FORM 10-Q

                     SECURITIES AND EXCHANGE COMMISSION

                           Washington, DC  20549


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



For The Transition Period From:
September 1, 1995 to December 31, 1995        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 Secone Avenue, Waltham, Massachusetts

                  (Address of principal executive offices)


                                   02154

                                 (Zip Code)


Registrant's telephone number, including area code:  (617) 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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<C>     <S>
                                               CAMBEX CORPORATION AND SUBSIDIARIES
        
                                                   CONSOLIDATED BALANCE SHEETS
                                              DECEMBER 31, 1995 AND AUGUST 31, 1995
                                                           (UNAUDITED) 
        
                                                              ASSETS
        
        
                                                                            DECEMBER 31,               AUGUST 31,
                                                                                1995                      1995
                                                                            -------------             -------------
        CURRENT ASSETS:
        
           CASH AND CASH EQUIVALENTS                                       $     588,322             $   3,246,353
        
        
           ACCOUNTS RECEIVABLE, LESS RESERVES OF
             $136,000 ON DECEMBER 31, 1995 AND
             $135,000 ON AUGUST 31, 1995                                       2,628,778                 5,144,976
        
           CURRENT PORTION OF INVESTMENT IN SALES-TYPE LEASES,
             NET OF UNEARNED INTEREST INCOME OF $31,000 ON
             DECEMBER 31, 1995 AND $38,000 ON AUGUST 31, 1995                    393,284                   445,214
        
           INVENTORIES                                                        12,030,324                11,568,072
        
           PREPAID TAXES                                                       6,388,659                 6,505,029
        
           PREPAID EXPENSES                                                      178,991                   242,881
                                                                           --------------            --------------
              TOTAL CURRENT ASSETS                                         $  22,208,358             $  27,152,525
                                                                           --------------            --------------
        LONG-TERM INVESTMENT IN SALES-TYPE LEASES, NET
           OF UNEARNED INTEREST INCOME OF $19,000 ON
           DECEMBER 31, 1995 AND $27,000 ON AUGUST 31, 1995                $     362,992             $     477,030
        
        LEASED EQUIPMENT, AT COST, NET OF ACCUMULATED
           DEPRECIATION OF $245,000 ON DECEMBER 31, 1995                     
           AND $193,000 ON AUGUST 31, 1995                                 $     300,174             $     351,768
        
        PROPERTY AND EQUIPMENT, AT COST:
        
           MACHINERY AND EQUIPMENT                                         $   7,257,673             $   7,221,473
           FURNITURE AND FIXTURES                                                303,428                   266,612
           LEASEHOLD IMPROVEMENTS                                                606,454                   606,454
                                                                           --------------            --------------
                                                                           $   8,167,555             $   8,094,539
        
           LESS - ACCUMULATED DEPRECIATION AND AMORTIZATION                    6,706,326                 6,495,460
                                                                           --------------            --------------
              NET PROPERTY AND EQUIPMENT                                   $   1,461,229             $   1,599,079
        
        OTHER ASSETS
              TECHNOLOGY LICENSE/MARKETING AGREEMENT, 
                NET OF ACCUMULATED AMORTIZATION OF $6,658,000
                ON DECEMBER 31, 1995 AND $6,092,000 ON AUGUST 31, 1995     $   1,841,671             $   2,408,339
              OTHER                                                               37,875                    37,895
                                                                           --------------            --------------
          TOTAL ASSETS                                                     $  26,212,299             $  32,026,636
                                                                           ==============            ==============
        
        
</TABLE>
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<TABLE>
<C>     <S>
                                                CAMBEX CORPORATION AND SUBSIDIARIES
        
                                                    CONSOLIDATED BALANCE SHEETS
                                                DECEMBER 31, 1995 AND AUGUST 31, 1995
                                                        (UNAUDITED)
        
                                            LIABILITIES AND STOCKHOLDERS' INVESTMENT
        
        
                                                                        DECEMBER 31,           AUGUST 31,
                                                                            1995                  1995
                                                                       -------------         --------------
        CURRENT LIABILITIES:
        
          REVOLVING CREDIT AGREEMENT                                   $  3,200,000          $   3,850,000
        
          ACCOUNTS PAYABLE                                                4,538,852              5,633,185
        
          OBLIGATIONS FOR TRADE-IN MEMORY                                 1,939,657              2,712,317
        
          ACCRUED EXPENSES                                                3,717,691              4,081,224
                                                                       -------------         --------------
             TOTAL CURRENT LIABILITIES                                 $ 13,396,200          $  16,276,726
                                                                       -------------         --------------
        
        DEFERRED REVENUE                                               $    917,087          $   1,323,417
        
        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  -  10,452,987 SHARES ON DECEMBER 31, 1995 AND
                        10,420,283 SHARES ON AUGUST 31, 1995           $  1,045,299          $   1,042,028
                                                                         
          CAPITAL IN EXCESS OF PAR VALUE                                 15,446,004             15,161,980
        
          CUMULATIVE TRANSLATION ADJUSTMENT                                 287,763                247,614
        
          RETAINED EARNINGS (DEFICIT)                                    (4,025,288)            (1,170,363)
        
          LESS - COST OF SHARES HELD IN TREASURY -  
                 1,534,356 ON DECEMBER 31, 1995 AND
                 1,534,356 ON AUGUST 31, 1995                              (854,766)              (854,766)
                                                                       -------------         --------------
          TOTAL STOCKHOLDERS' INVESTMENT                               $ 11,899,012          $  14,426,493
                                                                       -------------         --------------
          TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT               $ 26,212,299          $  32,026,636
                                                                       =============         ==============
        
        
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</TABLE>
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<TABLE>
<S>     <C>
                                                CAMBEX CORPORATION AND SUBSIDIARIES
     
                                                 CONSOLIDATED STATEMENTS OF INCOME
                                                     FOR THE FOUR MONTHS ENDED
                                               DECEMBER 31, 1995 AND DECEMBER 31, 1994
                                                            (UNAUDITED)
                                                 
                                                   FOR THE FOUR MONTHS ENDED
     
     
                                                DECEMBER 31,        DECEMBER 31,
                                                    1995                1994
                                               ------------         ------------
     
     REVENUES                                  $ 8,509,026         $ 11,549,005
     
     COST OF SALES                               5,029,670            6,388,332
                                               ------------        -------------
     GROSS PROFIT                              $ 3,479,356         $  5,160,673
     
     
     OPERATING EXPENSES:
     
       RESEARCH AND DEVELOPMENT                $ 1,659,480         $  1,878,439
       SELLING                                   3,156,471            2,658,919
       GENERAL AND ADMINISTRATIVE                  916,718              849,779
                                               ------------        -------------
                                               $ 5,732,669         $  5,387,137
                                               ------------        -------------
     
     OPERATING INCOME (LOSS)                   $(2,253,313)        $   (226,464)
     
     
     OTHER INCOME (EXPENSE):
       INTEREST EXPENSE                        $   (92,726)        $    (91,312)
       INTEREST INCOME                              43,217               32,537
       OTHER INCOME (EXPENSE)                     (549,103)            (484,415)
                                               ------------        -------------
     INCOME (LOSS) BEFORE INCOME TAXES         $(2,851,925)        $   (769,654)
     
     CREDIT (PROVISION) FOR INCOME TAXES       $    (3,000)        $    300,000
                                               ------------        -------------
     NET INCOME (LOSS)                         $(2,854,925)        $   (469,654)
                                               ============        =============
     
     
     NET INCOME (LOSS) PER COMMON SHARE        $    (0.32)         $     (0.05)
                                               ============        =============
     WEIGHTED AVERAGE COMMON AND COMMON          
     EQUIVALENT SHARES OUTSTANDING               8,920,000            8,625,000
     
</TABLE>
     
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<C>     <S>
                                              CAMBEX CORPORATION AND SUBSIDIARIES
                                             CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                   FOR THE FOUR MONTHS ENDED
                                             DECEMBER 31, 1995 AND DECEMBER 31, 1994
     
                                                                           FOR THE FOUR MONTHS ENDED
                                                                         DECEMBER 31,     DECEMBER 31,
                                                                             1995             1994
                                                                        ------------      -------------
     
     
     CASH FLOWS FROM OPERATING ACTIVITIES:
     Net Income (Loss)                                                  $ (2,854,925)    $    (469,654)
     Adjustments to reconcile net income (loss) to 
       net cash used in operating activities:
       Depreciation and amortization                                    $    829,128     $     896,760
       Amortization of prepaid expenses                                        9,383            10,284
       Common stock issued in lieu of cash                                    22,610                --
       Change in assets and liabilities:                                  
         Decrease in accounts receivable                                   2,516,198         1,124,999
         Decrease (increase) in inventory                                   (462,252)       (6,405,522)
         Decrease in investment in sales-type leases                         165,968           145,113
         Decrease (increase) in prepaid taxes                                116,370          (480,637)
         Decrease in prepaid expenses                                         54,507           226,838
         Decrease in other assets                                                 20                16
         Increase (decrease) in accounts payable                          (1,094,333)        1,290,492
         Increase (decrease) in obligations for trade-in memory             (772,660)          863,250
         Decrease in accrued liabilities                                    (363,533)         (371,519)
         Increase (decrease) in deferred revenue                            (406,330)           42,022
                                                                          
                                                                        -------------     -------------
           Total adjustments                                            $    615,076     $  (2,657,904)
                                                                        -------------     -------------
           Net cash used in operating activities                        $ (2,239,849)    $  (3,127,558)
     
     CASH FLOWS FROM INVESTING ACTIVITIES:
       Purchases of Equipment                                                (73,016)         (382,611)
                                                                         ------------     -------------
           Net cash used in investing activities                        $    (73,016)    $    (382,611)
     
     CASH FLOWS FROM FINANCING ACTIVITIES:
       Payments of notes payable                                        $         --     $    (112,356)
       Proceeds from sale of common stock                                    264,685             2,676
       Net borrowings (repayments) under revolving credit agreement         (650,000)         (600,000)
                                                                        -------------     -------------
         Net cash used in financing activities                          $   (385,315)    $    (709,680)
     
       Effect of exchange rate changes on cash                                40,149            37,238
                                                                         ------------     -------------
     Net decrease in cash and cash equivalents                          $ (2,658,031)    $  (4,182,611)
     
     Cash and cash equivalents at beginning of period                   $  3,246,353     $   6,126,289
                                                                        -------------     -------------
     Cash and cash equivalents at end of period                         $    588,322     $   1,943,678
                                                                        =============     =============
     SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
       Cash paid during the period for:
         Interest                                                       $     92,096     $      91,312
         Income Taxes                                                         19,947            11,895
     
     
</TABLE>
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<PAGE>
                                 FORM 10-Q

                    CAMBEX CORPORATION AND SUBSIDIARIES

For The Transition Period From:
September 1, 1995 to December 31, 1995       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, principally 
       relating to reinstallation of IBM memory.

       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:

                                  December 31,          August 31,
                                       1995                1995    
 
       Raw materials              $ 2,600,433           $ 2,402,345
       Work-in-process              1,017,749               760,399
       Finished goods               7,097,086             4,573,200
       Trade-in memory              1,315,056             3,832,128

                                  $12,030,324           $11,568,072


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<PAGE>
                                 FORM 10-Q

                    CAMBEX CORPORATION AND SUBSIDIARIES

For The Transition Period From:
September 1, 1995 to December 31, 1995         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

              Revenues for the four months ended December 31, 1995 decreased 
              26% from the comparable four months of the prior year due 
              principally to decreased sales of the Company's STOR/9000 
              memory products for the IBM ES/9000 computers. 

              Operating expenses for the four months ended December 31, 1995 
              increased 6% from the comparable four months of the prior year. 
              Selling and general and administrative expenses increased 16% 
              due to expansion in Europe.  Research and development expenses 
              decreased 12% due to completion of major projects in fiscal 
              1995. 

              Other expense in the four months ended December 31, 1995 and 
              December 31, 1994 included approximately $567,000 in 
              amortization expenses relating to the Company's technology 
              license/marketing agreement. 

              Accounts receivable decreased due to a lower volume of sales. 

              The Company's present operating plans indicate that cash flow 
              generated from operations will be adequate to meet its 
              obligations.

              As reported in the Company's latest annual report on Form 10-K 
              for the fiscal year ended August 31, 1995, the Company is 
              continuing to negotiate with the bank to receive a waiver for 
              certain provisions of the Revolving Credit Agreement with which 
              the Company was not in compliance as of August 31, 1995 and 
              December 31, 1995.


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<PAGE>
                                 FORM 10-Q

                    CAMBEX CORPORATION AND SUBSIDIARIES


For The Transition Period From:
September 1, 1995 to December 31, 1995        Commission File: 0-6933





                                 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/    Sheldon M. Schenkler
                    
              Sheldon M. Schenkler
              Chief Financial Officer




Dated:        February 14, 1996










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