FORM 10-Q

                     SECURITIES AND EXCHANGE COMMISSION
                             Washington, DC  20549


                  Quarterly Report Under Section 13 Or 15(d)
                   Of The Securities Exchange Act Of 1934



For the Quarter Ended:   April 1, 2000        Commission File No:   0-6933



                           CAMBEX CORPORATION

          (Exact name of registrant as specified in its charter)


     Massachusetts                                           04-244-2959

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


              360 Second Avenue, Waltham, Massachusetts

              (Address of principal executive offices)


                               02451

                            (Zip Code)


Registrant's telephone number, including area code:  (781) 890-6000


       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


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                                  CAMBEX CORPORATION AND SUBSIDIARIES

                                        CONSOLIDATED BALANCE SHEETS

                                    APRIL 1, 2000 AND DECEMBER 31, 1999

                                                 (UNAUDITED)

                                                    ASSETS

                                                    APRIL 1,     DECEMBER 31,
                                                     2000           1999

CURRENT ASSETS:

   CASH AND CASH EQUIVALENTS                      $ 1,008,108    $   366,743

   ACCOUNTS RECEIVABLE, LESS RESERVES OF
      $100,000 ON APRIL 1, 2000 AND
      $100,000 ON DECEMBER 31, 1999                   245,187        202,466

   INVENTORIES                                        562,223        622,430

   PREPAID TAXES                                         -              -

   PREPAID EXPENSES                                    66,180         65,995


      TOTAL CURRENT ASSETS                        $ 1,881,698    $ 1,257,634


PROPERTY AND EQUIPMENT, AT COST:

   MACHINERY AND EQUIPMENT                        $ 3,052,887   $ 3,052,887
   FURNITURE AND FIXTURES                             162,625       162,625
   LEASEHOLD IMPROVEMENTS                             602,092       602,092
                                                  $ 3,817,604   $ 3,817,604

   LESS - ACCUMULATED DEPRECIATION AND AMORTIZATION 3,659,769     3,639,196

     NET PROPERTY AND EQUIPMENT                   $   157,835   $   178,408

OTHER ASSETS
       OTHER                                      $    37,830   $    37,830


  TOTAL ASSETS                                    $ 2,077,363   $ 1,473,872
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                                            CONSOLIDATED BALANCE SHEETS

                                        APRIL 1, 2000 AND DECEMBER 31, 1999

                                                    (UNAUDITED)

                                    LIABILITIES AND STOCKHOLDERS' INVESTMENT

                                              APRIL 1,          DECEMBER 31,
                                                2000                1999

CURRENT LIABILITIES:

  LOAN AGREEMENT                             $    -           $   601,029

  NOTES PAYABLE                                2,287,940          550,000

  ACCOUNTS PAYABLE                               482,953          463,675

  OBLIGATIONS FOR TRADE-IN MEMORY                240,000          286,250

  OTHER LIABILITIES-SHORT TERM PORTION         1,177,421          967,558

  ACCRUED EXPENSES                               544,607          513,849


     TOTAL CURRENT LIABILITIES              $  4,732,921     $  3,382,361


LONG TERM DEBT                              $  1,273,730     $  1,273,730

OTHER LIABILITIES-LONG TERM PORTION            1,935,188        2,324,540

DEFERRED REVENUE                                 100,116          100,116


STOCKHOLDERS' INVESTMENT:

  PREFERRED STOCK, $1.00 PAR VALUE PER SHARE
     AUTHORIZED - 3,000,000 SHARES
     ISSUED - NONE

  COMMON STOCK, $.10 PAR VALUE PER SHARE -
     AUTHORIZED -   25,000,000 SHARES
     ISSUED  -  11,169,615 SHARES ON APRIL 1, 2000 AND
                11,076,232 SHARES ON DECEMBER 31, 1999 $ 1,116,962 $ 1,107,623

  CAPITAL IN EXCESS OF PAR VALUE                        15,972,066  15,970,199

  ACCUMULATED OTHER COMPREHENSIVE INCOME                   101,989     101,989

  RETAINED EARNINGS (DEFICIT)                          (22,300,843)(21,931,920)

   LESS - COST OF SHARES HELD IN TREASURY -
          1,534,356 ON APRIL 1, 2000 AND
          ON DECEMBER 31, 1999                           (854,766)    (854,766)

  TOTAL STOCKHOLDERS' INVESTMENT                     $ (5,964,592) $(5,606,875)


  TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT     $  2,077,363  $ 1,473,872

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                                 CAMBEX CORPORATION AND SUBSIDIARIES

                                  CONSOLIDATED STATEMENTS OF INCOME

                                       FOR THE THREE MONTHS ENDED

                                    APRIL 1, 2000 AND APRIL 3, 1999

                                               (UNAUDITED)


                                                 FOR THE THREE MONTHS ENDED

                                                     APRIL 1,         APRIL 3,
                                                      2000             1999

REVENUES                                           $   655,028     $ 1,390,148

COST OF SALES                                          361,494         624,917

GROSS PROFIT                                       $   293,534     $   765,231

OPERATING EXPENSES:

  RESEARCH AND DEVELOPMENT                         $   351,786     $   311,728

  SELLING                                              201,750         182,370

  GENERAL AND ADMINISTRATIVE                           123,248         148,782

                                                   $   676,784     $   642,880

OPERATING INCOME (LOSS)                            $  (383,250)    $   122,351

OTHER INCOME (EXPENSE):
   INTEREST EXPENSE                                $   (88,079)    $   (35,000)
   INTEREST INCOME                                        -                323
   OTHER INCOME (EXPENSE)                                 -             13,810

INCOME (LOSS) BEFORE INCOME TAXES
AND EXTRAORDINARY ITEMS                            $  (471,329)    $   101,484

PROVISION FOR INCOME TAXES                       -               -

INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS           $  (471,329)    $   101,484

EXTRAORDINARY ITEMS                                    102,406            -

NET INCOME (LOSS)                                  $  (368,923)    $   101,484

OTHER COMPREHENSIVE INCOME, NET OF TAX:
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS                  -               -

TOTAL COMPREHENSIVE INCOME (LOSS)                  $  (368,923)    $   101,484


TOTAL COMPREHENSIVE INCOME (LOSS)
PER COMMON SHARE                                   $     (0.04)    $      0.01

WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING                                          9,600,000       9,500,000

WEIGHTED AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING                       10,390,000       9,500,000

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                               CAMBEX CORPORATION AND SUBSIDIARIES

                              CONSOLIDATED STATEMENTS OF CASH FLOWS
                                      FOR THE THREE MONTHS ENDED
                                  APRIL 1, 2000 AND APRIL 3, 1999


                                                    FOR THE THREE MONTHS ENDED

                                                      APRIL 1,        APRIL 3,
                                                       2000            1999

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)                                    $   (368,923)  $  101,484
Adjustments to reconcile net income (loss) to
  net cash provided by (used in) operating activities:
  Depreciation and amortization                      $     20,573   $   32,892
  Amortization of prepaid expenses                          7,210        8,422
  Common stock issued in lieu of cash                      10,246         -
  Change in assets and liabilities:
    Decrease (increase) in accounts receivable            (42,721)     (76,900)
    Decrease (increase) in inventory                       60,207     (205,961)
    Decrease in investment in sales-type leases              -          15,411
    Decrease in prepaid taxes                                -            -
    Decrease (increase) in prepaid expenses                (7,395)       4,430
    Decrease in other assets                                 -            -
    Increase (decrease) in accounts payable                19,278       56,505
    Increase (decrease) in obligations for trade-in memory(46,250)        -
    Increase (decrease) in accrued expenses                30,758        1,009
    Increase (decrease) in deferred revenue                  -            -
    Increase (decrease) in other liabilities             (179,489)     (37,781)

     Total adjustments                               $   (127,583)  $ (201,973)

     Net cash provided by (used in) operating activities$(496,506)  $ (100,489)

CASH FLOWS FROM INVESTING ACTIVITIES:
      Sales (purchases) of Equipment                         -          (3,395)

   Net cash provided by (used in) investing activities $     -      $   (3,395)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Borrowings(payments) under loan agreement            $ (601,029)  $   65,445
  Increase(decrease) in notes payable                   1,737,940         -
  Proceeds from sale of common stock                          960         -

   Net cash provided by (used in) financing activities $1,137,871   $   65,445

  Effect of exchange rate changes on cash                    -            -

Net increase (decrease) in cash and cash equivalents   $  641,365   $  (38,439)

Cash and cash equivalents at beginning of period       $  366,743   $  211,452

Cash and cash equivalents at end of period             $1,008,108   $  173,013

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
  Cash paid during the period for:
    Interest                                           $    1,618   $    -
    Income Taxes                                             -           -

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                                                             -5-



                                            FORM 10-Q

                             CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: April 1, 2000              Commission File No:   0-6933

Notes & Comments:

       (1)Significant Accounting Policies

       The accompanying consolidated financial statements include the accounts
       of the Company and its wholly-owned subsidiaries.  All material
       intercompany transactions and balances have been eliminated in
       consolidation.

       The Company has deferred revenue associated with the sale of certain
       products which have future performance obligations, relating to
       reinstallation of IBM memory and maintenance.

       The condensed financial statements included herein have been prepared by
       the Company, without audit, 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, although the Company believes that the disclosures are
       adequate to make the information presented not misleading. The
       information furnished includes all adjustments and accruals
       consisting only of normal recurring accrual adjustments which
       are, in the opinion of management, necessary for a fair presentation
       of results for the interim period.  It is suggested that these
       condensed financial statements be read in conjunction with the
       financial statements and the notes thereto included in the
       Company's latest annual report on Form 10-K.

       Inventories, which include raw materials, labor and manufacturing
       overhead are stated at the lower of cost (first-in, first-out) or
       market and consist of the following:

                                             April 1,            December 31,
                                               2000                    1999


       Raw materials                        $  358,653           $  419,984
       Work-in-process                          98,085               78,572
       Finished goods                          105,485              123,874


                                            $  562,223           $  622,430

                                                      - 6 -



                                                  FORM 10-Q

                         CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended:     April 1, 2000              Commission File:  0-6933



Notes & Comments (Continued):


       (2)    Income and Dividends Per Share

               Per share amounts are based on the weighted average number of
               shares outstanding during each year plus applicable common stock
               equivalents.  There were no material differences for per share
               amounts assuming full dilution in either year.

       (3)    Management's Discussion and Analysis of Financial Condition and
              Results of Operations

               The statements contained in "Management Discussion and Analysis
               of Financial Condition and Results of Operations" and elsewhere
               throughout this Report on Form 10-Q that are not
               historical facts are "forward-looking statements"
               within the meaning of Section 27A of the Securities Act of 1933
               and Section 21E of the Securities Exchange Act of 1934.  These
               forward-looking statements are subject to certain risks and
               uncertainties  which could cause actual results to differ
               materially from those reflected in the forward-looking
               statements.  These forward-looking statements reflect
               management's analysis, judgment, belief or expectation only as
               of the date hereof.  The Company undertakes no obligation to
               publicly revise these forward-looking statements to reflect
               events or circumstances that arise after the date hereof or to
               publicly release the results of any revisions to such
               forward-looking statements that may be made to reflect
               events or circumstances after the date hereof.  In addition to
               the disclosure contained herein, readers should carefully
               review any disclosure of risks and uncertainties contained in
               other documents the Company files or has filed from time
               to time with the Securities and Exchange Commission
               pursuant to the Securities Exchange Act of 1934.


                                            - 7 -




                                        FORM 10-Q

                        CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended:   April 1, 2000            Commission File:      0-6933


Notes & Comments (Continued):


(3)    Management's Discussion and Analysis of Financial Condition and
       Results of Operations (continued)

               The Company develops, manufactures and markets leading-edge Fibre
               Channel hardware and software solutions for building Storage
               Area Networks (SANs). The Company offers high performance Fibre
               Channel host bus adapters and hubs, high availability software,
               Full-Fibre RAID arrays and management software for the
               deployment of heterogeneous SAN solutions, providing companies
               the competitive advantage of constant data access, storage
               consolidation and centralized management. The Company also
               supplies memory for IBM enterprise servers.

               Revenues for the first quarter ended April 1, 2000 decreased
               53% from the comparable three months of the prior year due to
               decreased disk storage product and service revenue, which was
               partially offset by continued growth in sales of the Company's
               Fibre Channel connectivity products. The decrease in revenue
               from the disk storage products was due to the Company
               transitioning from the traditional SCSI based disks to
               end to end full-fibre solutions and to the fact that building
               its sales organization is still in an early stage.

               The gross profit of 45% for the first quarter of 2000 was lower
               than the 55% achieved in 1999 due to the relative amount of fixed
               costs in relation to revenues.

               Operating expenses for the three months ended April 1, 2000
               increased 5% from the comparable three months of the prior year
               due principally to increased research and development and sales
               expenses. The Company continues to invest in the research and
               development of new and existing Fibre Channel connectivity
               products. The Company also invested in building its sales
               organization and indirect distribution channels.




                                          -8-



                                       FORM 10-Q

                         CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended:  April 1, 2000                Commission File:  0-6933


Notes & Comments (Continued):

(3) Management's Discussion and Analysis of Financial Condition and
    Results of Operations (continued)

              Extraordinary income for the three months ended April 1, 2000 was
              primarily payment of other liabilities at a discount from
              face value.

              During the first quarter of 2000, the Company raised an additional
              $2,000,000 in cash from the issuance of 8% Convertible Bridge
              Notes which are due in August and September, 2000. The notes are
              convertible at a weighted average share price of $4.08. The
              Company may redeem the notes at any time during the term of the
              notes. If the Company does not redeem the notes prior to maturity
              and the Company's stock price falls below certain levels, the
              holders are entitled to acquire additional shares. In addition
              to the notes, warrants to purchase 300,000 shares of common stock
              were issued at weighted average exercise prices of $4.54 per
              share.

              On March 1, 2000, the Company entered into a Sublease Agreement
              with a third party pursuant to which the Company sublet
              approximately 8,000 square feet in its Waltham, Massachusetts
              facility (which is approximately 12% of the Company's total
              leased space). The term of the sublease is coterminous with
              the primary lease and expires on May 31, 2003.

                                      -9-


                               FORM 10-Q

                   CAMBEX CORPORATION AND SUBSIDIARIES

For The Quarter Ended: April 1, 2000           Commission File: O-6933


                                  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.


CAMBEX CORPORATION


By:    /s/    Joseph F. Kruy

              Joseph F. Kruy
              President




By:    /s/    Peter J. Kruy

              Peter J. Kruy
              Chief Financial Officer




Dated:        May 12, 2000










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