FORM 10-Q

                     SECURITIES AND EXCHANGE COMMISSION

                           Washington, DC  20549


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



For the Quarter Ended:   March 29, 1997          Commission File No:   0-6933




                             CAMBEX CORPORATION

           (Exact name of registrant as specified in its charter)



       Massachusetts                             04-244-2959

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


                 360 Second Avenue, Waltham, Massachusetts
                  (Address of principal executive offices)


                                   02154

                                 (Zip Code)


Registrant's telephone number, including area code:  (617) 890-6000


       Indicate by check mark whether the registrant (1) has filed all 
       reports required to be filed by Section 13 or 15(d) of the Securities 
       Exchange Act of 1934 during the preceding 12 months (or for such 
       shorter period that the registrant was required to file such reports) 
       and (2) has been subject to such filing requirements for the past 90 
       days.

             Yes  X                              No

<PAGE>
<TABLE>
                                         CAMBEX CORPORATION AND SUBSIDIARIES
  
                                             CONSOLIDATED BALANCE SHEETS
                                        MARCH 29, 1997 AND DECEMBER 31, 1996
                                                       (UNAUDITED) 
  
                                                        ASSETS
<S>     <C>  
  
                                                                        MARCH 29,               DECEMBER 31,
                                                                          1997                      1996
                                                                      -------------             -------------
  CURRENT ASSETS:
  
     CASH AND CASH EQUIVALENTS                                       $     430,949             $     615,949
  
  
     ACCOUNTS RECEIVABLE, LESS RESERVES OF
       $131,000 ON MARCH 29, 1997 AND
       $131,000 ON DECEMBER 31, 1996                                     2,050,167                 1,934,708
  
     CURRENT PORTION OF INVESTMENT IN SALES-TYPE LEASES,
       NET OF UNEARNED INTEREST INCOME OF $16,000 ON
       MARCH 29, 1997 AND $34,000 ON DECEMBER 31, 1996                     221,639                   423,220
  
     INVENTORIES                                                         6,303,531                 6,200,033
  
     PREPAID TAXES                                                          -                      2,335,295
  
     PREPAID EXPENSES                                                      178,582                   135,721
                                                                     --------------            --------------
        TOTAL CURRENT ASSETS                                         $   9,184,868             $  11,644,926
                                                                     --------------            --------------
  LONG-TERM INVESTMENT IN SALES-TYPE LEASES, NET
     OF UNEARNED INTEREST INCOME OF $3,000 ON
     MARCH 29, 1997 AND $5,000 ON DECEMBER 31, 1996                  $      91,862             $     162,971
  
  LEASED EQUIPMENT, AT COST, NET OF ACCUMULATED
     DEPRECIATION OF $270,000 ON MARCH 29, 1997                        
     AND $244,000 ON DECEMBER 31, 1996                               $     114,234             $     140,417
  
  PROPERTY AND EQUIPMENT, AT COST:
  
     MACHINERY AND EQUIPMENT                                         $   7,384,095             $   7,379,202
     FURNITURE AND FIXTURES                                                304,666                   304,666
     LEASEHOLD IMPROVEMENTS                                                620,949                   620,949
                                                                     --------------            --------------
                                                                     $   8,309,710             $   8,304,817
  
     LESS - ACCUMULATED DEPRECIATION AND AMORTIZATION                    7,433,080                 7,258,383
                                                                     --------------            --------------
        NET PROPERTY AND EQUIPMENT                                   $     876,630             $   1,046,434
  
  OTHER ASSETS
        TECHNOLOGY LICENSE/MARKETING AGREEMENT, 
          NET OF ACCUMULATED AMORTIZATION OF $8,500,000
          ON MARCH 29, 1997 AND ON DECEMBER 31, 1996                 $      -                  $      -
        OTHER                                                               37,830                    37,830
                                                                     --------------            --------------
    TOTAL ASSETS                                                     $  10,305,424             $  13,032,578
                                                                     ==============            ==============
</TABLE>
  
  
                                                         -2-
<PAGE>
<TABLE>
<S>     <C>

                                             CONSOLIDATED BALANCE SHEETS
                                          MARCH 29, 1997 AND DECEMBER 31, 1996
                                                      (UNAUDITED)
  
                                      LIABILITIES AND STOCKHOLDERS' INVESTMENT
  
  
  
                                                                          MARCH 29,            DECEMBER 31,
                                                                             1997                  1996
                                                                        -------------         --------------
  CURRENT LIABILITIES:
  
    REVOLVING CREDIT AGREEMENT                                          $         --          $   1,800,000
  
    ACCOUNTS PAYABLE                                                       4,576,271              4,329,638
  
    OBLIGATIONS FOR TRADE-IN MEMORY                                        1,071,772              1,036,235
  
    ACCRUED EXPENSES                                                       1,517,142              1,319,237
                                                                        -------------         --------------
       TOTAL CURRENT LIABILITIES                                        $  7,165,185          $   8,485,110
                                                                        -------------         --------------
  
  DEFERRED REVENUE                                                      $    855,641          $   1,022,751
  
  STOCKHOLDERS' INVESTMENT: 
  
    PREFERRED STOCK, $1.00 PAR VALUE PER SHARE
      AUTHORIZED - 3,000,000 SHARES
      ISSUED - NONE                                                               --                     --
  
    COMMON STOCK, $.10 PAR VALUE PER SHARE -
       AUTHORIZED -   25,000,000 SHARES
       ISSUED  -  10,615,039 SHARES ON MARCH 29, 1997 AND
                  10,614,139 SHARES ON DECEMBER 31, 1996                $  1,061,504          $   1,061,414
                                                                          
    CAPITAL IN EXCESS OF PAR VALUE                                        15,792,240             15,792,105
  
    CUMULATIVE TRANSLATION ADJUSTMENT                                        155,099                183,355
  
    RETAINED EARNINGS (DEFICIT)                                          (13,869,479)           (12,657,391)
  
    LESS - COST OF SHARES HELD IN TREASURY -  
           1,534,356 ON MARCH 29, 1997 AND
           ON DECEMBER 31, 1996                                             (854,766)              (854,766)
                                                                        -------------         --------------
    TOTAL STOCKHOLDERS' INVESTMENT                                      $  2,284,598          $   3,524,717
                                                                        -------------         --------------
    TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT                      $ 10,305,424          $  13,032,578
                                                                        =============         ==============
  
</TABLE>
                                                      -3-
<PAGE>
<TABLE>
<S>     <C>

                                             CAMBEX CORPORATION AND SUBSIDIARIES
  
                                              CONSOLIDATED STATEMENTS OF INCOME
                                                  FOR THE THREE MONTHS ENDED
                                               MARCH 29, 1997 AND MARCH 30, 1996
                                                         (UNAUDITED)
  
  
                                              
                                                FOR THE THREE MONTHS ENDED
  
  
                                              MARCH 29,           MARCH 30,
                                                 1997                1996
                                            ------------         ------------
  
  REVENUES                                  $ 3,026,733         $  8,019,681
  
  COST OF SALES                               1,847,546            4,481,745
                                            ------------        -------------
  GROSS PROFIT                              $ 1,179,187         $  3,537,936
  
  OPERATING EXPENSES:
  
    RESEARCH AND DEVELOPMENT                $   764,888         $  1,166,448
    SELLING                                   1,180,346            2,042,147
    GENERAL AND ADMINISTRATIVE                  398,110              699,993
                                            ------------        -------------
                                            $ 2,343,344         $  3,908,588
                                            ------------        -------------
  
  OPERATING INCOME (LOSS)                   $(1,164,157)        $   (370,652)
  
  OTHER INCOME (EXPENSE):
    INTEREST EXPENSE                        $   (33,578)        $    (70,255)
    INTEREST INCOME                              15,276               26,464
    OTHER INCOME (EXPENSE)                      (29,629)            (573,590)
                                            ------------        -------------
  INCOME (LOSS) BEFORE INCOME TAXES         $(1,212,088)        $   (988,033)
  
  CREDIT (PROVISION) FOR INCOME TAXES       $     -             $     -
                                            ------------        -------------
  NET INCOME (LOSS)                         $(1,212,088)        $   (988,033)
                                            ============        =============
  
  NET INCOME (LOSS) PER COMMON SHARE        $    (0.13)         $     (0.11)
                                            ============        =============
  WEIGHTED AVERAGE COMMON AND COMMON          
  EQUIVALENT SHARES OUTSTANDING               9,080,000            8,940,000
  
  
</TABLE>
                                                        -4-       
<PAGE>
<TABLE>
<S>     <C>

                                           CAMBEX CORPORATION AND SUBSIDIARIES
                                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                FOR THE THREE MONTHS ENDED
                                            MARCH 29, 1997 AND MARCH 30, 1996
  
                                                                                  FOR THE THREE MONTHS ENDED
                                                                                 MARCH 29,         MARCH 30,
                                                                                    1997             1996
                                                                               ------------      -------------
  CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income (Loss)                                                            $ (1,212,088)    $    (988,033)
  Adjustments to reconcile net income (loss) to 
    net cash provided by operating activities:
    Depreciation and amortization                                              $    200,880     $     614,403
    Amortization of prepaid expenses                                                 24,740             7,037
    Common stock issued in lieu of cash                                                 - -           110,938
    Change in assets and liabilities:
      Increase in accounts receivable                                              (115,459)         (427,427)
      Decrease (increase) in inventory                                             (103,498)        1,446,782
      Decrease in investment in sales-type leases                                   272,690           118,746
      Decrease in prepaid taxes                                                   2,335,295               282
      Decrease (increase) in prepaid expenses                                       (67,601)           11,674
      Decrease in other assets                                                          - -                15
      Increase in accounts payable                                                  246,633           260,205
      Increase in obligations for trade-in memory                                    35,537           214,110
      Increase (decrease) in accrued liabilities                                    197,905           (89,599)
      Increase (decrease) in deferred revenue                                      (167,110)          119,460
                                                                                 
                                                                               -------------     -------------
        Total adjustments                                                      $  2,860,012     $   2,386,626
                                                                               -------------     -------------
        Net cash provided by operating activities                              $  1,647,924     $   1,398,593
  
  CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchases of Equipment                                                           (4,893)          (70,374)
                                                                                ------------     -------------
        Net cash used in investing activities                                  $     (4,893)    $     (70,374)
  
  CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from sale of common stock                                         $        225     $      29,707
    Net borrowings (repayments) under revolving credit agreement                 (1,800,000)              - -
                                                                               -------------     -------------
      Net cash provided by (used in) financing activities                      $ (1,799,775)    $      29,707
  
    Effect of exchange rate changes on cash                                         (28,256)          (64,736)
                                                                                ------------     -------------
  Net increase in cash and cash equivalents                                    $   (185,000)    $   1,293,190
  
  Cash and cash equivalents at beginning of period                             $    615,949     $     588,322
                                                                               -------------     -------------
  Cash and cash equivalents at end of period                                   $    430,949     $   1,881,512
                                                                               =============     =============
  SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
    Cash paid during the period for:
      Interest                                                                 $     33,578     $      70,255
      Income Taxes                                                                      - -               - -
</TABLE>
                                                               -5-
<PAGE>

                                 FORM 10-Q

                    CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: March 29, 1997         Commission File No:0-6933

Notes & Comments:

       (1)Significant Accounting Policies

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

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

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

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

                                  March 29,             December 31, 
                                    1977                    1966       
 
       Raw materials              $3,079,579            $ 2,386,454
       Work-in-process               693,903                861,073
       Finished goods              2,328,549              2,765,066
       Trade-in memory               201,500                187,500

                                  $ 6,303,531           $ 6,200,033


                                    - 6 -
<PAGE>

                                 FORM 10-Q

                    CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: March 29, 1997          Commission File: 0-6933



Notes & Comments (Continued):


       (2)    Income and Dividends Per Share

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

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

              Revenues for the three months ended March 29, 1997 decreased 
              62% from the comparable three months of the prior year due 
              principally to decreased sales of the Company's mainframe 
              storage products. 

              The gross profit (39%) for the first quarter of 1997 was lower 
              than the 44% achieved in 1996 due primarily to the relative 
              amount of fixed costs in relation to lower revenues.

              Operating expenses for the three months ended March 29, 1997 
              decreased 40% from the comparable three months of the prior 
              year due principally to the cost savings achieved through a 
              work force reduction and other expense controls put in place. 

              Other expense for the three months ended March 30, 1996 
              included approximately $425,000 in amortization expenses 
              relating to the Company's technology license/marketing 
              agreement, which was amortized over a five year period, ending 
              in 1996. 

              During the first quarter, the Company received approximately 
              $2,300,000 in cash from the Internal Revenue Service, which 
              represented the refund due from prior periods.  This refund was 
              then used to repay the Company's outstanding debt under its 
              Revolving Credit Agreement.  After the final payment to its 
              bank, the Revolving Credit Agreement was terminated and the 
              bank released its security interest in the Company's accounts 
              receivable, inventory and general intangibles.


                                   - 7 -
<PAGE>

                                 FORM 10-Q

                    CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: March 29, 1997             Commission File: 0-6933


Notes & Comments (Continued):

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

              Subsequent to the end of the first quarter, the Company 
              announced that Cambex and Jupiter Technology, Inc. agreed to 
              terminate the proposed acquisition of Jupiter by Cambex due to 
              business and stock market conditions. 





























                                   - 8 -

<PAGE>

                                 FORM 10-Q

                    CAMBEX CORPORATION AND SUBSIDIARIES


For The Quarter Ended: March 29, 1997             Commission File: 0-6933



                                 SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.


CAMBEX CORPORATION


By:    /s/    Joseph F. Kruy
       
              Joseph F. Kruy
              President




By:    /s/    Sheldon M. Schenkler
                    
              Sheldon M. Schenkler
              Chief Financial Officer




Dated:        May 9, 1997










                                   - 9 -