UNITED STATES 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      September 30, 1996   
 period ended
                                                 
                               OR
                               
       TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
       SECURITIES
       EXCHANGE ACT OF 1934
                                                 
 For the transition              to               
 period from
                                                 
                                                 
 Commission file  1-8533
 number
                                                 
                DIAGNOSTIC/RETRIEVAL SYSTEMS, INC.
      (Exact name of registrant as specified in its charter)
                                                 
 Delaware                                             13-2632319
 (State or other                                      (I.R.S.
 jurisdiction of                                      Employer
 incorporation or                                     Identifica
 organization)                                        tion No.)
                                                 
 5 Sylvan Way, Parsippany,                            07054
 New Jersey
 (Address of principal                                (Zip Code)
 executive offices)
                                                 
         201-898-1500                            
 (Registrant's telephone number, including area  
 code)
                                                 
 None                                                          
 (Former name, former address and former fiscal year, if changed
 since last report.)

     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 November 4, 1996, 5,512,424 shares of the registrant's Common Stock,
$.01 par value, were outstanding (exclusive of 463,942 shares held in treasury).


<PAGE>
       DIAGNOSTIC/RETRIEVAL SYSTEMS, INC. AND SUBSIDIARIES
                                
                              INDEX
                                2
                                
     


PART 1.        FINANCIAL            
               INFORMATION
               
      Item 1.  Financial Statements           
                                                              
               Condensed Consolidated Balance Sheets -        
               September 30, 1996 and                         3
               March 31, 1996
                                                              
               Condensed Consolidated Statements of Earnings  
               - Three and Six Months Ended September 30,     4
               1996 and 1995
                                                              
               Condensed Consolidated Statements of Cash      
               Flows - Six Months Ended September 30, 1996    5
               and 1995
                                                              
               Notes to Condensed Consolidated Financial      6-7
               Statements
                                                              
      Item 2.  Management's Discussion and Analysis of        
               Financial Condition and Results of Operations  8-11
                                                        
PART 2.        OTHER INFORMATION    
               
      Item 1.  Not Applicable                                 
               
      Item 2.  Not Applicable                                 
               
      Item 3.  Not Applicable                                 
               
      Item 4.  Submission of Matters to a Vote of Security    12
               Holders
                                                              
      Item 5.  Not Applicable                                 
               
      Item 6.  Exhibits and Reports on Form 8-K               12
                                                              
SIGNATURES                                                    13

<PAGE>
 DIAGNOSTIC/RETRIEVAL SYSTEMS, INC. AND SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 (Unaudited)

                                             September 30, 1996 March 31, 1996

 Assets

 Current Assets:
     Cash and cash equivalents                       $   8,496,000  $ 22,785,000
     Accounts receivable                                28,660,000    22,942,000
     Inventories, net of progress payments              19,752,000    19,449,000
     Other current assets                                 1,941,000    1,464,000
         Total current assets                           58,849,000    66,640,000

 Property, plant and equipment, less accumulated
     depreciation and amortization of $26,707,000
     and $25,744,000 at September 30, 1996 and
     March 31, 1996, respectively                       17,770,000    16,191,000

 Intangible assets, less accumulated amortization of
     $4,379,000 and $4,027,000 at September 30, 1996
     and March 31, 1996, respectively                   10,537,000     8,498,000

 Other assets                                             5,666,000    5,922,000

                                                     $ 92,822,000   $ 97,251,000

 Liabilities and Stockholders' Equity

 Current liabilities                                 $ 25,771,000   $ 32,650,000

 Long-term debt, excluding current installments         32,524,000    32,608,000
 Deferred income taxes                                   2,607,000     2,607,000
 Other liabilities                                       2,717,000     2,820,000
         Total liabilities                              63,619,000    70,685,000

 Stockholders' equity:

     Common Stock, $.01 par value per share
         Authorized 20,000,000 shares; issued 5,976,366
         shares at September 30, 1996                       60,000             -

     Class A Common Stock, $.01 par value per share
         Authorized 10,000,000 shares; issued 3,739,963
         shares at March 31, 1996                               -         37,000

     Class B Common Stock, $.01 par value per share
         Authorized 20,000,000 shares; issued 2,223,603
         shares at March 31, 1996                               -         22,000

 Additional paid-in capital                             13,825,000    13,639,000
 Retained earnings                                      17,538,000    15,022,000
                                                        31,423,000    28,720,000
 Treasury Stock, at cost;
     463,942 shares of Common Stock at September 30, 1996;
     432,639 shares of Class A Common Stock and
     65,795 shares of Class B Common Stock              (1,786,000)  (1,918,000)

 Unamortized restricted stock compensation                (434,000)    (236,000)
     Net stockholders' equity                           29,203,000   26,566,000

                                                     $ 92,822,000  $ 97,251,000

 See accompanying notes to condensed consolidated financial statements.

 3

<PAGE>
<TABLE>
DIAGNOSTIC/RETRIEVAL SYSTEMS, INC.  AND SUBSIDIARIES
                                                                                                        
Condensed ConsolIdated Statements of Earnings
(Unaudited)
                                                                                                        
                                          Three Months                     Six Months                
                                        Ended September 30               Ended September 30
<S>     <S>                                 <C>               <C>              <C>            <C>         
                                           1996               1995               1996           1995    

Revenues                                     33,440,000       22,786,000       60,863,000     40,065,000
                                                                                                       
  Costs and expenses                         30,408,000       20,942,000      55,363,000     36,907,000
                                                                                                        
         Operating income                     3,032,000        1,844,000       5,500,000      3,158,000

Interest and related expenses                  (903,000)        (372,000)     (1,735,000)      (697,000)

Other income, net                               160,000           27,000         360,000        114,0000
                                                                                                        
         Earnings before income taxes         2,289,000        1,499,000       4,125,000      2,575,000
                                                                                                        
 Income taxes                                   893,000          584,000       1,609,000      1,004,000

         Net earnings                        $1,396,000       $  915,000      $2,516,000     $1,571,000
                                                                                                        
Earnings per share:

         Primary                             $     0.24       $     0.16      $     0.44     $     0.28
         Fully Diluted                       $     0.21       $     0.16      $     0.38     $     0.28

                                                                                                        
                                                                                                        
Weighted average number of shares outstanding:

         Primary                              5,743,000        5,658,000       5,712,000      5,632,000
         Fully Diluted                        8,907,000        5,721,000       8,892,000      5,672,000

  See accompanying notes to condensed consolidated financial statements.
                                                                                                        
   4                                                                                                    
</TABLE>
<PAGE>

 DIAGNOSTIC/RETRIEVAL SYSTEMS, INC. AND SUBSIDIARIES
 Condensed Consolidated Statements of Cash Flows
 (Unaudited)

                                                Six Months Ended September 30,
                                                    1996               1995
 Cash flows from operating activities
     Net earnings                             $   2,516,000      $ 1,571,000
 Adjustments to reconcile net earnings to cash
 flows from operating activities:

     Depreciation and amortization                2,235,000        1,289,000
     Other, net                                    (188,000)         171,000
 Changes in assets and liabilities, net of effects from
 business combinations:

     (Increase) in accounts receivable           (5,219,000)      (1,184,000)
     (Increase) in inventories                     (751,000)        (992,000)
     (Increase) decrease in other current assets     74,000          (17,000)
     (Decrease) in accounts payable and other    (7,901,000)      (4,356,000)
     Other, net                                      85,000          268,000

     Net cash used in operating activities       (9,149,000)      (3,250,000)

 Cash flows from investing activities

     Capital expenditures                        (1,619,000)      (1,959,000)
     Sales of fixed assets                          122,000        2,380,000
     Payments pursuant to business combinations,
         net of cash acquired                    (3,892,000)      (4,095,000)
     Net cash used in investing activities       (5,389,000)      (3,674,000)
 Cash flows from financing activities
 Net proceeds from short-term debt                  667,000          123,000
     Payments on long-term debt                    (465,000)        (114,000)
     Repurchases of convertible subordinated debentur     -       (2,225,000)
     Net proceeds from issuance of senior subordinated
         convertible debentures                           -       18,900,000
     Other, net                                      47,000           40,000

     Net cash provided by financing activities      249,000       16,724,000

 Net increase (decrease) in cash and cash
     equivalents                                (14,289,000)       9,800,000
Cash and cash equivalents, beginning of period   22,785,000       11,197,000
                                    
Cash and cash equivalents, end of period     $    8,496,000  $    20,997,000
                                    
                                    
 See accompanying notes to condensed consolidated financial statements.

 5

<PAGE>
                                        

1)In   the   opinion   of  Management,  the  accompanying  unaudited   condensed
  consolidated  financial statements of Diagnostic/Retrieval Systems,  Inc.  and
  subsidiaries  (the  "Company")  contain all adjustments  (consisting  of  only
  normal  and recurring adjustments) necessary for the fair presentation of  the
  Company's  consolidated  financial position as  of  September  30,  1996,  the
  results  of operations for the three and six months ended September  30,  1996
  and  1995 and cash flows for the six months ended September 30, 1996 and 1995.
  The  results of operations for the six months ended September 30, 1996 are not
  necessarily indicative of the results to be expected for the full year.

2)The  Company's  industrial  revenue bonds,  due  1998,  are  supported  by  an
  irrevocable,  direct-pay letter of credit in an amount equal to the  principal
  balance  plus  interest  thereon for 45 days.   At  September  30,  1996,  the
  contingent  liability of the Company as guarantor under the letter  of  credit
  was  approximately $1,726,000.  The Company has collateralized the  letter  of
  credit  with  accounts  receivable and has also agreed  to  certain  financial
  covenants,  including  the  maintenance of: (i) a  certain  minimum  ratio  of
  consolidated  tangible  net worth to total debt (the  "Debt  Ratio"),  (ii)  a
  certain  minimum  quarterly ratio of earnings before  interest  and  taxes  to
  interest, and (iii) a certain minimum balance of billed and unbilled  accounts
  receivable.   As  a  result  of  the  issuance  of  the  Company's  9%  Senior
  Subordinated Convertible Debentures, the Debt Ratio at September 30, 1996  was
  below the required minimum ratio.  The Company has obtained a waiver from  the
  issuing bank, expiring as of October 1, 1997, of the required debt ratio  and,
  accordingly, is in compliance with all covenants under the letter of credit.

3)Until March 31, 1996, the Company had three authorized classes of stock: a
  class consisting of 10,000,000 shares of Class A Common Stock, a class
  consisting of 20,000,000 shares of Class B Common Stock, and a class
  consisting of 2,000,000 shares of Preferred Stock (none of which has been
  issued).  The holders of the Class A and Class B Common Stock were entitled
  to one vote per share and one-tenth vote per share, respectively.

  On February 7, 1996, the Board of Directors of the Company approved and
  recommended for submission to the stockholders of the Company by a majority
  vote the consideration and approval of an Amended and Restated Certificate of
  Incorporation (the "Restated Certificate"), which amended and restated the
  Company's certificate to (i) effect a reclassification of each share of Class
  A Common Stock and each share of Class B Common Stock into one share of
  Common Stock of the Company, (ii) provide that action by the stockholders may
  be taken only at a duly called annual or special meeting and not by written
  consent and (iii) provide that the stockholders of the Company would have the
  right to make, adopt, alter, amend or repeal the by-laws of the Company only
  upon the affirmative vote of not less than 66 2/3% of the outstanding capital
  stock entitled to vote thereon.  On March 26, 1996, the stockholders approved
  the Restated Certificate.  The Restated Certificate was filed with the
  Secretary of State of the State of Delaware and became effective April 1,
  1996.  Accordingly, the Condensed Consolidated Balance Sheet as of March 31,
  1996 presents Class A and Class B Common Stock; the Condensed Consolidated
  Balance Sheet as of September 30, 1996 presents the new, single class of
  Common Stock.

4)   On June 18, 1996, a second-tier subsidiary of Precision Echo, Inc., a
wholly-owned subsidiary of    the Company, acquired substantially all the assets
of Vikron, Inc. ("Vikron") for approximately      $3.7 million.  Vikron, located
in St. Croix Falls, Wisconsin, manufactures data and recording   heads.
<PAGE>

  The acquisition has been accounted for using the purchase method of
  accounting.  Accordingly, related results of operations have been included in
  the Company's reported operating results since April 1, 1996, the effective
  date of the acquisition.  The excess of cost over the estimated fair value of
  net assets acquired was approximately $2.0 million and will be amortized on a
  straight-line basis over 15 years.

5)   On October 24, 1996, a second-tier subsidiary of Precision Echo, Inc., a
wholly-owned subsidiary  of the Company, acquired substantially all the assets
of Nortronics Company, Inc.   ("Nortronics"), a Minnesota corporation, for
approximately $2.4 million.  Nortronics      manufactures magnetic data
recording head products.

   Effective  October 31, 1996, Pacific Technologies, Inc. ("PTI"), a California
corporation,  merged with and into a subsidiary of the Company,  for  stock
and cash valued at approximately $0.5 million. Based in San Diego, California, 
PTI provides systems and software engineering   support  to  the  U.S.
Navy for the testing of shipboard combat systems.
<PAGE>

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

Results of Operations

     The  following  table  sets  forth  items  in  the  Condensed  Consolidated
Statements  of  Earnings  as a percent of revenues and presents  the  percentage
increase or decrease of those items as compared to the prior period.
     
<TABLE>
                                                                      
                    Percent of Revenues                   Percent of Revenues
                    Three Months Ended    Percent         Six Months Ended       Percent
                     September 30,        Changes         September 30,          Changes
<S>                <C>         <C>          <C>           <C>      <C>              <C>
                  1996        1995       1996 vs. 1995     1996      1995        1996 vs.1995
                                                                      
Revenues           100.0 %    100.0 %       46.8%        100.0 %   100.0 %           51.9%

Cost and expenses   90.9       91.9         45.2%         91.0      92.1             50.0%
                                                                      
   Operating income  9.1        8.1         64.4%          9.0       7.9             74.2%
                                                                      
Interest and related
   expenses         (2.7)      (1.6)       142.7%         (2.9)     (1.7)           148.9%
                                                                      
Other income, net    0.5        0.1        492.6%          0.6       0.3            215.8%
                                                                      
   Earnings before
    income taxes     6.9        6.6         52.7%          6.7       6.5             60.2%

Income taxes         2.7        2.6         52.9%          2.6       2.5             60.3%


    Net earnings     4.2 %      4.0 %       52.6%          4.1 %     4.0 %           60.2%
</TABLE>

<PAGE>

     Revenues  for  the  three-month period ended September 30,  1996  increased
46.8%  to  $33.4 million from $22.8 million for the same three-month  period  in
fiscal 1996.  On a year-to-date basis, revenues increased 51.9% to $60.9 million
from  $40.1  million for the same six-month period in fiscal 1996.  The  revenue
growth  was  due primarily to increased shipments associated with the  Company's
display  workstations and electro-optical system product lines, as  well  as  to
increases  in  commercial product sales, which include revenues from  businesses
acquired within the last nine months.

     Operating  income  for  the  three-month period ended  September  30,  1996
increased  64.4%  to  $3.0 million from $1.8 million for  the  same  three-month
period  in  fiscal  1996.  On a year-to-date basis, operating  income  increased
74.2%  to $5.5 million from $3.2 million for the same six-month period in fiscal
1996.   Operating income as a percentage of revenue was 9.1% and  9.0%  for  the
three-month  and  six-month periods ended September 30, 1996,  respectively,  as
compared  with  8.1%  and  7.9%, respectively, for  the  comparable  prior  year
periods.  The  increase  in operating income was due primarily  to  the  overall
increase  in revenues, together with higher margins on the Company's  commercial
products.
     
     Interest  and related expenses were $0.9 million and $1.7 million  for  the
three-month and six-month periods ended September 30, 1996, as compared to  $0.4
million and $0.7 million in the prior year.  The increase was primarily  due  to
the  increase  in  long-term  debt associated  with  the  private  placement  on
September  29, 1995, and November 3, 1995, of $25.0 million aggregate  principal
amount of 9% Senior Subordinated Convertible Debentures due 2003, offset in part
by  a  reduction  in  interest resulting from repurchases of  the  Company's  8%
Convertible Subordinated Debentures, mainly in the second and fourth quarters of
fiscal 1996.
     
     Other income, net was $0.2 million and $0.4 million for the three-month and
six-month   periods  ended  September 30, 1996,  respectively,  as  compared  to
$27,000 and $0.1 million in the comparable periods of fiscal 1996.  The increase
was  primarily  due  to  interest earned on higher  average  cash  balances,  in
addition  to  a gain of approximately $0.1 million on the sale of certain  fixed
assets in the second quarter of fiscal 1997.

     The  Company's effective tax rate for the three-month and six-month periods
ended  September  30,  1996 and 1995 was 39%.  The Company  records  income  tax
expense  based  on an estimated effective income tax rate for  the  full  fiscal
year.   The  effective income tax rate and the components of income tax  expense
for  the  fiscal  quarter ended September 30, 1996 did not significantly  change
from  those  of the fiscal year ended March 31, 1996.  The provision for  income
taxes  includes  all  estimated  income  taxes  payable  to  federal  and  state
governments, as applicable.


Financial Condition and Liquidity

     Cash  and  Cash Flow:  Cash and cash equivalents at September 30, 1996  and
March  31,  1996  represented approximately 9% and 23%, respectively,  of  total
assets.  During the six-month period ended September 30, 1996, cash decreased by
approximately  $14.3  million.   This  decrease  resulted  from   the   use   of
approximately  $3.9  million in the Vikron acquisition  and  approximately  $1.6
million for capital expenditures.  Additionally, approximately $9.1 million  was
used  in  support  of  operations, primarily in settlement of  accounts  payable
balances  associated with material procurement in the fourth quarter  of  fiscal
1996.   This  material  was purchased in anticipation of production activity,
primarily for display workstations, scheduled for fiscal 1997.
     
     Capital  expenditures, excluding assets acquired as a  result  of  business
combinations are expected to approximate $3 million for the fiscal  year  ending
March  31,  1997.  The majority of these expenditures will be for  computer  and
production-related equipment.
     
     Working capital as of September 30, 1996 was $33.1 million, as compared  to
$34.0  million at March 31, 1996.  The decrease was primarily due to lower  cash
and  accounts  payable balances, partially offset by higher accounts  receivable
balances.
     
     On  May 31, 1996, the Company entered into a revolving line of credit  loan
agreement  with  Mellon  Bank,  N.A.  for a  three-year  $15  million  unsecured
revolving line of credit (the "Line of Credit"). The Line of Credit was used  to
refinance approximately $1.3 million of existing debt obligations of the Company
at  more favorable interest rates; the remaining unused credit line is available
for  working capital and for letters of credit. Interest on borrowings under the
Line  of  Credit is charged at the prime rate or at the London Interbank Offered
Rate plus 175 basis points.
     
     The  Company  believes  that  its  current  working  capital  position  and
available financing are sufficient to support its current operational needs.
     
     Accounts  Receivable  and  Inventories:  Accounts receivable  increased  by
approximately $5.2 million in the six-month period ended September 30, 1996, net
of  the  effect  of  assets  acquired pursuant to  business  combinations.   The
increase  was  primarily the result of a cumulative adjustment to  the  progress
payment  percentage  associated  with one of the Company's  display  workstation
contracts,  billed  at the end of the second quarter. Generally,  there  are  no
contract  provisions for retainage, and all accounts receivable are expected  to
be collected within one year.

<PAGE>

     Inventories  increased by approximately $0.8 million from March  31,  1996,
net  of  the  effect of assets acquired pursuant to business combinations.   The
increase  was  due  primarily to increased material procurement  and  production
activity on certain electro-optical, data recording and commercial products.

<TABLE>
<S>                      <C>               <C>
                          September 30,     March 31, 1996
                               1996
                                           
Quick ratio                    1.5               1.4
Current ratio                  2.3               2.0
Liabilities-to-equity          2.2               2.7
ratio
Long-term debt,                            
excluding current             52.7%             55.1%
installments, to
capitalization
                                           
</TABLE>

     Backlog:   At  September  30, 1996, the Company's  backlog  of  orders  was
approximately  $130.2 million as compared to $145.6 million at March  31,  1996.
The  decrease in backlog was due to the net effect of revenues, partially offset
by  bookings.   New  contract awards of approximately $44  million  were  booked
during the six-month period ended September 30, 1996.


Acquisitions and Related Activities
     
     On  June  18,  1996, a second-tier subsidiary of Precision  Echo,  Inc.,  a
wholly-owned subsidiary of the Company, acquired substantially all the assets of
Vikron, Inc. ("Vikron") for approximately $3.7 million.  Vikron, located in  St.
Croix Falls, Wisconsin, manufactures data and recording heads.

     The  acquisition  has  been  accounted for using  the  purchase  method  of
accounting.   Accordingly, related results of operations have been  included
in  the  Company's reported operating results since April 1, 1996, the effective
date of the acquisition. The excess of cost over the estimated fair value of net
assets  acquired  was  approximately $2.0 million and will  be  amortized  on  a
straight-line basis over 15 years.
     
      On  October 24, 1996, a second-tier subsidiary of Precision Echo, Inc.,  a
wholly-owned  subsidiary of the Company, acquired certain assets  of  Nortronics
Company,  Inc.  ("Nortronics"), a Minnesota corporation, for approximately  $2.4
million.  Nortronics manufactures magnetic data recording head products.

       Effective  October  31,  1996,  Pacific  Technologies,  Inc.  ("PTI"),  a
California  corporation, merged with and into a subsidiary of the  Company,  for
stock  and  cash  valued at approximately $0.5 million.   Based  in  San  Diego,
California, PTI provides systems and software engineering support to the U.S. 
Navy for the testing of shipboard combat systems.

<PAGE>

Letter of Credit
     
     The  Company's  industrial revenue bonds, due 1998,  are  supported  by  an
irrevocable,  direct-pay letter of credit in an amount equal  to  the  principal
balance  plus  interest  thereon  for 45  days.   At  September  30,  1996,  the
contingent liability of the Company as guarantor under the letter of credit  was
approximately $1,726,000.  The Company has collateralized the letter  of  credit
with  accounts  receivable and has also agreed to certain  financial  covenants,
including  the  maintenance  of:  (i) a certain minimum  ratio  of  consolidated
tangible  net  worth to total debt (the "Debt Ratio"), (ii)  a  certain  minimum
quarterly ratio of earnings before interest and taxes to interest, and  (iii)  a
certain minimum balance of billed and unbilled accounts receivable.  As a result
of  the issuance of the Company's 9% Senior Subordinated Convertible Debentures,
the  Debt Ratio at September 30, 1996 was below the required minimum ratio.  The
Company  has obtained a waiver from the issuing bank, expiring as of October  1,
1997,  of  the  required debt ratio and accordingly is in  compliance  with  all
covenants under the letter of credit.
     
<PAGE>
     
     PART II.  OTHER INFORMATION

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

          On August 7, 1996, the Company held its Annual Meeting of Stockholders
          at  the  offices  of Skadden, Arps, Slate, Meagher & Flom,  919  Third
          Avenue, New York, New York.  The following matters were submitted  for
          a vote of stockholders:
          
          (i)   to elect three Class I directors, each to hold office for a term
          of three years;
          (ii)       to  consider  and act upon a proposal  to  adopt  the  1996
          Omnibus Plan; and
          (iii)     to ratify the grant of options to non-employee directors  of
          the Company    pursuant to the 1991 Stock option plan.
          
          With  respect to the aforementioned matters, votes were tabulated  and
          all  three proposals were approved by the stockholders of the  Company
          as follows:

                                For           Against       Withheld
          Proposal (i):
            Mark S. Newman       4,952,929         0        17,450
            Theodore Cohn        4,932,279         0        38,100
            Donald C. Fraser     4,950,135         0        20,244
          Proposal (ii)          3,641,565   294,066        279,780
          Proposal (iii)         4,558,525   113,098        284,786

Item 6.        Exhibits and Reports on Form 8-K

          (a)  Exhibits

               10.95      Modification  No. PZ0020, dated as  of  September  19,
                    1996, to Contract No. N00024-92-C-6308 [P]
               
               11.  Schedule of Computations of Per Share Earnings
               
               27.  Financial Data Schedule

          (b)  Reports on Form 8-K

               None.
                                        
<PAGE>
                                        
               DIAGNOSTIC/RETRIEVAL SYSTEMS, INC. AND SUBSIDIARIES
                                        
                                   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.

                              DIAGNOSTIC/RETRIEVAL SYSTEMS, INC.
                                        Registrant


Date: November 14, 1996       /s/ Nancy R. Pitek
                              Nancy R. Pitek
                              Vice President, Finance
                              Treasurer and Secretary