Ended
                                  February 28,  February 29,  February 28,  February 29,
                                      1997          1996          1997          1996
                                      ----          ----          ----          ----
<S>                              <C>            <C>           <C>           <C>
Net sales                         $78,294,573   $89,865,122   $144,057,316  $168,820,602
Cost of sales (Notes 3, 4 & 5)     66,611,690    71,566,894    119,504,605   132,645,138
                                 ------------   -----------   ------------  ------------ 
  Gross profit                     11,682,883    18,298,228     24,552,711    36,175,464

Selling, general and 
  administrative expenses          22,316,073    17,182,240     36,114,926    34,279,294
  (Notes 3 & 5)                  ------------   -----------   ------------  ------------ 

  Operating income (loss)         (10,633,190)    1,115,988    (11,562,215)    1,896,170

Other income (expense):
  Interest expense                   (511,291)     (485,507)      (960,807)     (978,356)
  Interest income                      45,080        39,008         64,782        74,015
  Other income, net                  (107,511)       98,807        (48,771)      219,806
                                 ------------   -----------   ------------  ------------ 
                                     (573,722)     (347,692)      (944,796)     (684,535)
                                 ------------   -----------   ------------  ------------ 
Income (loss) before income 
  taxes                           (11,206,912)      768,296    (12,507,011)    1,211,635
    
Income tax expense (Note 6)         3,184,000       300,000      2,690,000       473,000
                                 ------------   -----------   ------------  ------------ 

Net income (loss)                ($14,390,912)     $468,296   ($15,197,011)     $738,635
                                 ============   ===========   ============  ============

Per share data:
Net income (loss) per share            ($2.59)        $0.08         ($2.73)        $0.13
                                       =======        =====         =======        =====  
Weighted average number of
    common shares outstanding        5,566,906    5,566,906      5,566,906     5,566,906
                                     =========    =========      =========     =========
</TABLE>

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


             CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.
                         BALANCE SHEETS (UNAUDITED)

                                        February 28,   August 31,  February 29,
                                           1997           1996        1996
                                           ----           ----        ----
ASSETS
Current assets:
    Cash and cash equivalents                77,647     3,303,822     2,023,172
    Investments in marketable                          
      securities                            129,831       129,788       148,538
    Receivables (net of an allowance
      of $4.2 million at February 28,
      1997 and $2.9 million  at August
      31, 1996 and $1.5 million at 
      February 29, 1996)                 11,294,503    14,561,102    18,633,629
      
    Merchandise inventory                51,759,863    56,387,842    52,081,851
    Deferred income taxes                   -----       3,033,000     3,539,782
    Other                                   862,973       471,399       638,010
                                       ------------  ------------  ------------
Total current assets                     64,124,817    77,886,953    77,064,982


Property and equipment, net              33,898,224    36,376,959    38,043,566
Deferred income taxes                       -----       1,234,000     2,654,518
Intangibles and other                     2,975,112     3,535,639     3,666,355
                                       ------------  ------------  ------------
                                       $100,998,153  $119,033,551  $121,429,421
                                       ============  ============  ============

 LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
    Current portion of long-term 
      debt                             $ 15,309,731  $  2,478,179  $  2,574,351
    Short-term borrowings - line 
      of credit                           2,600,000       -----       9,200,000
    Accounts payable                     42,862,320    47,793,786    34,551,040
    Accrued expenses                     10,603,439     7,169,218     7,240,088
    Deferred revenue                      3,656,857     4,621,294     5,593,217
                                       ------------  ------------  ------------
Total current liabilities                75,032,347    62,062,477    59,158,696
                                       ------------  ------------  ------------

Long-term debt, less current portion      3,777,870    18,191,371    19,330,665
Deferred revenue                          3,066,101     4,650,296     6,722,958
                                       ------------  ------------  ------------
                                          6,843,971    22,841,667    26,053,623
                                       ------------  ------------  ------------
Commitments and contingencies

Shareholders' equity:
Preferred stock, 500,000 shares
  authorized, no shares issued 
  or outstanding                            -----         -----         -----
Common stock, $.10 par value;
  20,000,000 shares authorized,
  5,566,906 issued and outstanding
  at February 28, 1997, August 31,                               
  1996 and February 29, 1996                556,691       556,691       556,691
    
Paid-in capital                          32,373,306    32,373,306    32,373,306
Retained earnings (deficit)             (13,808,162)    1,388,849     3,515,544
Less:  Unearned compensation                -----         -----         (50,625)
  Unrealized loss on marketable
    securities available for sale           -----        (189,439)     (177,814)
                                       ------------  ------------  ------------
    Total shareholders' equity           19,121,835    34,129,407    36,217,102
                                       ------------  ------------  ------------
                                       $100,998,153  $119,033,551  $121,429,421
                                       ============  ============  ============

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


           CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.
                  STATEMENTS OF CASH FLOWS (UNAUDITED)
                        FOR THE SIX MONTHS ENDED

                                                February 28,    February 29,
                                                    1997            1996
                                                    ----            ----  
Cash flow from operating activities:
  Net income (loss)                            $(15,197,011)   $    738,635
Adjustments to reconcile net income to
    net cash provided by (used in)
    operating activities:
  Depreciation and amortization                   2,438,568       3,205,858
  Provision for uncollectible receivables         2,324,243         282,551
  Deferred income taxes                           4,267,000       1,454,052
  Store closure reserve                           5,476,247          -----
  Write down of assets held for sale                737,605          -----
  Loss on disposal of assets                        181,850          -----
  Stock awards                                       -----           16,875
  (Increase) decrease in assets:
  Receivables                                       942,356         487,495
  Merchandise inventory                           4,627,979       8,176,556
  Other current assets                             (637,437)        113,199
  Increase (decrease) in liabilities:              
  Accounts payable                               (4,931,466)    (19,752,727)
  Accrued expenses                                 (515,318)         20,583
  Deferred revenue                               (2,548,632)     (3,649,089)
                                               ------------    ------------
  Net cash used in operating activites           (2,834,016)     (8,906,012)
                                               ------------    ------------

Cash flow from investing activities:
  Purchase of property and equipment             (1,484,736)       (486,251)
  Decrease in other assets                           77,079         (78,274)
                                               ------------    ------------
  Net cash used in investing activities          (1,407,657)       (564,525)
                                               ------------    ------------

Cash flow from financing activities:
  Increase (decrease) in long-term debt          (1,584,502)       (811,611)
  Borrowings under line of credit                22,750,000      42,100,000
  Repayments under line of credit               (20,150,000)    (32,900,000)
                                               ------------    ------------
  Net cash provided by financing
    activities                                    1,015,498       8,388,389
                                               ------------    ------------

Net increase in cash and cash equivalents        (3,226,175)     (1,082,148)
Cash and cash equivalents at beginnning      
  of period                                       3,303,822       3,105,320
                                               ------------    ------------
Cash and cash equivalents at end of period     $     77,647    $  2,023,172
                                               ============    ============

Cash paid during the period for:
  Interest expense                             $  1,166,759    $    696,541
                                               ============    ============
  Income taxes                                 $     26,000    $     84,020
                                               ============    ============

Supplemental schedule of non-cash
  investing and financial activities:
    Assets acquired under capital lease        $    285,701          -----
                                               ============    ============

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


           CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.
               NOTES TO FINANCIAL STATEMENTS (UNAUDITED)


(1)  Basis of Presentation

      The  information  for the three and six months ended February 28, 1997
and February 29, 1996 is  unaudited,  but  in  the  opinion  of  management,
reflects all adjustments, which are of a normal recurring nature,  necessary
for a fair presentation of financial position and results of operations  for
the  interim  periods.  The accompanying financial statements should be read
in conjunction  with the financial statements and notes thereto contained in
the Company's Annual  Report  on  Form 10-K for the fiscal year ended August
31, 1996.

      The results of operations for  the three and six months ended February
28, 1997 are not necessarily indicative  of  the  results to be expected for
the full fiscal year ending August 31, 1997.

(2)  Current portion of long-term debt and short-term  borrowings under line
   of credit

      The Company's term loan and line of credit facility with the banks was
amended  in  December,  1996  to (i) accelerate the maturity  date  on  both
facilities from August 31, 1998  to  September  1,  1997,  (ii) decrease the
amount available under the line of credit to $5 million from January 1, 1997
through maturity, (iii) provide waivers of the Company's noncompliance  with
certain  financial  covenants  at  August  31, 1996 and the first quarter of
fiscal 1997, suspend certain financial covenants  through maturity and amend
other  financial  covenants  to  be in line with the Company's  fiscal  1997
budget and (iv) add certain inventory  collateral to secure both facilities.
The Company paid a small fee to secure the  waivers  and  also  agreed to an
increase  in the quarterly commitment fee payable on unfunded amounts  under
the line of credit facility.

      As a result of this amendment, it will be necessary for the Company to
secure a replacement  line of credit and term loan facility prior to the end
of  fiscal  1997.   Although  management  believes  it  will  ultimately  be
successful in obtaining  a  replacement  facility,  the  Company has not yet
secured  such facility.  In addition, as of February 28, 1997,  the  Company
was not in  compliance  with  one  of the amended financial covenants and on
April 21, 1997 requested a waiver of  this  covenant  from the banks but has
not yet received such a waiver.

      The Company's projections indicate that, during the  fourth quarter of
fiscal  1997,  it  will experience periodic cash shortfalls from  operations
that will require it  to  aggressively collect and manage its available cash
resources.  Management believes  that  the  Company  has sufficient cash and
financial flexibility to overcome the anticipated cash  shortfalls  prior to
obtaining the replacement credit facility referred to above, but any further
deterioration  in  the  Company's  performance  could  adversely  impact the
Company's ability to fulfill its cash obligations.

      Management  believes  that  it  will  not be possible to maintain  the
Company's operations at current levels on an ongoing basis unless there is a
reversal in the trend of declining operating performance, and the Company is
successful in obtaining a replacement credit  facility  providing  a line of
credit  of  at  least  $10 million. Since the achievement of either of these
objectives  cannot be assured,  management  is  evaluating  other  strategic
options, including  further  downsizing  and  additional store closures.  In
order  for  any such downsizing to restore the Company's  profitability  and
achieve a desirable  level  of  positive  cash flow, concessions or consents
from certain of the Company's landlords and  lenders  would be required.  If
the  Company  determines  that  corporate  downsizing  is  the  most  viable
available   option,   and  if  it  is  unsuccessful  in  obtaining  adequate
concessions through direct  negotiation  or  other  means,  then the Company
would aggressively seek whatever restructuring alternatives are available.

(3)  Store closures

      As  a  result  of  its  comprehensive review of operations to  restore
profitability, the Company has  recorded  a  charge  for  the closing of two
stores located in Huntsville, Alabama and Jackson, Mississippi in the amount
of approximately $6.7 million.  The charge is to recognize  a  liability for
future lease payments and losses on disposal of merchandise and fixed assets
located at the two stores, a loss on the write-down to fair value  of one of
the  Company's  warehouses  that  is  under  contract  for  sale  and  costs
associated  with  the  Company's  previous plans to construct a distribution
center.

(4)  Allowance for doubtful accounts

      The Company has recorded an increase  to  its  allowance  for doubtful
accounts  in the amount of $1.9 million.  The increase in the allowance  was
necessary as  it  has  become increasingly difficult to collect from vendors
amounts due on volume rebates, returned merchandise, cooperative advertising
rebates, and invoice price differences and consumer receivables.

(5)  Additional charges resulting from technology enhancements

      As a result of its  comprehensive  review  of  operations  to  restore
profitability,  the Company has recorded a charge in the amount of  $700,000
relating to the future  lease  payments  on  a computer system that has been
replaced.   As  a  result  of  the  new technology that  allows  for  better
inventory control, the Company identified,  and  has  recorded a charge for,
obsolete and damaged goods in the amount of $1.5 million  that  the  Company
will  sell  below  cost  or  scrap.  Previously, the Company was recognizing
these inventory adjustments through special sales events semi-annually.

(6)  Income taxes

      The Company has recorded  a  valuation allowance in the amount of $7.4
million  for that portion of the net  deferred  tax  asset  that  cannot  be
realized  by   carrybacks  or  offsetting  deferred  tax  liabilities.   The
valuation allowance  is  based  upon management's conclusion that sufficient
positive  evidence does not exist  as  defined  in  Statement  of  Financial
Accounting  Standards  No.  109,  Accounting for Income Taxes, regarding the
Company's ability to realize certain  deferred  tax  assets and carryforward
items.   As  a  result of the valuation allowance, income  tax  expense  was
approximately $3.2  million  and  $2.7  million  for the three and six-month
periods ended February 28, 1997.

(7)  Subsequent events

      On March 24, 1997, Anthony P. Campo stepped down as Chairman and Chief
Executive  Officer, and the Board of Directors named  Rex  O.  Corley,  Jr.,
President  and  Chief  Operating  Officer,  as  Acting  Chairman  and  Chief
Executive Officer.   Mr.  Campo  will  remain  a  member  of  the  Board  of
Directors.

     Three  new  persons have also been added to the Board of Directors -
Donald  T.  Bollinger,   Anthony  J.  Correro,  III,  and  David  Ducote.
Bollinger  is the Chairman  and  Chief  Executive  Officer  of  Bollinger
Shipyards and  serves  on  the Boards of Directors of Tidewater, Inc. and
Banc One, Louisiana Corporation.  Active in the community, he is a member
of the Dock Board, Port of New Orleans.  Correro is a senior partner with
the New Orleans law firm of Correro Fishman Haygood Phelps Weiss Walmsley
& Casteix, L. L .P.  He serves  on the Boards of Directors of T. L. James
& Co. and Avondale Industries, Inc.  Ducote is Chief Executive Officer of
Tchoupitoulas Partners, a private investment firm.  He is also a Director
of Southern Parking Systems, Inc.



                  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
               FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General Overview

      The Company's comparable store sales declined by 11.3% for the quarter
ended February 28, 1997 as compared to the same period last year, continuing
a  trend  that began in the third quarter of fiscal 1995.   The  decline  in
comparable  store sales reflects the combined impact of the general weakness
in the retail  consumer  electronics industry, increased competition in many
of the Company's principal  markets,  a  slowdown  in the development of new
products in consumer electronic categories and reduced  spending  levels  by
consumers for non-essential goods believed to be due to record high consumer
debt levels.

      The  relatively  soft  level  of  consumer  demand within the consumer
electronics  and  appliance  industry has created a highly  competitive  and
promotional climate, which, in  turn,  has  had  a  negative  impact  on the
Company's gross profit margins.  Other factors causing the Company's margins
to  decline during the quarter ended February 28, 1997 were decreased vendor
rebates  due  to  the Company's lower volume of purchases and an increase in
promotional costs as a percent of sales due to increased use of discounting,
no interest financing  and  other  promotional  efforts  to  maintain  sales
volumes in the challenging environment described above.

      As  previously  disclosed, the poor performance of the retail industry
and the Company over an extended period led management during fiscal 1996 to
review  the  Company's  operations   and   to  explore  methods  to  improve
operational  efficiency  and  reduce  costs.   To   that  end,  the  Company
implemented   several   initiatives   designed  to  improve  the   Company's
operations.  Although management believes  that these measures have begun to
have a positive impact, the Company's comparable  store sales have continued
to  decline  as  retail industry conditions have continued  to  deteriorate,
leading management  to conclude during the first quarter of fiscal 1997 that
a comprehensive review  of  the Company's operations was appropriate for the
purpose of developing a long-term strategic plan.  This process, which began
in the first quarter of fiscal 1997, continues, and although a comprehensive
strategic  plan  has not yet been  completed,  certain  measures,  including
technological enhancements,  have  been  taken  and strategies identified to
improve the Company's performance.

      One immediate action that was identified and  taken by the Company was
the closure of two unprofitable stores in the second quarter of fiscal 1997,
which required a non-recurring charge associated with  these  closures.   In
addition,  during  the  comprehensive  review  mentioned  above,  it  became
apparent  that  other adjustments would be appropriate in the second quarter
as part of certain  overall  strategic  changes to the Company's operations.
The  total  of  these  charges in the second  quarter  of  fiscal  1997  was
approximately $16.7 million,  consisting  of  (i)  a charge of approximately
$6.7 million associated with the store closures mentioned  above, as well as
an  increase to the reserve for a previously closed store, (ii)  charges  of
approximately  $2.6  million  relating  to certain overall strategic changes
made to the Company's operations and (iii) a charge for the establishment of
a deferred tax valuation allowance of $7.4  million,  which  resulted  in an
income tax expense of approximately $3.2 million.

      The  store  closure  charge consists primarily of the present value of
future rent payments for the  two  stores  closed  and  an adjustment of the
reserve for a previously closed store which the Company has  been  unable to
sublet.   Also  included in the $6.7 million charge is the write-off of  the
associated leasehold  improvements  and  inventory  shrinkage related to the
stores  closed, which, because such shrinkage was directly  related  to  the
store closures,  the  Company  charged  directly  to  expense  in the second
quarter.   The  rent  and  leasehold improvements write-off is reflected  in
selling, general and administrative  expenses  and  the  shrinkage charge is
reported in cost of sales.  Finally, the $6.7 million charge also includes a
loss  of  $511,000  to  reflect  the  sale by the Company of a Company-owned
warehouse, and the write-off of certain capital expenditures incurred during
the  initial  stages  of  a study to construct  a  centralized  distribution
facility.  The loss on the  sale  of  the  warehouse reflects the difference
between the net book value and sale price of  the  warehouse.   The  Company
also  recorded  commission fees and incidental costs of $109,000 related  to
this sale in the  second quarter of fiscal 1997.  These charges are recorded
in selling, general and administrative expenses.

      Included in the  $2.6  million  charges  related  to overall strategic
changes is a $1.5 million inventory obsolescence reserve  as a result of the
Company's conversion to a new inventory management system.   The Company has
historically revalued its inventory to reflect obsolescence and  other  loss
in  inventory  value  through  the  use of semi-annual warehouse sales.  The
Company is now implementing bar-coding  technology, which enhances inventory
tracking and valuation.  The inventory charge,  which is recorded in cost of
sales,  is  primarily  an acceleration of a charge the  Company  would  have
expected to take at a  later  date  if  it  had  continued with its previous
inventory  management system.  The Company has also  recorded  a  charge  in
selling, general  and  administrative  expenses  in  the  amount of $666,000
related to a computer system that has been replaced.

      In addition to the store closure charges and charges  relating  to the
overall  strategic changes to the Company's operations discussed above,  the
Company increased  by  $2.3  million  its  reserve allowances for vendor and
consumer receivables. Approximately  $1.9 million  of the increase is due to
the deterioration in collections from vendors and consumers.

      As discussed in "Liquidity and Capital Resources,"  the Company is not
in compliance with certain previously amended financial covenants  contained
in  its  financing  instruments,  nor  has  the Company replaced its current
credit  facility,  which expires on September 1,  1997.   In  addition,  the
Company is expected  to  experience periodic cash shortfalls from operations
during  the  fourth  quarter   of  fiscal  1997  that  will  require  it  to
aggressively collect and manage  its  available  cash resources.  Management
believes that the Company has sufficient cash and  financial  flexibility to
overcome  the  anticipated  cash shortfalls prior to obtaining a replacement
credit facility and is evaluating  all  of  its  options  and  will  make  a
decision  in  the  third  quarter  of  fiscal 1997 as to the handling of the
expected cash shortfall.  See "Liquidity and Capital Resources."


Results of Operations

      The  following  table sets  forth,  for  the  periods  indicated,  the
relative percentages that  certain  income  and  expense  items  bear to net
sales:

<TABLE>
<CAPTION>
                                    Three Months Ended          Six Months Ended
                                    ------------------          ----------------
                                 February 28,  February 29,  February 28,  February 29,
                                    1997          1996          1997          1996
                                    ----          ----          ----          ----
<S>                                <C>           <C>           <C>           <C>
Net sales                          100.0%        100.0%        100.0%        100.0%
Cost of sales                       85.1          79.7          83.0          78.6
                                   -----         -----         -----         ----- 
Gross profit                        14.9          20.3          17.0          21.4
Selling, general and               
  administrative expense            28.5          19.1          25.0          20.3
                                   -----         -----         -----         ----- 
Operating income (loss)            (13.6)          1.2          (8.0)          1.1

Interest expense                    (0.7)         (0.5)         (0.7)         (0.6)
Interest income                      0.1           0.0           0.0           0.0
Other income, net                   (0.1)          0.1          (0.0)          0.1
                                   -----         -----         -----         ----- 
                                    (0.7)         (0.4)         (0.7)         (0.4)
                                   -----         -----         -----         ----- 
Income(loss) before income taxes   (14.3)          0.8          (8.7)          0.7
Income tax expense (benefit)         4.1           0.3           1.9           0.3
                                   -----         -----         -----         ----- 
Net income (loss)                  (18.4)%         0.5%        (10.6)%         0.4%
                                   =====         =====         =====         =====      
</TABLE>

Three Months Ended February 28, 1997 as Compared to Three Months Ended
   February 29, 1996

      Net sales for the three months ended February 28, 1997 decreased 12.9%
to $78.3 million compared to $89.9 million for  the  same  period  in  1996.
Comparable  retail  store sales for the three months ended February 28, 1997
decreased by 11.3%.   The  decline  in sales reflects the combined impact of
the general weakness in the retail consumer  electronics industry, increased
competition in many of the Company's principal  markets,  a  slowdown in the
development  of new products in consumer electronic categories  and  reduced
spending levels  by  consumers for non-essential goods believed to be due to
record high consumer debt levels.

      Extended warranty  revenue  recognized  under the straight-line method
(applicable to those extended warranty contracts  sold  prior  to  August 1,
1995) was $1.5 million and $2.2 million for the quarters ended February  28,
1997  and  February  29, 1996, respectively.  Extended warranty expenses for
these same periods were  $886,000 and $1.3 million, respectively, before any
allocation of other selling,  general  and  administrative expenses.   Since
August  1,  1995, the Company has sold to an unaffiliated  third  party  all
extended warranty  service  contracts sold by the Company to customers on or
after such date.  The Company  records  the  sale of these contracts, net of
any related sales commissions and the fees paid  to  the  third  party, as a
component of net sales and immediately recognizes revenue upon the  sale  of
such  contracts.   Although the Company sells these contracts at a discount,
the amount of the discount  approximates the cost the Company would incur to
service these contracts, while  transferring  the full obligation for future
services  to  a third party.  Net revenue from extended  warranty  contracts
sold to the third  party  for  the  quarters  ended  February  28,  1997 and
February  29,  1996  was  $2.3  million and $2.7 million, respectively.  The
decline in net revenue from the sale  of  extended  warranties  is  a direct
result of the reduced level of retail store sales.

      Gross  profit  for  the three months ended February 28, 1997 was $11.7
million or 14.9% of net sales  as compared to $18.3 million, or 20.3% of net
sales for the comparable period  in  the  prior year.  Excluding the charges
described above in the "Overview", gross profit  for  the three months ended
February 28, 1997 would have been $13.8 million or 17.6%  of net sales.  The
gross  profit percentage decrease was primarily driven by a  combination  of
soft demand  affecting  the retail industry generally, increased competition
(both  in  number  of  competitors   and   corresponding   increased   price
competition)  and decreased vendor rebates due to the Company's lower volume
of purchases.  The Company also experienced an increase in promotional costs
as a percent of  sales  due  to  increased  use  of discounting, no interest
financing and other promotional efforts to maintain  sales  volumes  in  the
challenging environment described above.

      Selling,  general  and  administrative  expenses were $22.3 million or
28.5% of net sales for the three months ended February  28, 1997 as compared
to  $17.2 million, or 19.1% of net sales for the comparable  period  in  the
prior  year.   Excluding the charges described above in "Overview", selling,
general and administrative  expenses  would have been $15.4 million or 19.7%
of  net sales.  This percentage increase  was  primarily  due  to  decreased
vendor funding to offset advertising expenses.  The Company also experienced
a decrease  as  a  percentage of sales in promotional and other fees derived
from the Company's private label credit card program.

      The Company's  effective income tax rate was (28.4%) and 39.0% for the
three months ended February  28,  1997  and February 29, 1996, respectively.
The effective income tax rate for the three  months  ended February 28, 1997
resulted  from  a  valuation allowance of $7.4 million, which  was  recorded
during the second quarter.

Six Months Ended February  28, 1997 as Compared to Six Months Ended 
   February 29, 1996

      Net sales for the six  months  ended February 28, 1997 decreased 14.7%
to $144.1 million compared to $168.8 million  for  the  same period in 1996.
Comparable  retail  store sales for the six months ended February  28,  1997
decreased by 13.4%.   The  decline  in sales reflects the combined impact of
the general weakness in the retail consumer  electronics industry, increased
competition in many of the Company's principal  markets,  a  slowdown in the
development  of new products in consumer electronic categories  and  reduced
spending levels  by  consumers for non-essential goods believed to be due to
record high consumer debt levels.

      Extended warranty  revenue  recognized  under the straight-line method
(applicable to those extended warranty contracts  sold  prior  to  August 1,
1995)  was  $3.2  million and $4.6 million for the six months ended February
28, 1997 and February  29,  1996,  respectively.  Extended warranty expenses
for these same periods were $2.0 million  and  $2.8  million,  respectively,
before any allocation of other selling, general and administrative expenses.
Net revenue from extended warranty contracts sold to the third party for the
six  months  ended February 28, 1997 and February 29, 1996 was $4.2  million
and $5.3 million,  respectively.   The decline in net revenues from the sale
of extended warranties is a direct result  of  the  reduced  level of retail
store sales.

      Gross  profit  for  the six months ended February 28, 1997  was  $24.6
million or 17.0% of net sales  as compared to $36.2 million, or 21.4% of net
sales for the comparable period  in  the  prior year.  Excluding the charges
described  above  in  "Overview",  gross  profit  for  the six months  ended  
February 28, 1997 would have  been $26.6 million or 18.5% of net sales.  The 
gross profit percentage  decrease was  primarily driven by a combination  of  
soft  demand affecting the retail industry  generally, increased competition 
(both in number of competitors and corresponding increased price competition)  
and decreased vendor rebates due to the Company's lower volume of purchases.

      Selling, general and  administrative  expenses  were  $36.1 million or
25.0% of net sales for the six months ended February 28, 1997 as compared to
$34.3 million, or 20.3% of net sales for the comparable period  in the prior
year.    Excluding   the  charges  described  above in  "Overview", selling,  
general and  administrative expenses would  have been $29.2 million or 20.3% 
of net sales.

      The Company's effective income tax rate was (21.5%) and  39.0% for the
six months ended February  28,  1997  and  February  29, 1996, respectively.
The  effective income tax rate for the six months ended  February  28,  1997
resulted  from  a  valuation  allowance  of $7.4 million, which was recorded
during the second quarter.

Liquidity and Capital Resources

      Net  cash used in operating activities  were  $2.8  million  and  $8.9
million for  the  six  months  ended February 28, 1997 and February 29, 1996
respectively, while net cash provided  by  financing activities for the same
comparable  periods was $1.0 million and $8.4  million,  respectively.   The
shortfall in  cash  from  operations  for  both periods reflects the reduced
level of sales by the Company.

      As of February 28, 1997, the Company used several "floor plan" finance
companies to finance the majority of its merchandise purchases.  The Company
has  an  aggregate  borrowing  limit  with  these   finance   companies   of
approximately  $105 million and it collateralizes the outstanding borrowings
with merchandise  inventory  and  certain  receivables.  Payment terms under
these  agreements  range  from 15 to 120 days.   In  addition,  the  Company
finances inventory purchases  through open-account arrangements with various
vendors.  As of February 28, 1997,  the  Company  was not in compliance with
one of the financial covenants contained in one of  its floor plan financing
arrangements and on April 21, 1997 the Company requested  a  waiver  of this
covenant from the floor plan finance company but has not yet received such a
waiver.

      The  Company's  credit  facilities  as  of February 28, 1997 consisted
primarily of two term loans, one with a financial  institution and the other
with three banks.  The principal balance of the term loan with the financial
institution, which was $4.0 million on February 28,  1997, accrues interest,
payable monthly, at the average weekly yield of 30 day commercial paper plus
1.80%  (7.19%  at  February  28, 1997) with the balance of  all  outstanding
principal due and payable at maturity  on August 30, 2002.  A portion of the
furniture, fixtures and equipment of the  Company collateralizes outstanding
amounts pursuant to this agreement.  The term  loan  with  the banks accrues
interest,  payable  quarterly,  at the prime rate, with the balance  of  all
outstanding principal due and payable  at  maturity  on  September  1, 1997.
Outstanding  amounts  pursuant  to this agreement are collateralized by  the
Company's real estate and certain  inventory.  The outstanding principal and
applicable interest rate on this term  loan  at February 28, 1997 were $14.5
million and 8.25% (the prime rate), respectively.

      As part of the agreement with the banks,  as  of February 28, 1997 the
Company also has available to it a $5 million line of  credit.  This line of
credit  accrues  interest at the same rate as the bank term  loan;  however,
interest is payable  monthly.   As  of  February  28,  1997, the Company had
borrowings  of  $2.6  million  outstanding  on  the line of credit.   During
periods of peak purchasing, the Company uses this  line of credit to finance
purchases.

      Both of these loan facilities contain certain  restrictive  covenants,
which require the Company to maintain minimum tangible net worth, as well as
maximum debt to tangible net worth and minimum fixed charge coverage ratios.
The  term loan with the banks also contains a provision which prohibits  the
Company from paying dividends on its common stock. As stated in the notes to
the financial  statements,  on  December  1, 1996, the term loan and line of
credit facility with the banks was amended,  among  other  things,   to  (i)
accelerate  the  maturity  date  on  both facilities from August 31, 1998 to
September 1, 1997, and (ii) decrease the  amount available under the line of
credit to $5 million from January 1, 1997 through  maturity.  As a result of
this amendment, it will be necessary for the Company to secure a replacement
line  of  credit  and term loan facility prior to the end  of  fiscal  1997.
Although management  believes  it will ultimately be successful in obtaining
a replacement facility, the Company has not yet secured such facility. As of 
February 28, 1997,  the  Company  was  not in compliance  with  one  of  the  
amended  covenants contained in the bank  credit  facility and on  April 21, 
1997 the Company requested a waiver of this covenant from the banks  but has 
not yet received such a waiver.

      The Company has experienced declining comparable store sales since the
third quarter of fiscal 1995 resulting in the Company's  reporting  of a net
loss of $1.4 million for fiscal 1996 and a net loss of $15.2 million for the
first  six  months of fiscal 1997 (after the charges discussed in "Overview"
totaling $16.7  million). In addition, for the six months ended February 28,
1997, net cash used in operating activities by the Company was approximately
$2.8 million, leaving  the  Company  with  a  cash  balance of approximately
$77,000 as of  February 28, 1997.  Finally, as mentioned  above,  the amount
available  under the Company's revolving line of credit has been reduced  to
$5 million and  most of the Company's assets have been pledged to secure its
current credit arrangements.  As of April 13, 1997, the Company had the full
amount borrowed under such facility, and had a cash balance of approximately
$3.1 million.

      The Company's  projections indicate that, during the fourth quarter of
fiscal 1997, it will experience  periodic  cash  shortfalls  from operations
that  will require it to aggressively collect and manage its available  cash
resources.   Management  believes  that  the Company has sufficient cash and
financial flexibility to overcome the anticipated  cash  shortfalls prior to
obtaining  a  replacement credit facility, but any further deterioration  in
the Company's performance  could  adversely  impact the Company's ability to
fulfill its cash obligations.  Management believes,  after consultation with
its tax advisors, that it will be entitled to a federal  income  tax  refund
following  the end of the fiscal year, and that it may be possible to pledge
or otherwise  use the anticipated refund during the fourth quarter to obtain
cash in an amount that may eliminate the Company's projected cash shortfall.
However, there  can  be  no assurance that the income tax refund will secure
sufficient cash, if any, to cover such shortfall.

      As  noted above, in the  first  quarter  of  fiscal  1997,  management
commenced a  comprehensive study of the Company's operations for the purpose
of developing  a  plan  to   improve  the  Company's  performance  and  cash
position.   Management  also  implemented several initiatives in fiscal 1997
designed to reduce costs, improve the efficiency of the Company's operations
and increase profit margins, and  it  closed  two clearly unprofitable store
locations in the second quarter of fiscal 1997.   Although  a  comprehensive
plan  is not yet complete, management believes that it will not be  possible
to maintain  the  Company's operations at current levels on an ongoing basis
unless there is a reversal  in the trend of declining operating performance,
and the Company is successful  in  obtaining  a  replacement credit facility
providing a line of credit of at least $10 million.   Since  the achievement
of  either  of these objectives cannot be assured, management is  evaluating
other strategic  options,  including further downsizing and additional store
closures.   In  order for any  such  downsizing  to  restore  the  Company's
profitability  and   achieve  a  desirable  level  of  positive  cash  flow,
concessions or consents  from certain of the Company's landlords and lenders
would be required.  If the  Company  determines that corporate downsizing is
the most viable available option, and  if  it  is  unsuccessful in obtaining
adequate  concessions through direct negotiation or other  means,  then  the
Company would  aggressively  seek  whatever  restructuring  alternatives are
available.

      During the six months ended February 28, 1997  and  February  29, 1996
the Company's net cash provided by financing activities was $1.0 million and
$8.4 million, respectively.  The primary source of cash during these periods
was borrowing under short-term borrowing arrangements.

      The Company incurred capital expenditures of $1.5 million and $486,000
during  the  six  months  ended  February  28,  1997  and February 29, 1996,
respectively, primarily in connection with equipment purchases and leasehold
improvements funded with short-term borrowings.


Impact of Inflation

      In management's opinion, inflation has not had a  material  impact  on
the  Company's financial results for the three and six months ended February
28,  1997  and  February  29,  1996.  Technological  advances  coupled  with
increased  competition  have caused prices on many of the Company's products
to decline.  Those products  that have increased in price have in most cases
done  so in proportion to current  inflation  rates.   Management  does  not
anticipate  that  inflation  will  have  a  material impact on the Company's
financial results in the future.



                        PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings

      There have been no material developments during the three months ended
February 28, 1997.

Item 6.  Exhibits and Reports on Form 8-K

    (a) Exhibits
        3.1  Amended and Restated Articles of  Incorporation  of the Company
             (1),  as  amended  by Articles of Amendment dated January  3,
             1995(2).
        3.2  Composite By-laws of the Company, as of October 4, 1996.(3)
        27   Financial Data Schedule
        __________

        (1)  Incorporated  by reference  from  the  Company's  Registration
             Statement on Form  S-1 (Registration No. 33-56796) filed with
             the Commission on January 6, 1993.
        (2)  Incorporated by reference  from  the Company's Quarterly Report
             on Form 10-Q for the fiscal quarter ended February 28, 1995.
        (3)  Incorporated by reference from the  Company's  Quarterly Report
             on Form 10-Q for the fiscal quarter ended November 30, 1996.

    (b) Reports on Form 8-K.
        A  current  report  on  Form 8-K was filed on January 23,  1997  to
        report the closure of two of the Company's stores.



             CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.


                                 SIGNATURE


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.


                 CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.


April 21, 1997     /s/ Rex O. Corley, Jr.
                 ------------------------------------------
                  Rex O. Corley, Jr.
                  Acting Chairman of the Board and Chief 
                  Executive Officer, and President

                    /s/ Wayne J. Usie
                 ------------------------------------------
                  Wayne J. Usie
                  Chief Financial Officer and Secretary