FORM 10-QSB

                       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: July 4, 2004       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.)


                  115 Flanders Road, Westborough, Massachusetts

                  (Address of principal executive offices)


                                 01581

                              (Zip Code)


Registrant's telephone number, including area code:  (508) 983-1200


Indicate by "X" 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

Indicate the number of shares outstanding of each of the issuer's classes of
stock, As of the latest practicable date.

Class                                 Outstanding as of July 4, 2004

Preferred                                          245,463 shares

Common                                          18,320,351 shares

<PAGE>

Part I.					FINANCIAL INFORMATION

Item 1.  Financial Statements



                       CAMBEX CORPORATION AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                        JULY 4, 2004 AND DECEMBER 31, 2003

                                      ASSETS

                                                   JULY 4,    DECEMBER 31,
                                                     2004           2003
                                                (unaudited)     (audited)

CURRENT ASSETS:

   CASH AND CASH EQUIVALENTS                    $   210,699   $   268,807

   ACCOUNTS RECEIVABLE,
   Less Reserves of $52,000 in 2004 and
   $120,000 in 2003                                 111,387       765,931


   INVENTORIES                                      341,369       316,514

   PREPAID EXPENSES                                 115,373       111,322

      TOTAL CURRENT ASSETS                      $   778,828   $ 1,462,574

PROPERTY AND EQUIPMENT, at cost:
   MACHINERY AND EQUIPMENT                      $   416,468   $   436,148
   FURNITURE AND FIXTURES                            14,186        14,186
                                                $   430,654   $   450,334

 LESS - ACCUMULATED DEPRECIATION
             AND AMORTIZATION                       430,654       441,635

 NET PROPERTY AND EQUIPMENT                     $      -      $     8,699

OTHER ASSETS:
      GOODWILL                                  $      -          257,372
      OTHER                                          37,830        37,830

        TOTAL OTHER ASSETS                      $    37,830   $   295,202

  TOTAL ASSETS                                  $   816,658   $ 1,766,475


2
<PAGE>


                          CONSOLIDATED BALANCE SHEETS

                        JULY 4, 2004 AND DECEMBER 31, 2003

                    LIABILITIES AND STOCKHOLDERS' INVESTMENT

                                                 JULY 4,      DECEMBER 31,
                                                   2004           2003
                                               (unaudited)      (audited)


CURRENT LIABILITIES:

LOAN AGREEMENT                                $     994,154  $   1,033,016
LINE OF CREDIT                                         -           525,520
NOTES PAYABLE                                       754,669        784,669
ACCOUNTS PAYABLE                                    358,945        843,775
OBLIGATIONS FOR TRADE-IN MEMORY                     240,000        240,000
OTHER LIABILITIES                                 1,776,778      1,815,805
ACCRUED EXPENSES                                  1,730,597      1,992,173

 TOTAL CURRENT LIABILITIES                    $   5,855,143  $   7,234,958


STOCKHOLDERS' INVESTMENT:
PREFERRED STOCK, $ 1.00 PAR VALUE PER SHARE
 AUTHORIZED - 3,000,000 SHARES
 SERIES A - ISSUED -  98,223 shares           $      98,223  $      98,223
 SERIES B - ISSUED - 147,240 shares                 147,240        147,240

COMMON STOCK, $ .10 PAR VALUE PER SHARE
 AUTHORIZED - 25,000,000 SHARES
 ISSUED -19,865,609 shares                        1,986,561      1,986,561
CAPITAL IN EXCESS OF PAR VALUE                   20,498,545     20,498,545
ACCUMULATED OTHER
   COMPREHENSIVE INCOME                             100,528        100,528
RETAINED EARNINGS (DEFICIT)                     (26,980,611)   (27,410,609)
LESS - COST OF SHARES OF COMMON STOCK
       HELD IN TREASURY - 1,545,258                (888,971)      (888,971)

TOTAL STOCKHOLDERS' INVESTMENT                $  (5,038,485) $  (5,468,483)
TOTAL LIABILITIES AND
 STOCKHOLDERS' INVESTMENT                     $     816,658  $   1,766,475


3
<PAGE>



                      CAMBEX CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
            FOR THE SIX MONTHS ENDED JULY 4, 2004 AND JUNE 30, 2003


                             For the Quarter Ended   For the Six Months Ended
                                 July 4,    June 30,    July 4,     June 30,
                                  2004       2003         2004         2003


REVENUES                         $  633,951 $2,473,581 $1,584,019 $5,303,701
COST OF SALES                       129,923  1,571,877    665,145  3,237,271

Gross profit                     $  504,028 $  901,704 $  918,874 $2,066,430

OPERATING EXPENSES:
   Research and development      $  168,754 $  166,418 $  340,675 $  355,994
   Selling                           89,463    606,855    300,598  1,340,182
   General and administrative       103,394    138,268    258,575    279,917
   Total operating expenses      $  361,611 $  911,541 $  899,848 $1,976,093

OPERATING INCOME (LOSS)          $  142,417 $(   9,837)$   19,026 $   90,337

OTHER INCOME (EXPENSE):
   Gain on sale of customer
    information and rights             -          -       792,628       -
   Loss on discontinuance of
    subsidiary's operations            -          -      (275,161)      -
   Other                            (26,142)    34,696   (106,495)  ( 27,069)
   Total other income(expense)   $  (26,142)$   34,696 $  410,972 $ ( 27,069)

INCOME BEFORE INCOME TAXES       $  116,275 $   24,859 $  429,998 $   63,268
   Provision for income taxes          -          -          -          -

NET INCOME                       $  116,275 $   24,859 $  429,998 $   63,268


INCOME PER COMMON SHARE          $     0.01 $     0.00 $     0.02 $     0.00

Weighted Average Common
 Shares Outstanding              18,320,000 18,320,000 18,320,000  18,320,000
Weighted Average Common and Common
Equivalent Shares Outstanding    18,320,000 18,320,000 18,320,000  18,320,000


4
<PAGE>





                         CAMBEX CORPORATION AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF STOCKHOLDERS' INVESTMENT

                Common Stock  Capital in  Accumulated   Retained   Cost of
                  $.10        Excess of     Other       Earnings   Shares
                Par Value     Par Value  Comprehensive (Deficit)   Held in
                                            Income                 Treasury


BALANCE AT
 JANUARY 1, 2003       $1,986,561 $20,498,545$101,774 $(27,530,827)$(888,971)
ADD:
Net income             $     -    $      -   $   -    $     63,268 $    -

BALANCE AT
 JUNE 30, 2003         $1,986,561 $20,498,545$101,774 $(27,467,559)$(888,971)




BALANCE AT
 JANUARY 1, 2004       $1,986,561 $20,498,545$100,528 $(27,410,609)$(888,971)
ADD:
Net income             $     -    $      -   $   -    $    429,998 $    -

BALANCE AT
 JULY 4, 2004          $1,986,561 $20,498,545$100,528 $(26,980,611)$(888,971)





                       Series A            Series B
                    Preferred Stock    Preferred Stock
                    $1.00 Par Value    $1.00 Par Value


BALANCE AT
 JANUARY 1, 2003      $ 98,223           $ 147,240

ADD:


BALANCE AT
 JUNE 30, 2003        $ 98,223           $ 147,240


BALANCE AT
 JANUARY 1, 2004      $ 98,223           $ 147,240

ADD:

BALANCE AT
 JULY 4, 2004         $ 98,223           $ 147,240

5
<PAGE>

                       CAMBEX CORPORATION AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF CASH FLOW
       FOR THE SIX MONTHS ENDED JULY 4, 2004 AND JUNE 30, 2003

	                                                  Six Months Ended
                                                      July 4,     June 30,
                                                       2004         2003
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                         $   429,998 $    63,268
Adjustments to reconcile net income
to net cash provided by(used in)
operating activities:
 Depreciation                                      $       866 $     7,065
 Amortization of prepaid expenses                       12,381       9,550
 Gain on sale of customer information and rights    (  792,628)       -
 Loss on discontinuance of subsidiary's operations     275,161        -
Changes in operating assets and liabilities:
  Accounts receivable                                  690,436     512,201
  Inventory                                         (   34,329)     71,547
  Prepaid expenses                                  (   16,432) (   11,113)
  Accounts payable                                  (   15,758) (  411,545)
  Accrued expenses                                  (   44,394)    148,258
  Other liabilities                                 (   39,027) (  434,914)
     Total adjustments                             $    36,276 $(  108,951)
Net cash provided by(used in) operating activities $   466,274 $(   45,683)

CASH FLOWS FROM INVESTING ACTIVITIES:
 Purchases of equipment, net                       $      -    $      -
 Proceeds from sale of customer information and rights  70,000        -
 Net cash provided by(used in)investing activities $    70,000 $      -

CASH FLOWS FROM FINANCING ACTIVITIES:
 Net borrowings (repayments)under line of credit   $(  525,520)$(  345,210)
 Net borrowings (repayments)under loan agreement    (   38,862) (    8,809)
 Increase(decrease)in notes payable                 (   30,000)     70,000
 Net cash provided by
 (used in) financing activities                    $(  594,382)$(  284,019)
 Effect of exchange rate changes on cash                  -           -
 Net increase (decrease) in
  cash and cash equivalents                        $(   58,108)$(  329,702)
 Cash and cash equivalents at beginning of period      268,807     544,911
 Cash and cash equivalents at end of period        $   210,699 $   215,209

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
 Interest                                          $    36,254 $    39,569
 Income Taxes                                             -           -
Non-cash financing and investing activities:
 Sale of customer information and rights           $   980,000 $      -
 Accounts payable converted into notes payable            -        219,669


6
<PAGE>


                               FORM 10-QSB

               CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 Commission File:  0-6933

Notes & Comments:

(1)Significant Accounting Policies

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

       The condensed financial statements included herein have been prepared
by us, 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 we believe 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 our opinion,
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 our latest
annual report on Form 10-KSB.

     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:

                                    July 4,     December 31,
                                     2004           2003

       Raw materials              $  276,475    $  238,092
       Work-in-process                29,154        42,866
       Finished goods                 35,740        35,556


                                  $  341,369    $  316,514


7
<PAGE>


                                FORM 10-QSB

                   CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 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 period plus applicable common stock equivalents.
There were no material differences for per share amounts assuming full
dilution in either period.

(3)    Short Term Borrowings

       We have a loan and security agreement with B.A. Associates, Inc. which
is a corporation owned by a son-in-law of Joseph F. Kruy, our Chairman,
President and Chief Executive Officer. The outstanding balance due to B.A.
Associates, Inc. was $994,154 and $1,033,016 at July 4, 2004 and December 31,
2003, respectively. Our Super PC Memory, Inc. subsidiary had a line of credit
of $2,000,000 available from The CIT Group/Commercial Services, Inc., limited
to 75% of the eligible receivables of Super PC Memory, Inc. The line of
credit agreement terminated on March 26, 2004 and we did not renew this line
of credit.

Notes payable of $754,669 and $784,699 at July 4, 2004 and December 31, 2003,
respectively, include $475,000 of advances payable which are due on demand.
The $475,000 of advances payable includes amounts of $375,000 from related
parties. The balances of $279,669 and $309,669 as of July 4, 2004 and
December 31, 2003 include $150,000 of series 1 bridge financing notes issued
in 2000. The balances of $279,669 and $309,669 as of July 4, 2004 and
December 31, 2003, respectively, also include $129,669 and $159,669,
respectively, of accounts payable converted to notes payable.

(4)Purchase Agreement

On January 30, 2004, Super PC Memory, Inc., a wholly-owned subsidiary of
Cambex Corporation, entered into an agreement with Silicon Mountain Memory
Incorporated, a privately-held company, pursuant to which Silicon Mountain
Memory Incorporated purchased a portion of Super PC Memory's customer
information and rights to do business with said customers with respect to
Wintel products. Sales to said customers with respect to Wintel products was
a substantial portion of our revenues in 2003 and 2002. These sales were
sales with lower gross margins. The total purchase price is $1,050,000
subject to allocation as to cash or note payments, the exact amount and terms

8
<PAGE>


                              FORM 10-QSB

                   CAMBEX CORPORATION AND SUBSIDIARIES

For The Quarter Ended: July 4, 2004 Commission File:  0-6933

Notes & Comments (Continued):


(4)Purchase Agreement (continued)

of payment is dependent upon the revenues generated by Silicon Mountain
Memory from Super PC Memory customers. The first payment of $35,000 was
received at closing. According to terms of the agreement, beginning on May
15, 2004, and on or before the 15th of each month, Silicon Mountain Memory
will make a payment to Super PC Memory based upon gross profit for the
preceding month according to the following formula: if the gross profit is
less than $100,000, the payment will be 25% of gross profit; if the gross
profit is between $100,000 and $140,000, the payment will be $35,000; and if
the gross profit is in excess of $140,000, the payment will be 35% of gross
profit. A payment of $35,000 was received in May. The Company recorded other
income of $792,628 from this transaction during the quarter ended April 4,
2004.


(5)Discontinuance of Super PC Memory, Inc. Operations

On May 21, 2004, the Company's Super PC Memory, Inc. subsidiary discontinued
its operations and executed an Assignment for the Benefit of Creditors.  The
purpose of the Assignment is to provide an orderly liquidation of Super PC's
assets and distribution of the proceeds to Super PC's creditors.  Super PC's
assets primarily consist of inventory, receivables, fixed assets and a
Purchase Agreement for the sale of Super PC's customer base relating to
Wintel Products and rights to do business with said customers. The Company
recorded a loss of $275,161 during the quarter ended April 4, 2004 on this
transaction.

The Assignee is Maximum Asset Recovery Services, Inc., a Los Angeles,
California based financial consulting and management firm.  Maximum Asset
Recovery Services, Inc. has no relationship to Super PC Memory, Cambex
Corporation or any of their affiliates.

The Company acquired Super PC Memory in March 2002. Super PC Memory incurred
substantial operating losses in fiscal year 2003 and fiscal year 2004 to
date. Due to unfavorable memory market conditions, Super PC's cost structure
could not be supported by the revenues and gross profit Super PC could
generate. Consequently, Super PC Memory executed an Assignment for the
Benefit of Creditors. Cambex Corporation and its other subsidiaries are
unaffected by the Super PC Memory action. However, the Assignment will
significantly reduce the Company's revenues. On the other hand, it also will
reduce its operating costs and positively impact its cash flow.


9
<PAGE>



                                  FORM 10-QSB

                  CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 Commission File:  0-6933



Item 2.  Management's Discussion and Analysis or Plan of Operation

The statements contained in "Management Discussion and Analysis or Plan of
Operation" and elsewhere throughout this Report on Form 10-QSB 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.  We undertake 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 we file or have filed
from time to time with the Securities and Exchange Commission pursuant to the
Securities Exchange Act of 1934.

We are a designer and supplier of data storage products and solutions.  Our
products include memory for computing systems and fibre channel connectivity
and storage products used to build storage area networks (SANs).

We design, manufacture, and market memory products that enhance the
performance and reliability of computing systems and networking devices. We
have been selling memory products to our customers since 1970. A processor's
memory is used to hold temporary instructions and data needed to execute
tasks.  This enables the computer's CPU to access instructions and data
quickly.  After upgrading a processor's memory, the computer will process
data faster, because it will need to access its slower secondary storage
(i.e., the disk drive) less frequently.  We provide memory upgrade solutions
for all the major servers and workstations manufactured by IBM, Sun and
Hewlett-Packard.  Adding additional memory is both application transparent
and the most cost-effective solution for eliminating many system performance
bottlenecks.

We develop and offer fibre channel host bus adapters and hubs, high
availability software, fibre channel disk storage arrays and management
software for the deployment of SAN solutions. SANs enhance and simplify the
centralized management and sharing of data storage resources while providing
improved availability, scalability, performance, and disaster recovery. SANs
have been enabled by the emergence of fibre channel, a new generation of
server to storage communications technology.  By reselling fibre channel
hardware and software products from leading manufacturers, together with our
internally developed products, we are able to offer customers a complete
interoperable SAN solution.

10
<PAGE>

                                  FORM 10-QSB

                        CAMBEX CORPORATION AND SUBSIDIARIES

For The Quarter Ended: July 4, 2004 Commission File:  0-6933


Item 2.   Management's Discussion and Analysis or Plan of Operation
(continued)

Comparison of the quarter ended July 4, 2004 and the quarter ended June 30,
2003

Our revenues were $633,951 for the quarter ended July 4, 2004 and $2,473,581
for the quarter ended June 30, 2003. Revenues for the three months ended July
4, 2004 decreased 74% compared to revenues for the same three months in the
prior year due to decreased memory sales by our Super PC Memory, Inc.
subsidiary which was partially offset by increased sales of our fibre channel
connectivity products. The decreased memory sales are primarily the result of
selling our WINTEL business.

Gross profit rate was 80% of sales for the three months ended July 4, 2004
and 36% for the three months ended June 30, 2003. The increase was due to the
product mix as there are higher gross margins on our fibre channel
connectivity products than our subsidiary's memory products.

Operating expenses for the three months ended July 4, 2004 decreased by 60%
in comparison to operating expenses for the comparable three months of the
prior year. Selling expenses for the three months ended July 4, 2004
decreased by 85% compared to the amount of these expenses in the second
quarter of fiscal 2003 due to reductions in personnel and related expenses of
our subsidiary.

Other income(expense) for the quarter ended July 4, 2004 includes $20,309 of
income from the write-off of accrued liabilities and $46,451 of interest
expense. Other income(expense) for the quarter ended June 30, 2003 includes
other income of $98,000 relating to the reversal of accrued expenses and
$63,304 of interest expense.

Net income for the second quarter of fiscal 2004 was $116,000, or $0.01 per
share, as compared with net income of $25,000, or $0.00 per share, for the
second quarter of fiscal 2003.


Recent Developments

On May 21, 2004 the Company's Super PC Memory, Inc. subsidiary discontinued
its operations and executed an Assignment for the Benefit of Creditors.  The
purpose of the Assignment is to provide an orderly liquidation of Super PC's
assets and distribution of the proceeds to Super PC's creditors.  Super PC's
assets primarily consist of inventory, receivables, fixed assets and a
Purchase Agreement for the sale of Super PC's customer base relating to
Wintel Products and rights to do business with said customers. The Company
recorded a loss of $275,161 during the quarter ended April 4, 2004 on this
transaction.

11
<PAGE>


                                 FORM 10-QSB

                  CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 Commission File:  0-6933


Item 2.   Management's Discussion and Analysis or Plan of Operation
(continued)


The Assignee is Maximum Asset Recovery Services, Inc., a Los Angeles,
California based financial consulting and management firm.  Maximum Asset
Recovery Services, Inc has no relationship to Super PC Memory, Cambex
Corporation or any of their affiliates.

The Company acquired Super PC Memory in March 2002. Super PC Memory incurred
substantial operating losses in fiscal year 2003 and fiscal year 2004 to
date. Due to unfavorable memory market conditions, Super PC's cost structure
could not be supported by the revenues and gross profit Super PC could
generate. Consequently, Super PC Memory executed an Assignment for the
Benefit of Creditors. Cambex Corporation and its other subsidiaries are
unaffected by the Super PC Memory action. However, the Assignment will
significantly reduce the Company's revenues. On the other hand, it also will
reduce its operating costs and positively impact its cash flow.


Inflation

We did not experience any material adverse effects in the second quarter of
2004 or in the second quarter of 2003 due to general inflation.


Liquidity and Capital Resources

We have suffered substantial recurring losses from operations for six of the
prior seven years.  Consequently, our ability to continue as a going
concern, is dependent upon several factors including, but not limited to our
ability to generate gross profit in significantly greater amounts than in the
past five fiscal years, and our ability to raise additional capital. Our
working capital deficit is a significant threat to our ability to continue as
a going concern.

Management continues to work to establish new strategic alliances that it
believes will result in increases in revenues and gross profit in the future
through the sale of a greater volume of products. Management has also been
active in trying to secure additional capital. We cannot give any assurances
that the actions taken to date will increase revenues and gross profit or
raise additional capital.

12
<PAGE>


                                 FORM 10-QSB

                 CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 Commission File:  0-6933


Item 2.   Management's Discussion and Analysis or Plan of Operation
(continued)


Requirements

We need additional capital and additional financing may not be available. We
believe that the combination of current existing cash, available borrowing
capacity and our ability to obtain additional long-term indebtedness may not
be adequate to finance our operations for our current activities and
foreseeable future activities. We are trying to raise additional capital and
if we are unable to raise additional capital, we may not be able to meet our
anticipated working capital requirements.

We have a loan and security agreement with B.A. Associates, Inc. which is a
corporation owned by a son-in-law of Joseph F. Kruy, our Chairman, President
and Chief Executive Officer. The outstanding balance due to B.A. Associates,
Inc. was $994,154 at July 4, 2004.  We also have notes payable of $754,669 at
July 4, 2004, including $475,000 of advances payable which are due on demand.
The $475,000 of advances payable includes $375,000 of borrowings from related
parties. The notes payable balance of $279,669 includes $150,000 of the
series 1 bridge financing note issued to Arab Commerce Bank in 2000 and
$129,669 of accounts payable converted to notes payable.

13
<PAGE>

                                 FORM 10-QSB

                 CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 Commission File:  0-6933


Item 2.   Management's Discussion and Analysis or Plan of Operation
(continued)


Resources

Our cash was $211,000 and $269,000 at July 4, 2004 and December 31, 2003,
respectively.  Working capital was a deficit of $5,076,000 and $5,772,000 at
July 4, 2004 and at December 31, 2003, respectively. During the quarter ended
July 4, 2004, we did not expend any funds for capital equipment. During
fiscal 2004, we expect to acquire less than $100,000 of capital equipment.

We have a revolving credit facility with B.A. Associates, Inc. which is a
corporation owned by a son-in-law of Joseph F. Kruy, our Chairman, President
and Chief Executive Officer under which we may borrow up to $1,100,000. At
July 4, 2004 we had a balance of $994,154 outstanding under this revolving
credit facility.

We need additional capital and additional financing may not be available. We
believe that the combination of current existing cash, available borrowing
capacity and our ability to obtain additional long-term indebtedness may not
be adequate to finance our operations for our current activities and
foreseeable future activities. We are actively pursuing raising additional
capital and if we are unable to raise additional capital, we may not be able
to meet our anticipated working capital requirements.


If we are not successful in raising additional capital or increasing our
sales to adequate levels, we will not be able to continue our current
operations and there is substantial doubt as to our ability to continue as a
going concern. There can be no assurance that we will be successful in
raising such additional capital at all or on terms commercially acceptable to
us or our shareholders.

14
<PAGE>


                                 FORM 10-QSB

                 CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 Commission File:  0-6933


Item 3. Controls and Procedures

Our principal executive officer and principal financial officer, Joseph F.
Kruy, has evaluated the effectiveness of our disclosure controls and
procedures and concluded that there are no significant deficiencies in the
design or operation of internal controls which could adversely affect our
ability to record, process, summarize and report financial data and has
determined that there are no material weaknesses in internal controls. There
were no significant changes in internal controls or in other factors that
could significantly affect internal controls subsequent to the date of our
most recent evaluation.

15
<PAGE>

                                 FORM 10-QSB

                    CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 Commission File:  0-6933


Part II.			OTHER INFORMATION

Item 1.   Legal Proceedings

The Company is a party to litigation and claims arising in the normal course
of its business. Barring unforeseen circumstances, management does not expect
the results of these actions to have a material adverse effect on the
Company's business or financial condition.


Item 2.   Change in Securities

          None.

Item 3.   Defaults Upon Senior Securities

          None.


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

          None.


Item 5.   Other Information

          None.


Item 6.		Exhibits and Reports on Form 8-K

	(a)	Exhibits


                                EXHIBIT INDEX


The following exhibits are filed herewith or incorporated by reference
herein.

Exhibit

3.1	Restated Articles of Organization of Cambex Corporation (included as
Exhibit 3.1 to the Company's Registration Statement on Form SB-2,
declared effective with the Commission on November 7, 2000, Reg. No.
333-43294, and incorporated herein by reference).


16
<PAGE>

                                 FORM 10-QSB

                    CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 Commission File:  0-6933

Item 6. Exhibit Index (continued)

3.2	Restated By-laws of Cambex Corporation (included as Exhibit 3.2 to the
Company's Registration Statement on Form SB-2, declared effective with
the Commission on November 7, 2000, Reg. No. 333-43294, and
incorporated herein by reference).

3.3 Series A Preferred Stock Certificate of Designations (included as Exhibit
10.37 to the Company's Quarterly Report on Form 10-QSB for the quarter ended
June 30, 2002 and incorporated herein by reference).

3.4 Series B Preferred Stock Certificate of Designations (included as Exhibit
10.39 to the Company's Quarterly Report on Form 10-QSB for the quarter ended
June 30, 2002 and incorporated herein by reference).

4.1	Specimen Stock Certificate (included as Exhibit 4.1 to the Company's
Registration Statement on Form SB-2, declared effective with the
Commission on November 7, 2000, Reg. No. 333-43294, and incorporated
herein by reference).

4.2	Registration Rights Agreement among the Company and the Purchasers
identified therein (the "Sovereign Purchasers") dated as of January 18,
2000 (included as Exhibit 4.1 to the Company's Amendment to Quarterly
Report on Form 10-Q/A for the quarter ended April 1, 2000, and
incorporated herein by reference).

4.3	Registration Rights Agreement between the Company and Thumberland
Limited dated as of July 14, 2000 (included as Exhibit 4.3 to the
Company's Registration Statement on Form SB-2, declared effective with
the Commission on November 7, 2000, Reg. No. 333-43294, and
incorporated herein by reference).

10.1	Employment Agreement between Joseph F. Kruy and the Company,
dated as of November 18, 1994 (included as Exhibit 10.1 to the
Company's Amendment to Quarterly Report on Form 10-Q/A for the quarter
ended April 1, 2000, and incorporated herein by reference).

10.2	Incentive Bonus Plan (included as Exhibit 10.2 to the Company's
Registration Statement on Form SB-2, declared effective with the
Commission on November 7, 2000, Reg. No. 333-43294, and incorporated
herein by reference).

10.3	1987 Combination Stock Option Plan (included as Exhibit 10.8 to
the Company's Annual Report on Form 10-K for the fiscal year ended
August 31, 1987, and incorporated herein by reference).


17
<PAGE>


                                 FORM 10-QSB

                   CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 Commission File:  0-6933

Item 6. Exhibit Index (continued)


10.4	2000 Equity Incentive Plan (included as Exhibit 10.12 to the
Company's Annual Report on Form 10-K for the fiscal year ended December
31, 1999, and incorporated herein by reference).

10.5	Series 1 Bridge Note Purchase Agreement among the Company and the
Sovereign Purchasers dated as of January 18, 2000 (included as Exhibit
10.7 to the Company's Amendment to Quarterly Report on Form 10-Q/A for
the quarter ended April 1, 2000, and incorporated herein by reference).

10.6	Escrow Agreement among the Company, the Sovereign Purchasers and
Suntrust Bank, Atlanta dated as of January 6, 2000 (included as Exhibit
10.8 to the Company's Amendment to Quarterly Report on Form 10-Q/A for
the quarter ended April 1, 2000, and incorporated herein by reference).

10.7	Placement Agent Agreement between the Company and Sovereign
Capital Advisors, LLC ("Sovereign Advisors") dated as of January 18, 2000
(included as Exhibit 10.9 to the Company's Amendment to Quarterly
Report on Form 10-Q/A for the quarter ended April 1, 2000, and
incorporated herein by reference).

10.8	Guaranty Agreement among Joseph F. Kruy, the Company and the
Sovereign Purchasers dated as of January 18, 2000. (included as Exhibit 10.10
to the Company's Amendment to Quarterly Report on Form 10-Q/A for the
quarter ended April 1, 2000, and incorporated herein by reference).

10.9	Guaranty Agreement among CyberFin Corporation, the Company and
the Sovereign Purchasers dated as of January 18, 2000 (included as Exhibit
10.11 to the Company's Amendment to Quarterly Report on Form 10-Q/A for
the quarter ended April 1, 2000, and incorporated herein by reference).

10.10	Stock Pledge Agreement by Joseph F. Kruy in favor of the
Sovereign Purchasers dated as of January 18, 2000  (included as Exhibit
10.12 to the Company's Amendment to the Quarterly Report on Form 10-Q/A
for the quarter ended April 1, 2000, and incorporated herein by
reference).

10.11	Stock Pledge Agreement by CyberFin Corporation in favor of the
Sovereign Purchasers dated as of January 18, 2000 (included as Exhibit
10.13 to the Company's Amendment to the Quarterly Report on Form 10-Q/A
for the quarter ended April 1, 2000, and incorporated herein by
reference).


18
<PAGE>


                                 FORM 10-QSB

                   CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 Commission File:  0-6933

Item 6. Exhibit Index (continued)

10.12	Series 1 Bridge Financing Note in favor of SovCap Equity
Partners, Ltd. dated as of January 18, 2000 (included as Exhibit 10.14
to the Company's Amendment to the Quarterly Report on Form 10-Q/A for
the quarter ended April 1, 2000, and incorporated herein by reference).

10.13	Series 1 Bridge Financing Note in favor of Correllus
International, Ltd. dated as of January 18, 2000 (included as Exhibit
10.16 to the Company's Amendment to the Quarterly Report on Form 10-Q/A
for the quarter ended April 1, 2000, and incorporated herein by
reference).

10.14	Common Stock Purchase Warrant in favor of SovCap Equity Partners,
Ltd. dated as of January 18, 2000 (included as Exhibit 10.18 to the
Company's Amendment to the Quarterly Report on Form 10-Q/A for the
quarter ended April 1, 2000, and incorporated herein by reference).

10.15	Common Stock Purchase Warrant in favor of Correllus
International, Ltd. dated as of January 18, 2000 (included as Exhibit
10.19 to the Company's Amendment to the Quarterly Report on Form 10-Q/A
for the quarter ended April 1, 2000, and incorporated herein by
reference).

10.16	Sovereign Warrant Agreement between the Company and Sovereign
Advisors dated as of January 18, 2000 (included as Exhibit 10.20 to the
Company's Amendment to the Quarterly Report on Form 10-Q/A for the
quarter ended April 1, 2000, and incorporated herein by reference).

10.17	Warrant Certificate registered in the name of Sovereign Advisors
dated January 18, 2000 (included as Exhibit 10.21 to the Company's
Amendment to the Quarterly Report on Form 10-Q/A for the quarter ended
April 1, 2000, and incorporated herein by reference).

10.18	Series 1 Bridge Financing Note in favor of Arab Commerce Bank
Ltd. dated as of February 9, 2000 (included as Exhibit 10.22 to the
Company's Amendment to the Quarterly Report on Form 10-Q/A for the
quarter ended April 1, 2000, and incorporated herein by reference).

10.19	Common Stock Purchase Warrant in favor of Arab Commerce Bank Ltd.
dated as of February 9, 2000 (included as Exhibit 10.24 to the
Company's Amendment to the Quarterly Report on Form 10-Q/A for the
quarter ended April 1, 2000, and incorporated herein by reference).


19
<PAGE>

                                 FORM 10-QSB

                   CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 Commission File:  0-6933

Item 6. Exhibit Index (continued)

10.20	Series 1 Bridge Financing Note in favor of SovCap Equity
Partners, Ltd. dated as of February 9, 2000 (included as Exhibit 10.25
to the Company's Amendment to the Quarterly Report on Form 10-Q/A for
the quarter ended April 1, 2000, and incorporated herein by reference).

10.21	Common Stock Purchase Warrant in favor of SovCap Equity Partners,
Ltd. dated as of February 9, 2000 (included as Exhibit 10.27 to the
Company's Amendment to the Quarterly Report on Form 10-Q/A for the
quarter ended April 1, 2000, and incorporated herein by reference).

10.22	Loan and Security Agreement, as amended, by and between the
Company and BA Associates, Inc. (included as Exhibit 10.27 to the Company's
Registration Statement on Form SB-2 filed with the Commission on November 29,
2000, Reg. No. 333-50936, and incorporated herein by reference.)

10.23 Fifth Amendment to Loan and Security Agreement, as amended, by and
between the Company and B.A. Associates, Inc., dated as of December 27, 2000
(included as Exhibit 10.28 to the Company's Annual Report on Form 10-KSB for
the fiscal year ended December 31, 2000 and incorporated herein by
reference).

10.24 Form of Warrant Certificate between the Company and B.A. Associates,
Inc. (included as Exhibit 10.29 to the Company's Annual Report on Form 10-KSB
for the fiscal year ended December 31, 2000 and incorporated herein by
reference).

10.25 Sixth Amendment to Loan and Security Agreement, as amended, by and
between the Company and B.A. Associates, Inc., dated as of December 27,
2001(included as Exhibit 10.30 to the Company's Annual Report on Form 10-KSB
for the fiscal year ended December 31, 2002 and incorporated herein by
reference).

10.26 Stock Purchase and Sale Agreement dated as of January 31, 2002 by
and among Cambex Corporation, Super PC Memory, Inc., Son T. Pham,
Simon Le and Richard G. Schaefer (included as Exhibit 2.1 to the Company's
Current Report on Form 8-K dated March 27, 2002, and incorporated herein by
reference).

10.27 Amendment to the Stock Purchase and Sale Agreement dated as of July 29,
2002 by and among Cambex Corporation, Super PC Memory, Inc., Son T. Pham,
Simon Le and Richard G. Schaefer (included as Exhibit 10.32 to the Company's
Quarterly Report on 10QSB for the quarter ended June 30, 2002, and
incorporated herein by reference).


20
<PAGE>

                                 FORM 10-QSB

                   CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 Commission File:  0-6933

Item 6. Exhibit Index (continued)

10.28 Securities Exchange Agreement dated as of June 28, 2002 by and among
the Company and Richard Calvert(included as Exhibit 10.33 to the Company's
Quarterly Report on 10QSB for the quarter ended June 30, 2002, and
incorporated herein by reference).

10.29 Securities Exchange Agreement dated as of June 28, 2002 by and among
the Company and H. Terry Snowday(included as Exhibit 10.34 to the Company's
Quarterly Report on 10QSB for the quarter ended June 30, 2002, and
incorporated herein by reference).

10.30 Securities Exchange Agreement dated as of June 28, 2002 by and among
the Company and The Hankins Family Trust(included as Exhibit 10.35 to the
Company's Quarterly Report on 10QSB for the quarter ended June 30, 2002, and
incorporated herein by reference).

10.31 Securities Exchange Agreement dated as of June 28, 2002 by and among
the Company and Joseph Kruy(included as Exhibit 10.36 to the Company's
Quarterly Report on 10QSB for the quarter ended June 30, 2002, and
incorporated herein by reference).

10.32 Securities Exchange Agreement dated as of June 28, 2002 by and among
the Company and SovCap Equity Partners, Ltd. (included as Exhibit 10.38 to
the Company's Quarterly Report on 10QSB for the quarter ended June 30, 2002,
and incorporated herein by reference).

10.33 Lease by and between the Company and Bertech Flanders, LLC dated as of
April 24, 2003(included as Exhibit 10.33 to the Company's Quarterly Report on
10QSB for the quarter ended March 31, 2003, and incorporated herein by
reference).

10.34 Purchase Agreement dated January 30, 2004 by and between Silicon
Mountain Memory Incorporated and Super PC Memory, Inc.(included as Exhibit
99.2 to the Company's Current Report on Form 8-K dated January 30, 2004 and
incorporated herein by reference).

10.35 General Assignment dated May 21, 2004 by Super PC Memory, Inc. to
Maximum Asset Recovery Services, Inc. (included as Exhibit 10.35 to the
Company's Quarterly Report on 10QSB for the quarter ended April 4, 2004, and
incorporated herein by reference).

31.1 Certification as required by section 302 of the Sarbanes-Oxley Act of
2002

32.1 Certification as required by section 906 of the Sarbanes-Oxley Act of
2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United
States Code).

21
<PAGE>

                                 FORM 10-QSB

                   CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 Commission File:  0-6933

Item 6. Exhibit Index and Reports on Form 8-K(continued)


(b) Reports on Form 8-K

On May 21, 2004, we filed a report on Form 8-K regarding Super PC Memory,
Inc., a wholly-owned subsidiary of Cambex Corporation, discontinuing its
operations and executing an Assignment for the Benefit of Creditors.

22
<PAGE>

                                    FORM 10-QSB

                      CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: July 4, 2004 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 and Treasurer






Dated:        August 10, 2004





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