FORM 10-Q
  
  U.S. 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 June 30, 1998 Commission File Number 1-9014    
  
  Chyron Corporation                         
  (Exact name of registrant as specified in its charter)
                              
  New York                                            11-2117385      
  (State or other jurisdiction of        (IRS Employer Identification No.)
  Incorporation or organization)                
  
  5 Hub Drive, Melville, NY                                11747      
  (Address of principal executive offices)                (Zip Code)
  
  (516) 845-2000                           
  (Registrant's telephone number including area code)
  
  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    
  
  Indicate the number of shares outstanding of each of the issuer's classes
  of common stock, as of the latest practical date.
  
  Common Stock $.01 Par Value - 32,072,372 as of
  
  August 12, 1998
  
  This document consists of 12 pages
  
  CHYRON CORPORATION
  CONSOLIDATED STATEMENTS OF OPERATIONS
  THREE MONTHS ENDED JUNE 30, 1998 AND 1997
  (In thousands except per share amounts)
  
  (Unaudited)
                              
                                                       1998      1997  
                                                 
  Net sales.....................................     $21,096   $21,897 
  Cost of products sold.........................      11,416    11,980
  
  Gross profit..................................       9,680     9,917
                              
  Operating Expenses: 
    Selling, general and administrative ........       8,966     7,481  
    Research and development ...................       2,506     1,937 
    Restructuring and other non-recurring charges      3,979     2,407
  
   Total operating expenses......................     15,451    11,825
  
  Operating loss ......................               (5,771)   (1,908) 
  
  Interest and other expense, net...............         478       434
  
  Loss before provision for income taxes              (6,249)   (2,342)
  
  Income taxes/equivalent (benefit)...                (1,417)     (810)
    
  Net loss ............................              $(4,832)  $(1,532) 
  
  Net loss per common share - Basic and Diluted      $  (.15)  $ ($.05)
  
  Weighted average shares used in computing net
    loss per common share   Basic and Diluted         32,972  32,036
   
   
  
  See Notes to the Consolidated Financial Statements
                              
                              
  CHYRON CORPORATION
  CONSOLIDATED STATEMENTS OF OPERATIONS
  SIX MONTHS ENDED JUNE 30, 1998 AND 1997
  (In thousands except per share amounts)
  
  (Unaudited)
  
                                                         1998      1997  
                                                 
  Net sales.....................................     $42,621   $40,098 
  Cost of products sold.........................      22,219    22,031
  
  Gross profit..................................      20,402    18,067
                              
  Operating Expenses: 
    Selling, general and administrative ........      16,685    14,708  
    Research and development ...................       5,016     3,448 
    Restructuring and other non-recurring charges      3,979     3,082
  
  Total operating expenses......................      25,680    21,238
  
  Operating loss ......................               (5,278)   (3,171) 
  
  Interest and other expense, net...............         836       764
  
  Loss before provision for income taxes              (6,114)   (3,935)
  
  Income taxes/equivalent (benefit) ...               (1,316)   (1,307)
    
  Net loss ............................               (4,798)   (2,628)
  
  Retained earnings   beginning of period              9,237     9,997
  
  Retained earnings   end of period                  $ 4,439   $ 7,369
  
  Net loss per common share   Basic and Diluted      $  (.15)  $  (.08)
  
  Weighted average shares used in computing net 
    loss per common share   Basic and Diluted         32,072    31,949
   
  
  
  See Notes to the Consolidated Financial Statements
                              
  
  
  CHYRON CORPORATION
  CONSOLIDATED BALANCE SHEETS
  (In thousands except share amounts)
  (Unaudited)
  
  ASSETS
  
                                                 June 30,      December 31,
                                                   1998            1997
  Current assets:
    Cash and cash equivalents...................    $ 1,912        $ 2,968
    Accounts and notes receivable...............     20,384         21,125
    Inventories.................................     22,333         26,540
    Prepaid expenses............................      3,256          1,897
    Deferred tax asset..........................      6,485          4,301
    Other.......................................        341            283 
       
      Total current assets......................     54,711         57,114
  
  Property and equipment........................     13,098         12,373
  Excess of purchase price over net 
    tangible assets acquired....................      5,879          6,779
  Investment in RT-SET..........................      2,161          2,161
  Software development costs....................      3,637          5,224
  Deferred tax asset............................      7,070          7,070
  Other.........................................      3,362          3,359
  TOTAL ASSETS                                      $89,918        $94,080
  
            LIABILITIES AND SHAREHOLDERS' EQUITY
  
  Current liabilities:
    Accounts payable and accrued expenses.......    $12,910        $14,164
    Current portion of long-term debt ..........      2,503          2,318
    Deferred revenue ...............                  3,952          1,327
    Capital lease obligations                           177            350
      Total current liabilities.................     19,542         18,159
  
  Long-term debt................................     16,685         17,774
  Accrued pension expense.......................      2,202          2,007
  Other.........................................      1,843          1,861
  Capital lease obligations                             273            317
    Total liabilities...........................     40,545         40,118
  
  Commitments and contingencies
  Shareholders' equity:
   Preferred stock; par value without designation
    Authorized - 1,000,000 shares, Issued - none
   Common stock; par value $.01             
    Authorized - 150,000,000 shares           
   Issued and outstanding -
    32,072,372 shares at June 30, 1998  
    and 32,605,705 at December 31, 1997.........        321            326
   Additional paid-in capital...................     44,021         44,016
   Retained earnings............................      4,439          9,237
   Cumulative translation adjustment............        592            383 
     Total shareholders' equity.................     49,373         53,962
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY        $89,918        $94,080
  
  See Notes to the Consolidated Financial Statements
                              
                              
  
  CHYRON  CORPORATION
   CONSOLIDATED STATEMENTS OF CASH FLOWS
   SIX MONTHS ENDED JUNE 30, 1998 AND 1997
   (In Thousands)
   (Unaudited)
                                    
                                                      Six Months Ended
                                                          June 30,
   CASH FLOWS FROM OPERATING ACTIVITIES                1998      1997 
   Net loss..............................            $(4,798)  $(2,628)
   Adjustments to reconcile net loss
    to net cash provided by operating activities:              
      Restructuring and non-recurring charges          3,979     1,924
      Depreciation and amortization                    2,600     1,909
      Deferred income tax (benefit)...............    (1,590)   (1,855)
   Changes in operating assets and liabilities:
      Accounts and trade notes receivable..........      997     3,460  
      Inventories..................................    3,772      (745)
      Prepaid expenses ............................   (1,336)   (1,484)
      Other assets.................................      (60)     (282)
      Accounts payable and accrued expenses .......   (3,163)    1,709   
      Deferred revenue                                 2,610       247
      Other liabilities............................      177      (271)
   Net cash provided by operating activities.......    3,188     1,984
   
   CASH FLOWS FROM INVESTING ACTIVITIES
   Acquisition of Axis Holdings Incorporated.......               (413)
   Acquisitions of property and equipment..........   (1,381)   (1,016)
   Capitalized software development ...............   (1,573)     (756)
   Net cash used in investing activities...........   (2,954)   (2,185)
   
   CASH FLOWS FROM FINANCING ACTIVITIES
   Payments of term loan...........................   (1,000)   (1,000)
   (Payments of) borrowings from revolving credit
     agreement, net..........................            (60)      200 
   Payments of capital lease obligations...........     (232)      (65)
   Net cash used in financing activities...........   (1,292)     (865)
   Effect of foreign currency rate fluctuations 
    on cash and cash equivalents...................        2        (4)
   
   Change in cash and cash equivalents.............   (1,056)   (1,070)
   Cash and cash equivalents at beginning 
     of period...............................          2,968     4,555
   Cash and cash equivalents at end of period......   $1,912    $3,485
   
   Non-cash investing and financing activities:
   
   On March 31, 1997, the Company acquired all the issued and outstanding
   shares of Axis Holdings Incorporated.  The consideration, in addition to
   cash paid, included the issuance of 173,913 shares of Chyron Corporation
   common stock valued at $750,000 and notes payable of $667,000. 
                             
   See Notes to Consolidated Financial Statements
                             
                             
  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  UNAUDITED
  
  
  1.  BASIS OF PRESENTATION
  
  The accompanying unaudited consolidated financial statements have been
  prepared in conformity with generally accepted accounting principles for
  interim financial reporting.  Accordingly, they do not include all of the
  information and footnotes required by generally accepted accounting
  principles for complete financial statements.  These statements should be
  read in conjunction with the consolidated financial statements and footnotes
  thereto included in the Company's annual report on Form 10-K for the year
  ended December 31, 1997.
  
  In the opinion of management, all adjustments (consisting of only normal
  recurring adjustments) considered necessary for a fair presentation have
  been included.  Operating results for the three and six months ended June
  30,1998 are not necessarily indicative of the results that may be expected
  for the year ending December 31, 1998.
  
  2.  NEW ACCOUNTING POLICIES
  
  In the first quarter of 1998, the Company adopted AICPA Statement of
  Position 97-2 ("SOP 97-2"), "Software Revenue Recognition."  The adoption
  of SOP 97-2 did not have a material affect on the results of operations of
  the Company in the second quarter of 1998.
  
  During 1997 and 1998 the Financial Accounting Standards Board ("FASB")
  issued Statement on Financial Accounting Standards ("SFAS") No. 129,
  "Disclosure of Information About Capital Structure", SFAS No. 131,
  "Disclosures About Segments of an Enterprise and Related Information" and
  SFAS No. 132, "Employers' Disclosures About Pensions and Other Post
  Retirement Benefits."  These accounting standards are effective for
  financial statements issued for fiscal years beginning after December 15,
  1997 and requires restatement of disclosures for earlier periods. 
  
  The Company will adopt the new requirements in its annual financial
  statements in 1998.  The Company does not anticipate the adoption of these
  new standards to have a material effect on the Company's consolidated
  financial statements.
  
  3.  RESTATEMENT AND RECLASSIFICATION
  
  In 1997, the Financial Accounting Standards Board issued Statement No. 128
  "Earnings per Share", which was effective for the year ended December 31,
  1997. Accordingly, all prior period amounts have been restated to reflect
  this new statement.  In addition, certain prior year amounts have been
  reclassified to conform to current year presentation.
  
    4.  PRODUCT LINE RESTRUCTURING
  
  During the second quarter of 1998, as a result of continuing poor operating
  results and specifically the inability of the Company's Concerto Division
  to meet revenue and operating targets, management determined that it would
  be in the Company's best interest to implement a restructuring plan and
  refocus on its core business of graphics, routing and automation products
  for television broadcast, cable and post production industries. Such
  restructuring plan involves the disposal of the Concerto and Trilogy
  Divisions, the modification of the investment in RT-SET and the
  reorganization of the Company's core product sales force to be complimentary
  to its new sales and marketing strategy.  As a result, the Company has
  recorded a $3,979,000 million charge to operations during the second quarter
  of 1998.  Such charge resulted from a write-down of assets to estimated net
  realizable value, employee severance, selling costs, as a result of such
  restructuring plans.  Additional amounts were accrued for litigation and
  other legal costs. 
       
  5.  ACCOUNTS AND NOTES RECEIVABLE
  
  Trade accounts and notes receivable are stated net of an allowance for
  doubtful accounts of $3,357,000 and $3,124,000 at June 30, 1998 and December
  31, 1997, respectively.  
  
  6.  INVENTORIES
  
  Inventories, net of obsolescence reserves consist of the following (in
  thousands):
                   
                           June 30,    December 31,
                              1998         1997  
                       
  Finished goods        $10,812        $12,346
  Work-in-process         3,002          9,303
  Raw material            8,519          4,891
                        $22,333        $26,540
  
  7.  INVESTMENT IN RT-SET
  
  On February 29, 1996, the Company effectively purchased an option to acquire
  a 19% interest in Real Time Synthesized Entertainment Technology, Ltd. ("RT-
  SET"), located in Tel Aviv, Israel.  RT-SET develops, markets and sells real
  time virtual studio set software and proprietary communications 
  hardware that operate on Silicon Graphics systems. In form, Chyron purchased
  shares of RT-SET Convertible Preferred Stock, which are convertible into RT-
  SET common stock, in exchange for 800,000 shares of Chyron restricted stock.
  In accordance with the purchase agreement, the 800,000 of Chyron restricted
  common stock were to be held in escrow and released in tranches of one-third
  and two-thirds, subject to certain conditions.  During 1996, the first of
  these conditions was met, which resulted in the release of 266,666 shares
  of Chyron restricted common stock to RT-SET.  In addition, Chyron was
  granted certain call option rights which, if exercised, would result in the
  Company owning up to a 51% interest in RT-SET.
  
  On May 26, 1998, the Company entered into a Modification Agreement with RT-
  SET whereby 1) Chyron forfeited its call option rights, 2) RT-SET returned
  the 533,334 shares of Chyron common stock, previously issued and held in
  escrow, to the Company, 3) Chyron agreed to convert all of its shares of RT-
  SET Preferred Stock into RT-SET common shares with no less than the current
  value or $2,161,000 at the earlier of (i) the closing of certain financing
  to be obtained by RT-SET which may include an initial public offering of RT-
  SET stock or (ii) June 1, 1999.  RT-SET will retain the 266,666 shares of
  Chyron stock released from escrow in 1996, and Chyron will continue to hold
  an investment in RT-SET.
  
  8.  SUBSEQUENT EVENT
  
  On August 4, 1998, the Company entered into an agreement for the
  Sale of all of the voting and non-voting shares of Trilogy Broadcast,
  Limited ("Trilogy"), a wholly-owned subsidiary of Pro-Bel, Limited to the
  management of Trilogy.  The sale agreement provides for gross proceeds of
  2.0 million British Pounds Sterling, an interest bearing note for 300,000
  British Pounds Sterling and a 19% interest in the new company that results
  from this transaction.  The Company estimates the gain on the sale of
  Trilogy to be approximately $1.1 million and expects the transaction to
  close in the third quarter of 1998.
  
  As a result of this sale, the Company's assets, and liabilities will
  decrease by approximately $3.6 million and $1.2 million, respectively. 
  Trilogy contributed sales, gross profit and operating income of $2.7
  million, $1.5 million and $200,000, respectively, for the six months ended
  June 30, 1998.
  
  ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND 
          FINANCIAL CONDITIONS                                            
  
  From time to time, including in this Quarterly Report on Form 10-Q, the
  Company may publish forward-looking statements relating to such matters as
  anticipated financial performance, business prospects, technological
  developments, changes in the industry, new products, research and
  development activities and similar matters.  The Private Securities
  Litigation Reform Act of 1995 provides a safe harbor for such forward-
  looking statements.  In order to comply with the terms of the safe harbor,
  the Company notes that a variety of factors could cause the Company's actual
  results to differ from the anticipated results or other expectations
  expressed in the Company's forward-looking statements.  The risks and
  uncertainties that may affect the operations, performance, development and
  results of the Company's business include, without limitation, the
  following:  product concentration in a mature market, dependence on the
  emerging digital market and the industry's transition to DTV and HDTV, rapid
  technological changes, highly competitive environment, new product
  introductions, seasonality, fluctuations in quarterly operating results,
  expansion into new markets and the Company's ability to implement
  successfully its acquisition and alliance strategy.
  
  Results of Operations
  
  Overview
  
  This discussion should be read in conjunction with the Consolidated
  Financial Statements including the Notes thereto:
  
  Comparison of the Three Months Ended June 30, 1998 and 1997
  
  Sales for the quarter ended June 30, 1998 were $21.1 million, a decrease of
  $800,000, or 3.7%, over the $21.9 million reported for the second quarter
  of 1997.  This decrease was a result of decreases in sales for the Chyron
  Graphics line and international sales of the Pro-Bel line of 9% and 11.6%
  respectively, offset by substantial increases in U.S. sales of the Pro-Bel
  line, which grew by over 500% for the comparable periods.
  
  Gross profit decreased to $9.7 million for the quarter ended June 30, 1998.
  The decrease of $240,000, or 2.4%, from the $9.9 million reported for the
  second quarter of 1997 was attributable to the decrease in sales for the
  second quarter of 1998.  Gross margins as a percentage of sales increased
  to 45.8% in 1998 versus 45.3% in 1997 mainly as a result of the change in
  the product mix. Pro-Bel sales included an increased level of software
  product for 1998 as compared to the prior year, which led to the increase
  in margin percentage in 1998.
  
  Selling, general and administrative (SG&A) expenses increased by $1.5
  million or 19.9%, to $9.0 million in 1998 compared to $7.5 million for the
  second quarter of 1997. Increases were seen at both Chyron and Pro-Bel
  mainly as a result of new sales and marketing initiatives implemented by the
  Company.  Chyron's marketing costs increased by approximately $500,000, and
  customer service expenses increased by approximately $300,000 as a result
  of efforts to improve service.  Increases of approximately $225,000 and
  $275,000 were seen in Pro-Bel America sales support and Pro-Bel U.K. sales
  and marketing costs (inclusive of the establishment of a Chyron/Pro-Bel
  sales office in France), respectively.  Additional increases of $260,000
  were seen in expenses relating to the Concerto product line, which will be
  non-recurring as a result of the product line restructuring discussed below.
  These increases were offset by decreases in Chyron selling costs. 
  
  Gross research and development (R&D) costs increased during the second
  quarter of 1998 compared to the same period in 1997 by $641,000.  Increases
  were incurred at both Chyron and Pro-Bel as the Company has focused its
  attention on new product development to address the FCC ruling requiring
  broadcasters to utilize digital advanced television transmission beginning
  in 1998. Additional increases of $330,000 were incurred related to the
  Concerto  product  line which will be non-recurring as a result of the
  product line restructuring described below.  These increases were offset by
  net capitalized software costs which increased $72,000 for the three months
  ended June 30, 1998 versus the same period in 1997. 
  
  During the second quarter, management determined than it would be in the
  Company's best interest to implement a restructuring plan and refocus its
  efforts on its core products of graphics, routing and automation for
  television broadcast, cable and post production industries.  This product
  line restructuring has resulted in an agreement for the sale of Trilogy
  Broadcast, Limited, a wholly-owned subsidiary of Pro-Bel, Limited; the
  modification of the Company's investment in RT-SET; the reorganization of
  Chyron's sales and marketing organization; and the planned disposition of
  the Concerto Division. As a result, the Company has recorded restructuring
  and other non-recurring charges of $3,979,000 during the second quarter of
  1998.
  
  The restructuring charge includes the write-down of Concerto assets, accrued
  severance, legal costs and costs of disposition of such division totaling
  $2.9 million.  Other non-recurring charges relate to management's initiative
  to refocus the Company's core products and total $1.1 million. Included in
  other non-recurring charges are costs related to the sales reorganization,
  accrued severance of $245,000 and other miscellaneous costs of $315,000, all
  of which will require cash outlays.  Additional accruals have been made for
  litigation and other legal costs.
  
  Operating costs as a result of the product line restructuring are projected
  to benefit by a savings of approximately $500,000 in the third quarter of
  1998 and approximately $800,000 in the fourth quarter of 1998 due to the
  disposition of the Concerto product line and approximately $600,000 per
  quarter as a result of the sale of Trilogy; principally due to an estimated
  reduction in annual salaries and employee benefits of $2.3 million, a
  decrease in software amortization expense of $837,000 per year and a
  reduction in overhead costs of approximately $2.5 million per year.  Such
  savings will be offset by a reduction in the Trilogy product line gross
  profit of approximately $600,000.
  
  The result of these measures is a restructuring and other non-recurring
  charge of $3,979,000.  The specific components of this charge are as
  follows:
  
                       (In thousands)
  
       Asset write downs:
  
            Write down of Concerto assets to net 
               realizable value                        $2,300
  
            Total non-cash charges                      2,300
  
       Cash Outlays:
  
            Accrued severance                             645
  
            Accrued litigation and other 
               legal costs                                500
  
            Loss on lease commitment                      120
  
            Other                                         414
  
            Total restructuring and other
               Non-recurring charges                   $3,979
  
       In the second quarter of 1997, the Company recorded a non-recurring
  charge of $2,407,000 primarily as a result of a repositioning to address an
  FCC ruling requiring digital advanced television transmission beginning in
  1998.  The components of this charge included a write-down of inventory
  related to product lines which were discontinued as a result of a new
  marketing positioning strategy, severance expense related to a staff
  reduction, the write-off of software development projects related to
  products not within the new strategy, the consolidation of certain Chyron
  offices, the settlement of litigation dating back several years and the
  write-off of costs related to a potential acquisition that was abandoned due
  to the new strategy.
  
  Operating losses for the June 30, 1998 quarter, inclusive of the $3,979,000
  product line restructuring and other non-recurring charges, amounted to
  $5,771,000 versus an operating loss of $1,908,000 (including non-recurring
  charges of $2,407,000) for the comparable 1997 period.  Such increases in
  losses reflects the increases in operating costs described above as well as
  the restructure and other non-recurring charges of $3,979,000.
  
  Interest and other expense, net increased primarily as a result of foreign
  currency transaction losses for the quarter ended June 30, 1998 of
  approximately $130,000, offset by a decrease in the outstanding debt
  balance.
  
  Comparison of the Six Months Ended June 30, 1998 and 1997
  
  Sales for the six months ended June 30, 1998 were $42.6 million, an increase
  of $2.5 million, or 6.3%, over the $40.1 million reported for the first half
  of 1997.  This increase was a result of substantial increases in the
  domestic sales of the Pro-Bel line which showed a growth of nearly 600%,
  offset by slight decreases in sales of the Chyron graphics line, and
  international Pro-Bel sales of 3.7% and 2.7% respectively.
  
  Gross profit increased to $20.4 million for the six months ended June 30,
  1998.  The increase of $2.3 million, or 12.9%, over the $18.1 million
  reported for the first half of 1997 was attributable in part to the increase
  in sales for the first quarter of 1998.  Gross margins as a percentage of
  sales increased to 47.8% in 1998 versus 45.06% in 1997 mainly as a result
  of the change in the product mix.  Chyron sales, although showing slight
  decreases for the comparative periods, included more volume of the high end
  iNFiNiT graphic system which increased 50% over the comparable prior year
  period.  Additionally, Pro-Bel sales included an increased level of software
  product for the six months ended June 30, 1998 as compared to the prior
  year.  Both of these items led to increased gross profit for the first half
  of 1998.
  
  SG&A expenses increased by $2 million, or 13.4%, to $16.7 million in 1998
  compared to $14.7 million for the first half of 1997.  As outlined in  the
  three month comparison, increases were seen at both Chyron and Pro-Bel
  totaling approximately $1.3 million as a result of the new sales and
  marketing initiatives implemented by the Company.  Additional increases of
  $466,000 resulted from expenses related to the Concerto product line, which
  will be  non-recurring as a result of the product line restructuring
  described earlier.
  
  Gross R&D cost increased during the first half of 1998 compared to the same
  period in 1997 by $2.0 million.  Increases were incurred at both Chyron and
  Pro-Bel as the Company has focused its attention on new product development
  to address an FCC ruling requiring broadcasters to utilize digital advanced
  television transmission beginning in 1998.  Additional increases of $545,000
  were incurred related to the Concerto product line, which will be  non-
  recurring as a result of the product line restructuring.  These increases
  were offset by net capitalized software costs which increased $455,000 for
  the six months ended June 30, 1998 versus the same period in 1997.
  
  For the six months ended June 30, 1998, the Company recorded restructuring
  and other non-recurring charges totaling approximately $3,979,000.  See the
  discussion of the components of this charge in the  three month comparison
  above. In the prior year's comparable period, the Company had non-recurring
  charges totaling approximately $3.1 million.  As discussed in the three
  month comparison, $2.4 million of this charge related to the repositioning
  by the Company to address the effects of an FCC ruling requiring digital
  advanced television transmission beginning in 1998, with the remaining
  $675,000 being attributable to the Company's planned secondary offering of
  common stock which was terminated due to the market valuation of the stock. 
  
  
  Operating losses for the first half of 1998, inclusive of the $3,979,000
  product line restructuring and other non-recurring charges totaled $5.3
  million versus an operating loss of $3.2 million (including non-recurring
  costs of $3.0 million) for the comparable 1997 period.  This increase is a
  result of increases in operating costs described above combined with the
  restructure and other non-recurring charges, offset by increases in gross
  profit for the six months ended June 30, 1998 as compared to 1997.
  
  Interest and other expenses, net increased mainly as a result of foreign
  currency transaction losses for the period as compare to a gain in the prior
  year, offset by a decrease in the outstanding debt balance.
  
  Liquidity and Capital Resources
  
  At June 30, 1998, the Company had cash on hand of $1.9 million and working
  capital of $35.2 million.
  
  In connection with the acquisition of Axis, the Company issued promissory
  notes to the shareholders of Axis for $667,000.  The amount of installment
  payments was contingent upon the Axis division realizing certain revenue
  targets.  $250,000 of such notes was paid from Chyron's operating cash flow
  on March 31, 1998, with the remaining $417,000 being due on March 31, 1999. 
  
  The Company's promissory note to the former shareholders of Pro-Bel for 3.5
  million British Pounds Sterling was paid on April 15, 1998.  The funds to
  pay the notes were drawn from the Company's facility with Fleet Bank
  described below. 
  
  On March 28, 1996 and April 16, 1996, the Company entered into agreements
  with Fleet Bank (formerly NatWest Bank) to obtain a revolving credit
  facility of $10.0 million and a term loan of $8.0 million, respectively. The
  entire facility is secured by certain of the Company's assets.  Borrowings
  are limited to amounts computed under a formula for eligible accounts
  receivable and inventory.  Interest on the revolving credit facility is
  equal to adjusted LIBOR plus 175 basis points or prime (8.50% at June 30,
  1998) and is payable monthly.  The term loan is payable in quarterly
  installments of $500,000, commencing June 1, 1996.  Interest on the term
  loan is equal to adjusted LIBOR plus 200 basis points or prime and is
  payable monthly.  At June 30, 1998, the Company did not comply with certain
  financial covenants and, accordingly, has obtained approval for waivers for
  the period with respect to certain covenants and approval of amendments for
  periods up to and including April 16, 2000 for certain other covenants.  The
  revolving credit facility is scheduled to expire on March 28, 1999. 
  Management intends to seek renewal of such facility prior to the expiration
  date.
  
  Pro-Bel has a commercial mortgage term loan with Barclay's Bank Plc.
  ("Barclays").  The loan is secured by a building and property located in the
  United Kingdom.  Interest is equal to LIBOR plus 2% (9.44% at June 30,
  1998).  The loan (including interest) is payable in quarterly installments
  of 80,600 British Pounds Sterling ($136,000 converted at the June 30, 1998
  exchange rate). 
  
  On January 13, 1998, Pro-Bel entered into an agreement with Barclays whereby
  Barclays agreed to provide an overdraft facility of up to 4.0 million
  British Pounds Sterling ($6,750,000 converted at the June 30, 1998 exchange
  rate) through December 31, 1998 to Pro-Bel, and its subsidiaries.  The
  overdraft facility provides for interest at 1.5% per annum over the bank's
  base rate (9.00% at June 30, 1998).  Interest is payable quarterly in
  arrears.  This facility replaces the overdraft facility of up to 3.0 million
  pounds sterling in place at December 31, 1997.  All monies under the
  facility are repayable upon written demand.  Management intends to seek
  renewal of this facility prior to the expiration date.  Total borrowings are
  limited to amounts computed under multiple formulas of eligible accounts
  receivable and inventory.
  
  On December 20, 1996, Pro-Bel entered into an agreement with a bank to
  obtain an overdraft facility of up to 3.0 million British Pounds Sterling
  through December 31, 1997, subsequently extended to January 12, 1998
  ($4,943,000 converted at the December 31, 1997 exchange rate).  Total
  borrowings were limited to amounts computed under a formula for eligible
  accounts receivable.  Interest was equal to the bank's base rate plus 1.5%
  (8.75% at December 31, 1997) and was payable in arrears.  The facility was
  payable upon written demand by the bank and any undrawn portion was
  cancellable by the bank at any time.  This facility was replaced by the
  facility with Barclays, described above, dated January 13, 1998.
  
  At June 30, 1998, the Company had operating and capital lease commitments
  totaling $12.6 million and $.6 million, respectively, of which $1.2 million
  and $.3 million, respectively, is payable within one year.  Such lease
  commitments were for equipment, factory and office space and are expected
  to be paid out of operating cash flows of the Company.
  
  The Year 2000
  
  The Company has taken actions to make its system products and infrastructure
  year 2000 compliant.  The 1998 budget includes an allocation of $400,000 for
  a new integrated information system at Pro-Bel.  Additional monies are
  planned to be allocated in 1999.  Management believes based on available
  information that aside from the amounts described above, additional year
  2000 cost will be immaterial and that the year 2000 transition will not have
  material adverse effects on the Company's business, operations, products or
  financial prospects.
  
  
  
  PART II.   OTHER INFORMATION
  
  
  ITEMS 1., 2., 3.  Not applicable.
  
  ITEM 4.  Submission of Matters to a Vote of Security Holders
  
  On May 13, 1998, the Company held its Annual Meeting of shareholders.  At
  this meeting, the Company's shareholders re-elected Charles Diker, Donald
  P. Greenberg, Raymond Hartman, Edward Grebow, Alan J. Hirschfield, Wesley
  W. Lang, Jr., Eugene M. Weber, and Michael Wellesley-Wesley to the Board of
  Directors. No less than 19,120,782 shares were voted for the election of
  each director.  The number of shares voted totaled 20,392,506.
  
  ITEM 5.  Other Information
  
  The Company from time to time is involved in routine legal matters
  incidental to its business.  In the opinion of management, the ultimate
  resolution of such matters will not have a material adverse effect on the
  Company's financial position, results of operations or liquidity.
  
  ITEM 6.  Not applicable.
  
  
  
  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.
  
  
  CHYRON CORPORATION     
    (Registrant)
  
  
  
  
  August 13, 1998                /s/  Edward Grebow           
      (Date)                          Edward Grebow
                                      President and 
                                      Chief Executive Officer      
                                                             
                                                      
  
  
  
  August 13, 1998                /s/  Patricia Lampe          
      (Date)                          Patricia Lampe  
                                      Chief Financial Officer 
                                      and Treasurer