SECURITIES AND EXCHANGE COMMISSION
                           Washington, DC 20549
                                     
                                     
                                     
                                     
                              FORM 10-Q /A-2
                                     
                                     
                                     
                                     
                                     
         QUARTERLY REPORT PURSUANT TO  SECTION 13 OR 15 (d) OF THE
                      SECURITIES EXCHANGE ACT OF 1934





For the Quarter Ended                                       Commission File
June 30, 1998                                               Number:0-13280




                              PCC GROUP, INC.
          (Exact name of registrant as specified in its charter)
                                     




         California                                            95-3815164
(State or other jurisdiction of                     (I.R.S. Employer
incorporation or organization)                       Identification No.)



163 University Parkway                                               91768
Pomona, California                                                 (Zip Code)
(Address of principal executive office)



    Registrant's telephone number, including area code: (909) 869-6133



Indicate  by  check  mark, whether the registrant  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 report), and has been subject to  such
filing requirements for the past 90 days.

                          Yes  x                    No.___

As of June 30, 1998, the registrant had outstanding 2,680,339 shares of its
Common Stock,  $.01 par value per share.
                                     
                                     
                                     
ITEM 1.  FINANCIAL STATEMENTS                                          
                                                                       
                                                                       
         PCC GROUP, INC. AND SUBSIDIARIES
           CONSOLIDATED BALANCE SHEETS
                   In thousands
              (Unaudited)/(Audited)
                                                                       
                                                                       
                                                                       
                                                   June 30,  September
                                                                 30
ASSETS                                               1998      1997
CURRENT ASSETS:                                                        
Cash and cash equivalents                             $738       $1,057
Securities and other negotiable assets                            1,017
Accounts receivable, less allowances for                               
   Possible losses of $113,944 and $34,447           4,390        3,958
Receivable from related parties                        358          368
Notes receivable - related parties                                  100
Notes receivable                                     1,250             
Inventory, less reserves for
   obsolescence of $207,958 and $225,082               644          735
Prepaids and other current assets                    3,112          230
   TOTAL CURRENT ASSETS                             10,492        7,465
                                                                       
PROPERTY AND EQUIPMENT, Net                            132          100
                                                                       
INVESTMENTS IN AND ADVANCES TO                                         
   JOINT VENTURES                                     3,004       3,004
                                                                       
OTHER ASSETS                                            24           23
                                                                       
   TOTAL ASSETS                                    $13,652      $10,592
                                                                       
The accompanying notes are an integral part of                         
these consolidated financial statements.


























                                                  

         PCC GROUP, INC. AND SUBSIDIARIES
           CONSOLIDATED BALANCE SHEETS
                   In thousands
              (Unaudited)/(Audited)
                                                                          
                                                                          
                                                  
                                                  
                                                  
                                                  
                                                                          
LIABILITIES AND                                      June 30,  September
                                                               30,
SHAREHOLDERS EQUITY                                    1998       1997
CURRENT LIABILITIES:                                                      
Accounts payable                                        $2,652      $4,113
Line of credit                                           4,000         140
Accrued liabilities                                        166         177
Securities margin liability                                            428
                                                                          
   TOTAL CURRENT LIABILITIES                             6,818       4,858
                                                                          
DEFERRED GAIN ON SALE OF EQUIPMENT                         933         933
                                                                          
LONG TERM DEBT                                              37          18
                                                                          
                                                         7,788       5,809
SHAREHOLDERS' EQUITY                                                      
Non-convertible, Cumulative, New Series A                                 
preferred stock
($1,200,000 liquidation preference) - $4.80 stated                        
value,
Shares authorized, issued and outstanding -              1,200       1,200
250,000
Common stock, $.01 stated value; shares authorized                        
-
10,000,000; shares issued and outstanding -                               
2,680,339
and 2,647,839                                               27          26
Contributed capital in excess of stated value            1,652       1,611
Retained earnings                                        3,132       2,093
Treasury stock, 99,000 shares purchased at cost          (147)        (147)
                                                                          
   TOTAL SHAREHOLDERS' EQUITY                            5,864       4,783
                                                                          
   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY          $13,652      10,592
                                                         
                                                                          
    The accompanying notes are an integral part of                        
          these consolidated financial statements.
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     

  PCC GROUP, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
In thousands, except per share data
       (Unaudited)/(Audited)
                                                                            
                                                                            
                                                                            
                                       Three    Nine Months Ended
                                       Months
                                       Ended
                                      June 30,      June 30,
                                        1998      1997     1998      1997
Net sales                              $17,366   $10,951  $60,845    $38,240
                                                                            
Cost of sales                           16,572    10,497   57,865     36,372
                                                                            
   Gross profit                            794       454    2,980      1,868
                                                                            
Selling, general and administrative                                         
   Expenses                                481       569    1,500      1,480
                                                                            
   Income/(Loss) from operations          313       (115)   1,480        388
                                                                            
Other income (expense)                                                      
   Gain (loss) on sale of                  103       (4)    (152)      (290)
investments
   Interest (expense) income, net         (87)              (160)           
   Other                                   (5)        27     (23)         14
                                            11        23    (335)      (276)
                                                                            
Net income/(Loss) before income            324       (92)   1,145       520
taxes                                          
                                                                            
Income taxes                                23                 106     (55)
                                                                       
Net income/(Loss)                     $    301  $   (92)   $1,039   $   465
                                                                            
                                                                            
Income per share                                                            
   Net income/(Loss)                     $0.11    $(.04)     $0.39     $0.18
   Dividends applicable to preferred    (0.02)    (0.02)   r(0.04)      0.05
stock
   Net income (loss) applicable to       $0.09   ($0.06)   r($0.35     $0.13
common
   Shares                                                                   
Average weighted number of           2,663,824 2,579,339 2,663,824 2,579,339
shares(Basic)
                                                                             
Diluted income per share             $.08                   $.31     $.12
                                  
Diluted weighted average shares      2,973,177   N/A    2,973,177    2,863,109
                                              
                                                                   
                                                   
    The accompanying notes are an integral part of these consolidated
     financal statements.
                                                                            
                                    
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
       PCC GROUP, INC. AND SUBSIDIARIES
     CONSOLIDATED STATEMENTS OF CASH FLOWS
           In thousands, (Unaudited)
                                                               
                                                 Nine
                                                Months
                                                 Ended
                                                 June
                                                  30,
                                                  1998     1997
NET CASH PROVIDED (USED) BY OPERATING                          
ACTIVITIES
Net income                                      $1,039     ($ 92)
Depreciation and amortization                       32         98
Provision for bad debts                           (79)         60
Increase (decrease) from changes in:                           
   Investments in securities                     1,017        343
   Accounts receivable                           (433)        572
   Receivables from related parties            (1,140)      (365)         
   Inventory                                   (2,810)        237
   Prepaids and other assets                       18       (112)
   Accounts payable and accrued                                
   Liabilities                                  (1,889)     (386)
   Net cash provided by (used in)                              
   operating activities                         (4,245)       539
CASH FLOW FROM INVESTING ACTIVITIES:                           
   Purchases of common stock                        47       (59)
   Fixed Asset disposal                                      (81)
   Net investments in and advances to joint                  (10)
venture
   Net cash provided by (used in) investing         47      (150)
activities
CASH FLOW FROM FINANCING ACTIVITIES:                           
   Change in margin liability                               (180)
   Change in line of credit                        3,860      200
   Borrowings long term debt                          19         
   Net cash provided by (used in)                              
   financing activities                            3,879       20
NET INCREASE (DECREASE) IN CASH AND                            
CASH EQUIVALENTS                                   (319)      409
CASH AND CASH EQUIVALENTS,                                     
beginning of year                                  1,057      508
                                                               
CASH AND CASH EQUIVALENTS,                                     
end of quarter                                    $  738   $  917
                                                               
Cash paid during the year for:                                 
Interest                                            $123      $26
Income taxes                                        $106       $6
                                                               
                                                               
 The accompanying notes are an integral part of
      these consolidated consolidated financial
                                    statements.
                       
                       









                                     
                             PCC GROUP,  INC.
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                (Unaudited)





     PCC  Group, Inc. ("PCCG" or the "Company") is principally a  wholesale
distributor of microcomputer products.  The Company serves a select  client
base,  which  includes Value Added Resellers ("VAR's"), system  integrators
and  dealers.  The company also has established an environmental  resources
division,and in connection therewith, the Company has established  a  scrap
tire recycling plant in Dalian Peoples Republic of China.  This facility is
owned  by  Dalian  Green Resources Corporation ("Dalian  Green"),  a  joint
venture in which the Company holds a fifty-five percent interest and  China
Dalian  Materials Development Corporation, a Chinese entity, holds a forty-
five  percent  interest. The company is experiencing  difficulty  with  the
original  design and has not received the permits necessary to operate  the
plant.  The  company  is working to resolve these problems.  The  Company's
corporate office and warehouse is located in Pomona, California.

Note 1 - Basis of Presentation

     The accompanying unaudited consolidated financial statements have been
prepared  in  accordance with generally accepted accounting principles  for
interim  financial information and with the instructions to Form  10-Q  and
Article  10  of Regulation S-X.  Accordingly, they do not include  all  the
information  and  footnotes  required  by  generally  accepted   accounting
principles   for  complete  financial  statements.   In  the   opinion   of
management,  all  adjustments (consisting of normal recurring  adjustments)
considered  necessary for fair presentation have been included.   Operating
results  for the nine months period ended June 30, 1998 are not necessarily
indicative  of  the  results  that may be  expected  for  the  year  ending
September  30,  1998.  For further information, refer to  the  consolidated
financial statements and footnotes thereto included in the Company's annual
report on Form 10-K for the year ended September 30, 1997.
     
Note 2 - Income Taxes

     As of September 30, 1997, for federal income tax purposes, the Company
had approximately $2.7 million in net operating loss carryforwards expiring
through  2001.   The annual utilization of the operating loss  carryforward
may  be  significantly limited due to the adverse resolution, if any,  with
respect  to the loss carryover provisions of Internal Revenue Code  section
382 in connection with certain stock issuances by the Company.

ITEM  2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION  AND
RESULTS OF OPERATIONS.

     Except  for  historical  information  contained  herein,  the  matters
setforth  in this report are forward-looking statements within the  meaning
of the "safe harbor" provisions of the Private Securities Litigation Act of
1995.    These  forward-looking  statements  are  subject  to   risks   and
uncertainties  that  may  cause actual results to differ  materially.   The
Company   disclaims   any  obligations  to  update  these   forward-looking
statements.

Three Months Ended June 30, 1998 as Compared to the Three Months Ended June
30, 1997
     
     Net  sales  of  $17.4  million for the quarter  ended  June  30,  1998
increased  by  $6.5 million (60%) over net sales of $10.9 million  for  the
similar  1997  period.  This increase was due to the combined  effects,  on
volume,  on  an  increase in hard disk sales, and of continued  competitive
pricing pollicies.
     
     Gross profit for the second quarter of 1998 was $794, a  75% increase,
when  compared  to  $454,000  during the  prior  year's  comparable  period
reflecting  a  growth in unit sales.  Gross profit as a percentage  of  net
sales slightly 1ncreased from 4.1% in the second quarter of 1997 to 4.5% in
the third quarter of 1998.
     
     Selling,  general and administrative expenses decreased by $88,000  to
$481,000 in the third quarter of fiscal 1998 compared to $569,000  for  the
comparable  fiscal 1997 period. As a percentage of revenue,  SG&A  expenses
decreased  from  5.2% in 1997 to 2.7% in 1998.  The difference  is  due  to
primarily higher sales volume in fiscal 1998 and to a $34,000 reduction  in
consulting  fees,  a  $24,000  decrease  in  depreciation  expense,  and  a
reduction  in  travel  and other expenses. Strict cost controls  maintained
SG&A expenses in sync with prior year's levels.
     
     Income from operations increased from ($115,000) in the second quarter
of   fiscal  1997  to  $313,000  in  the  comparable  fiscal  1998  period,
principally  reflecting increased billings and volume related SG&A  expense
reductions.   Operating income as a percentage of net sales increased  from
(1.0)% in 1997 to 2.9% in the comparable 1998 quarter.
     Other  income  decreased  by $12,000 in  1998  when  compared  to  the
comparable fiscal 1997 period.
     
     Net  income increased to $301,000, or $0.09 per share (after preferred
stock dividend deduction), in the second quarter of fiscal 1998 compared to
($92,000),  or $(0.06) per share (after preferred stock dividend deduction)
for the same fiscal 1997 quarter.

Nine  Months Ended June 30, 1998, as Compared to the Nine Months Ended June
30, 1997

     Net  sales increased 59.3% from $38.2 million in 1997 to $60.8 million
in 1998.  Revenue growth was primarily driven by a demand for high capacity
hard disks.
     
     Gross  profits  increased by 60% from $1.9 million in  the  nine-month
period ended on June 30, 1997 to $3.0 million in the comparable fiscal 1998
period,  principally due to new hard disk product offerings.  Gross  profit
as a percentage of net sales stayed the same at 4.9 %.
     
     Selling,  general  and  administrative expenses increased  by  $20,000
(1.3%)  during  the  1998  first six-month  period  when  compared  to  the
comparable  fiscal  1997  period.     As  a  percentage  of  revenue,  SG&A
decreased from 3.9% in 1997 to 2.5% in 1998.  Strong  cost controls allowed
the  Company  to  operate  efficiently without  hiring  new  personnel,  or
incurring in additional administrative expenses.
     
     Income  from  operations  increased  281%  from  $388,00  in  1997  to
$1,480,000 for the comparable fiscal 1998 period.  As a percentage  of  net
sales,  operating  income increased from 1.0% in 1997,  to  2.5%  in  1998,
mainly reflecting increased billings and lower administrative expenses.
     
     Other income (loss) for the 1998 period principally reflects continued
losses,   in  the  aggregate  of  $(152,000),  in  the  sale  of  corporate
securities.   During  the comparable 1997 period, the  Company  reported  a
$(290,000) loss mainly attributable to the sale of similar investments.
     
     Net  income  increased threefold to $1,039,000,  or  $0.37  per  share
(after  preferred stock dividend deduction), in the nine months ended  June
30, 1998 compared to $465,000 for the same fiscal 1997 period.
     
     At  the  end  of  fiscal  1997, the Company  had  net  operating  loss
carryforwards  available to offset future taxable income  of  approximately
$2.7  million.   It  is  not possible at this time to  determine  that  the
realization of the net deferred tax asset as of September 30, 1997 is  more
likely  than  not;  accordingly,  a  100%  valuation  allowance  has   been
established.
     
Liquidity and Capital Resources

     Since  May  1994,  the Company has primarily operated with  internally
generated cash flow and vendor lines of credit.  During the second  quarter
of  fiscal 1997, the Company entered into a line of credit agreement, which
provides  accounts receivable, and inventory based borrowings of up  to  $3
million. The company has a short-term bank loan based on receivables and/or
inventory. The maximum available under this facility is $5,000,000
     The  company  had borrowing combined under both lines of $2.6  million
based on available collateral.
     To  date the company has invested $3 million in the Dalian Green joint
venture. The Dalian Green facility has not commenced operations because  of
regulatory difficulties with the Chinese government, and problems with  the
original design. The company is working to resolve these problems,  however
if  the  plant  is  not operating by year-end according to  the  accounting
regulations the company may have to reserve some portion of the investment.
However  the company has determined that it will limit its future  expenses
related  to  the facility, and therefore does not expect that  the  Chinese
Joint  Venture  will  negatively  affect the  Company's  future  liquidity.
Although  the plant has now been constructed the operations cannot commence
until  certain permits have been received, including in particular a permit
authorizing the importation of used tires. In April 1998 there was a change
in  the  Chinese government's cabinet. Due to concerns that China could  be
used  as  dumping  ground for refuse of other countries,  the  new  cabinet
imposed  restrictions on the importation of many used  products,  including
used  tires. Because the plant was designed to process more rubber than  is
available in China, the newly imposed restrictions would make the recycling
plant  commercially nonviable. Accordingly the joint venture has  attempted
to  obtain a permit that would exempt recyclable tires from the new  import
restrictions.  The  Company has been informed that the  permit  application
would  be  considered in September 1998. If a permit were not granted,  the
Company  would  have to recognize impairment to its joint  venture  assets.
While  the company believes that it will receive them, no assurance can  be
given that the joint venture will be able to obtain the required permits.
     Net  cash  provided  by  (used in) operating activities  in  1998  was
($4,245,000), as compared to $539,000 in 1997 mainly the result of the  net
effects of cash provided by sale of securities to a related party. This  is
offset  by  a  note  receivable,  offset by  increases  in  investments  in
securities, inventory, prepaids and other assets. The cash requirements for
the  quarter  went to the acquisition of capital equipment for resale,  and
the reduction in liabilities.
     
     Net  cash provided (used in) investing activities in 1998 was  $47,000
for  the  redemption  of stock options, as compared to $(150,000)  in  1997
consisting primarily of inter-company activity.
     
     Net   cash  provided  (used  in)  financing  activities  in  1998  was
$3,879,000 as compared to $20,000 in 1997 this reflects the acquisition  of
equipment for resale and the reduction of liabilities.
     In  June 1998 the company divested itself of its investment portfolio,
receiving  a  short-term note of $1,250,000 for the balance  of  its  stock
fund.
     The Company plans to fund the growth of its distribution business with
internally  generated funds, vendor lines and asset-based  financing.   The
Company  is  pursing  various alternatives intended to enhance  shareholder
value,  and recently retained an investment banker.   For a description  of
the Company's investment in Dalian see Note 1 to the Company's Consolidated
Financial Statements for the year ended on September 30, 1997.

                                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.

                              PCC GROUP, INC.
                               (Registrant)

Date:    September   04,  1998,                            /s/   JACK   WEN
Jack Wen
                              Chairman of the Board, President and
                                       Chief Executive Officer



Date:  September 04, 1998                 _______/s/ Jack Wen           ___
                                                Jack Wen
                                                  Acting
                                   Vice   President  -  Finance  and  Chief
Financial                         Officer                        (Principal
Financial and Accounting Officer)