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, 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  March 31, 1999, the registrant had outstanding 2,751,339 shares  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                                              1999   1998
CURRENT ASSETS:                                                        
Cash and cash equivalents                             $943       $2,467
Accounts receivable, less allowances for                               
   possible losses of $206,963 &34,447               2,811        3,872
Receivable from related parties                        771        1,548
Notes receivable - related parties                                  867
Inventory, less reserves for                                           
obsolescence of $277,684 & $166,484                    444          703
Prepaids and other current assets                      511          274
Advances to Vendors                                  3,398        3,034
                                                                       
   TOTAL CURRENT ASSETS                              8,878       12,765
                                                                       
PROPERTY AND EQUIPMENT, Net                            167          126
                                                                       
                                                           
INVESTMENTS IN AND ADVANCES TO                                         
   JOINT VENTURES                                    1,874        1,872
                                                                       
OTHER ASSETS                                           203            9
                                                                       
   TOTAL ASSETS                                    $11,122      $14,774
                                                                       
 .                                                                      

















                                                  








                         
                         
                         
         PCC GROUP, INC. AND SUBSIDIARIES
           CONSOLIDATED BALANCE SHEETS
                   In thousands
                         
            (Unaudited)   (Concluded)
                                                                          
                                                                          
                                                  
                                                  
                                                  
                                                  
                                                                          
LIABILITIES AND                                     March 31,  September
                                                               30,
SHAREHOLDERS EQUITY                                 1999       1998
CURRENT LIABILITIES:                                                      
Accounts payable                                    $2,983       $5,916
Line of credit                                         900        3,300
Accrued liabilities                                    139           65
                                                               
   TOTAL CURRENT LIABILITIES                         3,948        9,354
                                                                          
                                                                          
                                                                          
LONG TERM DEBT                                          29           35
                                                                          
                                                                    
Total Liabilities                                     3,977       9,389


SHAREHOLDERS' EQUITY
Non-convertible, Cumulative, New Series A                                 
preferred stock($1,200,000 liquidation preference) 
- $4.80 stated value,shares authorized, 
issued and outstanding - 250,000                      1,250       1,200
Convertible preferred stock  8% 
(see separate note for Conversion rates.)               750
Common stock, $.01 stated value; shares authorized
10,000,000; shares issued and outstanding -                               
2,647,839and 2,751,339                                   27          27
Contributed capital in excess of stated value         1,961       1,721
Retained earnings                                     3,307       2,497
Treasury stock, 99,000 shares purchased at cost       (100)         (60)
                                                                          
   TOTAL SHAREHOLDERS' EQUITY                         7,145        5,385
                                                                          
   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY       $11,122      $14,774
                                                                          







                                                                          


  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,
                                       1999       1998     1999     1998
Net sales                              $17,445   $19,734  $45,238   $43,479
                                                                           
Cost of sales                           16,732    18,661   43,278    41,291
                                                                           
   Gross profit                            713     1,073    1,960     2,188
                                                                           
Selling, general and administrative                                        
   Expenses                                761       513    1,355     1,053
                                                                           
   Income from operations                 (48)       560      605     1,135
                                                                           
Other income (expense)                                                     
   Gain (loss) on sale of                  383       209      383     (274)
investments
   Interest (expense) income, net         (71)      (23)    (152)      (46)
   Other                                             (6)        6        7
                                           312       180      237      (313)
                                                                           
Net income before income taxes             264       740       842      822
                                                                           
Income taxes                              (27)        74        32       82
                                                                           
Net income                                $291      $666     $810      $740
                                                                 



Income per share
   Net income                             $.11      $.25    $0.30     $0.28
   Dividends applicable to preferred     (.02)     (.02)   (0.02)    (0.02)
   stock
   Net income (loss) applicable to        $.09      $.23    $0.28     $0.26
   common Shares                                                    
Average weighted number of shares    2,742,039 2,647,839 2,727,979 2,647,839
                                                                           
                                                                            
   Diluted Income per share               $.08     $.22        $.27    $.25    
                                                                            
Average number of diluted shares
of Common stock outstanding         2,915,247 2,852,985  2,915,247  2,852,985



                                 
                                                                           

       PCC GROUP, INC. AND SUBSIDIARIES
     CONSOLIDATED STATEMENTS OF CASH FLOWS
           In thousands, (Unaudited)
                                                               
                                                  Six Months Ended
                                                     March 31,
                                                   1999    1998
NET CASH PROVIDED (USED) BY OPERATING                          
ACTIVITIES
Net income                                       $  840  $  740
Depreciation and amortization                        34      34
Provision for bad debts                           (172)     103
Increase (decrease) from changes in:                           
   Investment in Securities                               (796)
   Accounts receivable                            1,233     502
   Receivables from related parties               1,644     314
   Inventory                                        259 (2,078)
   Prepaids and other assets                      (938)    (330)
   Accounts payable and accrued                                
   Liabilities                                  (3,012)   1,622
   Net cash provided by (used in)                              
   Operating activities                           (112)     111
CASH FLOW FROM INVESTING ACTIVITIES:                            
   Capital purchases                                      (177)
   Net investments in and advances to joint         (2)   (101)
venture
   Net cash provided by (used in) investing         (2)   (278)
activities
CASH FLOW FROM FINANCING ACTIVITIES:                           
   Proceeds from common stock issuance              990        
   Change in line of credit                     (2,400)   (119)
   Change in margin liability                               225
   Net cash provided by (used in)                              
   Financing activities                         (1,410)     106
NET INCREASE (DECREASE) IN CASH AND                            
CASH EQUIVALENTS                                ($1,524)     50
CASH AND CASH EQUIVALENTS,                                      
Beginning of year                                 2,467   1,057
                                                        
CASH AND CASH EQUIVALENTS,                                     
end of quarter                                    $ 943   $ 966
                                                               
Cash paid during the year for:                                 
Interest                                            $81     $45
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  month  period  ended  March  31,  1999,  are  not
necessarily  indicative of the results that may be expected  for  the  year
ending  September  30,  1999.   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, 1998.
     
Note 2 -  Income Taxes

     As of September 30, 1998, for federal income tax purposes, the Company
had approximately $1.6 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  interest or obligations to update  these  forward-
looking statements.

Three  Months  Ended March 31, 1999 as Compared to the Three  Months  Ended
March 31, 1998
     
     Net  sales  for  the  quarter ended March 31, 1999 decreased  by  $2.3
million  (12%) over net sales of $19.7 million for the similar 1998  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 1999 was $.7 million, an  33.6%
decrease from the second quarter of 1998.  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 5.4% in the second quarter of 1999 to 4.0%  in
the second quarter of 1999.  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.
     
     Selling, general and administrative expenses increased to $761,000  in
the  second  quarter of fiscal 1999 compared to $513,000 for the comparable
fiscal  1998  period. As a percentage of revenue, SG&A  expenses  increased
from  2.6%  in 1998 to 4.4% in 1999.  The increase in SG&A was due  to  the
increased overhead associated with the start-up of the company's new inter-
net business.
     
     Income  from  operations decreased 56.6% to $(48,000)  in  the  second
quarter  of fiscal 1999 from $560,000 in the comparable fiscal 1998 period.
The decrease in income from operations was due to competittive market in PC
hardware,  and  the overhead associated with the start-up of the  company's
new inter-net business..
     
     Other  income/expense increased to $312,000 in 1999 when  compared  to
$180,000  for  the  comparable  fiscal  1998  period.   The  increase   was
attributable  to  recognizing a gain on the stock portfolio.   The  Company
collected  a receivable during the current quarter for its stock  portfolio
which  it  sold in 1998, the sale was reserved at that time reflecting  the
sold its portfolio of securities during the fiscal year ended September 30,
1998.  Since  the  company  sold  it stock  portfolio  it  will  no  longer
experience gains or losses attributable to securities transactions.
     
     Net  income decreased to $291,000, or $0.09 per share (after preferred
stock dividend deduction), in the second quarter of fiscal 1999 compared to
$666,000, or $.23 per share (after preferred stock dividend deduction)  for
the same fiscal 1998 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, 1999 as compared to the Six months ended  March
31,1998
     Net  sales for the six months ended March 31, 1999 increased  by  $1.7
million  (4%) over net sales of $43.5 million for the similar 1998  period.
This  increase primarily reflects the fluctuations in the  hard disk  drive
market.
     
     Gross  profit  for the first six months of 1999 was  $2.0  million,  a
10.%  decrease from the six months of 1998.  The decrease in  gross  profit
was  the result of pricing pressures.  Gross profit as a percentage of  net
sales  decreased from 5.0% in the first six months of 1998 to 4.3%  in  the
first  six  months of 1999.  The reduction was due to market oversupply  of
certain  products  which resulted in pricing pressures  that  required  the
Company to reduce its gross margins.
     
     Selling,  general and administrative expenses increased to  $1,355,000
in  the  first  six  months of fiscal 1999 compared to $1,053,000  for  the
comparable  fiscal 1998 period. As a percentage of revenue,  SG&A  expenses
increased from 2.4% in 1998 to 3.0% in 1999.  The increase in SG&A was  due
to start up costs associated with the company's new internet division.
     
     Income  from  operations decreased 53% to $605,000 in  the  first  six
months of fiscal 1999 from $1,135,000 in the comparable fiscal 1998 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 increased to $237,000 in 1999 when  compared  to
($313,000) for the comparable fiscal 1998 period.  The variance was  mainly
attributable  to  the gain on the stock portfolio sold by  the  Company  in
1998,  that  was  recognized in the current period.  The Company  sold  its
portfolio of securities during the fiscal year ended September 30, 1998.
     
     Net  income increased to $810,000, or $0.28 per share (after preferred
stock  dividend deduction), in the first six months of fiscal 1999 compared
to  $740,000, or $.26 per share (after preferred stock dividend  deduction)
for the same fiscal 1998 quarter.  The increase in net income is the result
of  increased  sales  and,  in particular, the  effect  of  the  securities
transactions gain experienced in 1998 which adversely affected last  year's
net income.

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 with an
institutional lender.  The credit facility provides the Company  with  both
accounts receivable and inventory based borrowings of up to $3 million.
     
     Net  cash  provided by (used in) operating activities  in  the  fiscal
quarter  ended  March 31, 1999 $(112,000), as compared to $111,000  in  the
same  quarter is 1998 mainly reflects the net effects of cash  provided  by
operations,  augmented by decreases in accounts receivable  and,  inventory
and  related  party  receivables, offset by an increase  in   prepaids  and
decreases in accounts payable.
     
     Net  cash  provided  (used  in) investing activities  in  the  current
quarter was $(2,000), principally representing inter-company activity.
     
     Net  cash  provided  (used  in) financing activities  in  the  current
quarter was
($  1,410,000)  as compared to $106,000 in last year's period,  and  mainly
reflects  a reduction in the asset-based line of credit.  The Company  also
entered  into  an  agreement  to issue $1.6  million  in  preferred  stock,
$750,000 of which was received in the current period, in addition to common
stock issuance .
     
     In  addition to the Company's cash balances as of December  31,  1998,
the Company issued shares of a new class of preferred stock in January 1999
for  $750,000.  See, Item 2 below.  The holders of the new preferred  stock
are also required to purchase an additional $850,000 of the preferred stock
if  certain  conditions are met.  Accordingly, the Company's liquidity  has
been  augmented,  and may be further supplemented, with  the  sale  of  the
preferred stock.
     
     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.   The
Company  recently launched a website through which it is offering  computer
parts and components for sale to retail customers.  The Company expects  to
fund  the additional costs associated with the website through the proceeds
of  the  preferred stock sale, internal cash flow, and possibly  additional
debt  or equity financing.  Although the initial start-up expenses  of  the
website  are expected to be significant, the Company does not believe  that
the ongoing operational expenses related to the new website will materially
adversely  affect  the  Company's future liquidity and  capital  resources.
However, the Company has not had any prior experience in operating  such  a
website and cannot therefore accurately predict the amount of costs it will
have  to  incur in the operation of the website.  In addition, no assurance
can  be  given that the new website operations will generate  cash  in  the
future or be profitable.
     
     
     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.
Pursuant to the securities purchase agreement that the Company entered into
with  the  two  institutional  investors, the investors  are  obligated  to
purchase an additional $850,000 of the Preferred Stock on the date that the
Securities  and  Exchange  Commission  declares  effective  a  registration
statement  that  registers for resale the shares of  the  Company's  common
stock  that are issuable upon the conversion of the Preferred Stock.    The
Company  has  filed a registration statement on Form S-3  to  register  the
underlying common stock. 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 Stock may not convert any 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.
     
     Item 3.  Exhibits and Reports on Form 8-K
     
     (a) 4      Certificate   of  Determination  of  Rights,   Preferences,
         Privileges   and  Restrictions of  8%  Convertible Preferred Stock, 
         filed as an  exhibit  to  the company's  registration statement on 
         Form S-3 C File no. 333-72743 and incorporated herein be reference.
     
          27   Financial Data Schedule
     
     (b)  The Company did file and reports on Form 8-K during the fiscal 
          quarter ended March 31, 1999.


     
                                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,    1999                  /s/     JACK WEN
                                                Jack Wen
                                    Chairman of the Board, President and
                                       Chief Executive Officer



Date:  May 10, 1999             _______/s/ DONALD JOHNSON   ___
                                           Donald Johnson
                                Vice President  -  Finance  and  Chief
                                Financial Officer  (Principal
                                Financial and Accounting Officer)