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
March 31, 2000                           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
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 March 31, 2000, and September 30, 1999 the registrant had outstanding
3,030,339 of its Common Stock,  $.01 par value per share.



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


                                                        March   September
                                                          31        30,
ASSETS                                                   2000      1999
CURRENT ASSETS:
Cash and cash equivalents                                $527      $817
Accounts receivable, less allowances for
possible losses of $208,188 &208,188                    1,935     1,320
Receivable from related parties                         1,645     1,684
Notes receivable - related parties                                  125
Inventory, less reserves for
obsolescence of $ 67,032 & $ 67,032                     1,034     1,063
Prepaids and other current assets                         224       185
Advances to Vendors                                       604       643

TOTAL CURRENT ASSETS                                    5,969     5,837

PROPERTY AND EQUIPMENT, Net                               301       264

Notes Receivables less allowances for
possible losses of $522,000 & $522,000                  1,593     1,572
Investment in Joint Ventures                              198
OTHER ASSETS                                              335       126

TOTAL ASSETS                                           $8,396    $7,799





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


LIABILITIES AND                                  March 31,  September 30,
SHAREHOLDERS EQUITY                                2000         1999
CURRENT LIABILITIES:

Accounts payable                                 $2,131       $1,562
Accounts payable- Related Parties                    35          394
Line of credit                                    1,782          600
Accrued liabilities                                  96          103

TOTAL CURRENT LIABILITIES                         4,044        2,660


LONG TERM DEBT                                      774          714

Total Liabilities                                 4,818        3,374


SHAREHOLDERS' EQUITY
Non-convertible, Cumulative, Series C preferred
stock($1,063,866 liquidation preference) -
$1,053 stated value,shares authorized, issued
and outstanding - 1,000                             1,053        1,053
Convertible Preferred Stock($595,000)
Liquidation preference in 2000) $1,000
stated value, 1,600 shares authorized, 550
shares issued and outstanding                         550          750
Common stock, $.01 stated value; shares authorized -
10,000,000; shares issued and outstanding -
3,112,839 and 3,005,339 at March 31,2000, and
3,005,339 and 2917,589 at September 30,1999            31           30
Additional Paid in capital in excess of
stated value                                        3,516        3,088
Retained earnings                                  (1,371)        (391)
Treasury stock, shares purchased at cost             (201)        (105)

TOTAL SHAREHOLDERS' EQUITY                          3,578        4,425

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY         $8,396       $7,799



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

                        Three Months Ended      Six Months Ended
                            March 31               March 31,
                           2000     1999           2000     1999
Net sales                $11,234   $17,445       $26,021    $45,238

Cost of sales             11,027    16,732        25,468     43,278

Gross profit                 207       713           553      1,960


Selling, general and
administrative expenses      825       761         1,408      1,355

Income from operations      (618)     (48)          (855)       605

Other income (expense)

Gain (loss) on sale of
investments                           383                       383
Interest(expense)income,     (90)     (71)          (130)      (152)
Other                         (3)                     (5)         6
                             (93)     312           (125)       237

Net income pre income taxes (711)     264           (980)       842

Income taxes                          (27)                       32

Net income                 ($711)    $291       $   (980)   $   810

Income per share

Net income                 ($.24)    $.11         ($0.33)    $0.30
Dividends applicable to
preferred stock             (.01)    (.02)         (0.02)    (0.02)
Net income (loss)
applicable to common       ($.25)    $.09          (.035)    $0.28
shares

Average weighted
number of shares       3,004,883  2,742,039     2,973,226  2,727,979


Diluted Income
per Share               ($.25)         $.08      ($.35)     $.27

Average number of
diluted shares of
Common stock
outstanding            3,004,883   2,915,247   2,973,226  2,915,247




                PCC GROUP, INC. AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF CASH FLOWS
                   In thousands, (Unaudited)

                                                   Six Months Ended
                                                      March 31,
                                                   2000     1999
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Net income                                       $ (926)  $  810
Depreciation and amortization                        18       34
Provision for bad debts                                     (172)
Increase (decrease) from changes in:
Investment in Securities
Accounts receivable                                (615)    1,233
Receivables from related parties                     164    1,644
Inventory                                             29      259
Prepaids and other assets                          (209)     (938)
Accounts payable and accrued
Liabilities                                         262    (2,982)
Net cash provided by (used in)

Operating activities                             (1,331)    (112)
CASH FLOW FROM INVESTING ACTIVITIES:

Capital purchases                                   (55)
Net investments in and advances to joint venture   (219)      (2)

Net cash provided by (used in) investing
activities                                         (274)      (2)
CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from common stock issuance                 229       990
Change in line of credit                          1,182    (2,400)
Changes in treasury stock                           (96)

Net cash provided by (used in)
Financing activities                              1,315    (1,410)
NET INCREASE (DECREASE) IN CASH AND

CASH EQUIVALENTS                                  (290)    (1,524)
CASH AND CASH EQUIVALENTS,

Beginning of year                                   817     2,467

CASH AND CASH EQUIVALENTS,
end of quarter                                    $ 527  $    943

Cash paid during the year for:
Interes                                            t$90       $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

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  month  period  ended  March  31,  2000,  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 ot 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. In additiona the
Company has approximately $600,000 and $300,000 of net capital loss
carryforwards for federal and state purposes.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 Operation..
Except  for  historical  information  contained  herein,  the  matters set
forth  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  March 31, 2000 as Compared to the Three  Months  Ended
March 31, 1999
Net  sales  for  the  quarter ended March 31, 2000 decreased  by  $6.2 million
(36%) over net sales of $17.4 million for the similar 1999  fiscal quarter.
This decrease was due to a decrease in PC hardware sales in  March and part of
February. Gross profit for the second quarter of 2000 was $.2 million, a
(71%) decrease from the second quarter of 1999.  The decrease in gross profit
was the  result  of a soft market in PC hardware.  Gross profit as a percentage
of  net sales decreased from 4.0% in the second quarter of 1999 to 1.8%  in
the second quarter of 2000.  The reduction was due to market oversupply  of
hard  disk  drives  which resulted in pricing pressures that  required  the
Company to reduce its gross margins, and market pressures created by
competition from internet businesses.

Selling, general and administrative expenses increased from $761,000  in the
second  quarter of fiscal 1999 compared to $825,000 for the comparable fiscal
2000  period. As a percentage of revenue, SG&A  expenses  increased from  4.4%
in 1999  to 9.0% in 2000.  The increase in SG&A was due  to  the increased
overhead associated with the start-up of the company's new internet businesses.
Income  from  operations decreased  from $(48,000)  in  the  second quarter
of fiscal 1999 to ($618,000) in the comparable fiscal 2000 period. The
decrease in income from operations was due to competitive market in PC hardware
, and  the overhead associated with the start-up of the  company's new
internet busineses.	Other  income/expense decreased from $312,000 in 1999
when  compared  to ($93,000)  for  the  comparable  fiscal  2000  period.
The  decrease was attributable  to  recognizing a gain on the stock
portfolio in 1999.

Net  income decreased to ($711,000), or ($0.25) per share (after preferred
stock dividend deduction), in the second quarter of fiscal 2000 compared to
$291,000, or $.09 per share (after preferred stock dividend deduction)  for the
same fiscal 1999 quarter.  The decrease in net income is the result  of a
soft  market  in PC hardware resulting in competitive  price  pressures and,
the overhead associated with the new internet business offset by  the
recognition of gain on the securities portfolio.

Six  Months ended March 31, 2000 as compared to the Six months ended
March 31,1999

Net  sales for the six months ended March 31, 2000 decreased  by  $19.2 million
(42%) over net sales of $45.2 million for the similar 1999  period. This
increase primarily reflects the fluctuations in the  hard disk  drive market,
and competition from the internet market. Gross  profit  for the first six
months of 2000 was  $553,000  a (72%)  decrease from the six months of 1999.
The decrease in  gross  profit was  the result of pricing pressures.  Gross
profit as a percentage of  net sales  decreased from 4.3% in the first six
months of 1999 to 2.1%  in  the first  six  months of 2000.  The reduction was
due to market oversupply  of certain  products  which resulted in pricing
pressures  that  required  the Company to reduce its gross margins, and
competeitive pricing from internet market..

Selling,  general and administrative expenses increased to  $1,408,000 in
the  first  six  months of fiscal 2000 compared to $1,355,000  for  the
comparable  fiscal 1999 period. As a percentage of revenue,  SG&A  expenses
increased from 3.0% in 1999 to 5.4% in 2000.  The increase in SG&A was  due
to start up costs associated with the company's new internet divisions.

Income  from  operations decreased to ($855,000) in  the  first  six months of
fiscal 2000 from $605,000 in the comparable fiscal 1999 period. The
decrease  in  income from operations is due to two factors.  The  soft market
in PC hardware , the start-up cost associated with a new division..
Other  income/expense decreased to ($125,000) in 2000 when  compared  to
$237,000 for the comparable fiscal 1999 period.  The variance was  mainly
attributable  to  the gain on the stock portfolio sold by  the  Company
in 1999.

Net  income decreased to ($980,000), or ($0.35) per share (after
preferred stock  dividend deduction), in the first six months of
fiscal 2000 compared to  $810,000, or $.28 per share (after preferred stock
dividend  deduction) for the same fiscal 1999 quarter.  The decrease in net
income is the result of  decreased  sales, lower gross margin, and costs
associated with new internet startups,  and,  offset by the  effect  of
the  securities transactions gain experienced in 1999 which adversely affected
last  year's net income, .

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
September 30, 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  have  been significant, the Company believes
that it will have sufficient financial resources to maintain its new
businesses as well as continue its primary wholesale business.  The Company
launched its Broker Dealer business in March 2000, and believes that
this division will now begin developing revenues. 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  provided by (used in) operating activities  in  the  fiscal quarter
ended  March 31, 2000 $(1,331,000), as compared to ($112,000  in  the same
quarter is 1999 mainly reflects the net effects of an operating loss  in
operations,  augmented by increases in accounts receivable , related  party
receivables,and an increase  in   prepaids  offset by a decreases in inventory.
and an increase in accounts payable and other liabilitiews.

	Net  cash  provided  (used  in) investing activities  in  the  current quarter
was $(274,000), principally representing inter-company activity.
	Net  cash  provided  (used  in) financing activities  in  the  current
quarter was $1,315,000  as compared to ($1,410,000) in last year's period,
and  mainly reflects  a increase in the borrowing againtst asset-based line
of credit.



Item 2. Changes in Securities and use of Proceeds

         In  January  1999, the Company sold $750,000 of its new 8% Convertible
Preferred Stock  (the  "Preferred Stock") to two institutional  investors
register   The holders of the Preferred Stock are entitled to receive  dividends
in cash at a rate of 8% per annum, compounded  annually and  payable
semi-annually on the first day of July and  January  of  each year, commencing
on July 1, 1999.  The Preferred Stock is convertible  into shares  of the
Company's common stock at a conversion price equal to stated value  of the
Preferred Stock multiplied by the lower of (a) 125%  of  the closing  sales
price of the common stock on the date that the  registration statement is
declared effective, or (b) the average of the  three  lowest closing  sales
prices of the common stock for the 22  consecutive  trading days
immediately  preceding  the conversion  date.   The  holders  of  the Preferred
shares of the Preferred Stock until May 19, 1999, and thereafter, the
holders can only convert 20% of the Preferred Stock  during  any
subsequent 30-day period.  The  holders  also  may  not convert the
Preferred Stock if such conversion would result in any  of  the
holders being deemed to be the beneficial owner of more than 5% of the then
outstanding  shares  of common stock of the Company or  if  the  shares  of
common stock, when added to the number of shares of common stock previously
issued by the Company upon conversion of the Preferred Stock would equal or
exceed  20%  of the number of shares of common stock that were  issued  and
outstanding  on the date of the original issuance of the Preferred   Stock. The
Preferred Stock has not voting rights, other than as may  be  required
pursuant to the laws of the State of California. In January, 2000 the holders
of the preferred stock exercised their conversion rights, and converted 200
shares of preferred stock into 96,000 shares of the Company's common stock.

 .

Item 3.  Exhibits and Reports on Form 8-K

(a)    Ex 27	Financial Data Schedule

(b) The Company did not file and reports on Form 8-K during the fiscal quarter
ended March 31, 2000.













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:  May 10, 2000                                 /s/ JACK WEN
       Jack Wen                Chairman of the Board, President and
                               Chief Executive Officer



Date:  May 10, 2000	_______                 /s/ DONALD JOHNSON   ___

Donald Johnson                     Vice President - Finance and Chief
                                   Financial Officer (Principal
		                                 Financial and Accounting Officer)








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