<PAGE>
            U.S. Securities and Exchange Commission
                    Washington, D.C.  20549

                          Form 10-QSB

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES     
      EXCHANGE ACT OF 1934
        For the quarterly period ended December 31, 1998

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
     For the transition period from _________ to __________

Commission file number 33-13627

                     SARKIS CAPITAL, INC. 
(Exact name of small business issuer as specified in its charter)

        Delaware                                      75-2168244
(State or other jurisdiction of               (IRS Employer Identification
 incorporation or organization)                           No.)


          421 E. Airport Freeway, Irving, Texas 75062
            (Address of principal executive office)

                        (972-255-5533) 
                  (Issuer's telephone number)
_______________________________________________________________________
     (Former name, former address and former fiscal year,
                      if changed since last year)

Check whether issuer (1) filed all reports required to be filed by Section 13
or 15(d) of the Exchange Act during the past 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  


                  APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: At December 31, 1998,
1,500,000 shares of common stock, $0.01 par value, were outstanding.

Transitional Small Business Disclosure Format (Check one):
     Yes      No    X 





<PAGE>

                     SARKIS CAPITAL, INC.

                             INDEX


                                                        PAGE NUMBER

PART I    FINANCIAL INFORMATION

          Balance Sheet - December 31, 1998 and
            December 31, 1997                                1

          Statement of Loss - Three months ended 
            December 31, 1998 - Period March 18, 1987
            (date of inception) to December 31, 1998         2   
                                                
          Statement of Cash Flow - For period                3
            March 18, 1987 (date of inception) to
            December 31, 1998 and for period
            March 18, 1987 (date of inception) to
            December 31, 1997

          Notes to Financial Statements                      4

          Management's Discussion and Analysis of 
            Financial Condition and Results of
            Operation                                        5



PART II   OTHER INFORMATION

          Item 5.  Exhibits and Reports on Form 8-K          6


SIGNATURES                                                   7

                                                        
<PAGE>
                     SARKIS CAPITAL, INC.

                PART I - FINANCIAL INFORMATION

                         BALANCE SHEET

                            ASSETS

<TABLE>
<CAPTION> 
                                       December 31    December 31 
                                          1998          1997  
                                        Unaudited      Unaudited 
<S>                                    <C>             <C>
Current assets:
  Cash                                $     473    $     411

     Total current assets             $     473    $     411

                                      $     473    $     411



             LIABILITIES AND STOCKHOLDERS' EQUITY


Current Liabilities:
  Accounts Payable                    $   7,850    $   7,350
  Notes Payable                             -0-          -0-

     Total current liabilities        $   7,850    $   7,350
    


Stockholders' Equity:
  Preferred stock-par value of $0.01
   per share; authorized 1,000,000 shares;
   issued and outstanding                           -0-            -0-
  Common stock-par value of $0.01 per
   share; authorized 20,000,000, issued
   1,500,000                             15,000       15,000
  Additional paid-in capital                           9,000     9,000 
    Net income (loss)                  ( 31,377)     (30,532)     
                                       (  7,377)      (6,532)
 
                                      $     473    $      68
                     
</TABLE>

The accompanying notes are an integral part of these financial statements

                               1




<PAGE>
                            SARKIS CAPITAL, INC.
                                      

                           STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>

                                             For period March 
                               Three Months   18, 1987 (date   Three months
                                   ended       of inception)       ended
                                Dec 30, 1998         to         Dec 30, 1997
                                (Unaudited)     Dec 30, 1998    (Unaudited) 
<S>                               <C>            <C>             <C>
REVENUES                          $    -0-      $     -0-       $     -0-

EXPENSES:
  Operating, selling,             
   general and administrative           48         32,535              44


  Operating gain (loss)                (48)       (32,535)            (44)

  Other income:                         -0-         1,158             -0-
     Interest income

     Net gain (loss)             $     (48)   $   (31,377)     $      (44)

  Gain (loss) per common share   $     -0-    $      (.02)     $      -0- 

  Weighted average number of       
  shares outstanding             $1,500,000    $1,500,000      $1,500,000 


</TABLE>



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


                                      2

<PAGE>
                            SARKIS CAPITAL, INC.

                           STATEMENT OF CASH FLOW



<TABLE>
<CAPTION>
                                  December 30,         December 30,
                                      1998                 1997
                                  (Unaudited)          (Unaudited)
<S>                               <C>                    <C>
Cash beginning balance             $    -0-              $      -0-

  Net profit (loss)                 (31,377)                (30,939)

Items using no funds outlay
  Amortization-organization          15,385                  15,385

  Total from operations             (15,992)                (15,554)

Other sources (uses) of funds
  Accounts payable                    7,850                   7,350 
  Notes payable                         -0-                     -0-
  Organization costs                (15,385)                (15,385)
  Common stock                       15,000                  15,000
  Capital contributed                 9,000                   9,000

  Total source (use) of funds        16,465                  15,965

  Net increase (decrease) in cash       473                     411

  Cash ending balance            $      473               $     411 


</TABLE>



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


                                      3

<PAGE>
                            SARKIS CAPITAL, INC.

                        NOTES TO FINANCIAL STATEMENTS
                                 (Unaudited)

Note 1.     Basis of Presentation

     The financial information included herein is unaudited, and reflects all 
adjustments which are in the opinion of management, necessary for a fair
statement of results.

     The results of operations for the quarter ended December 31, 1998 are not
necessarily indicative of the results expected for a full year.










                               4



<PAGE>

                     SARKIS CAPITAL, INC.

             MANAGEMENT'S DISCUSSION AND ANALYSIS

       OF FINANCIAL CONDITION AND RESULTS OF OPERATION


     The following is management's discussion and analysis of certain
significant factors which have affected the Company's financial condition
and operation results for the period included in the accompanying financial
statements.

Results of Operation and Financial Condition

     For the quarter ended December 31, 1998, the Company has been in the
development stage and did not receive any operating revenues.  During this
period, expenses consisted of bank service charges, making the Company have
a net loss of $48.  The Company has received total operating advances
through this quarter of $7,850 from Sarkis J. Kechejian, M.D. which are to
be repaid when the Company merges with another company.

     Management believes that Sarkis Capital's cash on hand and interest
earnings thereon may not be sufficient to meet cash requirements through the
remainder of the fiscal year ending March 31, 1999.  An additional operating
advance may be required during the fiscal year.




                              5



<PAGE>

                     SARKIS CAPITAL, INC.

                 PART II - OTHER INFORMATION


Item 5.     Exhibits and Reports on Form 8-K

            No reports on Form 8-K were filed during this quarter.









                              6


<PAGE>

                          SIGNATURES


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




DATED: January 31, 1998         By:  Sarkis J. Kechejian, M.D.
                                     Sarkis J. Kechejian, M.D.
                                     Chairman and Chief
                                     Executive Officer


DATED: January 31, 1998         By:  Sarkis J. Kechejian, M.D.
                                     Sarkis J. Kechejian, M.D.
                                     President, Treasurer,
                                     Principal Financial and
                                     Accounting Officer

























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