FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



             ( X ) Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                For the quarterly period ended September 27, 1998

                                       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 : 000-23457


                        ENTEX INFORMATION SERVICES, INC.

             (Exact name of registrant as specified in its charter)


                        Delaware                  93 -133715291
              (State or other jurisdiction      (I.R.S. Employer
                    of incorporation)         Identification Number)

                6 International Drive, Rye Brook, N.Y. 10573-1058
                                 (914) 935-3600

   (Address, including zip code and telephone number, including area code, of
                          principal executive offices)

         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 and Exchange Act of 1934 during the preceding twelve
          months, and (2) has been subject to such filing requirements
                            for the past ninety days:
                                YES ( X ) NO ( )

           The number of outstanding shares of the Registrant's Common
          Stock, par value $.0001 per share, was 32,423,160 (excluding
                  82,500 treasury shares) on October 30, 1998.

    
       -------------------------------------------------------------------



<PAGE>




                        ENTEX INFORMATION SERVICES, INC.


                                      INDEX

                                                                    Page Numbers
                                                                 
PART I.  FINANCIAL INFORMATION

Item 1.    Financial Statements

           Consolidated Balance Sheets as of
           September 27, 1998 and June 28, 1998                            2

           Consolidated Statements of Operations
           For the Three Months Ended September 27, 1998
           and September 28, 1997                                          3

           Condensed Consolidated Statements of Cash Flows for
           the Three Months Ended September 27, 1998
           and September 28, 1997                                          4

           Notes to Consolidated Financial Statements                      5

Item 2.    Management's Discussion and Analysis of Financial
           Condition and Results of Operations                            6 - 9



PART II. OTHER INFORMATION

Item 3.    Defaults Upon Senior Securities                                 10

Item 6.    Exhibits and Reports on Form 8-K                                10

           Signatures                                                      11







<PAGE>

                        ENTEX INFORMATION SERVICES, INC.
                         Part I - Financial Information
                           Consolidated Balance Sheets
                    (Dollars in thousands except share data)

<TABLE>
<CAPTION>

                                                                    Unaudited
                                                                  September 27,    June 28,    
                                                                       1998          1998
<S>                                                               <C>           <C>    
                                                                   ----------  -----------
Assets
Current assets:
   Cash .........................................................   $   9,436    $  14,265
   Trade receivables (net of allowance for doubtful accounts
         of  $4,578 and $4,662, respectively) ...................     375,859      368,344          
   Vendor receivables (net of allowances of $2,925 and $3,787             
          respectively) .........................................      40,704       47,592 
   Inventories ..................................................     142,947      192,841 
   Other current assets .........................................       8,548        8,683
                                                                    ---------    ---------
          Total current assets ..................................     577,494      631,725 
                                                                    ---------    ---------                     
Property, plant and equipment, net ..............................      65,363       61,009 
Goodwill (net of accumulated amortization .......................                              
      of  $13,571 and $12,861, respectively) ....................      40,881       41,929     
Other assets, net ...............................................       6,114        1,756 
                                                                    ---------    ---------     
   Total assets .................................................   $ 689,852    $ 736,419 
                                                                    =========    =========     
  
           Liabilities and Stockholders' Equity (Deficit)
                                                                    
Current liabilities:                 
   Accounts payable .............................................   $ 298,106    $ 338,602 
   Accrued liabilities ..........................................      69,994       67,381 
   Notes payable and current installments of long-term debt .....     221,668      295,681 
                                                                    ---------    ---------   
          Total current liabilities .............................     589,768      701,664 
                                                                    ---------    ---------                                      
Long-term debt ..................................................     132,361       53,239 
Other long-term liabilities .....................................         577          661 
                                                                    ---------    ---------
          Total long-term liabilities ...........................     132,938       53,900     
                                                                    ---------    ---------           
   Total liabilities                                                  722,706      755,564 
                                                                    ---------    ---------     
Stockholders' equity (deficit):                                                     
Preferred stock, 2,000,000 shares authorized;                  
    no shares  issued or outstanding ............................        --           --                                   
Common stock, $.0001 par value; 100 million shares ..............                  
    authorized, 32,407,656 and 32,413,366 shares issued and                                
    outstanding, respectively ...................................           3            3     
Additional paid-in capital ......................................      19,539       19,477     
Retained earnings (deficit) .....................................     (52,364)     (38,564)    
Accumulated other comprehensive income ..........................         (30)         (59)
Treasury stock, 82,500 shares, at cost ..........................          (2)          (2)
                                                                    ---------    ---------
   Total stockholders' equity (deficit) .........................     (32,854)     (19,145)  
                                                                    ---------    ---------     
                                                                    $ 689,852    $ 736,419
                                                                    =========    =========     
                                                                                  
</TABLE>
                                                                      
          See accompanying notes to consolidated financial statements.

                                           Page 2


<PAGE>



                        ENTEX INFORMATION SERVICES, INC.
                      Consolidated Statements of Operations
                  (Dollars in thousands except per share data)

<TABLE>
<CAPTION>

                                                                       Unaudited     
                                                                  Three Months Ended
                                                               ---------------------------     
                                                               September 27,  September 28,
                                                                    1998         1997
                                                                 ---------    ---------
<S>                                                             <C>          <C>    
                                                                  
Net revenues:
   Product revenues .......................................... $   438,252    $ 500,938
   Service revenues ..........................................     116,888      105,901
                                                               -----------    ---------
          Total net revenues .................................     555,140      606,839
                                                               -----------    ---------

Cost of revenues:
   Cost of products sold .....................................     405,479      450,781
   Cost of services provided .................................      84,901       79,872
                                                               -----------    ---------
          Cost of revenues ...................................     490,380      530,653
                                                               -----------    ---------

Product gross margin  ........................................      32,773       50,157
Services gross margin ........................................      31,987       26,029
                                                               -----------    ---------
          Total gross margin .................................      64,760       76,186        
                                                                 
Selling, general and administrative expenses .................      68,857       61,815 
                                                               -----------    ---------        
          Income (loss) from operations ......................      (4,097)      14,371 
                                                                                               
Interest expense, net ........................................       9,695        9,669 
                                                               -----------    ---------        
          Income (loss) before income taxes ..................    (13,792)        4,702  
                                                                                               
Provision for income taxes ...................................          8             2  
                                                               ----------     --------- 
          Net income (loss)................................... $  (13,800)    $   4,700        
                                                               ==========     =========

                                          
Common Share Data:                                                                 
                                                                 
          Basic earnings (loss) per share .................... $     (.43)   $      .15
                                                               ===========   ==========
          
          Diluted earnings (loss) per share................... $     (.43)   $      .14
                                                               ==========    ==========        
          
          Basic weighted average number of shares of 
          common stock outstanding ........................... 32,402,154    32,399,060
                                                                 
          Common equivalent shares from stock 
          options and warrants using the 
          treasury stock method ..............................        --      1,337,145
                                                               ----------    ----------

          Diluted weighted average number of 
          shares of common stock outstanding ................. 32,402,154    33,736,205
                                                               ==========    ==========       

</TABLE>


          See accompanying notes to consolidated financial statements.

 

                                     Page 3


<PAGE>





                        ENTEX INFORMATION SERVICES, INC.
                 Condensed Consolidated Statements of Cash Flows
                             (Dollars in thousands)

<TABLE>
<CAPTION>

                                                                        Unaudited
                                                                    Three Months Ended
                                                                September 27, September 28,
                                                                    1998          1997
                                                                 ----------    ----------
<S>                                                             <C>          <C>    

Net cash provided by operating activities ....................   $   7,162    $  21,098
                                                                 ---------    ---------

Cash flows from investing activities:
    Capital expenditures .....................................      (8,593)      (4,219)
                                                                 ---------    ---------
             Net cash used in investing activities ...........      (8,593)      (4,219)       
                                                                 ---------    ----------                       
Cash flows from financing activities:                                                   
    Proceeds from borrowings .................................     132,306       30,185 
    Change in cash overdraft .................................      (3,527)       6,107 
    Payments on debt .........................................    (132,177)     (58,679)
                                                                 ---------    ----------  
           Net cash used in financing activities .............      (3,398)     (22,387) 
                                                                 ---------    ----------                              
Decrease in cash .............................................      (4,829)      (5,508)
                                                                                        
Cash at beginning of period ..................................      14,265       15,838  
                                                                 ---------    ---------   
Cash at end of period ........................................   $   9,436    $  10,330        
                                                                 =========    =========
Supplemental disclosure of cash flow information:
    Interest paid ...........................................    $   8,566    $  10,383
                                                                 =========    =========

    Income taxes paid (refunded) ............................    $     587    $    (658)       
                                                                 =========    =========       

</TABLE>


          See accompanying notes to consolidated financial statements.



                                     Page 4


<PAGE>

                        ENTEX INFORMATION SERVICES, INC.
              Notes to Condensed Consolidated Financial Statements



1.  Basis of Presentation

The unaudited condensed  consolidated  financial statements included herein have
been  prepared  by the  Company  pursuant  to the rules and  regulations  of the
Securities and Exchange Commission. Certain information and footnote disclosures
normally included in financial  statements prepared in accordance with generally
accepted  accounting  principles have been condensed or omitted pursuant to such
rules and regulations. However, in the opinion of management of the Company, the
condensed  consolidated  financial  statements  include all  adjustments,  which
consist  only of normal  recurring  accruals,  necessary  to present  fairly the
financial information for such periods.  These condensed  consolidated financial
statements  should  be read  in  conjunction  with  the  consolidated  financial
statements and the notes thereto included in the Company's Annual Report on Form
10-K for the fiscal year ended June 28, 1998.

The results of operations for the three months ended  September 27, 1998 are not
necessarily  indicative of the results to be expected for the fiscal year ending
June 27, 1999.


2. Comprehensive Income

Effective  for the  quarter  ended  September  27,  1998,  the  Company  adopted
Statement of Financial  Accounting  Standards No. 130, "Reporting  Comprehensive
Income"  ("FAS 130").  Comprehensive  income  includes both net income and other
comprehensive  income.  Included  in  other  comprehensive  income  are  foreign
currency   translation  gains  (losses).   In  accordance  with  the  disclosure
requirements of FAS 130,  comprehensive income (loss) for the three months ended
September   27,  1998  and   September   28,  1997  was  $(13,771)  and  $4,692,
respectively.  Other  comprehensive  income  (loss) for the three  months  ended
September 27, 1998 and September 28, 1997 was $29 and $(8), respectively.


3.  Subsequent Event

In October 1998, the Company's Board of Directors authorized  management actions
that  will  result in the  reorganization  of  ENTEX's  business  to create  two
operating  units:  a  Technology  Acquisition  Services  Division and a Services
Division,  each  functioning  as a  separate  operating  division  within  ENTEX
Information Services.

As a result of these  actions,  the Company will record a pre-tax  restructuring
charge  estimated at $10 - $12 million  during the second fiscal  quarter ending
December 27, 1998. The restructuring  charge includes costs related to severance
in connection with a workforce reduction, as well as branch office consolidation
and  facilities  reductions.  It is  expected  that the  reorganization  will be
completed  by the end of December  1998.  In  addition,  the Company  expects to
record a further non-cash charge estimated at up to $10 - $15 million  primarily
in  connection  with  the   re-evaluation  of  the   functionality  of  software
investments  that have been made which may require an  alternative  solution for
portions of the new business lines.

                                     Page 5



<PAGE>



                        ENTEX INFORMATION SERVICES, INC.
 Management's Discussion and Analysis of Financial Condition and Results of 
                                   Operations


Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

This section contains trend analysis and other forward-looking  statements based
on current expectations. Actual results may differ materially due to a number of
factors.  Reference is made to the  Company's  Annual  Report on Form 10-K for a
further discussion of certain business factors.

Overview

ENTEX is a leading provider of integrated  personal  computer ("PC")  management
solutions to meet the distributed  information  technology  systems and end-user
support  requirements  of Fortune 1000  companies  and other large  enterprises.
ENTEX  offers  its  customers  a single  source  for  integrated  PC  management
solutions, including sophisticated infrastructure and configuration, outsourcing
and desktop migration and integration services.

The Company has two principal  sources of revenue:  product revenues and service
revenues.  Product  revenues  include  acquisition  and  procurement of personal
computer  and network  products,  software  and  peripherals.  Service  revenues
include network services,  professional  services,  outsourcing services, PC and
network  operation  support  services,  on-site and centrally  located help desk
services, as well as asset management services.

Results of Operations

The following table sets forth the percentage of total net revenues  represented
by the items in the Company's statements of operation for the periods indicated:


                                                             Three Months Ended
                                                             ------------------
                                                             Sept. 27, Sept. 28,
                                                               1998       1997
                                                              ------     ------
Net revenue:                       
     Product revenues ......................................    78.9%      82.5%
     Service revenues ......................................    21.1       17.5
                                                               -----      -----
           Total net revenues ..............................   100.0      100.0 
                                                               
Cost of revenues ........................                       88.3       87.4 
                                                               -----      -----
Gross margin (1)                                                11.7       12.6
                                                                       
Selling, general and administrative
    expenses                                                    12.4       10.2 
                                                               -----      -----
Income (loss) from operations                                   (0.7)       2.4
Interest expense, net ...................                        1.8        1.6
                                                               -----      ----- 
Income (loss) before income taxes .......                       (2.5)       0.8 
Provision for income taxes ..............                        --         --
                                                               -----      -----
Net income (loss) .......................                       (2.5)%      0.8%
                                                               =====      =====
                                                       
                                                            
                                                     

                                     Page 6


<PAGE>


                        ENTEX INFORMATION SERVICES, INC.
 Management's Discussion and Analysis of Financial Condition and Results of 
                                   Operations


     (1) Product gross margin as a percentage  of product  revenues and services
gross margin as a percentage of service revenues for each period was as follows:

                                                     Three Months Ended
                                                     ------------------
                                                 Sept. 27,           Sept. 28,
                                                   1998                 1997
                                                  ------               ------
   Product gross margin                             7.5%               10.0%
   Services gross margin                           27.4%               24.6%


     Consolidated  net loss for the three  months ended  September  27, 1998 was
$13.8 million  compared to consolidated  net income of $4.7 million in the three
months  ended  September  28,  1997.  The net loss was  primarily  a result of a
decrease in product  revenues and the  corresponding  gross  margin,  as well as
increased  selling,  general and  administrative  expenses,  partially offset by
increased service revenues and services gross margin.

     Product revenues: Product revenues were $438.3 million for the three months
ended  September  27, 1998 as compared  to $500.9  million for the three  months
ended  September  28,  1997, a decrease of $62.6  million or 12.5%.  The revenue
decline primarily  reflects  availability  constraints  during the quarter and a
slowdown in orders from a number of  significant  customers as well as declining
average sales  prices.  

     Service revenues: Service revenues were $116.9 million for the three months
ended  September  27, 1998 as compared  to $105.9  million for the three  months
ended  September 28, 1997,  an increase of $11.0 million or 10.4%.  The increase
reflects  increased demand from existing customers and the addition of new large
accounts.  Service  revenues as a percentage of total net revenues  increased to
21.1% for the  quarter  ended  September  27,  1998 as  compared to 17.5% in the
quarter ended September 28, 1997 due to higher service  revenues  coupled with a
decline in the  product  business.  The  Company is  focused  on  continuing  to
increase service revenue.

     Gross margins:  Total gross margins  declined to 11.7% for the three months
ended  September  27,  1998 as  compared  to 12.6%  for the three  months  ended
September 28, 1997.  Product  gross margin as a percentage  of product  revenues
declined to 7.5% or $32.8 million for the three months ended  September 27, 1998
as compared to 10.0% or $50.2  million for the three months ended  September 28,
1997.  The  decrease  reflects  pricing  pressures  and a  reduction  in  vendor
incentive programs. Services gross margin increased $6.0 million or 23% to $32.0
million, reflecting operating efficiencies on increased service revenues.

     Selling,  general  and  administrative   expenses:   Selling,  general  and
administrative expenses as a percentage of total revenues increased to 12.4% for
the quarter ended  September 27, 1998 from 10.2% in the previous  year's quarter
reflecting increased  expenditures as well as lower sales volumes in the product
business.  For the three months ended September 27, 1998,  selling,  general and
administrative  expenses  were $68.9  million  compared to $61.8 million for the
quarter  ended  September  28,  1997,  an increase of $7.1  million,  reflecting
investments in  company-wide  infrastructure,  training and field  operations to
support service business growth.


                                     Page 7


<PAGE>

                        ENTEX INFORMATION SERVICES, INC.
 Management's Discussion and Analysis of Financial Condition and Results of 
                                   Operations

     Income (loss) from  operations:  Loss from  operations was $4.1 million for
the three months ended  September 27, 1998 as compared to income from operations
of $14.4 million in the quarter ended  September 28, 1997. The loss reflects the
decline in gross margin on product revenues and increased  selling,  general and
administrative  expenses,  partially offset by increased gross margin on service
revenues.

     Interest expense,  net: Net interest expense was essentially  unchanged for
the three months  ended  September  27, 1998  compared to the three months ended
September 28, 1997.

     Provisions  for income  taxes:  The Company  utilized  net  operating  loss
carryforwards  to offset  federal income tax  requirements  for the three months
ended September 28, 1997.

     Net income (loss): As a result of the factors mentioned above, net loss for
the three months ended  September  27, 1998 was $13.8 million as compared to net
income of $4.7 million for the three months ended September 28, 1997.


Liquidity and Capital Resources

     The Company has historically  financed its operations with borrowings under
various credit lines. Cash provided by operating activities was $7.2 million for
the three months ended  September  27, 1998 as compared to $21.1 million for the
comparable period in 1997.

     The cash provided by operations during the three months ended September 27,
1998 resulted  primarily from depreciation and other non-cash charges to income,
and from changes in operating  assets and  liabilities,  partially offset by the
net loss of $13.8 million.

     Cash used in investing  activities (capital  expenditures) was $8.6 million
during the three  months ended  September  27, 1998  compared  with $4.2 for the
three months ended September 28, 1997.  

     Cash used in financing  activities was $3.4 million during the three months
ended  September  27, 1998  compared to $22.4 million for the three months ended
September 28, 1997. During July 1998, the Company issued $100 million of 12 1/2%
Senior  Subordinated  Notes  due  2006.  The net  proceeds  were  used to  repay
outstanding  indebtedness  of the  Company,  resulting in an increase in working
capital of approximately $74 million.

     At September 27, 1998,  the Company had secured  credit lines totaling $635
million,  with $340.4 million outstanding under these lines. An aggregate amount
of $293.8  million  was  outstanding  under the IBMCC Line of  Credit,  of which
$216.4 million was interest bearing. In addition,  $46.6 million was outstanding
under the line of credit  with  Finova  Capital  Corporation,  none of which was
interest bearing.

     At September 27, 1998, the Company had no material  commitments  other than
obligations  under  its  credit  facilities,  term  notes  and  operating  lease
facilities.



                                     Page 8

<PAGE>


                        ENTEX INFORMATION SERVICES, INC.
 Management's Discussion and Analysis of Financial Condition and Results of 
                                   Operations


     The IBMCC Financing Agreement contains  restrictive  covenants with respect
to  maintenance  of minimum  tangible  net worth,  current  ratio,  fixed  asset
additions,  fixed charges and certain additional indebtedness.  In addition, the
IBMCC  Financing  Agreement  prohibits the Company from paying cash dividends on
common  stock.  At September 27, 1998,  the Company was not in  compliance  with
certain  of such  covenants  but  continued  to  maintain  an excess  collateral
position. IBMCC has waived all defaults arising from such non-compliance for the
September quarter.

     The Company  intends to continue  to finance a  significant  portion of its
working capital needs through credit  facilities.  The Company may seek to raise
additional  funds  through  public or private  equity or debt  financing or from
other sources to support the future growth of the business.  However,  there can
be no assurance that the Company will be able to raise such additional funding.

Recent Developments

     In October 1998,  the Company's  Board of Directors  authorized  management
actions that will result in the reorganization of ENTEX's business to create two
operating  units:  a  Technology  Acquisition  Services  Division and a Services
Division,  each  functioning  as a  separate  operating  division  within  ENTEX
Information  Services.  The  reorganization  is  intended  to  reduce  costs and
increase operational focus to respond to new market dynamics.

     As  a  result  of  these  actions,   the  Company  will  record  a  pre-tax
restructuring  charge  estimated at $10 - $12 million  during the second  fiscal
quarter  ending  December 27, 1998.  The  restructuring  charge  includes  costs
related to severance in connection with a workforce reduction, as well as branch
office  consolidation  and  facilities  reductions.  It  is  expected  that  the
reorganization  will be completed by the end of December 1998. In addition,  the
Company expects to record a further non-cash charge estimated at up to $10 - $15
million  primarily in connection with the  re-evaluation of the functionality of
software  investments  that have been made  which  may  require  an  alternative
solution for portions of the new business lines.

     ENTEX's Year 2000 Program continues. As of September 27, 1998, expenditures
totaled $12.2 million.  The Company is currently in the process of re-evaluating
the  scope and  timing of the  implementation  of the R3TM  Enterprise  Resource
Planning  System from SAP. As an  alternative,  the Company  will  renovate  its
existing  systems.  Regardless  of the  outcome of this  review,  ENTEX does not
anticipate a delay in the validation and implementation of its Year 2000 project
or any increase in cash outlays from those  disclosed in its 1998 Annual  Report
on Form 10-K. 

     In November  1998, the Company  deposited with the Indenture  Trustee under
its 12 1/2%  Senior  Subordinated  Notes  due 2006,  funds to make the  interest
payment due February 1, 1999 on such notes.

                                    

                                     Page 9



<PAGE>

                           PART II - OTHER INFORMATION



Item 3.    DEFAULTS UPON SENIOR SECURITIES

           The IBMCC  Financing  Agreement  contains  restrictive  
           covenants with respect to maintenance of minimum  
           tangible net worth,  current ratio, fixed  asset  
           additions,   fixed   charges  and  certain   additional
           indebtedness. In addition, the IBMCC Financing Agreement
           prohibits the Company from paying cash  dividends on 
           common stock.  At September 27, 1998, the Company was not
           in compliance with certain of such covenants but  
           continued to maintain an excess  collateral  position.
           IBMCC has waived all defaults arising from such 
           non-compliance for the September quarter.


Item 6.    EXHIBITS AND REPORTS ON FORM 8-K

           (a)   Exhibits required by Item 601 of Regulation S-K.

                 (27)    Financial Data Schedule.

           (b)   ENTEX  filed a report on Form 8-K dated July
                 29, 1998 under Item 5, "Other  Events",  and
                 Item 7, "Financial  Statements and Exhibits"
                 during the quarter ended September 27, 1998.
                 No financial  information  was included with
                 this report.




                                     Page 10


<PAGE>


                                   SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.




                                                ENTEX Information Services, Inc.
                                                --------------------------------
                                                         (Registrant)

                                                
         November 12, 1998                           /s/ Kenneth A. Ghazey
                                                     ---------------------
                                                     Kenneth A. Ghazey
                                                     Executive Vice President, 
                                                     Finance and Administration 
                                                     and Chief Financial Officer




         November 12, 1998                           /s/ Richard P. Bannon
                                                     ---------------------
                                                     Richard P. Bannon
                                                     Senior Vice President, 
                                                     Controller


                                    Page 11