FORM 10-QSB
                       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          31-Mar-98

                                       OR

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

For the transition period from               to

                         Commission File Number 0-17345

                             W-J International, Ltd.
        (Exact name of small business issuer as specified in its charter)

               Delaware                                         41-1578316
    (State of other jurisdiction of                          (I.R.S. Employer
             organization)                                  Identification No.)

                               23 Washburne Avenue
                          Paynesville, Minnesota 56362
                    (Address of principal executive offices)

                                  612-243-3311
              (Registrant's telephone number, including area code)

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

At May 15, 1998 12,214,632 shares of registrant's common stock (par value, $.01)
were outstanding.


                          This report contains 8 pages.

<PAGE>



                             W-J International, Ltd.
                                  Balance Sheet
<TABLE>
<CAPTION>

                                                                      March 31,     September 30,
                                                                        1998           1997
                                                                      (Unaudited)    (Audited)
                                                                      -----------    -----------
                           A S S E T S
Current Assets:
<S>                                                                   <C>            <C>        
     Cash and Cash equivalents                                        $    14,430    $     8,741
     Certificates of Deposit                                          $   151,791    $   179,852
     Liabilities with Debit Balance                                   $     8,325    $         0
                                                                      -----------    -----------

                 Total current assets                                     174,546        188,593
                                                                      -----------    -----------

Property and equipment:
     Land                                                                  30,648         30,648
     Buildings                                                            374,266        374,266
                                                                      -----------    -----------
                                                                          404,914        404,914
     Less: accumulated depreciation                                      (118,251)      (110,655)
                                                                      -----------    -----------

                 Net property and equipment                               286,663        294,259
                                                                      -----------    -----------

                 Total Assets                                         $   461,209    $   482,852
                                                                      ===========    ===========




               L I A B I L I T I E S    A N D    E Q U I T Y

Current liabilities:

     Current portion of long-term debt                                $    23,782    $    23,782
     Accrued expenses                                                       4,471            396
                                                                      -----------    -----------

                 Total current liabilities                                 28,253         24,178
                                                                      -----------    -----------

Long-term debt, net of current portion                                     47,038         56,200
                                                                      -----------    -----------

Stockholders equity:
     Common stock, $.01 par value; 20,000,000 shares 
         authorized, 12,214,632 shares issued and outstanding             122,146        122,146
     Additional paid-in capital                                         2,274,840      2,274,840
     Accumulated deficit                                               (2,011,068)    (1,994,512)
                                                                      -----------    -----------

                 Total stockholders equity                                385,918        402,474
                                                                      -----------    -----------

                 Total liabilities and stockholders equity            $   461,209    $   482,852
                                                                      ===========    ===========

</TABLE>


                        See notes to financial statements



<PAGE>
                             W-J International, Ltd.
                            Statements of operations
<TABLE>
<CAPTION>



                                                                        Three Months Ended                Six Months Ended
                                                                            March 31,                         March 31,
                                                                         1998            1997            1998            1997
                                                                     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)


<S>                                                                 <C>             <C>             <C>             <C>
Rental Income:                                                      $      3,000    $     28,200    $      6,000    $     56,400

Expenses:
     General & Administrative                                              9,909           3,819          21,282          13,671
     Interest                                                             (3,740)          1,237          (4,154)          3,451
                                                                    ------------    ------------    ------------    ------------
                                                                           6,169           5,056          17,128          17,122
                                                                    ------------    ------------    ------------    ------------

              Income from continuing operations before
                        discontinued operations                           (3,169)         23,144         (11,128)         39,278

Discontinued Operations:
     Discontinued Operations                                              (5,428)         (6,769)         (5,428)         (9,356)

     Loss from discontinued operations and extraordinary item             (5,428)         (6,769)         (5,428)         (9,356)

                        Net Income                                        (8,597)         16,375         (16,556)         29,922
                                                                    ============    ============    ============    ============

Weighted average common shares outstanding during period              12,214,632      12,214,632      12,214,632      12,214,632
                                                                    ============    ============    ============    ============
     
                        Net Income per share                        ($      0.00)   $       0.00    ($      0.00)   $       0.00
                                                                    ============    ============    ============    ============


</TABLE>


                                               See notes to financial statements




<PAGE>
                             W-J International, Ltd.
                             Statement of Cash Flows
                           Increase (Decrease) in Cash

<TABLE>
<CAPTION>


                                                              Three Months Ended         Six Months Ended
                                                                    March 31,                March 31,
CASH FLOWS FROM OPERATING ACTIVITIES                           1998       1997          1998         1997
                                                            (Unaudited) (Unaudited)  (Unaudited)  (Unaudited)
                                                           -----------------------    ----------------------

<S>                                                         <C>          <C>          <C>          <C>      
     Net Income                                             ($  8,597)   $  16,375    ($ 16,556)   $  29,922
     Adjustments to reconcile net income to net
       cash flows from operating activities:
         Depreciation                                           3,798        3,798    $   7,596        7,596
         Changes in:
             Notes payables - Trade                                 0       (2,007)           0       25,316
             Accounts Receivable                               (1,375)      (1,375)
             Notes payables - Related parties                       0         (993)           0      (39,593)
             Accrued expenses                                   3,424      (27,323)       4,074      (27,323)
                                                            ---------    ---------    ---------    ---------

                 Net cash flows from operating activities      (2,750)     (10,150)      (6,261)      (4,082)
                                                            ---------    ---------    ---------    ---------

Cash flows from investing activities:

     Purchase of property and equipment                             0            0            0            0

                 Net cash flows from investing activities           0            0            0            0
                                                            ---------    ---------    ---------    ---------

Cash flows from financing activities:

     Principal payments on long-term debt                      (6,461)      (4,050)      (9,161)      (8,101)
                                                            ---------    ---------    ---------    ---------

                 Net cash flows from financing activities      (6,461)      (4,050)      (9,161)      (8,101)
                                                            ---------    ---------    ---------    ---------

                 Net increase (decrease) in cash               (9,211)     (14,200)     (15,422)     (12,183)

Cash, beginning of period                                     175,432      211,858      181,643      209,841
                                                            ---------    ---------    ---------    ---------

Cash, end of period                                         $ 166,221    $ 197,658    $ 166,221    $ 197,658
                                                            =========    =========    =========    =========
</TABLE>








                        See notes to financial statements


<PAGE>



                                  W-J International, Ltd.
                          NOTES TO CONDENSED FINANCIAL STATEMENTS
                                        (Unaudited)


Note 1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

           The  condensed  balance  sheet as of March 31, 1998  (Unaudited)  and
           September 30, 1997 (Audited) and the related  statement of operations
           and cash flow for the three and  six-month  periods  ended  March 31,
           1998  (Unaudited)  are enclosed.  In the opinion of  management,  all
           adjustments  necessary  for a fair  presentation  of  such  financial
           statements  have been included.  Such  adjustments  consisted only of
           normal recurring items.

           The Financial statements and notes are presented as permitted by Form
           10-QSB and contain  certain  information  included  in the  Company's
           annual financial  statements and notes of W-J International,  Ltd., a
           Delaware Corporation ("W-J" or the
           "Company").


Note 2.    INVENTORIES

           Inventories consist of the following:
                                           March 31,         September 30,
                                             1998                1997
                                           ----------          ---------

           Parts and                     $         0         $        0
           Components
           Finished Units                          0                  0
                                           ----------          ---------

                                           ==========          =========
           Total                         $         0         $        0
                                           ==========          =========


Note 3.    STOCKHOLDERS' EQUITY
                                    (Audited)      Equity Changes    (Unaudited)
                                   September 30,   Due to Operation    March 31,
                                      1997                              1998

      Number of Shares              12,214,632                0      12,214,632

      Common Stock                     122,146                0         122,146

      Additional Paid-In Capital     2,274,840                0       2,274,840

      Retained Earnings
      (Accumulated Deficit)         (1,994,512)         (16,556)     (2,011,068)
 

      Total                            402,474          (16,556)        385,918



<PAGE>

Item 2 -  Management's Discussion and Analysis or Plan of Operations  

         RESULTS OF OPERATIONS

                  Rental  Income for the  six-month  period ended March 31, 1998
         decreased 89% to $6,000 from $56,400 for the six-month period March 31,
         1997.  Rental  Income for the  three-month  period ended March 31, 1998
         decreased 89% to $3,000 from $28,200 for the  three-month  period ended
         March 31, 1997.  The decrease in rent for the second  quarter of fiscal
         1998 was  primarily due to the fact that the one-year  lease  agreement
         that the Company had with one of its  lessees was not  extended  beyond
         its March 31, 1997  termination  date. The Company has not yet replaced
         this renter,  and rental income is the Company's  only source of income
         at this time.

                  Expenses  for  the  six-month  period  ended  March  31,  1998
         increased 22% to $6,169 from $5,056 for the six-month  period March 31,
         1997.  Expenses for the six-month period ended March 31, 1998 increased
         to $17,126  from  $17,122 for the  three-month  period  ended March 31,
         1997.

                  Discontinued Operation expenses for the six-month period ended
         March 31, 1998 was $5,428  while  expenses for the  three-month  period
         ended March 31, 1997 was $9,356.  Discontinued  Operations expenses for
         the  three-month  period ended March 31, 1998 was $5,428 while expenses
         for the three-month period ended March 31, 1997 was $6,769.

                  Net Income  for the  six-month  period  ended  March 31,  1998
         decreased 155% to a deficit of $16,556 from a profit of $29,922 for the
         six-month period March 31, 1997. Net Income for the three-month  period
         ended  March 31,  1998  decreased  153% to a deficit  of $8,597  from a
         profit of $16,375  for the  three-month  period  March 31,  1997.  This
         significant  change from 1997 arises from the  Company's  inability  to
         secure a renter for its building.


         LIQUIDITY AND CAPITAL RESOURCES

                  The Company's  working  capital  decreased to $146,293 for the
         six-month  period ended March 31, 1998 from $164,415 for the year ended
         September  30,  1997.  The  Company  intends  to  continue  to seek and
         evaluate alternatives in order to begin operations again and to improve
         the Company's  financial  condition,  including  merger and acquisition
         opportunities.  In the  interim,  the  Company  will  seek a renter  or
         purchaser  for its  building.  Because  the  Company  will not  restart
         operations of any type until a business opportunity arises for such, it
         does not  anticipate  raising  additional  funds  and  believes  it has
         sufficient means to meet its capital  requirements for the remainder of
         fiscal year 1988.

PART II.   OTHER INFORMATION

Item 4. Submission of Matters to a Vote of Security Holders.

         No matters  were  submitted  to a vote of security  holders  during the
         quarter ended March 31, 1998.


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

         (a) Exhibits

         No exhibits are required to be filed for the  three-month  period ended
         March 31, 1998.

         (b) Reports on Form 8-K.

         No report on Form 8-K was filed  during the  three-month  period  ended
         March 31, 1998.



<PAGE>



                                   SIGNATURES


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

                                        W-J International, Ltd.
                                                ("Small Business Issuer")


                                        By /s/ Edward H. Webb
                                           Edward H. Webb
                                           President




Date:      May 15, 1998