FOUNTAIN POWERBOAT INDUSTRIES, INC.

                                   FORM 10-Q/A

                               QUARTERLY REPORT

                   FOR THE QUARTER ENDED SEPTEMBER 30, 1999


                      SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC  20549


<PAGE>


                                   FORM 10-Q/A

                    U.S. SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549


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

               For the quarterly period ended September 30, 1999

                                      OR

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

        For the transition period from ____________ to _______________

     For the Quarter Ended         Commission File Number

     ___________________                0-14712

                      FOUNTAIN POWERBOAT INDUSTRIES, INC.
            (Exact name of registrant as specified in its charter)

                 Nevada                             56-1774895
     (State or other jurisdiction of            (I.R.S. employer
     incorporation or organization)            identification No.)


        Whichard's Beach Road, P.O. Drawer 457, Washington, NC  27889
                   (Address of principal executive offices)

       Registrant's telephone no., including area code: (919) 975-2000

 Indicate  by  check  mark whether the registrant (1) has  filed  all  reports
 required  to  be filed by Section 13 or 15(d) of the Securities Exchange  Act
 of  1934 during the preceding 12 months (or for such shorter period that  the
 registrant  was required to file such reports), and (2) has been  subject  to
 such filing requirements for the past 90 days.

         Yes   X                    No

 Indicate the number of shares outstanding of each of the issuer's classes  of
 common stock as of the latest practicable date.

            Class                    Outstanding at October 27, 1999

 Common Stock, $.01 par value               4,732,608 shares

<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY


                                     INDEX

                                                                      Page No.

Part I  Financial Information

        Review Report of Independent Certified
         Public Accountants                                              3

        Unaudited Consolidated Balance Sheets,
         September 30, 1999 and June 30, 1999                          4 - 5

        Unaudited Consolidated Statements of Operations, for the
         three months ended September 30, 1999
         and September 30, 1998                                          6

        Unaudited Consolidated Statements of Cash Flows, for the
         three months ended September 30, 1999
         and September 30, 1998                                        7 - 8

        Notes to Unaudited Consolidated Financial Statements           9 - 12

        Management's Discussion and Analysis of Results
          of Operations and Financial Condition                       13 - 15

Part II Other Information

        Item 2  Change in Securities                                    16

        Item 6  Exhibits and Reports on Form 8 and Form 8-K             16

        Signature                                                       16

                                    2









<PAGE>




To the Board of Directors
FOUNTAIN POWERBOAT INDUSTRIES, INC.
Washington, North Carolina


We  have  reviewed  the accompanying consolidated balance  sheet  of  Fountain
Powerboat  Industries,  Inc.  as  of  September  30,  1999,  and  the  related
consolidated statement of income for the three months then ended and  and  the
related consolidated statement of cash flows for the three months then  ended.
All  information included in these financial statements is the  representation
of the management of Fountain Powerboat Industries, Inc.

We  conducted  our  review  in accordance with standards  established  by  the
American  Institute  of Certified Public Accountants.   A  review  of  interim
financial  information consists principally of applying analytical  procedures
to  financial  data and making inquiries of Company personnel responsible  for
financial and accounting matters.  It is substantially less in scope  than  an
audit conducted in accordance with generally accepted auditing standards,  the
objective  of  which is the expression of an opinion regarding  the  financial
statements taken as a whole.  Accordingly, we do not express such an opinion.

Based  on  our  review,  we are not aware of any material  modifications  that
should be made to the consolidated financial statements referred to above  for
them to be in conformity with generally accepted accounting principles.










PRITCHETT, SILER & HARDY, P.C.
November 5, 1999
Salt Lake City, Utah

                                     3
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                          CONSOLIDATED BALANCE SHEETS
                 (Unaudited - See Accountant's Review Report)


                                    ASSETS





                                            September 30,    June 30,
                                                 1999          1999
                                            _____________ _____________
CURRENT ASSETS:
  Cash and cash equivalents                  $   904,224   $ 2,217,301
  Accounts receivable, net                     1,809,634     1,576,712
  Inventories                                  8,361,317     7,307,890
  Prepaid expenses                               830,088       761,486
  Current tax assets                           2,504,621     2,221,499
                                            _____________ _____________
     Total Current Assets                     14,409,884    14,084,888
                                            _____________ _____________
PROPERTY, PLANT AND EQUIPMENT                 36,682,128    36,209,584

  Less:  Accumulated depreciation            (17,782,209)  (17,144,314)
                                            _____________ _____________
                                              18,899,919    19,065,270
                                            _____________ _____________
OTHER ASSETS                                     814,546       780,802
                                            _____________ _____________
                                             $34,124,349   $33,930,960
                                            _____________ _____________




























                                  [Continued]

                                       4
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                          CONSOLIDATED BALANCE SHEETS
                 (Unaudited - See Accountant's Review Report)


                     LIABILITIES AND STOCKHOLDERS' EQUITY

                                  [Continued]


                                            September 30,    June 30,
                                                 1999          1999
                                            _____________ _____________
CURRENT LIABILITIES:
  Current maturities - long-term debt        $ 2,464,535   $ 2,464,535
  Current maturities - capital lease              11,788        11,788
  Accounts payable                             5,458,198     3,961,516
  Accrued expenses                             1,637,561     2,231,061
  Dealer territory service accrual             1,930,144     2,037,170
  Customer deposits                              692,910       687,560
  Allowance for boat repurchases                 200,000       200,000
  Reserve for warranty expense                   590,000       590,000
                                            _____________ _____________
     Total Current Liabilities                12,985,136    12,183,630

LONG-TERM DEBT, less current maturities        9,901,218    10,138,395
CAPITAL LEASE, less current maturities            76,939        76,939
DEFERRED TAX LIABILITY                           898,498       899,680

COMMITMENTS AND CONTINGENCIES [NOTE 7]                 -             -
                                            _____________ _____________
     Total Liabilities                        23,861,791    23,298,644
                                            _____________ _____________



STOCKHOLDERS' EQUITY:
  Common stock, $.01 par value,
    200,000,000 shares authorized,
    4,732,608 shares issued                       47,326        47,326
  Capital in excess of par value              10,303,640    10,303,640
  Accumulated earnings                            22,340       392,098
                                            _____________ _____________
                                              10,373,306    10,743,064
Less: Treasury stock, at cost 15,000
      shares                                    (110,748)     (110,748)
                                            _____________ _____________
     Total Stockholders' Equity               10,262,558    10,632,316
                                            _____________ _____________
                                             $34,124,349   $33,930,960
                                            _____________ _____________









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

                                      5
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                 (Unaudited - See Accountant's Review Report)



                                         For the Three Months Ended
                                               September 30,
                                        ___________________________
                                             1999          1998
                                        _____________ _____________
NET SALES                                $10,795,168   $12,422,227

COST OF SALES                              8,759,941     9,838,912
                                        _____________ _____________
  Gross Profit                             2,035,227     2,583,315
                                        _____________ _____________
EXPENSES:
  Selling expense                          1,586,283     1,841,102
  Selling - related  parties                 127,097       102,080
      General and administrative             721,503       643,551
                                        _____________ _____________
     Total expenses                        2,434,883     2,586,733
                                        _____________ _____________
OPERATING INCOME (LOSS)                     (399,656)       (3,418)

NON-OPERATING INCOME (EXPENSE):
  Other income (expense)                      28,986        (4,092)
  Interest expense                          (283,391)     (255,157)
  Interest expense - related parties               -        (8,836)
                                        _____________ _____________
INCOME (LOSS) BEFORE INCOME TAXES           (654,061)     (271,503)

CURRENT TAX EXPENSE                                -             -

DEFERRED TAX EXPENSE (BENEFIT)              (284,303)       (73,508)
                                        _____________ _____________

NET INCOME (LOSS)                        $  (369,758)  $  (197,995)
                                        _____________ _____________

EARNINGS (LOSS) PER SHARE                $      (.08)  $      (.04)
                                        _____________ _____________
WEIGHTED AVERAGE SHARES
  OUTSTANDING                              4,732,608     4,702,608
                                        _____________ _____________

DILUTED EARNINGS PER SHARE               $       N/A   $       N/A
                                        _____________ _____________
DILUTED WEIGHTED AVERAGE
  SHARES OUTSTANDING                     $       N/A   $       N/A
                                        _____________ _____________






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

                                     6
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                 (Unaudited - See Accountant's Review Report)

               Increase (Decrease) in Cash and Cash Equivalents

                                                    For the Three Months Ended
                                                           September 30,
                                                   ___________________________
                                                       1999         1998
                                                   _____________ _____________
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income (loss)                                  $  (369,758)  $  (197,995)
                                                   _____________ _____________
 Adjustments to reconcile net income (loss)
  to net cash provided by operating activities:
   Depreciation expense                                 637,896       590,658
   Net change in deferred tax asset and
    liabilities                                        (284,303)      (73,508)
   Change in assets and liabilities:
    (Increase) decrease in accounts receivable         (232,922)    1,157,045
    (Increase) decrease in inventories               (1,053,428)     (357,532)
    (Increase) decrease in prepaid expenses             (68,601)     (216,186)
    Increase (decrease) in accounts payable           1,496,682      (810,892)
    Increase (decrease) in accrued expenses            (593,501)     (168,032)
    Increase (decrease) in dealer territory
     service accrual                                   (107,026)     (236,729)
    Increase (decrease) in customer deposits              5,350      (189,328)
    Net liabilities of discontinued operations                -       (93,612)
                                                   _____________ _____________
      Net Cash Provided (Used) by
       Operating Activities                         $  (569,611)  $  (596,111)
                                                   _____________ _____________
CASH FLOWS FROM INVESTING ACTIVITIES:
 Investment in additional molds, plugs,
  and other tooling                                     (83,033)            -
 Purchase of property, plant, and equipment            (389,512)   (1,125,498)
 (Increase) in other assets                             (33,744)       (2,999)
                                                   _____________ _____________
      Net Cash Provided (Used) by Investing
       Activities                                   $  (506,289)  $(1,128,497)
                                                   _____________ _____________
CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from long-term debt                       $         -   $ 4,000,000
 Repayment of long-term debt                           (237,177)     (233,340)
 Repayment of long-term debt - related party                  -       (59,911)
                                                   _____________ _____________
      Net Cash Provided (Used) by Financing
       Activities                                   $  (237,177)  $ 3,706,749
                                                   _____________ _____________
Net increase (decrease) in cash and cash
 equivalents                                        $(1,313,077)  $ 1,982,141

Cash and cash equivalents at beginning of year        2,217,301     1,376,984
                                                   _____________ _____________
Cash and cash equivalents at end of period          $   904,224   $ 3,359,125
                                                   _____________ _____________



                                  [Continued]

                                        7
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                 (Unaudited - See Accountant's Review Report)

               Increase (Decrease) in Cash and Cash Equivalents

                                  [Continued]


                                                    For the Three Months Ended
                                                           September 30,
                                                   ___________________________
                                                        1999         1998
                                                   _____________ _____________
Supplemental Disclosures of Cash Flow Information:
  Cash paid during the period for:
     Interest:
      Unrelated parties                             $   280,805   $   216,480
      Related parties                                         -         8,836
                                                   _____________ _____________
                                                    $   280,805   $   225,316
                                                   _____________ _____________
     Income taxes                                   $         -   $   222,538
                                                   _____________ _____________

Supplemental Disclosures of Noncash Investing and Financing Activities:
  For the three month period ended September 30, 1999:
     None

  For the three month period ended September 30, 1998:
     None




























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

                                      8
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                 (Unaudited - See Accountant's Review Report)

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

  Although  these  statements have been reviewed by our independent  auditors,
  they  are  unaudited.  In the opinion of management, all adjustments  (which
  include  only normal recurring adjustments) necessary to present fairly  the
  financial  position, results of operations and cash flows at  September  30,
  1999 and for all periods presented have been made.

  Certain  information and footnote disclosures normally included in financial
  statements   prepared  in  accordance  with  generally  accepted  accounting
  principles  have  been condensed or omitted for purposes of  filing  interim
  financial  statements with the Securities and Exchange  Commission.   It  is
  suggested  that these condensed financial statements be read in  conjunction
  with  the  financial statements and notes thereto included in the  Company's
  June  30, 1999 audited financial statements.  The results of operations  for
  the periods ended September 30, 1999 are not necessarily indicative  of  the
  operating results for the full year.

NOTE 2 - HURRICANE

  During  September 1999, the Company experienced flooding and  the  temporary
  closure  of  the production facility as a result of hurricanes "Dennis"  and
  "Floyd"  hitting Eastern North Carolina.  As a result of the hurricanes  the
  Company sustained damages to inventory and property plant and equipment  not
  including  the  damages sustained to the yacht mold  and  lost  revenue  and
  additional expenses from the business interruption.

  As  of  November 8, 1999 the insurance companies have agree to pay  $433,000
  for  damages  to  inventory  and  property, plant  and  equipment  less  the
  $100,000 deductible.  The Company has reclassified the following assets  and
  recorded in accounts receivable $333,000 for the insurance proceeds.

  Review  is  still  in  process by the insurance carrier  on  the  repair  or
  replacement  of  the  Company's  65'  foot  yacht  mold  and  certain   air-
  conditioning equipment that was flooded during the storm.

  The  Company  also experienced losses resulting  from  the  closure  of  the
  production  facility  and inefficiencies due to storm  preparation,  cleanup
  and the inability of the full work force to report once the plant re-opened.
  The  Company has filed its business interruption insurance claim,  which  is
  now in the review and approval process with Company's insurance carrier.  As
  of September  30, 1999, the amount to be received for the business
  interruption claim  cannot  be reasonably estimated and will be recorded  in
  the  future when collected.

NOTE 3 - ACCOUNTS RECEIVABLE

  As  of  September 30, 1999, accounts receivable were $1,809,634 net  of  the
  allowance for bad debts of $27,841.  This represents a increase of  $232,922
  from  the  $1,576,712 in net accounts receivable recorded at June 30,  1999.
  Of   the   $1,809,634  balance  at  September  30,  1999,   $1,275,300   has
  subsequently  been  collected  as of October 31,  1999,  and  the  remaining
  $534,334 is believed to be fully collectible.

                                    9
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                 (Unaudited - See Accountant's Review Report)

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4 - INVENTORIES

  Inventories  at  September  30, 1999 and June  30,  1999  consisted  of  the
  following:

                                           September 30,   June 30,
                                               1999          1999
                                           ____________  ____________
         Parts and supplies                 $3,937,761    $3,296,244
         Work-in-process                     3,499,657     3,208,982
         Finished goods                      1,043,899       922,664
         Obsolete inventory reserve           (120,000)     (120,000)
                                           ____________  ____________
           Total                            $8,361,317    $7,307,890
                                           ____________  ____________

NOTE 5 - REVENUE RECOGNITION

  The  Company generally sells boats only to authorize dealers and to the U.S.
  Government.   A sale is recorded when a boat is shipped to a  dealer  or  to
  the  Government,  legal  title  and all other incidents  of  ownership  have
  passed  from the Company to the dealer or to the Government, and an  account
  receivable  is  recorded or payment is received from the  dealer,  from  the
  Government,  or  from the dealer's third-party commercial lender.   This  is
  the method of sales recognition in use by most boat manufacturers.

  The  Company  has  developed  criteria for determining  whether  a  shipment
  should  be  recorded  as  a  sale or as a deferred  sale  (a  balance  sheet
  liability).   The criteria for recording a sale are that the boat  has  been
  completed and shipped to a dealer or to the Government, that title  and  all
  other  incidents  of  ownership  have  passed  to  the  dealer  or  to   the
  Government,  and  that  there  is no direct or indirect  commitment  to  the
  dealer  or  to  the Government to repurchase the boat or to pay  floor  plan
  interest for the dealer beyond the normal, published sales program terms.

  The  sales  incentives floor plan interest expense for each individual  boat
  sale  is  accrued  for  the maximum six month (180  days)  interest  payment
  period  in the same fiscal accounting period that the related boat  sale  is
  recorded.  The entire six months interest expense is accrued at the time  of
  the sale because the Company considers it a selling expense.  The amount  of
  interest  accrued is subsequently adjusted to reflect the actual  number  of
  days  of the remaining liability for floor plan interest for each individual
  boat remaining in the dealer's inventory and on floor plan.

  Presently,  the Company's normal sales program provides for the  payment  of
  floor  plan  interest on behalf of its dealers for a maximum of six  months.
  The  Company  believes that this program is currently competitive  with  the
  interest  payment programs offered by other boat manufactures, but may  from
  time  to time adopt and publish different programs as necessary in order  to
  meet competition.

                                      10
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                 (Unaudited - See Accountant's Review Report)

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 6 - ALLOWANCE AND QUALIFYING ACCOUNTS

  For  the  three  months ended September 30, 1999, the Company  adjusted  its
  allowance and qualifying accounts as follows:

                               Balance at  Charged to                Balance
                                Beginning   Cost and   Additions      at End
                                of Period    Expense  (Deductions)  of Period
                               ___________ ___________ ___________ ___________
  Allowance for boat
    repurchases                 $ 200,000   $       -   $       -   $ 200,000

  Allowance for doubtful
    accounts                       27,841           -           -      27,841

  Allowance for warranty
    claims                        590,000     160,489    (160,489)    590,000

  Allowance for inventory
    values                        120,000           -           -     120,000
                               ___________ ___________ ___________ ___________
  Total                         $ 937,841   $ 160,489   $(160,489)  $ 937,841
                               ___________ ___________ ___________ ___________

  In  management's  opinion,  the  balances of the  allowance  and  qualifying
  accounts  are  adequate  to  provide for all reasonably  anticipated  future
  losses.

NOTE 7 - COMMITMENTS AND CONTINGENCIES

  Manufacturer  Repurchase  Agreements - The Company makes  available  through
  third-party finance companies floor plan financing for many of its  dealers.
  Sales  to  participating  dealers are approved  by  the  respective  finance
  companies.   If  a  participating dealer does not  satisfy  its  obligations
  under  the  floor  plan financing agreement in effect  with  its  commercial
  lender(s)  and  boats  are subsequently repossessed by the  lender(s),  then
  under  certain  circumstances the Company may be required to repurchase  the
  repossessed  boats  if  it  has  executed a repurchase  agreement  with  the
  lender(s).   At  September  30, 1999, the Company  had  a  total  contingent
  liability  to  repurchase  boats in the event  of  dealer  defaults  and  if
  repossessed   by   the   commercial  lenders  amounting   to   approximately
  $20,493,000.  The Company has reserved for the future losses it might  incur
  upon the repossession and repurchase of boats from commercial lenders.   The
  amount  of the allowance is based upon probable future events which  can  be
  reasonably  estimated.   At  September 30,  1999,  the  allowance  for  boat
  repurchases was $200,000.

  Dealer  Interest - The Company regularly pays a portion of dealers' interest
  charges  for  floor  plan  financing for up to six months.   These  interest
  charges amounted to approximately $210,460 for the first three months  ended
  September  30,  1999  and  are  included in  the  accompanying  consolidated
  statements  of  operations  as part of selling expense.   At  September  30,
  1999,  the  estimated unpaid dealer incentive interest included  in  accrued
  expenses amounted to $334,000.

                                     11
<PAGE>

              FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                 (Unaudited - See Accountant's Review Report)

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 8 - TRANSACTIONS WITH RELATED PARTIES

  The  Company paid or accrued the following amounts for services rendered  or
  for  interest  on  indebtedness  to  Mr.  Reginald  M.  Fountain,  Jr.,  the
  Company's  Chairman,  President, Chief Executive  Officer,  or  to  entities
  owned or controlled by him:

                                               For the Three Months Ended
                                                      September 30,
                                               ___________________________
                                                    1999          1998
                                               _____________ _____________
     R.M. Fountain, Jr. - interest on loans      $      -      $  8,836
                                               _____________ _____________
                                                 $      -      $  8,836
                                               _____________ _____________

  At  September  30,  1999,  the  Company had receivables  and  advances  from
  employees of the Company amounting to $13,006.

  The  Company  paid  $127,097 and $102,080 for the three month  period  ended
  September  30, 1999 and 1998, for advertising and public relations  services
  from an entity owned by a director of the Company.

NOTE 9 - INCOME TAXES

  For  the  three month period ended September 30, 1999 and 1998, the  Company
  provided  $0  and  $0  for current income taxes and a benefit  $284,303  and
  $73,508 for deferred income taxes.

NOTE 11 - EARNINGS (LOSS) PER SHARE

  The  computations  of  earnings (loss) per share and  diluted  earnings  per
  share  amounts  are  based upon the weighted average number  of  outstanding
  common  shares  during  the periods, plus, when their  effect  is  dilutive,
  additional  shares  assuming the exercise of certain vested  stock  options,
  reduced  by the number of shares which could be purchased from the  proceeds
  from  the  exercise  of  the  stock options assuming  they  were  exercised.
  Diluted  earnings per share for the three month period ended  September  30,
  1999  and  1998,  was  not presented as its effect  was  anti-dilutive.   At
  September  30, 1999 there were 551,000 unexercised stock options,  of  which
  546,000  were  held  by  officers and directors of  the  Company  at  prices
  ranging  from  $3.58  to  $5.00 per share, that were  not  included  in  the
  computation of earnings per share because there effect is anti-dilutive.

                                   12
<PAGE>


Management's Discussion and Analysis of Results of Operations
and Financial Condition

Results of Operations.

     The  operating loss for the first quarter ended September  30,  1999  was
$(399,656)  or  $(.08) per share versus $(3,418) or $.00  per  share  for  the
corresponding period of the previous year.  The operating loss as a percent of
sales  for the three months ended September 30, 1999, was (3.7)% versus  (.0)%
for  the  three  months ended September 30, 1998. The net loss for  the  three
months  ended September 30, 1999,  was $(369,758) or $(.08) per  share.   This
compares to a net loss of $(197,995) or $(.04) per share for the three  months
ended September 30, 1998.

     Net sales were $10,795,168 for the three months ended September 30, 1999,
as  compared  to  $12,422,227 for the three months ended September  30,  1998.
Unit  sales volume for three months ended September 30, 1999 was 89  boats  as
compared  to  104  boats for the three months ended September  30,  1998.  The
overall  sales  decrease  was  due  to  the  business  interruption  from  the
hurricanes  "Dennis"  & "Floyd" that hit Eastern North Carolina  in  September
1999.

     For  the three months ended September 30, 1999, the gross margin on sales
was  $2,035,227  (19%) as compared to $2,583,315 (21%) for  the  three  months
ended September 30, 1998.  The decrease in gross margin was due primarily to a
lower  number of sportboat sales in relation to fishboat sales, in  particular
resulting from the volume drop in September as a result of the work loss  from
the Hurricane.

     Selling expenses were $1,713,380 for the three months ended September 30,
1999, as compared to $1,943,182 for the three months ended September 30, 1998.
Decreased selling expense was primarily due to a decrease in dealer floor plan
interest.

      General  and administrative expenses were $721,503 for the three  months
ended  September 30, 1999 as compared to $643,552 for the three  months  ended
September 30, 1998.

      Interest  expense  for  the three months ended September  30,  1999  was
$283,391  as  compared to $263,993 for the three months  ended  September  30,
1998.

      Other non-operating (income)/expense for the three months September  30,
1999  was $(28,986) as compared to $4,092 for the three months ended September
30, 1998, primarily due to an increase in vender cash discounts and rebates.

                                    13
<PAGE>

Below  is a chart detailing net sales and pre-tax net income for three  months
ended September 30, 1999 and 1998 [In Thousands]:

                                July       August   September    Total
     Net Sales

     1999                     $  4,797   $  4,410   $  1,588   $ 10,795

     1998                        3,555      4,500      4,367     12,422

     Pre-tax Net Income

     1999                     $    225   $    173   $ (1,052)  $   (654)

     1998                         (652)       104        276       (272)


Financial Condition.

      The  Company's cash flows for the three months ended September 30,  1999
are summarized as follows:

        Net cash used in operating activities....$  (596,611)
         "   "   used in investing activities.....  (506,289)
         "   "   used by financing activities.....  (237,177)
                                                  __________
        Net decrease in cash.....................$(1,313,077)

                                                  ==========


      This  net  decrease compares to a $1,982,141 net increase for the  three
months ended September 30, 1998.

      Cash  used  in  the  three months ended September 30,  1999  to  acquire
additional  property,  plant, and equipment (investing activity)  amounted  to
$472,545.

      For  the  remainder  of the year ending June 30, 2000  and  beyond,  the
Company  expects to generate sufficient cash through operations  to  meet  its
needs  and obligations.  In addition, management believes that along with  the
near  term settlement of its pending insurance claim, the Company's sales  and
production  volume  will continue to grow with a gradual  improvement  in  net
earnings and cash flow.  Most of the Company's cash resources will be used  to
maintain and improve its plant and equipment and for new product tooling.

                                14
<PAGE>


Cautionary Statement for Purposes of "Safe Harbor" Under the
Private Securities Reform Act of 1995.

      The  Company  may  from  time  to time make forward-looking  statements,
including  statements  projecting, forecasting, or  estimating  the  Company's
performance   and  industry  trends.   The  achievement  of  the  projections,
forecasts,  or estimates contained in these statements is subject  to  certain
risks  and  uncertainties, and actual results and events may differ materially
from those projected, forecasted, or estimated.

      The  applicable  risks and uncertainties include  general  economic  and
industry  conditions that affect all businesses, as well as, matters that  are
specific  to  the  Company  and  the markets  it  serves.   For  example,  the
achievement of projections, forecasts, or estimates contained in the Company's
forward-looking  statements  may be impacted  by  national  and  international
economic  conditions;  compliance  with  governmental  laws  and  regulations;
accidents and acts of God; and all of the general risks associated with  doing
business.

      Risks  that are specific to the Company and its markets include but  are
not  limited to compliance with increasingly stringent environmental laws  and
regulations; the cyclical nature of the industry; competition in  pricing  and
new  product development from larger companies with substantial resources; the
concentration of a substantial percentage of the Company's sales  with  a  few
major  customers, the loss of, or change in demand from, any  of  which  could
have a material impact upon the Company; labor relations at the Company and at
its  customers and suppliers; and the Company's single-source supply and just-
in-time inventory strategies for some critical boat components, including high
performance  engines,  which could adversely affect production  if  a  single-
source supplier is unable for any reason to meet the Company's requirements on
a timely basis.

                                    15
<PAGE>

PART II.  Other Information.


ITEM 2:   Change in Securities.

      There  was  no  change  in securities during the  first  quarter  ending
September 30, 1999.


ITEM 6:   Exhibits and Reports on Form 8 and Form 8-K.

      (a)   No  Amendments on Form 8 were filed by the Registrant  during  the
first three months of Fiscal 2000.

      (b)   No Current Reports on Form 8-K were filed by the Registrant during
the first three months of Fiscal 2000.




                                   SIGNATURE



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



                      FOUNTAIN POWERBOAT INDUSTRIES, INC.
                                 (Registrant)




     /s/ Joseph F. Schemenauer

By:  Joseph F. Schemenauer                   Date: November 12, 1999
     Vice President, Chief Financial
     Officer, and Designated Principal
          Accounting Officer