SECURITIES AND EXCHANGE COMMISSION
                     Washington, DC 20549




                          FORM 10-Q





QUARTERLY REPORT PURSUANT TO  SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934





For the Quarter Ended						              Commission  File
December 31, 1999                        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 December 31, 1999, the registrant had outstanding 3,005,339 shares of
its Common Stock,  $.01 par value per share.












                   PCC GROUP, INC. AND SUBSIDIARIES
                   CONSOLIDATED BALANCE SHEETS
                          In thousands
                           (Unaudited)












                                       December 31,   September30,
ASSETS                                    1999            1999
CURRENT ASSETS:
Cash and cash equivalents                   $1,058           $817
Securities and other negotiable assets
Accounts receivable, less allowances for
possible losses of $208,188, & $208,188      3,524          3,003
Receivable from related parties                109            125
Notes receivable - related parties
Inventory, less reserves for
obsolescence of $67,032& $67,032               669          1,064
Prepaids and other current assets              457            185
Advances to Vendors                            603            643

TOTAL CURRENT ASSETS                         6,420          5,837

PROPERTY AND EQUIPMENT, Net                    251            264


INVESTMENTS IN AND ADVANCES TO
JOINT VENTURES                               1,791          1,573
OTHER ASSETS                                    84            125

TOTAL ASSETS                                $8,546         $7,799





               PCC GROUP, INC. AND SUBSIDIARIES
                 CONSOLIDATED BALANCE SHEETS
                     In thousands
                 (Unaudited)   (Concluded)


LIABILITIES AND                         December 31,   September 30,
SHAREHOLDER'S EQUITY                        1999           1999
CURRENT LIABILITIES:
Accounts payable                             $1,420          $1,957
Line of credit                                1,990             600
Accrued liabilities                             118             103

TOTAL CURRENT LIABILITIES                     3,528           2,660

LONG TERM DEBT                                  777             714

Total Liabilities                            $4,305          $3,374



SHAREHOLDERS' EQUITY
Convertible, Cumulative, Series B
preferred stock($795,000 liquidation
preference) 1,000 stated value,
1600 shares authorized, 750
issued and outstanding                         750             750
Non-convertible cumulative series C
preferred stock($1,063,866 liquidation
preference in 1999) $1,053stated value,
1,000 shares issued and outstanding          1,053           1,053
Common stock, $.01 stated value; shares
authorized -10,000,000; shares issued and
outstanding - 2,647,839and 3,005,339            30              30
Contributed capital in excess of
stated value                                 3,088           3,088
Retained earnings                            (475)           (391)
Treasury stock, 99,000 shares
purchased at cost                            (205)           (105)

TOTAL SHAREHOLDERS' EQUITY                   4,241           4,425

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $8,546          $7,799



                 PCC GROUP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF INCOME
                 In thousands, except per share data
                          (Unaudited)


                                           Three Months Ended
                                             December 31,
                                            1999           1998
Net sales                                 $14,787        $27,794

Cost of sales                              14,441         26,546

Gross profit                                  346          1,248

Selling, general and administrative
expenses                                      583            589

Loss/Income from operations                 (237)            659

Other income (expense)
Gain (loss) on sale of investments
Interest (expense) income, net                 40           (81)
Other                                         (8)
                                             (32)           (81)

Net loss/income before income taxes         (269)            578

Income taxes                                                  59

Net loss/income                         $   (269)        $   519

loss/Income per share
Net income                                $(0.09)          $0.18
Dividends applicable to preferred stock    (0.01)         (0.02)
Net loss/income   applicable to common    $(0.10)          $0.16
shares

Average weighted number of shares       2,759,002      2,731,839


The accompanying notes are an integral part of these consolidated
financial statements.



             PCC GROUP, INC. AND SUBSIDIARIES
             CONSOLIDATED STATEMENTS OF CASH FLOWS
               In thousands, (Unaudited)
                                                 Three Months Ended
                                                    December 31,
                                                   1999      1998
NET CASH (USED) PROVIDED BY OPERATING ACTIVITIES
Net income                                       $ (269)    $  519
Depreciation and amortization                         13         4
Provision for bad debts                                         60
Increase (decrease) from changes in:
Investment in Securities
Accounts receivable                                (505)     (689)
Receivables from related parties
Inventory                                           395
Prepaids and other assets(excluding
I Net Partners reclassification)                   (107)     (174)
Accounts payable and accrued Liabilities           (522)     (528)
Net cash (used in)
Operating activities                               (995)     (808)

CASH FLOW FROM INVESTING ACTIVITIES:
Capital purchases                                             (34)
Net investments in and advances to joint venture   (117)      (18)
Net cash provided by (used in) investing
activities                                         (117)      (52)

CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from common stock issuance                             30
Change in line of credit                           1,453       100
Purchase treasury stock                           (100)

Net cash provided by
Financing activities                               1,353       130

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS                                     241     (730)
CASH AND CASH EQUIVALENTS,
Beginning of year                                    817     2,467
CASH AND CASH EQUIVALENTS,
end of quarter                                   $ 1,058  $  1,737



Cash paid during the year for:

Interest                                            $40        $81
Income taxes                                        $0         $0


The accompanying notes are an integral part of these consolidated consolidated
financial statements.




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




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 three months period ended December 31, 1999, are not necessarily
indicative of the results that may be expected for the year ending
September 30, 2000.  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, 1999.

Note 2 -  Income Taxes

During fiscal 1998, the Company utilized $1,593,229 of the net operating loss
carryforward.

As of September 30, 1999, for federal income tax purposes, the Company had
approximately $3,200,000 of federal income tax net operating loss
carryforwards expiring through 2019 and approximately $800,000 of state net
operating loss carryforwards expiring through 2004.  In addition, the
Company has approximately $600,000 and $300,000 of capital loss
carryforwards for federal and state purposes.  The annual utilization of
the net operating loss carryforward may be limited due to the provisions of
Internal Revenue Code section 382 and subsequent stock ownership changes 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
interest or obligations to update these forward-looking statements.

Three Months Ended December 31, 1999 as Compared to the Three Months Ended
December 31, 1998

Net sales of $14.8 million for the quarter ended December 31, 1999 decreased
by $13 million (47%) over net sales of $27.8 million for the similar 1998
period. This decrease was due to the competitive pressures in the marketplace.
New internet companies have caused softness in the wholesale market.
Gross profit for the first quarter of 1999 was $346,000 an  72% decrease,
when compared to $1.2 million during the prior year's comparable period,
reflecting a reduction in unit sales along with lower profit margins.  Gross
profit as a percentage of net sales decreased from 4.5% in the first quarter
of 1999 to 2.3% in the first quarter of 1999 due to market oversupply
pricing pressures.

Selling, general and administrative expenses decreased to $583,000 in the
first quarter of fiscal 1999 compared to $589,000 for the comparable fiscal
1998 period. As a percentage of revenue, SG&A expenses increased from 2.1%
in 1998 to 3.9% in 1999.

Income from operations decreased  to $(237,000) in the first quarter of
fiscal 1999 from $659,000 in the comparable fiscal 1998 period, principally
reflecting lower sales, lower margins.

Other income/expense decreased to ($32,000) in 1999 when compared to $(81,000)
for the comparable fiscal 1998 period.  The variance was mainly attributable
to losses on sale of investments in 1998.

Net income decreased to $(269,000), or $(0.10) per share (after preferred
stock dividend deduction), in the first quarter of fiscal 1999 compared to
$518,000, or $0.18 per share (after preferred stock dividend deduction) for
the same fiscal 1998 quarter.


Liquidity and Capital Resources

During the second  quarter of fiscal 1999, the Company entered into a line of
credit agreement with an institutional lender.  The credit facility provides
the Company  with  both accounts receivable and inventory based borrowings
of up to $6.5 million. The $5,000,000 credit facility, which expires on
March 31, 2000, is secured by a lien on all of the Company's personal
property.  In addition to the foregoing credit facility, the Company has
obtained a $1 million term loan from its bank to fund the development
expenses of the Company's new Computer Discount Center e-commerce division.
The term loan requires the Company to make monthly payments of principal and
interest from September 1999 through August 2002, at which time the term
loan matures.  In addition to the foregoing two credit facilities, the
Company has obtained a credit facility to fund its purchases of equipment
under its existing equipment purchase contract with a Taiwanese company.
This credit facility will not be available to the Company after the equipment
purchases are completed.  As of the date of this report, substantially all
of the Company's obligations under the equipment purchase agreement had been
completed, and the Company expects that the equipment purchase arrangement
and the related bank credit facility will expire during the current fiscal
quarter. In addition the company has a $2 million revolving line of credit.
The line is to issue and finance letters of credit. The company is not in
compliance with certain of the financial covenants required by its principal
lender, however the company has received a letter from the lender waiving
these covenants.


The  Company  expects  to  fund  the  working  capital  needs  of  its
distribution  business  with internally generated funds,  vendor  lines  of
credit  and  its  current asset-based financing facility.    Based  on  the
amount  of credit available to the Company, its current cash balances,  and
its current operations, the Company believes that it has sufficient capital
to  finance  its working capital needs for the next 12-month  period. In
addition to the  web-site through which it is offering computer and software
parts and products for sale to retail customers, during fiscal 1999 the
Company launched a new auto sales website and incurred substantial costs to
establish an Internet broker-dealer business   Because the cost of funding
all three of these operations was significant, the Company recently disposed
of the Internet automobile sales business to a third party buyer in exchange
for a 29% equity interest in the buyer.  As a result, the Company will no
longer be required to fund the start-up costs of this business, leaving
the Company with additional funds with which it can develop its remaining new
businesses.  The Company expects to fund the additional costs associated
with the new Internet businesses through internal cash flow, and possibly
additional debt or equity financing.  Although the initial start-up expenses
of  the web-sites  are expected to be significant, the Company believes
that it will have sufficient financial resources to maintain its new
businesses as well as continue its primary wholesale business.  However,
the Company has not  had any prior experience in operating any Internet
businesses or in operating a broker-dealer business and cannot therefore
accurately predict the amount of costs it will  have  to  incur in the
operation of these and other future E commerce operations.  Accordingly, if
the Company's estimates of revenues and expenses are not correct, the
Company may not have sufficient financing to fund all of the expenses it
expects to incur, and any such shortfall may have a material adverse effect
on the Company's liquidity and its financial results from operations.
In addition, no assurance can  be  given that the new Internet operations will
generate significant revenues in  the future or that they will ever be
profitable.

Net cash used in operating activities in the quarter ended December 31,1999
was $(995,000) as compared to $(808,000) in the first quarter ended December
31,1998 mainly reflects the net effects of cash provided by a reduction in
inventory, offset by an increase in Accounts Receivable, an increase in
Prepaids and other assets, an decrease in accounts payable, and a net
operating loss.

Net cash used in investing activities in the quarter ended December 31,
1999 was ($117,000), as compared to ($52,000) in the quarter ended December
31,1998, and reflects Investment in I Net Partners.

Net cash provided by financing activities in the quarter ended
December 31,1999 was ($1,353,000) as compared to $130,000 in the quarter
ended December 31, 1998. The increase  in cash from financing activities is
a result  of the increased borrowing from the Company's credit facilities
to finance its operations, offset by the purchase of  treasury stock

The Company believes that its internally generated cash flow, vendor credit
lines and its currently available lines of credit will be sufficient to fund
the Company's working capital needs for at least the next twelve months.


SIGNATURES

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

PCC GROUP, INC.
(Registrant)

Date:  February 11.2000          		       /s/ JACK WEN
				                                   Jack Wen
				        	                          Chairman of the Board, President and
                                       Chief Executive Officer


Date:  February 11,2000		              _______/s/ Donald Johnson   ___
                                        Donald Johnson
	             	                        Vice President - Finance and Chief
		        		                           Financial Officer (Principal
              			                      Financial and Accounting Officer)