UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-KSB

[X]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
SECURITIES AND 	EXCHANGE ACT OF 1934 [FEE REQUIRED]  For the fiscal 
year ended August 31, 1997.

OR

[	]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ____________ to _______________

Commission file number 0-12551

CREATIVE COMPUTER APPLICATIONS, INC.
(Name of Small Business Issuer in its charter)
	
California                                   95-3353465
(State or other jurisdiction of           (I.R.S. Employer
incorporation or organization)           Identification No.)

26115-A Mureau Road
Calabasas, California                         91302
(Address of principal executive offices)    (Zip Code)

Issuer's telephone number:                 (818) 880-6700

Securities registered under Section 12(b) of the Exchange Act:  None
Securities registered under Section 12(g) of the Exchange Act:

Common Stock, no par value
(Title of class)

Check whether the Issuer (1) filed all reports required to be filed 
by Section 13 or 15(d) of the Exchange Act during the past 12 months 
(or for such shorter period that the Issuer was required to file 
such reports), and (2) has been subject to such filing requirements 
for the past 90 days.
		Yes  X 		No  __

Check if there is no disclosure of delinquent filers in response to 
Item 405 of Regulation S-B is not contained in this form, and no 
disclosure will be contained, to the best of Issuer's knowledge, in 
definitive proxy or information statements incorporated by reference 
in Part III of this Form 10-KSB or any amendment to this Form 10-KSB.
                         [  ]

Issuer's revenues for its most recent fiscal year ended August 31, 
1997 were $7,119,381.

As of November 10, 1997, the aggregate market value of the voting 
stock held by non-affiliates of the Company was approximately 
$3,600,000.

As of November 10, 1997, the Company had 2,864,865 shares of its 
common stock outstanding.

Transitional Small Business Disclosure (check one):
		Yes  __		No  X	

DOCUMENTS INCORPORATED BY REFERENCE

Items 10, 11 and 12 of Part III of this report are hereby 
incorporated by reference from the Company's Definitive Proxy 
Statement which will be filed within 120 days of the Company's 
fiscal year.


PART I


Item 1.  Business.

	The following report contains forward-looking statements 
within the meaning of the Private Securities Litigation Reform Act 
of 1995.  Such forward-looking statements involve risks and 
uncertainties so that the actual results may vary materially.


Business Description

        Creative Computer Applications, Inc. (CCA or the Company) 
develops, assembles, markets, installs, and services computer based 
Clinical Information Systems for use in hospitals, clinics, 
reference laboratories, and other healthcare institutions.  Clinical 
information is data that is gathered concerning each individual 
patient's health condition, diagnosis, and treatment that is used by 
doctors, nurses and other healthcare providers.  CCA's products are 
used to provide automation of information that facilitates the 
operation of clinical departments and allows the rapid recording and 
processing of information that can be communicated, documented, and 
delivered to healthcare providers.  Currently, CCA markets a 
Laboratory Information System under the name CyberLAB II(registered
trademark), a Pharmacy Information System under the name of
CyberMED(trademark), a Radiology Information System under the name
CyberRAD(trademark), a Financial Management System for outpatient
billing and accounts receivable and other related application modules.
Additional application software products are in development or are
planned to be developed in the future. The Company is also actively
seeking to license or acquire other synergistic software products
and operating businesses to add to its expanding product and service
activities.  The Company operates in a single industry segment.
The general offices and operational headquarters are located at
26115-A Mureau Road, Calabasas, CA 91302.  The telephone number is
818/880-6700.  

        The Company's business consists of three operational areas:  
(1) Clinical Information Systems products, (2) service of its 
client's installations, and (3) data acquisition products.  Product 
lines consist of Laboratory Information Systems, Pharmacy 
Information Systems, Radiology Information Systems, Financial 
Management Systems, and Data Acquisition products.  The Company 
sells its products and systems directly through its own sales force 
and through joint marketing relations with other companies.  In 
addition, the Company sells its data acquisition products to 
original equipment manufacturers (OEM) and provides out source 
services.


History and Business Development

        Since its inception as a California corporation in 1978, the 
Company has been primarily engaged in the development, manufacture, 
and service of Clinical Information Systems and data acquisition 
products that automate the collection and management of data for the 
healthcare industry.

        Upon its formation, the Company initially designed and 
assembled custom data interfaces for various customers to use with 
specific automated and semi-automated testing devices.  By January 
1982, the Company had expanded its initial prototype data interface 
and data entry console products into a line of off-the-shelf 
interfaces for a wide variety of instrumentation technology.  
Subsequently, the Company transformed this technology into turnkey 
information processing and Laboratory Information Systems (LIS).  As 
of August 31, 1997, the Company had sold over 550 Clinical 
Information Systems and currently supports approximately 370 active 
installations, that are used in over 500 sites.

        The percentage of the Company's net sales attributable to 
the sale and licensure of Clinical Information Systems, including 
data acquisition product sales, accounted for approximately 70% of 
the total revenues in fiscal year 1997, 67% in fiscal year 1996, and 
67% in fiscal year 1995. Management believes that the percentage of 
the Company's net sales attributable to its sales of Clinical 
Information Systems activities will continue at a similar rate in 
fiscal 1998 as in the current fiscal year.

        By automating the collection and organization of patient 
clinical data, the Company's systems and data acquisition products 
reduce operating costs and increase the efficiency of healthcare 
providers.  In recent years, the healthcare industry has come under 
increasing pressure to control costs from government regulatory 
agencies and third party payers of medical expenses, as well as from 
increased competition in the healthcare industry in general.  The 
need to contain healthcare costs has led to pressure to decrease or 
control the costs of the various components of healthcare.  
Management believes the pressure to contain healthcare costs can be 
expected to increase in the foreseeable future.  The Company is 
continuing its research and development activities to develop 
products which will reduce operating costs, improve patient care, 
and provide efficiencies in the healthcare industry.

        During fiscal 1992, the Company's board of directors 
determined that the Company should pursue a diversification program 
through acquisition and new product development to expand the 
Company's business to encompass other products that could service 
other clinical departments in hospitals and multi-specialty clinics.  
The objective of the diversification was to transform the Company 
into a multi-product vendor of Clinical Information Systems that 
would eventually include laboratory, radiology, pharmacy, therapies, 
and other related clinical applications.  The Company has 
successfully pursued this program and by the end of its 1996 fiscal 
year had accomplished the completion of its pharmacy and radiology 
products and had begun to successfully sell all its products as an 
integrated package.

        Management believes that there are significant opportunities 
to market a multiple range of clinical applications to existing as 
well as new customers.  Furthermore, the Company's existing software 
and hardware support organization and its sales and marketing 
personnel have been employed to service and market additional 
products.  Management also believes there is synergy between the 
various clinical departments in hospitals and multi-specialty 
clinics.  It is therefore intended to provide integration of the 
various departmental clinical applications to aid in patient 
treatment and management.

        In September 1992, the Company commenced the development of 
a computerized Radiology Information System CyberRAD(trademark).
CyberRAD(trademark)is a UNIX based product with open systems architecture
and has linkage to the Company's existing financial management product.
The Company began marketing CyberRAD(trademark) in August 1995, although
additional enhancements are still under development.

        In October 1992, the Company consummated the acquisition of 
the assets of PRX Pharmacy Systems (PRX) from Western States 
Pharmacy Consultants, Ltd., a privately owned company, of Boulder, 
Colorado.  PRX developed computerized Pharmacy Information Systems 
that are sold to hospitals and outpatient facilities to manage 
pharmacy departments.  PRX also supported a base of over 130 
installations.  Since the acquisition, the Company has made 
significant enhancements to the pharmacy product, and the inpatient 
and outpatient products were merged together.  The PRX name was 
dropped and the new product renamed CyberMED(trademark).


Clinical Information Systems

        For laboratories, the Company has integrated its software 
applications and data acquisition technology into Laboratory 
Information Systems which are sold under its tradename CyberLAB II(registered
trademark). The Company offers systems on Compaq(registered trademark),
IBM(registered trademark) and Hewlett Packard(registered trademark)
computers.  Extensive applications for a wide variety of laboratory 
testing and quality control procedures, including hematology, 
immunology, chemistry, microbiology, drug testing, toxicology, 
urinalysis, blood bank, and cytology testing, are available with the 
Company's systems.  File management, data base management, bedside 
specimen collections, remote communications, and financial 
management, including billing and accounts receivable options, are 
also available.

        The Company's systems are scaleable enabling a wide range of 
users to employ them.  The Company's systems are designed around  
flexible parameterized software which enables the customer to tailor 
the software for its individual needs.  The Company's Laboratory 
Information Systems are used by laboratories testing up to 15,000 
patient samples a day, which includes approximately 95% of the 
clinical laboratory market.

        CyberLAB II(registered trademark) as well as CyberMED(trademark) and
CyberRAD(trademark) operate under UNIX and are sold independently or
as an integrated turnkey system and may be networked together or become
part of an enterprise-wide network.  In fiscal 1997, the Company developed a
number of new features, and enhancements to CyberLAB II(registered trademark)
including medical necessity decision support capabilities and an expanded 
microbiology module. Additional enhancements and new modules are 
currently under development.

        The Company's Pharmacy Information Systems, which are sold 
under the trademark CyberMED(trademark), integrate inpatient, outpatient and
long term care applications into a highly integrated software
product.  CyberMED(trademark) integrates unit dose, IVPB/TPN, controlled 
substances, floor stock, inventory control, and kinetics functions.  
It performs labor intensive operations such as patient profiling, 
medication administration reporting, drug inventory control, drug 
interactions, and patient billing.  An optional purchasing module 
can electronically place orders with suppliers and determine the 
fastest moving drugs, as well as track drug usage and costs.  
CyberMED(trademark) supports several third party data base services for 
integrated drug interactions, pricing, and patient informational 
disclosures that are required by regulations.

        CyberRAD(trademark), the Company's Radiology Information System, is 
also hybrid in its design that allows its employment in inpatient 
and outpatient settings.  Applications include extensive scheduling, 
reporting, film tracking, transcription and clinical functionality.  
A mammography module  that meets FDA requirements has been 
integrated into the CyberRAD(trademark) system.

        The Company's Clinical Information Systems support extensive 
communication capabilities to both Hospital Information Systems and 
Clinic Information Systems for which the Company has developed 
system interfaces for a variety of settings.  The Company's Clinical 
Information Systems support networking capabilities and are employed 
in certain settings that consist of multiple sites.  In addition, 
different types of enterprises such as hospital and affiliated 
outpatient clinics can use the Company's systems to integrate their 
activities together.  The communication interfaces often support bi-
directional data capabilities whereby demographic and test order 
requests are transmitted to the Clinical Information Systems and, in 
turn, billing information and test results are re-transmitted to the 
host system.  The Clinical Information Systems support their own 
order communications and test results subsystems that have been 
employed in other accounts that have relied on the Clinical 
Information System's communications capabilities.  Management 
believes that communications to other systems allowing connectivity 
between clinical systems such as CyberLAB II(registered trademark),
CyberMED(trademark), and CyberRAD(trademark), and administrative
information systems are becoming increasingly important functional
requirements in the marketability of its products.  The Company has
focused considerable attention on the communication and connectivity
capabilities of its products and plans to further develop these
capabilities as opportunities present themselves.

	The Company has developed standard seamless integration and 
network connectivity for all its products through user selected 
network topologies (Ethernet, Token Ring) network protocols (TCP/IP, 
IPX/SPX), and network operating systems (Novell, LAN Manager, 
Microsoft NT.)  Although each application has been carefully 
configured to operate as a stand alone product, all can be operated 
as an integrated package, residing on a shared platform or network, 
thereby eliminating the need for multiple interfaces, duplicate 
information handling, and their associated costs.  During fiscal 
1997 the Company completed the development of CyberLINK(trademark) a
software integration and communications module that integrates all of
its own clinical applications and provides a single communications gateway 
to or from other vendors' software products.

        The Company has designed its products to incorporate open systems 
architecture and to conform to computer industry standards which 
enable them to be more easily integrated with other vendors 
products.  Healthcare industry standards including health level 
seven (HL7) and ASTM are employed throughout the Company's software 
products.  All of the Company's application products are either 
millennium compliant or are in the final stages of conversion to 
millennium compliance.  In addition, the Company designed the 
millennium changes so they are backward compatible, thereby 
providing a simple upgrade path for its installed base of clients.  
The work associated with the conversion to millennium compliance has 
not posed a significant investment for the company other than the 
allocation of staff resources.  Although the conversion may delay or 
postpone other projects, it has not had, nor is it expected to have, 
a material adverse effect on the Company's business. 


Data Acquisition Products

        The Company's data acquisition products, which consist of 
data interfaces, data entry consoles and intelligent disk systems, 
are designed to increase the efficiency and accuracy of on-line data 
acquisition in biomedical laboratories by automating the collection 
and organization of test data.  Each of the Company's data 
acquisition products uses a microcomputer performing a specific 
discrete task.  All of the Company's data acquisition products are 
"plug-in" compatible with each other, enabling an end user to easily 
expand its system.  The Company's data acquisition products conserve 
central computer resources, lower hardware costs and significantly 
reduce costs of installation and system expansion, meeting the cost-
containment needs of healthcare organizations.

        The Company's data acquisition products are designed to be 
compatible with virtually all currently available computer systems 
and are designed for installation by persons without technical 
skills or training. Management believes that the Company markets the 
widest line of data acquisition products designed for use by 
biomedical laboratories currently  available.  As of August 31, 
1997, the Company had sold more than 11,000 of its data acquisition 
products in the United States and abroad.

        Most laboratory tests, such as blood cell counts and blood 
serum chemistry analyses, are performed by free-standing automated 
testing instruments.  These instruments produce hard data, such as 
computer printouts.  The Company has developed intelligent links, or 
"data interfaces", which enable these free-standing automated 
testing devices to "talk to" and automatically enter data into the 
laboratory's central computer.  By eliminating the production of 
hard data and the resulting need to transcribe the data, interfaces 
save time and labor and reduce human error. The Company currently 
sells over 500 different interface configurations for use with a 
wide variety of automated biomedical testing devices.  The Company 
also develops new data interfaces for products introduced into the 
market upon request.

        The Company also sells a product to collect data at the patients 
bedside known as CyberMate(registered trademark), a hand-held computer
which permits phlebotomists to download specimen collection orders from
CyberLAB(registered trademark)into a battery operated hand-held computer,
make their rounds based upon information displayed on CyberMate's(registered
trademark) screen, and update collection status information as they collect
specimens.  The updated status information is uploaded into
CyberLAB (registered trademark) via a system communication/battery
charging device.


Service

        The Company provides comprehensive service to its installed 
base of system clients through its own service organization.  The 
Company offers both software support service through a twenty-four 
(24) hour "hotline" and field service for hardware repair.  In some 
instances the Company relies on third parties to service hardware 
components that it sells, especially in the case of computers 
supplied by IBM(registered trademark) and Hewlett Packard(registered
trademark).  The Company services its own data acquisition products
and related software, including peripherals used as part of its CIS
products, under service contracts offered to end users.  The Company's
long term inventory requirements for its service and repair business
are significant.

        The Company's service revenues for fiscal 1997 increased by 
approximately 5% from the previous fiscal year and they are expected 
to grow as the installed base of system clients grows.  The Company 
believes that the ability to offer comprehensive service to its 
clients is a competitive advantage and solidifies a long term 
relationship with its customer accounts.  The recurring revenue 
stream associated with this activity is a significant part of the 
Company's business.  In addition, the ability to offer long term 
service often leads to add-on sales opportunities for sales of 
peripheral components, data acquisition products and upgrades to 
newer computers and software applications.

	During fiscal 1996 the Company began an extensive project to 
install a new help desk/service support system  to automate the 
Company's service activities in order to provide better service to 
its customers. During fiscal 1997 the system was integrated 
throughout the Company on a wide area network and linked its 
California and Colorado facilities and its field personnel.  To 
date, approximately $400,000 has been expended for the project.

	The Company believes that the service of its clients is of 
utmost importance to its long term success and business strategy.  
Accordingly a great deal of emphasis is being placed on upgrading 
its service organization and expanding the services that the company 
offers.  During fiscal 1997 the Company recruited a director of 
client services, a manager of technical services, promoted a person 
to manage field training, and recruited other personnel to augment 
its service and implementation staff.  Additional personnel will be 
added in fiscal 1998 to further augment the Company's service and 
implementation operations.


Significant Contracts and Programs

        The Company entered into a contract in November 1989 with 
Laboratory Corporation of America (LCA) formerly, Roche Biomedical 
Laboratories, Inc., a subsidiary of Hoffman La Roche, Inc., to 
provide LCA with custom software applications and the Company's data 
acquisition products for use in LCA's laboratory facilities 
throughout the United States.  As of August 31, 1997 the Company had 
approximately 130 departmental results processing systems and over 
500 of its data acquisition products in twenty-four LCA 
laboratories.  Development of further software applications 
continues and management anticipates that LCA will acquire several 
more data acquisition products for fiscal 1998

        During the 1997 fiscal year, there were no contracts or 
programs which generated over 10% of the Company's net sales.


Product Development

        The market for the Company's products is characterized by 
rapid and significant technological change.  The Company's ability 
to compete in the market and to operate successfully depends in part 
on its ability to react to such change.  During the Company's 1997, 
1996 and 1995 fiscal years, amounts (inclusive of capitalized 
software) equal to approximately 14%, 13% and 13%, respectively, of 
the Company's net sales were expended for research and development.  
The Company continues to expend a significant amount of resources 
for the development of new products, and for the  development of 
additional enhancements to existing products.

        The Company has planned product development projects over 
the next three years that include a new anatomical pathology system, 
a data warehouse for all its systems, and a clinical work station 
that will include system-wide order communications, inquiry and 
decision support.  The Company has also developed a Web server that 
allows orders and inquiry via standard Internet browsers into the 
Company's clinical applications.  In addition, the Company has 
designed an incremental client server architecture that allows for 
the migration of the Company's existing application products to a 
client server environment.  At the same time, graphical user 
interfaces are being incorporated into the Company's clinical 
applications  The Company has developed relationships with several 
major vendors of analytical testing instruments which provide the 
Company with specifications of new products when developed in order 
for the Company to develop data acquisition products for use with 
these products.  The Company also develops, in certain instances at 
the customer's expense, application software to meet the customer's 
special needs.

        Research and development expenditures amounted to 
approximately $570,000 in fiscal 1997, $461,000 in fiscal 1996 and 
$465,000 in fiscal 1995.  Such expenditures were attributable to 
systems development, including the development of new Laboratory, 
Radiology, and Pharmacy Information Systems applications, and 
enhancements to those products. The Company's applications are 
compiled under Microfocus COBOL which provides a standard code 
structure for the system applications while other imbedded process 
code is written in C.  By employing Microfocus' run-time modules for 
UNIX, the Company is able to port to a variety of hardware platforms 
with ease.  The Company has successfully ported its software 
applications from Compaq(registered trademark) to IBM(registered trademark)
RISC 6000 Systems, Data General Aviion systems(registered trademark),
and to Hewlett Packard (registered trademark) HP 9000 RISC Systems.
This portability capability has allowed the Company to become "platform
independent" in vending its software products where some customers may
be predisposed to certain hardware brands.


Distribution and Marketing

        From its inception, the Company has sold its products and 
systems directly to the healthcare industry through its own sales 
and marketing personnel, as well as indirectly through original 
equipment manufacturers ("OEM's") and through joint marketing 
relations with other companies.  The Company markets all its 
products throughout the United States, Canada and the Carribean.  At 
present, the Company's direct field sales force consists of five 
salespersons.  In addition, the Company's management and seven 
technical specialists assist in sales activities.  Management 
anticipates that at least one marketing support person will be added 
to the Company's sales and marketing department in fiscal 1998.

        During fiscal 1997 the Company increased its direct 
telemarketing activities and commenced new promotional activities.  
The Company promotes its products by attending  industry trade 
meetings at national and regional levels.  The Company also markets 
an upgrade program in order to help customers upgrade their existing 
systems.  In addition, the Company has formed informal joint 
marketing arrangements with other companies that have compatible 
products and services which have increased sales penetration in the 
marketplace.

        Historically, the Company established user groups in order to 
encourage users of its Clinical Information Systems to participate 
in helping the Company continue to better serve its customers.  The 
focus of the user groups is to encourage open group communications 
with the Company about a range of subjects, including service and 
support and new product enhancements.  During fiscal 1997 the user 
groups were reorganized  and consolidated into a single national 
symposium.  Since the Company has experienced success in vending 
multiple products to its clients the national symposium proved to be 
a good forum to discuss general topics, such as the Company's 
strategy and product direction, and provided  an opportunity to 
focus on specific application issues in breakout sessions.  The 
Company also scheduled free advanced training courses prior to the 
symposium that had considerable attendance by its clients.  The 
Company intends to continue the symposium format during fiscal 1998.

        The Company also publishes newsletters and articles which 
are intended to expand communication with existing and potential 
customers.  During fiscal 1998 the Company intends to invest in new 
collateral materials, including new product marketing literature, 
and enhancements to its Web page.

        The Company has OEM contracts to sell its products to a 
number of vendors of hospital Laboratory Information Systems and 
analytical instrumentation, including HBOC and Columbia Health Care.

        Prices for the Company's data acquisition products range 
from $1,595 for a special data entry console to $9,995 for a host 
query bi-directional interface.  During the fiscal year ended August 
31, 1997, prices received by the Company for its Clinical 
Information Systems with application and operating system software 
ranged from approximately $80,000 to over $350,000. The sales price 
varies depending on the type of system purchased and the 
configuration of hardware and related software ordered by the 
customer.


Competition

        The Company markets its data acquisition products to 
hospital, clinic, reference, research, veterinary and other 
healthcare providers directly and through OEM customers. Management 
believes that it has competition for its data acquisition products  
from at least one other competitor.  However, there are alternative 
technological means to accomplish the tasks that its data 
acquisition products provide.  There can be no assurance that 
additional companies will not enter this field or that significant 
competition for the Company's data acquisition products will not 
develop.

        The Company has significant competition in the Clinical 
Information Systems business from several competitors, many of whom 
are larger concerns that may offer a wider array of products in 
addition to competitive clinical applications.  Management believes, 
however, that few competing Laboratory  Information Systems offer 
the Company's variety of data interfaces, add-on capability and 
flexibility that allows the systems to be user definable so that 
they can be employed in different types of settings.  The multi-site 
and multi-disciplinary or hybrid nature of the Company's products 
are a strong selling point.  Most of the Company's competitors have 
designed their products for the hospital environment; therefore, 
they are not as flexible and are less suitable for other types of 
operations.  With respect to its Pharmacy Information Systems, the 
Company believes it has a competitive advantage because of 
CyberMED's(trademark) robust features, flexibility, and integrated
outpatient, inpatient, and long term care functionality.

        The Company has made a concerted effort to emphasize the 
sale of software and de-emphasize the sale of hardware, which is 
less profitable.  Accordingly the Company often times installs its 
software applications in customers sites on existing hardware or in 
conjunction with other vendor's applications.  This has led to 
better margins and more market opportunities.

        The principal competitive factors in the Company's business are 
technological competence, diversity of product line, price and 
performance characteristics, product quality, capability and 
reliability, marketing and distribution networks, service and 
support, ability to attract and retain trained technical employees 
and business reputation.  The Company believes that it has 
competitive advantages in many of these areas.  During fiscal 1997 
the Company sold 49 new system applications to 39 clients.


Manufacturing and Suppliers

        The Company has utilized computers manufactured by several 
suppliers for its Clinical Information Systems in the past and 
currently uses computers manufactured by Compaq(registered trademark),
IBM(registered trademark), and Hewlett Packard(registered trademark).
Management believes that other computers which can be
used in the Company's systems, with appropriate software 
modifications, are readily available from several suppliers.  The 
Company has entered into an agreement with Compaq(registered trademark)
as a sub-dealer and with IBM(registered trademark) and Hewlett Packard
(registered trademark) as industry re-sellers.  These
arrangements provide for volume purchase discounts, cooperative 
marketing programs, and the sublicensure of certain software and 
technical assistance.

        The Company's data acquisition products are assembled by its 
employees and subcontractors from prefabricated subassemblies which 
are built by independent electronics assembly companies.  Management 
believes there are many competent subassembly companies within the 
immediate vicinity of the Company's business location.  The Company 
obtains the components of its data acquisition products from a 
variety of suppliers and is not dependent on any one supplier for 
products.


Warranties and Product Liability

        The Company warrants that its products conform to their 
respective functional specifications.  The Company's products and 
components are warranted against faulty materials and workmanship 
for 90 days, in the case of its data acquisition products, and six 
months, in the case of software and hardware incorporated in its 
Laboratory, Radiology, and Pharmacy Information Systems.  Direct 
costs associated with the initial warranties have been 
insignificant.  The computers which the Company currently sells as 
part of its Clinical Information Systems are subject to the 
warranties of their manufacturers.  The manufacturers generally 
warrant their products against faulty material and workmanship for 
one to three years.

        The Company currently carries an aggregate of $3,000,000 in 
product liability insurance.  Management believes that this amount 
of insurance is adequate to cover its risks.


Copyrights, Patents and Trade Secrets

        The Company does not hold any patents protecting its 
proprietary technology.  The Company has relied on design copyrights 
for its hardware and has copyrighted the designs of its proprietary 
components and software.  Patent or copyright protection may not be 
available for many of the Company's products.  A portion of the 
Company's proprietary technology is in the form of software.  The 
Company has relied primarily on copyright and trade secret 
protection of its software.  Management believes that its business 
is more dependent upon marketing and know-how than patent or 
copyright protection.  The Company has trademarks for CyberLAB(registered
trademark),CyberMED(trademark), CyberRAD(trademark), CyberTERM(registered
trademark)and CyberMATE(registered trademark), and has applied for
trademark's on several of its other trade names.  The Company has 
retained special intellectual property counsel to advise management 
on the appropriate course to pursue with respect to these issues.


Governmental Regulation

        The Federal Food, Drug and Cosmetic Act, more commonly known 
for its regulation of interstate commerce in drugs, was amended by 
the "Medical Device Amendments of 1976" (the "Amendments") to cover 
devices used in medical practice.  These include instruments and 
reagents used in biomedical laboratory testing.  In 1987 the FDA 
first classified a number of clinical software products as medical 
devices, but exempted most of them from routine regulations.  
Subsequently the FDA amended the policy and made the exemptions 
inapplicable to manufactures of devices intended for use in blood 
banks.  As a result of more recent pronouncements by the FDA and the 
decision by the Company to develop a blood bank module to its 
CyberLAB II(registered trademark) LIS, the Company undertook the filing
of a pre-market notification (510K) which was submitted in March 1996.
The Company received a review letter from the FDA regarding its 510K
submission and is in communication with the FDA regarding outstanding
issues. In addition the Company is informed that the FDA also intends to 
require all Class I devices, which includes the Company's other 
Clinical Information System products, to comply with its Quality 
System Requirements (QSRs).  Accordingly the Company is in the 
process of modifying its internal policies to comply with this 
directive.  Management anticipates that the QSRs procedure will have 
an impact on its business to the extent that there will be 
lengthened development cycles of new software and additional costs 
incurred.  However, all of its competitors are faced with the same 
requirements.

        The FDA is currently in the process of reevaluating its 
rules relevant to computer products used in connection with medical 
devices and software used in clinical applications and no assurance 
can be given that the Company's current or new products developed by 
the Company will not be subject to the provisions of the Amendments 
and implementing rules.  The Company has retained special counsel to 
advise it in such matters.  The likelihood of such changes and their 
effect on the business of the Company cannot be ascertained.  If the 
FDA were to determine that additional provisions should apply to all 
or some of the Company's products, it is uncertain whether 
compliance with such interpretation would have a material adverse 
effect on the Company.

        In addition, the Company and its products are subject to 
direct governmental regulations applicable to manufacturers in 
general, including those regulations promulgated under the 
Occupational Safety and Health Act and by the Environmental 
Protection Agency.  The Company's customers, however, are subject to 
significant regulation by the Food and Drug Administration, the 
Healthcare Financing Administration, the Health and Human Services 
Administration and by state and local governmental authorities.  
Such regulations require the Company to comply with certain 
requirements in order to sell its systems.


Backlog

	The Companies order backlog at August 31, 1997 was 
approximately $200,000 for systems and interface products and 
$570,000 for deferred services, compared to approximately $200,000 
for system and interface products and $464,000 for deferred services 
at August 31, 1996.


Employees

        At November 10, 1997, the Company employed 65 full-time and 
2 part-time employees of whom 12 are involved in product 
development, 12 in sales and marketing, 5 in production, 29 in 
technical services and support and 7 in administration.  The Company 
is not subject to any collective bargaining agreements.  The Company 
considers its employee relations to be good.


Item 2.  Properties.

        The Company's headquarters are located in a  leased facility 
in Calabasas, California.  The facility was constructed in 1991 and 
comprises approximately 13,200 square feet with an effective base 
rental of approximately $13,400 per month subject to cost of living 
adjustments, plus common area maintenance costs and property taxes.  
The initial term of the lease expired in October 1997.  The Company 
negotiated a new lease which began concurrently with the expiration 
of the previous lease.  The new lease included a build-out of an 
additional 3,650 square feet of office space and refurbishment of 
the existing facilities.  The new lease comprises a five year term 
at approximately $17,700 per month base rental plus common area 
maintenance costs and property taxes.  There is a five year renewal 
option at the end of the initial term.

        The Company also leases a 2,100 square foot office in 
Boulder, Colorado that costs approximately $1,895 per month 
including common area maintenance costs, property taxes and is 
subject to cost of living increases annually. 

        The Calabasas, California facility is used as general 
offices and operations headquarters which covers warehousing, 
support, training, development, and assembly.  The Boulder, Colorado 
facility is a branch sales and development office.  The Company 
considers the two facilities to be adequate for their intended 
purpose.  The Company carries adequate general liability insurance 
as required by the respective leases to cover any risks concerning 
the two facilities. 


Item 3. Legal Proceedings.

	There are no material pending or threatened legal 
proceedings to which the Company is a party at August 31, 1997.


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

        The Company did not submit any matter to a vote of its 
security holders during the fourth quarter of its fiscal year ended 
August 31, 1997.


PART II


Item 5.  Market for Company's Common Equity and Related Stockholder 
Matters.

        The Company's common shares trade on the American Stock Exchange 
under the symbol CAP.

        The following table sets forth the high and low bid quotations for 
the Common Shares for the periods indicated.



<TABLE>
<CAPTION>
                                                  High        Low
<S>                                              <C>          <C>
Fiscal Year Ended August 31, 1996
        1st Quarter, Ended November 30, 1995      2           1 9/16
        2nd Quarter, Ended February 29, 1996      2 3/8       1 5/8
        3rd Quarter, Ended May 31, 1996           2 1/4       1 11/16
        4th Quarter, Ended August 31, 1996        2 1/16      1 3/8


Fiscal Year Ended August 31, 1997
        1st Quarter, Ended November 30, 1996      2 13/16     1 7/16
        2nd Quarter, Ended February 28, 1997      2 3/16      1 3/8
        3rd Quarter, Ended May 31, 1997           2 7/16      1 3/8
        4th Quarter, Ended August 31, 1997        2 1/8       1 1/2
</TABLE>


        The number of beneficial shareholders of Common Shares of the 
Company as of November 1, 1997 was approximately 649. 

        Holders of Common Shares are entitled to receive such 
dividends as may be declared by the Company's Board of Directors.  
The Company has never paid a cash dividend on its Common Shares and 
the Board of Directors currently intends to retain any earnings for 
use in the Company's business.


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


Results of Operations

	Sales for the year ended August 31, 1997 were $7,119,381  as 
compared to $6,236,962 for the fiscal year ended August 31, 1996, an 
overall increase of approximately $882,419 or 14%.  When analyzed by 
product category, sales of Clinical Information Systems (CIS) 
increased by $743,469  or 23% and sales of data acquisition products 
increased $42,525 or 5%.  Service revenues increased $96,424 or 5% 
over the previous fiscal year.  The overall increase in sales and 
service revenues is primarily attributable to the introduction of 
new products such as CyberMED(trademark) and CyberRAD(trademark) and the
Company's ability to sell multiple applications to the same customer. The 
increase in sales of data acquisition products was primarily 
attributable to a higher volume of units sold to CyberLAB II(registered
trademark)customers.  The increase in service revenues is attributable to a 
greater number of accounts under contract.  Service revenues are 
expected to increase as the Company's installed base of CIS 
installations increases.

	In late fiscal 1995 management restructured its sales and 
marketing activities, including the recruitment of a Vice President 
of Sales and Business Development.  The Company also began strategic 
joint marketing partnerships with other companies which improved the 
Company's market penetration.  With these changes the Company 
successfully increased its market presence which resulted in the 23% 
increase in sales of CIS products during the 1997 fiscal year.  
Management views the near term outlook for the continued sale of CIS 
products favorably during the first half of the 1998 fiscal year.  
However, the Company's future operating results could continue to be 
subject to quarterly variations based upon a wide variety of 
factors, including the volume mix and timing of orders received 
during any quarter or annual periods.

	Cost of sales increased by $632,426 or 20% for the 1997 
fiscal year.  There was an increase in materials of $295,493 or 36%, 
an increase in other costs of sales of $222,276 or 20%, and an 
increase in labor of $114,657 or 9%.  The increase in material costs 
was attributable to the Company selling more new systems and more 
hardware upgrades to existing accounts.  However, management expects 
the trend which began in fiscal 1996, of increasing application  
software sales and decreasing hardware sales to continue due to the 
Company's emphasis on selling multiple products to the same 
accounts.  The increase in labor costs was attributable to more 
personnel hired to staff the Company's system support departments.  
The increase in other costs of sales was attributable to increased 
expenses in travel, personnel recruitment, training, and 
depreciation all related to the increased volume of transactions 
during the current fiscal year.  Cost of sales as a percentage of 
sales increased to 54% for the 1997 fiscal year as compared to 51% 
for the 1996 fiscal year.  The overall percentage increase in cost 
of sales was attributable to both an increase in sales and the 
increases previously discussed.

	Selling, general and administrative expenses increased by 
$195,243 or 9.4% for the current 1997 fiscal year as compared to the 
1996 fiscal year.  The increases in S G & A expenses were 
attributable to planned increased expenditures for salaries and 
commissions of new salespeople and related support staff, as well as 
increased costs in travel, trade show expenses, consultant and 
personnel recruitment expenses.

	Research and development expenses increased by $108,338 or 
23.5% for fiscal 1997.  The increase is attributable to the addition 
of new personnel and their related salaries.  In addition, a greater 
amount of software production costs were capitalized in fiscal 1997 
as a result of new CIS products being completed.  For its 1997 and 
1996 fiscal years, the Company capitalized software costs of 
$395,856 and $365,420 respectively which are generally amortized 
over a three to five year period.  Such costs were attributable to 
enhancements and new modules for the Company's CIS products and new 
applications under development.  Management anticipates its overall 
research and development activities to increase in fiscal 1998.

	Interest and other income were $6,589 for fiscal 1997 as 
compared to $3,243 for fiscal 1996.

	Interest expense decreased by $13,580 or 37% for fiscal 1997 
as compared to fiscal 1996 due to reduced borrowings on the 
Company's line of credit with its bank.

	Income before Income Tax Expense (Benefit) was $428,725 for 
fiscal 1997 as compared to $465,387 for fiscal 1996.  As a result of 
the application of the Statement of Financial Accounting Standards 
(SFAS) No. 109, Accounting for Income taxes (see notes to the 
financial statements) the Company recognized an income tax benefit 
net of applicable income taxes of $462,275 in fiscal 1997 and  
$502,410 in its 1996 fiscal year.  As a result of these factors the 
Company's net income was $891,000 or $.30 per share in fiscal 1997 
as compared to net income of $967,797 or $.32 per share in fiscal 
1996.

	The Company is currently in a loss carryforward position 
primarily due to the operating losses incurred prior to August 31, 
1993.  The net operating loss carryforwards balance as of the August 
31, 1997 was approximately $2,365,000 compared to $2,465,000 in the 
prior year.  The net operating loss carryforward is available to 
offset future taxable income through 2003.  The Company also has 
investment and research and experimentation tax credit carryforwards 
to offset future income tax payable of approximately $275,000 that 
expire at various dates through 2010.

	The major temporary tax differences that are expected to 
reverse next year are deferred revenue, allowance for doubtful 
accounts, accrued vacation, Section 263A Unicap inventory, and 
component inventory reserve.  However, the Company expects new 
temporary differences to be established in these years which will 
either reduce or exceed the reversing temporary differences.

	For the year ended August 31, 1995, the Company established 
a valuation allowance equal to the net deferred tax asset as the 
Company could not conclude that is was more likely than not that the 
deferred tax asset could be realized.  During the years ended August 
31, 1997 and 1996, the Company re-evaluated the valuation allowance 
taking into consideration prior earnings history, projected 
operating results and the reversal of temporary tax differences.  As 
a result, the Company reduced the valuation allowance to $514,600 or 
50% of the net deferred tax asset in fiscal 1996.  For the year 
ended August 31, 1997, the Company believes it is more likely than 
not to realize the net deferred tax asset and accordingly the 
remaining valuation allowance was reduced.


Capital Resources and Liquidity

        The Company's primary need for capital has been to invest in 
software development, and to invest in the new company wide network 
and help desk system. The Company invested $395,856 and $365,420 
during fiscal 1997 and 1996 in software development.  These 
expenditures related to the new version of the Company's LIS product 
(CyberLAB II)(registered trademark), and the release of its revised PIS
product (CyberMED)(trademark), its new RIS product (CyberRAD)(trademark),
and other product enhancements.  The Company anticipates expending
additional sums during fiscal 1998 on the further development of the
Company's Radiology Information System, and other new products and product 
enhancements.  During fiscal 1997, the Company expended an 
additional $213,229 to implement the Company's wide area network and 
help desk systems.

        As of August 31, 1997, the Company's working capital 
amounted to $1,703,057 compared to $1,525,225 as of August 31, 1996.  
The Company's bank line as of August 31, 1997 amounted to $700,000 
of which $287,296 was being utilized.  The bank credit agreement 
contains certain financial ratio requirements.  The Company was in 
compliance with all covenants, including financial ratios, as of 
August 31, 1997.

	On February 8, 1995 the Company notified the holders of 
warrants to purchase 391,581 shares which were issued in connection 
with the acquisition of certain assets of PRX Pharmacy Systems in 
October 1992, that it was redeeming the warrants on April 10, 1995.  
The Company also filed a registration statement under Form S-3 with 
the Securities and Exchange Commission to register the common shares 
underlying the warrants; the registration was declared effective on 
February 22, 1995.  The warrants were exercisable at $1.03 per 
share.  As of April 10, 1995, all the warrants had been exercised 
and the proceeds of approximately $394,000 were used by the Company 
for general working capital purposes.

	Cash flows from operating activities increased to $784,317 
for the 1997 fiscal year compared to $519,187 for the 1996 fiscal 
year.  The increase resulted primarily from higher sales during the 
1997 fiscal year as compared to the 1996 fiscal year.

	Cash used in investing activities changed during the 1997 
fiscal year to $609,085 used in investing activities as compared to 
$722,930 used in investing activities during the 1996 fiscal year.  
The change resulted from decreased expenditures for the company wide 
network and help desk system.  As discussed under Item 1 Business, 
the Company is undertaking the conversion of its products to make 
them millennium compliant.  Although it is not expected that such 
activities will have a material adverse impact on the Company's 
business a reallocation of personnel resources will be required 
during fiscal 1998 to complete the project.

	Cash flows from financing activities changed to $105,997 
provided by financing activities during the 1997 fiscal year from 
$79,131 provided by financing activities in fiscal 1996.  The change 
resulted from proceeds from the exercise of stock options and 
warrants and increased bank borrowings, but was partially offset by 
repayments of notes payable and capital lease obligations as 
compared to the prior year.

	The Company believes that its cash flow from operations 
together with its bank credit facilities should be sufficient to 
fund its working capital requirements for its 1998 fiscal year.


Seasonality, Inflation and Industry Trends

        The Company's sales are generally lower in the summer and 
higher in the fall and winter.  Inflation has had no material effect 
on the Company's business since the Company has been able to adjust 
the prices of its products.  Management believes that most phases of 
the healthcare segment of the computer industry will continue to be 
competitive and that potential healthcare reforms may have a long 
term positive impact on its business.  In addition, management 
believes that the industry will be marked with more significant 
technological advances which will improve the quality of service and 
reduce costs.  The Company is poised to meet these challenges by 
continuing to employ new technologies when they become available, 
diversifying its product offerings, and by constantly enhancing its 
software applications.


New Accounting Pronouncements

	Statement of Financial Accounting Standard No. 128, (SFAS No. 
128), "Earnings Per Share," issued by the Financial Accounting 
Standards Board is effective for financial statements issued for the 
periods ending after December 15, 1997, including interim periods.  
The SFAS 128 requires restatement of all periods EPS data presented.  
The new standard also requires a reconciliation of the numerator and 
denominator of the basic EPS computation to the numerator and 
denominator of the diluted EPS computation.  The Company has not 
determined the effect on its EPS calculation from the adoption of this 
statement.

	Statement of Financial Accounting Standard No. 129 (SFAS No. 
129), "Disclosure of Information about Capital Structure," issued by 
the Financial Accounting Standards Board is effective for financial 
statements issued ending after December 15, 1997.  The new standard 
reinstates various securities disclosure requirements previously in 
effect under Accounting Principles Board Opinion No. 15, which has 
been superseded by SFAS No. 129.  The Company does not expect adoption 
of SFAS No. 129 to have a material effect, if any, on its financial 
position or results of operations.

	Statement of Financial Accounting Standard No. 130 (SFAS No. 
130), "Reporting Comprehensive Income," issued by the Financial 
Accounting Standards Board is effective for financial statements with 
fiscal years beginning after December 15, 1997.  Earlier application 
is permitted.  SFAS No. 130 establishes standards for reporting and 
display of comprehensive income and its components in a full set of 
general-purpose financial statements.  The Company has not determined 
the effect on its financial position or results of operations, if any, 
from the adoption of this statement.

	Statement of Financial Accounting Standard No. 131 (SFAS No. 
131), "Disclosure about Segments of an Enterprise and Related 
Information," issued by the Financial Accounting Standards Board is 
effective for financial statements with fiscal years beginning after 
December 15, 1997.  The new standard requires that public business 
enterprises report certain information about operating segments in 
complete sets of financial statements of the enterprises and in 
condensed financial statements of interim periods issued to 
shareholders.  It also requires that public business enterprises 
report certain information about their products and services, the 
geographic areas in which they operate and their major customers.


Item 7.  Financial Statements.

        For a list of financial statements filed as part of this 
report, see index to Financial Statements and Financial Statement 
Schedules on page F-1.

Item 8. Changes in and Disagreements with Accountants on Accounting 
and Financial Disclosures.

        Not applicable.


PART III

Item 9. Directors, Executive Officers, Promoters and Control 
Persons; Compliance with Section 16(a) of the Exchange Act.

        Background information concerning each present Director, 
executive officer and each nominee for the office of Director of 
Company is as follows:

<TABLE>
<CAPTION>

<S>                                     <S>                <C>
                            Office with Company;            Year First
Name,                  Age  Background Information          Elected Director


Bruce M. Miller,       51   Chairman of the Board of               1978
                            the Company since its
                            inception in 1978.



Steven M. Besbeck,     49   President, Chief Executive             1980
                            Officer of the Company since
                            August 1983 and a Director of
                            the Company since November
                            1980 and Chief Financial Officer.
                            Director of International Remote
                            Imaging Systems.



James R. Helms,        53   Vice President/Operations              1987
                            since 1982 and Secretary.



Lawrence S. Schmid,    56   President and Chief Executive          1991
                            Officer, Strategic Directions
                            International, Inc., a management
                            consulting firm specializing
                            in technology companies.  



Robert S. Fogerson,Jr.,44   Vice President, Technical Director,    1992
                            of PharmChem Laboratories, Inc.,
                            a leading independent laboratory
                            providing integrated drug testing
                            services.  Mr. Fogerson has
                            served in various capacities at
                            PharmChem Laboratories since 1975.


John R. Murray,        55   Vice President, Sales and Business
                            Development since February 1996.
                            Mr. Murray served as an Independent
                            Marketing Consultant since 1993 and
                            a Manager of International Business
                            Development, Healthvision Corporation
                            since 1991.
</TABLE>



Section 16(a) Beneficial Ownership Reporting Compliance

        Section 16(a) of the Securities Exchange Act of 1934 
requires the Company's directors and executive officers, and persons 
who own more than 10% of a registered class of the Company's equity 
security, to file with the Securities and Exchange Commission and 
the (name of securities exchange) reports of ownership and changes 
in ownership of common stock and other equity securities of the 
Company.  Officers, directors and greater than 10% shareholders are 
required by SEC regulation to furnish the Company with copies of all 
Section 16(a) forms they file.

	During the fiscal year ended August 31, 1997, Mr. Bruce M. 
Miller failed to file one Form 4 report in December 1996 pertaining 
to two exercises of employee stock options on a timely basis.  The 
report was filed on January 15, 1997.


Item 10. Executive Compensation.

        Incorporated by reference from Executive Compensation" in 
the Definitive Proxy Statement to be filed with the Securities and 
Exchange Commission for the 1998 Annual Meeting of the Company's 
Shareholders.


Item 11. Security Ownership of Certain Beneficial Owners and 
Management.

	Incorporated by reference from "Security Ownership of 
Certain Beneficial Owners and Management" in the Definitive Proxy 
Statement to be filed with the Securities and Exchange Commission 
for the 1998 Annual Meeting of the Company's Shareholders.


Item 12. Certain Relationships and Related Transactions.

        Incorporated by reference from "Certain Relationships and 
Related Transactions" in the Definitive Proxy Statement to be filed 
with the Securities and Exchange Commission for the 1998 Annual 
Meeting of the Company's Shareholders.


Item 13.  Exhibits and Reports on Form 8-K.

	(a)	Exhibits

2.1(6)	Asset Purchase Agreement.

3.1(1)	Restated Articles of Incorporation, as Amended.

3.2(1)	By-Laws, as amended.

4.1(1)	Specimen Share Certificate.

4.2(2)	Specimen Warrant Certificate.

4.3(2)	Form of Underwriter's Warrant.

4.8(6)	Warrant Agreement and Warrant Certificate 
        between CCA and Western 
        States Pharmacy Consultants, Ltd.

4.9(6)	Warrant Agreement and Warrant Certificate 
        between CCA and James L.D. Roser.

4.10(6)	Warrant Agreement and Warrant Certificate 
        between CCA and The Roser Partnership.

4.11(6)	Warrant Agreement and Warrant Certificate 
        between CCA and Epigen, Inc.

4.12(8)	Registration Rights Agreement.

	10.1(2)	Warrant Agreement.

	10.2(2)	The Company's product 
                warranties.

	10.5(1)	14% Subordinated 
                Convertible Debenture due 
                December  21, 1987.

	10.6(1)	Form of 1983 Warrants.

	10.7(1)	Form of 1982 Warrant.

	10.8(2)	Original Equipment 
                Manufacturer Contracts.

	10.9(2)	Michael Miller Consulting 
                Agreement.

        10.10(2) Boehringer Mannheim 
                (Canada) Joint Marketing 
                 Agreement.

        10.12(3) Lease for Premises at 
                 26664 Agoura Road, 
                 Calabasas,  California.

        10.13(3) SAC Shareholders' 
                 Agreement.

        10.14(8) Lease for Premises at 
                 26115-A Mureau Road, 
                 Calabasas, California

        10.15(8) Mission Park Agreement

        11.      Statement re: computation of per share 
                 earnings

	16.(4)	Letter re:  change in 
                certifying accountants

	16.1(5)	Letter re:  change in 
                certifying accountants

Executive compensation plans and arrangements.

4.4(1)	1982 Non-Qualified Stock Option Plan.

4.5(2)	1982 Incentive Stock Option Plan, as amended.

4.6(6)	1992 Incentive Stock Option Plan.

4.7(7)	1992 Non-Qualified Stock Option Plan.

10.3(2)	Bruce Miller Employment Agreement.

10.4(2)	Steven Besbeck Employment Agreement.

(1)	Previously filed as an exhibit to the Company's Registration 
        Statement on Form S-18 dated September 22, 1983, SEC File 
        No. 2- 85265.
(2)	Previously filed as an exhibit to the Company's Registration 
        Statement on Form S-1 dated October 1, 1985 SEC File No. 2-
        99878.
(3)	Previously filed as an exhibit to the Company's Form 10-K 
        for the  year ended August 31, 1986.
(4)	Previously filed as an exhibit to the Company's Form 8-K 
        dated  August 18, 1989.
(5)	Previously filed as an exhibit to the Company's Form 8 
        Amendment No. 1 to Form 8-K, dated July 20, 1990, 
        incorporated by reference herein.
(6)	Previously filed as an exhibit to the Company's Form 8-K 
        dated October 21, 1992.
(7)	Previously filed as an addendum to the Company's Proxy 
        Statement and Notice of Annual Meeting of Shareholders dated 
        April 10, 1992.
(8)	Previously filed as an exhibit to the Company's Form 10-K 
        for the year ended August 31, 1992.

(b)	Reports on Form 8-K

The Company did not file any reports on Form 8-K during its 
last fiscal quarter ended August 31, 1997.



SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, 
the Company has duly caused this report to be signed on its behalf 
by the undersigned, thereunto duly authorized.

CREATIVE COMPUTER APPLICATIONS, INC.


Dated:  November 18, 1997        /S/ Steven M. Besbeck
                                 Steven M. Besbeck, President, Chief
                                 Executive Officer, and Chief
                                 Financial Officer.

In accordance with Section 13 or 15(d) of the Exchange Act, 
this report has been signed below by the following persons on behalf 
of the Company and in the capacities and on the dates indicated.

<TABLE>
<CAPTION>


<S>                           <S>                           <C>


Signatures                              Title                     Date

/S/ Bruce M. Miller           Chairman of the Board and      Nov. 18, 1997
Bruce M. Miller               Chief Technology Officer


/S/ Steven M. Besbeck         President, Chief Executive     Nov. 18, 1997
Steven M. Besbeck             Officer, Chief Financial
                              Officer and Director


/S/ James R. Helms            Vice President, Operations,    Nov. 18, 1997
James R. Helms                Secretary and Director


/S/ Lawrence S. Schmid        Director                       Nov. 18, 1997
Lawrence S. Schmid


/S/ Robert S. Fogerson, Jr.   Director                       Nov. 18, 1997
Robert S. Fogerson, Jr.


/S/ Carol Bessel              Controller                     Nov. 18, 1997
Carol Bessel                  Chief Accounting Officer


/S/ John R. Murray            Vice President, Sales          Nov. 18, 1997
John R. Murray                and Business Development

</TABLE>




                         INDEX


                                                          Page

FINANCIAL STATEMENTS:

Report of Independent Certified Public Accountants        F-2

Balance Sheets
        August 31, 1997 and 1996                          F-3

Statements of Operations
        Years ended August 31, 1997, 1996 and 1995        F-4

Statements of Shareholders' Equity
         Years ended August 31, 1997, 1996 and 1995       F-5

Statements of Cash Flows
         Years ended August 31, 1997, 1996 and 1995       F-6

Notes to Financial Statements                             F-7 - F-19





Report of Independent Certified Public Accountants


Board of Directors and Shareholders
Creative Computer Applications, Inc.


	We have audited the accompanying balance sheets of 
Creative Computer Applications, Inc. as of August 31, 1997 and 1996 
and the related statements of income, shareholders' equity and cash 
flows for each of the three years in the period ended August 31, 1997.  
These financial statements are the responsibility of the Company's 
management.  Our responsibility is to express an opinion on these 
financial statements based on our audits.

	We conducted our audits in accordance with generally 
accepted auditing standards.  Those standards require that we plan and 
perform the audit to obtain reasonable assurance about whether the 
financial statements are free of material misstatement.  An audit 
includes examining, on a test basis, evidence supporting the amounts 
and disclosures in the financial statements.  An audit also includes 
assessing the accounting principles used and significant estimates 
made by management, as well as evaluating the overall financial 
statement presentation.  We believe that our audits provide a 
reasonable basis for our opinion.  

	In our opinion, the financial statements referred to above 
present fairly, in all material respects, the financial position of 
Creative Computer Applications, Inc. at August 31, 1997 and 1996 and 
the results of its operations and its cash flows for each of the three 
years in the period ended August 31, 1997 in conformity with generally 
accepted accounting principles.




/S/ BDO Seidman, LLP

BDO SEIDMAN, LLP 


Los Angeles, California
October 24, 1997


CREATIVE COMPUTER APPLICATIONS, INC.
BALANCE SHEETS

<TABLE>
<CAPTION>

<S>                                           <C>              <C> 
                                                    August 31,             
                   ASSETS (Note 4)            1997             1996

CURRENT ASSETS:
        Cash                             $     534,430    $    253,201
        Receivables, net (Note 2)            1,933,685       1,678,564
        Inventory                              675,795         642,787
        Prepaid expenses                        78,951          86,881
        Deferred tax asset (Note 9)            427,000         437,000
             TOTAL CURRENT ASSETS            3,649,861       3,098,433
PROPERTY AND EQUIPMENT, net (Note 3)           551,413         480,108
INVENTORY OF COMPONENT PARTS                   136,357         148,357
CAPITALIZED SOFTWARE COSTS,
    net of accumulated
	amortization of
        $286,907 and $201,822 (Note 1)         917,937         693,696
INTANGIBLES, net (Note 1)                      264,381         315,551
DEFERRED TAX ASSET (Note 9)                    551,200          77,600
OTHER ASSETS                                    21,965          23,480
                                         $   6,093,114    $  4,837,225

  LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
        Notes payable to bank (Note 4)   $     287,296    $    191,875
        Accounts payable                       522,808         306,321
	Accrued liabilities:
                Vacation pay                   187,367         157,106
                Other                          363,027         426,341
        Deferred service contract income       569,734         464,076
	Capital lease obligations
        - current portion (Note 5)		16,572		27,489

        TOTAL CURRENT LIABILITIES            1,946,804       1,573,208
DEFERRED RENT (Note 5)                           5,034          35,235
CAPITAL LEASE OBLIGATIONS, net
  of current portion
        (Note 5)                                 4,679          21,250
        TOTAL LIABILITIES                    1,956,517       1,629,693
COMMITMENTS (Note 5)
SHAREHOLDERS' EQUITY (Notes 6 and 10):
	Preferred shares, no par value;
          500,000 shares authorized; no
          shares outstanding                         -               -
	Common shares, no par value;
          20,000,000 shares
          authorized; 2,849,865 and
          2,820,915 shares outstanding       5,752,635       5,714,570
        Accumulated deficit                 (1,616,038)     (2,507,038)
    TOTAL SHAREHOLDERS' EQUITY               4,136,597       3,207,532
                                         $   6,093,114    $  4,837,225

</TABLE>

See notes to financial statements.





CREATIVE COMPUTER APPLICATIONS, INC.

STATEMENTS OF OPERATIONS
	

<TABLE>
<CAPTION>
                                            Year ended August 31,
                                      1997           1996          1995

<S>                                   <C>            <C>           <C>
NET SYSTEM SALES AND SERVICE
     REVENUE (Note 7):
        System sales              $ 4,976,820    $ 4,190,825   $ 3,974,338
        Service revenue             2,142,561      2,046,137     1,952,181
                                    7,119,381      6,236,962     5,926,519

COST OF PRODUCTS AND
	SERVICES SOLD:
        System sales                2,467,743      1,922,100     2,262,756
        Service revenue             1,346,269      1,259,486     1,237,161
                                    3,814,012      3,181,586     3,499,917

           GROSS PROFIT             3,305,369      3,055,376     2,426,602

RESEARCH AND DEVELOPMENT
        EXPENSE                       569,668        461,330       465,407
SELLING AND ADMINISTRATIVE
        EXPENSES                    2,290,736      2,095,493     1,779,679

OPERATING INCOME                      444,965        498,553       181,516
                                               
OTHER INCOME (EXPENSE):
   Interest and other income            6,589          3,243         2,490
        Interest expense              (22,829)       (36,409)      (42,561)
	Settlement of litigation
         (Note 8)                           -              -      (132,475)
                                      (16,240)       (33,166)     (172,546)

INCOME BEFORE INCOME TAX EXPENSE 
  (BENEFIT)                           428,725        465,387         8,970
INCOME TAX EXPENSE
  (BENEFIT) (Note 9)                 (462,275)      (502,410)        2,000

NET INCOME                        $   891,000    $   967,797   $     6,970

EARNINGS PER COMMON AND
 COMMON EQUIVALENT SHARE
  (Note 1):
 Primary and fully diluted:
      Net income per share        $       .30    $       .32   $       .00


WEIGHTED AVERAGE NUMBER OF 
 COMMON SHARES AND COMMON 
  STOCK EQUIVALENTS OUTSTANDING     3,011,101      3,006,926     2,863,346
</TABLE>


See notes to financial statements.





CREATIVE COMPUTER APPLICATIONS, INC.

STATEMENTS OF SHAREHOLDERS' EQUITY
	 

<TABLE>
<CAPTION>

                                           Common 
                                           Shares     Accumulated
                                Shares     Amount       Deficit     Totals

<S>                              <C>         <C>         <C>          <C>
BALANCE, September 1, 1994    2,334,704  $5,272,087  $(3,481,805) $1,790,282

  Exercise of warrants
   and stock options(Note 6)    394,911     393,851            -     393,851

  Issuance of common 
   shares (Note 10)               6,100      10,292            -      10,292

  Net income                          -           -        6,970       6,970

BALANCE, August 31, 1995      2,735,715   5,676,230   (3,474,835)  2,201,395

  Exercise of warrants
   and stock options(Note 6)     85,200      38,340            -      38,340

  Net income                          -           -      967,797     967,797

BALANCE, August 31, 1996      2,820,915   5,714,570   (2,507,038)  3,207,532

  Exercise of warrants
   and stock options(Note 6)     25,000      32,140            -      32,140

  Issuance of common
   shares (Note 10)               3,950       5,925            -       5,925

  Net income                          -           -      891,000     891,000

BALANCE, August 31, 1997      2,849,865  $5,752,635  $(1,616,038) $4,136,597

</TABLE>


See notes to financial statements.





CREATIVE COMPUTER APPLICATIONS, INC.

STATEMENTS OF CASH FLOWS
	
	Increase (Decrease) in Cash (Note 10)


<TABLE>
<CAPTION>
                                           Year ended August 31,              
                                     1997         1996            1995
<S>                                  <C>          <C>             <C>
OPERATING ACTIVITIES:
 Net income                       $ 891,000    $ 967,797     $    6,970
 Adjustments to reconcile net
  income to net cash provided
  by operating activities:
 Depreciation and amortization      194,606      180,093        161,223
 Amortization of capitalized
   software costs                   171,616      175,491        159,694
 Provision for possible losses       16,793       55,422         78,218
 Issuance of common shares
   for services                           -            -         10,292
     Deferred rent expense          (30,201)     (30,200)       (30,203)
     Increase (decrease) from
          changes in:
       Receivables                 (271,911)    (173,900)      (218,888)
       Inventories                  (21,008)     (57,032)         2,641
       Prepaid expenses               7,930       (5,749)       (20,336)
       Deferred tax asset          (463,600)    (514,602)             -
       Accounts payable             216,487     (186,952)       (39,879)
       Accrued liabilities          (33,053)     138,002         26,802
       Deferred service income      105,658      (29,183)        46,985

         Net cash provided by
         operating activities       784,317      519,187        183,519
INVESTING ACTIVITIES:
  Additions to property and
    equipment                      (213,229)    (357,510)      (105,755)
  Capitalized software costs       (395,856)    (365,420)      (299,534)
    Net cash used in investing
      activities                   (609,085)    (722,930)      (405,289)
FINANCING ACTIVITIES: 
  Borrowings on notes payable       315,421      351,875        100,000
  Payments on notes payable        (220,000)    (306,084)      (301,999)
  Payments on capital lease
    obligations                     (27,489)      (5,000)       (23,801)
  Exercise of stock options
    and warrants                     38,065       38,340        393,851
         Net cash provided by 
         financing activities       105,997       79,131        168,051

NET INCREASE (DECREASE)IN CASH      281,229     (124,612)       (53,719)

CASH, beginning of year             253,201      377,813         431,532

CASH, end of year                 $ 534,430    $ 253,201       $ 377,813
</TABLE>

See notes to financial statements.




CREATIVE COMPUTER APPLICATIONS, INC.

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business Activities

	Creative Computer Applications, Inc. (the "Company") designs 
and manufactures computer based Clinical Information Systems and 
products which automate the acquisition and management of clinical 
data for the healthcare industry.  The Company sells its products and 
systems primarily to hospitals, clinics, reference laboratories, 
veterinary and other healthcare institutions, as well as original 
equipment manufacturers.  The Company also generates revenue through 
service contracts with customers to provide technical support and 
repair services for specified periods of time.


Accounts Receivable and Concentration of Credit Risk

	Accounts receivable potentially exposes the Company to 
concentrations of credit risk, as defined by Statement of Financial 
Accounting Standards No. 105 "Disclosure of Information about 
Financial Instruments with Off-Balance-Sheet Risk and Financial 
Instruments with Concentrations of Credit Risk."  The Company provides 
credit to a large number of hospitals, clinics, reference laboratories 
and other healthcare institutions in various geographical areas.  The 
Company performs ongoing credit evaluations and maintains a general 
security interest in the item sold until full payment is received.


Inventories

	Inventories consist primarily of computer hardware held for 
resale and are stated at the lower of cost or market (net realizable 
value).  Cost is determined using the first-in, first-out method. 
Supplies are charged to expense as incurred.

        The Company also maintains an inventory pool of 
component parts to service systems previously sold, which is 
classified as non-current in the accompanying balance sheets.  Such 
inventory is carried at the lower of cost or market and will be 
charged to cost of sales based on usage.  Allowances are made for 
quantities on hand in excess of estimated future usage.


Property and Equipment

	Property, equipment, and leasehold improvements are stated at 
cost less accumulated depreciation.  Depreciation of machinery and 
equipment, furniture and fixtures, and data processing equipment is 
computed for financial reporting purposes using the straight-line 
method over the estimated useful life of the related asset (generally 
five years).  Amortization of leasehold improvements is computed using 
the straight-line method over the lease term.  Accelerated 
depreciation methods are used for income tax reporting purposes.


Capitalized Software Costs

	Software costs incurred internally in creating computer 
software products are expensed until technological feasibility has 
been established upon completion of a detailed program design.  
Thereafter, all software development costs are capitalized until the 
point that the product is ready for sale and subsequently reported at 
the lower of amortized 





CREATIVE COMPUTER APPLICATIONS, INC.

NOTES TO FINANCIAL STATEMENTS
(Continued)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (Continued)

Capitalized Software Costs (Continued)

cost or net realizable value.  During the years ended August 31, 1997, 
1996 and 1995, the Company capitalized $395,856, $365,420 and $299,534 
of software development costs.  Amortization expense of capitalized 
software development costs, included in cost of sales, for the years 
ended August 31, 1997, 1996 and 1995 amounted to $171,616, $175,491 
and $159,694.

	In accordance with Statement of Financial Accounting Standard 
No. 86 the Company considers annual amortization of capitalized 
software costs under 1) the ratio of current year revenues by product 
to the product's total estimated revenues method and 2) over the 
product's estimated economic useful life by the straight line method 
and recognizes the greater amount.


Intangible Assets

	Intangible assets amounting to $511,704 consist of proprietary 
rights to application software, trademarks, customer lists and 
copyrights and are being amortized using the straight-line method over 
a ten year period.  Accumulated amortization was $247,323 and $196,153 
at August 31, 1997 and 1996.


Revenue Recognition

	Sales of Clinical Information Systems and data acquisition 
products are recognized when shipped, provided that no significant 
obligations remain and collection is probable.  Revenues related to 
installation of systems requiring substantial future performance by 
the Company are recognized using the percentage-of-completion method 
based on meeting key milestone events over the terms of the contract.  
Costs and earnings recognized in excess of billings are shown as an 
asset on the balance sheet.  Service contract revenues (which are 
included in net sales) are recognized ratably over the contractual 
period or as the services are provided.


Stock Based Compensation

	Statement of Financial Accounting Standards No. 123, 
"Accounting for Stock-based Compensation" SFAS 123, establishes a fair 
value method of accounting for stock-based compensation plans and for 
transactions in which a company acquires goods or services from non-
employees in exchange for equity instruments.  The Company adopted 
this accounting standard on September 1, 1996.  SFAS 123 also gives 
the option to account for stock-based employee compensation in 
accordance with Accounting Principles Board Opinion No. 25 (APB 25), 
"Accounting for Stock issued to Employees," or SFAS 123.  The Company 
elected to follow APB 25 which measures compensation cost for employee 
stock options as the excess, if any, of the fair market price of the 
Company's stock at the measurement date over the amount an employee 
must pay to acquire stock.


CREATIVE COMPUTER APPLICATIONS, INC.

NOTES TO FINANCIAL STATEMENTS
(Continued)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (Continued)

Stock Based Compensation (Continued)

	If SFAS 123 is not adopted related to stock-based employee 
compensation, SFAS 123 for footnote purposes requires that companies 
measure the cost of stock-based employee compensation at the grant 
date based on the value of the award and recognize this cost over the 
service period.  The value of the stock-based award is determined 
using a pricing model whereby compensation cost is the excess of the 
fair value of the stock as determined by the model at grant date or 
other measurement date over the amount an employee must pay to acquire 
the stock.


Earnings Per Share

	Earnings per common share are computed by dividing the net 
income for each period by the weighted average number of common shares 
plus the weighted average of dilutive common share equivalents 
outstanding during the period using the treasury stock method.  Common 
share equivalents consist of stock options and warrants.  Common stock 
equivalents are considered dilutive for earnings per share if the 
average stock price exceeds the exercise price during the period.  The 
common stock equivalents are weighted from the beginning of the 
earliest quarter in which they become dilutive.


Income Taxes

	The Company accounts for income taxes in accordance with the 
Statement of Financial Accounting Standards (SFAS) No. 109, 
"Accounting for Income Taxes.  SFAS No. 109 requires a Company to use 
the asset and liability method of accounting for income taxes.  Under 
the asset and liability method, deferred income taxes are recognized 
for the tax consequences of "temporary differences" by applying 
enacted statutory tax rates applicable to future years to differences 
between the financial statement carrying amounts and the tax bases of 
existing assets and liabilities.  Under SFAS No. 109, the effect on 
deferred income taxes of a change in tax rates is recognized in income 
in the period that includes the enactment date.


Accounting Estimates

	The preparation of financial statements in conformity with 
generally accepted accounting principles requires management to make 
estimates and assumptions that affect the reported amounts of assets 
and liabilities and disclosure of contingent assets and liabilities at 
the date of the financial statements and the reported amounts of 
revenues and expenses during the reporting period.  Actual results 
could differ from those estimates.


Fair Value of Financial Instruments

	Quoted market prices generally are not available for all of 
the Company's financial instruments.  Accordingly, fair values are 
based on judgments regarding current economic conditions, risk 
characteristics of various financial instruments and other factors.  
These estimates involve uncertainties and matters of judgment, and 
therefore, cannot be determined with precision.  Changes in 
assumptions could significantly affect the estimates.



CREATIVE COMPUTER APPLICATIONS, INC.

NOTES TO FINANCIAL STATEMENTS
(Continued)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (Continued)

	A description of the methods and assumptions used to estimate 
the fair value of each class of the Company's financial instruments is 
as follows:

	Cash, receivables, inventory, prepaid expenses, accounts 
payable, accrued expenses, and deferred service contract income are 
recorded at carrying amounts which approximate fair value due to the 
short maturity of these instruments.

	The fair value of the Company's notes payable and capital 
lease obligations are based on quoted market prices for similar issues 
of debt and capital leases with similar remaining maturities and 
terms, and therefore the carrying amounts approximate fair value.


New Accounting Pronouncements

	Statement of Financial Accounting Standard No. 128, (SFAS No. 
128), "Earnings Per Share," issued by the Financial Accounting 
Standards Board is effective for financial statements issued for the 
periods ending after December 15, 1997, including interim periods.  
The SFAS 128 requires restatement of all periods EPS data presented.  
The new standard also requires a reconciliation of the numerator and 
denominator of the basic EPS computation to the numerator and 
denominator of the diluted EPS computation.  The Company has not 
determined the effect on its EPS calculation from the adoption of this 
statement.

	Statement of Financial Accounting Standard No. 129 (SFAS No. 
129), "Disclosure of Information about Capital Structure," issued by 
the Financial Accounting Standards Board is effective for financial 
statements issued ending after December 15, 1997.  The new standard 
reinstates various securities disclosure requirements previously in 
effect under Accounting Principles Board Opinion No. 15, which has 
been superseded by SFAS No. 129.  The Company does not expect adoption 
of SFAS No. 129 to have a material effect, if any, on its financial 
position or results of operations.

	Statement of Financial Accounting Standard No. 130 (SFAS No. 
130), "Reporting Comprehensive Income," issued by the Financial 
Accounting Standards Board is effective for financial statements with 
fiscal years beginning after December 15, 1997.  Earlier application 
is permitted.  SFAS No. 130 establishes standards for reporting and 
display of comprehensive income and its components in a full set of 
general-purpose financial statements.  The Company has not determined 
the effect on its financial position or results of operations, if any, 
from the adoption of this statement.

	Statement of Financial Accounting Standard No. 131 (SFAS No. 
131), "Disclosure about Segments of an Enterprise and Related 
Information," issued by the Financial Accounting Standards Board is 
effective for financial statements with fiscal years beginning after 
December 15, 1997.  The new standard requires that public business 
enterprises report certain information about operating segments in 
complete sets of financial statements of the enterprises and in 
condensed financial statements of interim periods issued to 
shareholders.  It also requires that public business enterprises 
report certain information about their products and services, the 
geographic areas in which they operate and their major customers.



CREATIVE COMPUTER APPLICATIONS, INC.

NOTES TO FINANCIAL STATEMENTS
(Continued)

NOTE 2 - RECEIVABLES

Receivables are summarized as follows:

<TABLE>
<CAPTION>
                                                   August 31,                    
<S>                                         <C>              <C>
                                             1997             1996

 Trade accounts                            1,966,985       1,716,784
 Allowance for uncollectible accounts        (33,300)        (38,220)

                                         $ 1,933,685     $ 1,678,564
</TABLE>


NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment are summarized as follows:

<TABLE>
<CAPTION>

                                                   August 31,                    
<S>                                           <C>           <C>
                                              1997           1996
        Machinery and equipment            $  231,438    $  217,926
        Furniture and fixtures                214,593       214,203
        Leasehold improvements                 65,078        63,201
        Data processing equipment           1,148,310       950,860
                                            1,659,419     1,446,190
        Accumulated depreciation           (1,108,006)     (966,082)

                                           $  551,413    $  480,108
</TABLE>


        Included in property and equipment at August 31, 1997 and 1996 
are machinery and equipment and furniture and fixtures under capital 
lease agreements in the amount of $96,261 and $149,212 with related 
accumulated amortization thereon of $66,807 and $100,238.

NOTE 4 - NOTES PAYABLE TO BANK

<TABLE>
<CAPTION>
                                                           August 31,                    
<S>                                                    <C>           <C>
                                                        1997        1996
A line of credit of $400,000 with a bank with
  interest at the bank's prime rate plus 1.75%
  (10.25% at August 31, 1997) and maturing on
  February 1, 1998, and collateralized by
  substantially all of the Company's assets.         $ 200,000    $ 100,000

Note payable to a bank with interest at the
  bank's prime rate plus 2.5% (11% at August
  31, 1997)maturing on June 30, 1998, and
  collateralized by substantially all of the
  Company's assets.  The note is subject to
  minimum principal repayment terms of
  $10,000 a month.                                      87,296       91,875

                                                     $ 287,296    $ 191,875
</TABLE>


CREATIVE COMPUTER APPLICATIONS, INC.

NOTES TO FINANCIAL STATEMENTS
(Continued)

NOTE 4 - NOTES PAYABLE TO BANK (Continued)

	The notes payable to bank are covered by two note agreements 
that require the Company to meet certain covenants, including various 
financial ratios.  At August 31, 1997, the Company was in compliance 
with all financial and non-financial covenants.


NOTE 5 - COMMITMENTS

Operating Leases

	The Company leases office and warehouse space in Calabasas, 
California under a non-cancelable operating lease expiring in fiscal 
2003.  Under the original terms of the lease, the Company received 
nine months of free rent.  In accordance with Statement of Financial 
Accounting Standards No. 13 the Company is recognizing rental expense 
with respect to the facility lease on a straight line basis which has 
resulted in the recognition of a liability for deferred rent as of 
August 31, 1997 and 1996.  The Company also leases office space in 
Boulder, Colorado expiring in fiscal 1999.

	Future minimum lease payments under the facility leases are as 
follows:

<TABLE>
<CAPTION>

		Fiscal year ending	Facilities	

                       <C>                <C>
                      1998          $   206,345
		      1999		219,712
		      2000		211,752
		      2001		211,752
		      2002		211,752
                      Thereafter         17,646

    Total minimum lease payments    $ 1,078,959
</TABLE>

        Rent expense for the years ended August 31, 1997, 1996, and 
1995 was approximately $172,000, $205,000 and $219,000.



CREATIVE COMPUTER APPLICATIONS, INC.

NOTES TO FINANCIAL STATEMENTS
(Continued)

NOTE 5 - COMMITMENTS (Continued)

Capital Leases

	The Company leases certain machinery and equipment and 
furniture and fixtures under leases classified as capital leases due 
to the existence of bargain purchase options.  The following is a 
schedule by years of future minimum lease payments under capital 
leases together with the present value of the net minimum lease 
payments as of August 31, 1997:

<TABLE>
<CAPTION>

    <S>                                         <C>
                                                Capital 
    Fiscal year ending                          Leases 

            1998                                $    18,319
            1999                                      4,987
    Total minimum lease payments                     23,306
    Amount representing interest                     (2,055)
    Present value of minimum lease payments          21,251
    Current portion                                 (16,572)

    Capital lease obligations, net of
     current portion                            $     4,679

</TABLE>


NOTE 6 - STOCK OPTION PLANS AND WARRANTS

	Under the 1982 Non-Qualified Stock Option Plan (the "Non-
Qualified Plan"), as amended, options may be granted by the Company to 
purchase up to 80,000 common shares (officers and directors could 
acquire no more than 48,000 common shares).  Options could not be 
granted at a price less than 80 percent of the fair market value of 
the common shares on the date of grant.  No options can be exercised 
during the first year of the option term and each option granted 
terminated no later than five years from the date of grant.

	Under the 1982 Incentive Stock Option Plan (the "Incentive 
Plan"), as amended, options may be granted by the Company to purchase 
up to 120,000 common shares (officers and directors could acquire no 
more than 60,000 common shares).  Options could not be granted at a 
price less than 100 percent of the fair market value of the common 
shares on the date of grant for officers, directors and employees who 
owned less than 10 percent of the Company's common shares and not less 
than 110 percent of fair market value for those officers, directors 
and employees who owned 10 percent or more of the Company's common 
shares.  No options can be exercised if the optionee had been 
previously granted an option that had not been exercised or had not 
expired.  No options can be exercised during the first year of the 
option term and each option granted terminated no later than five 
years from the date of grant.



CREATIVE COMPUTER APPLICATIONS, INC.

NOTES TO FINANCIAL STATEMENTS
(Continued)

NOTE 6 - STOCK OPTION PLANS AND WARRANTS (Continued)

	The 1982 Non-Qualified and Incentive Plans expired in 1992.  
Subsequently, the Company adopted the 1992 Non-Qualified Stock Option 
Plan and the 1992 Incentive Stock Option Plan.  The 1992 plans are 
essentially the same as the 1982 plans with certain exceptions.  Under 
the 1992 Non-Qualified Plan, options may be granted by the Company to 
purchase up to 200,000 common shares (officers and directors may 
acquire no more than 100,000 common shares) and no options may be 
granted at a price less than 85% of the fair market value of the 
common shares on the date of grant.  Under the 1992 Incentive Plan, 
options may be granted by the Company to purchase up to 400,000 common 
shares (officers and directors may acquire no more than 200,000 common 
shares).

	The Company adopted the 1997 Non-Qualified and Incentive Plan 
upon the termination of the 1992 Plans in 1997.  The 1997 Plans are 
the same as the 1992 Plans with few exceptions.  Under the 1997 Plans, 
the Company may grant a maximum of 300,000 common shares of Non-
Qualified Stock Options and a maximum of 500,000 shares of Incentive 
Stock Options.  Under the 1997 Plans, options granted to optionees 
owning less than 10% of the Company's outstanding voting securities 
may exercise their options within ten years from the date of grant.  
Options granted to optionees owning 10% or more of the Company's 
outstanding voting securities have an exercise term of no more than 
five years from the date of grant.  These plans expire in 2007.

        Activity under the 1982, 1992 and 1997 plans through August 31,
1997 is summarized below:

<TABLE>
<CAPTION>

<S>                     <C>          <C>             <C>          <C>
                        Non-Qualified Plans          Incentive Plans     

                       Number      Per Share        Number      Per Share  
                         of         Exercise          of        Exercise   
                       Shares        Price          Shares        Price      

September 1, 1994      635,000    $0.45-$1.58       130,409    $1.00-$1.38
        Granted         40,000    $1.25-$1.50       102,000    $1.25-$2.25
        Expired              -                      (16,670)   $1.10-$2.25
        Exercised            -                       (3,330)   $   1.10

August 31, 1995        675,000    $0.45-$1.58       212,409    $   2.25
        Granted         74,755    $1.75-$2.25       115,000    $1.75-$2.25
        Expired              -              -       (48,209)   $ .45-$2.25
        Exercised      (34,000)   $  0.45           (51,200)   $   0.45

August 31, 1996        715,755    $1.00-$2.25       228,000    $1.03-$2.25
        Granted         75,000    $1.63-$2.13        42,000    $1.63-$1.94
        Expired       (108,000)   $1.00-$1.25       (15,000)   $   2.25
        Exercised      (20,000)   $1.25-$1.58        (5,000)   $   1.10

August 31, 1997        662,755    $1.00-$2.25       250,000    $1.03-$2.25
Exercisable at
August 31, 1997        458,928    $1.00-$2.25       111,161    $1.03-$2.25

Available for grant
  at August 31, 1997   250,000                      473,000
</TABLE>


CREATIVE COMPUTER APPLICATIONS, INC.

NOTES TO FINANCIAL STATEMENTS
(Continued)

NOTE 6 - STOCK OPTION PLANS AND WARRANTS (Continued)

        During fiscal 1996 and 1995, the Company also granted special 
options approved by the Board of Directors to officers and directors 
and financial consultants.  The options have been granted at the fair 
market value at the date of grant and are exercisable over periods 
ranging two to five years after which they expire.  515,755 shares of 
the special grants are included in the non-qualified plan shares 
outstanding at August 31, 1997.

        Information relating to stock options, at August 31,1997 
summarized by exercise price are as follows:

<TABLE>
<CAPTION>


<C>                    <C>      <C>       <C>        <C>         <C>
                              Outstanding              Exerciseable             
                            Weighted Average          Weighted Average            
Exercise Price                 Life     Exercise               Exercise
Per Share            Shares   (Month)   Price        Shares     Price      

Incentive Stock
  Option Plan

$1.03                10,000      1.0    $   1.03     10,000    $   1.03
$1.10                10,000      3.5    $   1.10     10,000    $   1.10
$1.13                 5,000      1.0    $   1.13      5,000    $   1.13
$1.25                10,000     25.0    $   1.25      5,000    $   1.25
$1.38                 5,000     25.0    $   1.38      2,500    $   1.38
$1.44                10,000     13.0    $   1.44      7,500    $   1.44
$1.58                 5,000     13.0    $   1.58      3,750    $   1.58
$1.63                10,000     49.0    $   1.63          -    $   1.63
$1.75                10,000     37.0    $   1.75      2,500    $   1.75
$1.79                 5,000     49.0    $   1.79          -    $   1.79
$1.93                 5,000     37.0    $   1.93      1,250    $   1.93
$1.94                27,000     56.0    $   1.94          -    $   1.94
$2.25               138,000     29.5    $   2.25     63,661    $   2.25

                    250,000     30.0    $   1.94    111,161    $   1.83
</TABLE>


<TABLE>
<CAPTION>


<C>                   <C>       <C>       <C>         <C>        <C>

Non-Qualified
  Stock Option Plan:

$1.00               100,000     20.0    $   1.00    100,000    $   1.00
$1.10                51,000     17.8    $   1.10     43,800    $   1.10
$1.25                20,000     25.0    $   1.25     10,000    $   1.25
$1.38               305,000     39.8    $   1.38    242,500    $   1.38
$1.44                20,000     13.0    $   1.44     15,000    $   1.44
$1.50                15,000     24.5    $   1.50     15,000    $   1.50
$1.58                 2,000     13.0    $   1.58      1,500    $   1.58
$1.63                20,000     49.0    $   1.63          -    $   1.63
$1.75                20,000     37.0    $   1.75      5,000    $   1.75
$1.79                 5,000     49.0    $   1.79          -    $   1.79
$1.93                 5,000     37.0    $   1.93      1,250    $   1.93
$1.94                40,000     56.0    $   1.94          -    $   1.94
$2.13                10,000     56.0    $   2.13          -    $   2.13
$2.25                49,755     29.5    $   2.25     24,878    $   2.25

                    662,755     34.1    $   1.44    458,928    $   1.33
</TABLE>


CREATIVE COMPUTER APPLICATIONS, INC.

NOTES TO FINANCIAL STATEMENTS
(Continued)

NOTE 6 - STOCK OPTION PLANS AND WARRANTS (Continued)

        All stock options issued to employees have an exercise price not 
less than 85% of the fair market value of the Company's common stock 
on the date of grant, and in accordance with accounting for such 
options utilizing the intrinsic value method stock-based compensation 
been determined based on the fair value of the grant dates consistent 
with the method of SFAS 123, the Company's net income and earnings per 
share for the year ended August 31, 1997 and 1996 would have been 
decreased to the pro forma amounts presented below.


<TABLE>
<CAPTION>

                                August 31,             
<S>                        <C>            <C>

                           1997            1996
 Net Income
    As reported         $ 891,000      $ 967,797
    Pro forma             859,205        952,869

 Earnings per share
    As reported              0.30           0.32
    Pro forma                0.29           0.32

</TABLE>

        The fair value of option grants is estimated on the date of 
grants utilizing the Black-Scholes option pricing with the following 
weighted average assumptions for the year ended August 31, 1997; 
expected life of 5 years, expected volatility of 16.16%, risk-free 
interest rates of 5.5%, and a 0% dividend yield.  The weighted average 
fair value at the date of grant for options granted during 1997 
approximated $1.83.

	As the Company's stock option programs vest over many years 
and additional awards are made each year, the above pro forma numbers 
are not indicative of the financial impact had the disclosure 
provisions of SFAS 123 been applicable to all years of previous option 
grants.  The above numbers do not include the effect of options prior 
to 1995 that vested in 1996 and 1997.

        In connection with the acquisition of PRX Pharmacy Systems 
on October 21, 1992, the Company issued warrants to purchase 391,581 
common shares.  The warrants were exercisable at $1.03 per share and 
were all exercised during fiscal year ended August 31, 1995 and the 
Company received net proceeds of $390,188.


NOTE 7 - RELATED PARTIES

        Net sales for the year ended August 31, 1997, 1996 and 1995 
includes sales of $20,756, $159,101 and $382,157 to an entity of which 
a director of the Company is an officer.



CREATIVE COMPUTER APPLICATIONS, INC.

NOTES TO FINANCIAL STATEMENTS
(Continued)

NOTE 8 - SETTLEMENT OF LITIGATION

	The Company was a defendant in a lawsuit brought by a customer 
alleging breach of warranties and fraudulent misrepresentation with 
respect to a computer system sold to the customer.  During the third 
fiscal quarter ended May 31, 1995, the Company reached an agreement to 
settle the litigation.  Although the Company did not believe there was 
merit in the plaintiff's claims or that the plaintiff would eventually 
prevail in the litigation, the Company agreed to the settlement 
because it did not believe that any eventual recovery it might receive 
would justify the legal expenses it was incurring to continue the 
litigation.  The settlement included a cash payment of $25,000.  All 
payments under the settlement were made during fiscal year ended 
August 31, 1995.


NOTE 9 - INCOME TAX EXPENSE (BENEFIT) 

	The provision for income taxes consist of the following:

<TABLE>
<CAPTION>

<S>                              <C>            <C>           <C>
                                    1997           1996           1995
   Current taxes:
      Federal                    $       -      $       -     $        -
        State                        1,325         12,190          2,000

   Deferred:
      Federal                       51,000              -              -

                                    52,325         12,190          2,000

Change in valuation allowance     (514,600)      (514,600)             -

Income tax expense (benefit)     $(462,275)     $(502,410)    $    2,000

</TABLE>

        Income tax expense (benefit) differs from the amount obtained 
by applying the statutory federal income tax rate to income before 
income tax expense as follows:

<TABLE>
<CAPTION>

<S>                                        <C>         <C>         <C>
                                            1997         1996       1995
Computed provision for taxes
  based on income at statutory rate         34.0%       34.0%       34.0%
State taxes, net of benefit of state
  net operating loss carryforward            0.3         6.0        22.3
Tax benefit of federal net
  operating loss carryforward              (34.0)      (34.0)      (34.0)
Permanent differences                       11.9           -           -
Reduction in valuation allowance          (120.0)     (114.0)          -    

                                          (107.8)%    (108.0)%      22.3%
</TABLE>



CREATIVE COMPUTER APPLICATIONS, INC.

NOTES TO FINANCIAL STATEMENTS
(Continued)

NOTE 9 - INCOME TAXES  (Continued)

	Deferred income taxes reflect the net tax effects of temporary 
differences between the carrying amounts of assets and liabilities for 
financial reporting purposes and the amounts used for income tax 
purposes.  Significant components of the Company's deferred tax assets 
and liabilities as of August 31, 1997 and 1996 are as follows:

<TABLE>
<CAPTION>
                                                   August 31,                    
<S>                                           <C>            <C>
                                               1997          1996

Deferred tax assets:
   Allowance for doubtful accounts         $    13,700    $   15,700
   Inventory reserves and uniform
     capitalization                             23,900       110,400
   Accrued vacation                             66,900        58,100
   Deferred revenue                            163,500       147,000
   Depreciation and amortization                 7,600        15,800
   Net operating loss carryforwards            804,000       837,300
   Tax credits                                 275,000       129,300
       Gross deferred tax assets             1,354,600     1,313,600
Deferred tax liability:
       Capitalized software costs             (376,400)     (284,400)
                                               978,200     1,029,200

        Valuation allowance                          -      (514,600)

Net deferred tax assets                    $   978,200    $  514,600
</TABLE>


        At August 31, 1997, the Company had federal net operating loss 
carryforwards available to offset future taxable income of 
approximately $2,365,000 that expire at various dates through 2003 and 
general business tax credit carryforwards available to offset future 
income tax payable of approximately $275,000 that expire at various 
dates through 2010.  The Tax Reform Act of 1986 contains provisions 
which limit the amount of tax credits that can be utilized in 
subsequent years.

	For the year ended August 31, 1995, the Company established a 
valuation allowance equal to the net deferred tax asset as the Company 
could not conclude that it was more likely than not that the deferred 
tax asset could be realized.  During the years ended August 31, 1997 
and 1996, the Company re-evaluated the valuation allowance taking into 
consideration prior earnings history, projected operating results and 
the reversal of temporary tax differences.  As a result, the Company 
reduced the valuation allowance to $514,600 or 50% of the net deferred 
tax asset in fiscal 1996.  For the year ended August 31, 1997, the 
Company believes it is more likely than not to realize the net 
deferred tax asset and accordingly the remaining valuation allowance 
was relieved.



CREATIVE COMPUTER APPLICATIONS, INC.

NOTES TO FINANCIAL STATEMENTS
(Concluded)

NOTE 10 - SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information is as follows:

<TABLE>
<CAPTION>

<S>                             <C>             <C>           <C>
                                1997            1996          1995


Interest paid                $  34,969       $  35,800     $  44,126

</TABLE>



  Supplemental non-cash investing and financing activity included:

  During fiscal 1996, the Company acquired a computer with a cost
  of $23,286 under a capital lease agreement.

  During fiscal 1995, the Company issued 6,100 common shares with
  a market value of $10,292 in payment of accrued vacation obligations.





Exhibit 11

CREATIVE COMPUTER APPLICATIONS, INC.

COMPUTATION OF EARNINGS PER COMMON SHARE
<TABLE>
<CAPTION>


                                          Year ended August 31,
<S>                               <C>             <C>             <C>
                                 1997             1996           1995


ENDING MARKET PRICE
    PER SHARE                $       1.75    $        1.75   $        1.69

AVERAGE MARKET PRICE
    PER SHARE                $       1.82    $        1.85   $        2.10

NET INCOME                   $    891,000    $     967,797   $       6,970


PRIMARY EARNINGS PER
  SHARE:
Shares:
Weighted average
  number of common
  shares outstanding            2,836,532        2,772,615       2,500,772
Shares issuable upon
  exercise of options
  and warrants                    638,000          731,000         800,200

Shares assumed to be
  repurchased under the
  treasury stock
  method (1)(2)                  (463,431)        (496,689)       (437,626)

Adjusted weighted average
  number of common
  shares outstanding            3,011,101        3,006,926       2,863,346
Primary earnings per share   $        .30    $         .32   $         .00 


FULLY DILUTED EARNINGS
  PER SHARE:
  Shares:
Weighted average number
  of common shares
  outstanding                   2,836,532        2,772,615       2,500,772
Shares issuable upon
  exercise of options
  and warrants                    638,000         731,000         800,200
Shares assumed to be
  repurchased under the
  treasury stock         
  method (1)(2)                  (463,431)       (496,689)       (437,626)
Adjusted weighted average
  number of common
  shares outstanding            3,011,101       3,006,926       2,863,346
Fully diluted earnings
  per share                  $        .30    $        .32    $        .00
</TABLE>


(1)  Shares assumed to be repurchased under the treasury stock method:
        Primary common stock equivalents are assumed to be repurchased
        at average market price.
        Fully diluted common stock equivalents are assumed to be 
        repurchased at the greater of average or ending market price.

(2)  Shares assumed to be repurchased under the treasury stock method 
        were based on proceeds of assumed options and warrants of 
        $843,445, $918,875 and $919,015 for the years ended August 
        31, 1997, 1996 and 1995.