<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 June 30, 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 June 30, 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 - June 30, 1998 and
           June 30, 1997                                     1

          Statement of Loss - Three months ended June 30,
            1998 and June 30, 1997 - Period March 18, 1987
            (date of inception) to June 30, 1998             2

          Statement of Cash Flow - June 30, 1998 and    
            June 30, 1997                                    3

          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>
                                               June 30, 1998 June 30, 1997
                                                 Unaudited     Unaudited
<S>                                           <C>          <C>  
Current assets: 
  Cash                                         $       68   $      538


Other Assets:
  Organization costs (less accumulated
    amortization of $15,385 in 1993 and
    $15,385 in 1993                            $      -0-   $      -0-


                                               $       68   $      538 


                 LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Due to shareholder                           $    7,350   $    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)                             (31,282)     (30,818)
                                                  ( 7,282)     ( 6,818)

  Total Liabilities                            $       68   $      538

</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
                               June 30, 1998         to        June 30, 1997
                                (Unaudited)    June 30, 1998    (Unaudited) 
<S>                               <C>           <C>             <C> 
REVENUES                          $     -0-      $     -0-       $   -0-

EXPENSES:
  Selling, general and
   administrative                        59         32,440         10,635


  Operating gain (loss)                 (59)       (32,440)       (10,635)

  Other income:                         -0-          1,158            130
     Interest income

     Net gain (loss)              $     (59)    $  (31,282)    $  (10,505)

  Gain (loss) per common share   $      .00     $     (.02)    $      .00 

  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>
                                       June 30          June 30
                                         1998             1997
                                     (Unaudited)         (Unaudited)
<S>                                   <C>              <C>
Cash beginning balance                $    -0-           $  2,591      

  Net profit (loss)                    (31,282)           (10,505)

Items using no funds outlay
  Amortization-organization                -0-            (11,283)
   Total from operations               (31,282)           (21,788)

Other sources (uses) of funds
  Organization costs                       -0-             15,385
  Accounts payable                       7,350              4,350
  Common stock                          15,000                -0-
  Capital contributed                    9,000                -0-

  Total source (use) of funds           31,350             19,735

  Net increase (decrease) in cash           68             (2,053)

  Cash ending balance                $      68            $   538
</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 June 30, 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 June 30, 1998, the Company has been in the
development stage and did not receive any operating revenues.  During this
period, expenses consisted of Bank Service Fees and Franchise Filing Fees,
and combined with interest received on money market funds the Company had a
net loss of $(59).  The total operating advances through this quarter of
$5,250 are to be repaid to S. J. Kechejian, M.D. 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

            None.








                               6

<PAGE>

                           SIGNATURES


Pursuant to the requirements of the Section 13 or 15 (d) 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:  July 31, 1998                  By:  Sarkis J. Kechejian, M.D.
                                            Sarkis J. Kechejian, M.D.
                                            President, Director and
                                            Treasurer



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