UNITED STATES
                 SECURITIES AND EXCHANGE COMMISSION
                       WASHINGTON, D.C.  20549
                              
                             FORM 10-QSB


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

          For the quarterly period ended March 31, 1998

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

          For the transition period from ______________  to ______________

          Commission file number:  0-18271
                                   -------

                       MAGELLAN TECHNOLOGY, INC.
         ------------------------------------------------------
         (Exact name of registrant as specified in its charter)


                 Utah                                87-0467614
         -----------------------------    -----------------------------------
        (State or other jurisdiction of   (I.R.S. Employer Identification No.)
        Incorporation or Organization)

          13526 South 110 West
          Draper, Utah                                   84020
        ----------------------------------------       ----------
        (Address of principal executive offices)       (Zip Code)


Registrant's telephone number, including area code:   (801)495-2211
                                                      -------------
      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 and 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:
                                             Outstanding at
          Class                              March 31, 1998
          -----                              ---------------
Common Stock, $.0002 par value              15,557,600 shares
<PAGE>


                                 FORM 10-QSB
                              
                     Financial Statements and Schedules
                          Magellan Technology, Inc.
                              
                    For the Quarter Ended March 31, 1998

     The following financial statements and schedules of the
registrant and its consolidated subsidiaries are submitted herewith:

                       Part I - Financial Information
                       -------------------------------
Item 1.        Financial Statements

               Condensed consolidated balance sheet
                 for March 31, 1998 and year-end
                 for December 31, 1997                                 2

               Condensed consolidated statement of
                 operations for the three months
                 ended March 31, 1998 and 1997                         4

               Condensed consolidated statement of cash flows for
                 the three months ended March 31, 1998 and 1997        5

               Notes to condensed consolidated
                 financial statements                                  7

Item 2.        Management's Discussion and Analysis
                 of Financial Condition and Results of Operations      8

                 Part II - Other Information

Item 1.        Legal Proceedings                                      10

Item 2.        Changes in Securities                                  10

Item 3.        Defaults upon Senior Securities                        10

Item 4.        Submission of Matters to a Vote of
                 Security Holders                                     10

Item 5.        Other information                                      10

Item 6(a)      Exhibits                                               10

Item 6(b)      Reports on Form 8-K                                    10
                                       
<PAGE>



                           MAGELLAN TECHNOLOGY, INC.
                             AND SUBSIDIARIES
                                                                              
                                                                              
                       Condensed Consolidated Balance Sheet
                                                                              
                                                                              
                                                                              
ASSETS                                   March 31,1998          Dec. 31 1997
                                          (Unaudited)            (Audited)    
                                        ---------------       ---------------
Current Assets:
                                                                              
    Cash                                $       141,465       $       111,402
                                                                              
    Other Current Assets                         837,352              570,808
                                                                              
         Current Assets                          978,817              682,210
                                                                              
    Property and Equipment, net                  452,850              336,421
                                                                              
    Net Asset in Discontinued 
    Operations                                  1,324,829           1,325,027
                                                                              
    Goodwill,net                                  327,685             344,039
                                        ------------------    --------------- 
          Total Assets                          3,084,181           2,687,697
                                        ==================    ===============
                                                                              
                                                                              
                                                                              
                                                                              
                                            2                              
<PAGE>                                                                     
                                                                              
                           MAGELLAN TECHNOLOGY, INC.
                              AND SUBSIDIARIES
                                                                              
                       Condensed Consolidated Balance Sheet
                                                                              
                                                                              
                                                                              
LIABILITIES AND STOCKHOLDERS' EQUITY         March 31,1998       Dec. 31, 1997
                                              (Unaudited)          (Audited)  
                                             -------------        -----------
Current Liabilities:
                                                                              
   Current Portion of long-term debt         $   181,564          $   173,537
                                                                              
   Notes Payable                               2,734,918            2,210,022
                                                                              
   Related Party Notes Payable                   400,000              750,000
     
   Accounts Payable                              407,900              478,702
     
   Accrued Liabilities                           181,746              206,749
                                              ------------         -----------
      Current Liabilities                      3,906,128            3,819,010
      
Long-Term Debt                                   526,621              591,717
                                              ------------         -----------
       Total Liabilities                       4,432,749            4,410,727
                                              ------------         ----------- 

Stockholders' Equity:

  Common Stock, par value $.0002 per share;
  25,000,000 shares authorized, 
  15,557,600 & 13,620,838 shares issued                                     
  and outstanding at March 31, 1998 and
  December 31, respectively                        3,111               2,774
                                                                              
  Additional Paid-in Capital                   8,086,633           6,890,419
 
  Unearned Compensation                         (209,717)           (236,000)
                                                                              
  Retained Deficit                            (9,228,595)         (8,380,223)
                                              -----------         ------------
 Total Stockholders' Equity                   (1,348,568)         (1,723,030)
                                              -----------         ------------
 Total Liabilities and Stockholders' 
            Equity                          $  3,084,181         $ 2,687,697   
                                              ===========         ============
                                                                              
                                                                              
                                                                              
                                                                              
                                       3                                    
<PAGE>                                                                    
                                                                              
                           MAGELLAN TECHNOLOGY, INC.
                              AND SUBSIDIARIES
                                                                              
                 Condensed Consolidated Statements of Operation
                                  (Unaudited)
                                                                              
                                              Three Months Ended 
                                                   March 31,
                                       --------------------------------   
                                            1998              1997          
                                       --------------     -------------    
       
Revenue from Sales:                    $    242,617       $          -
       
Cost of Sales:                               46,719                  -
                                       ---------------    --------------
Gross Margin:                               195,898                  -
                                       ---------------    --------------
                                       
Operating Expenses:                                       
                                       
  Selling, General and Administrative       567,347            226,708
  Depreciation & Amortization                36,642              3,356
  Compensation Expense-Stock Options         26,283                       
  R & D Expenses                            320,657            137,024
                                       ----------------   ---------------
       Total Operating Expenses             950,929            367,088     
                                       ----------------   ---------------   
  Income(Loss) from Operations:            (755,031)          (367,088)
                                                                              
  Other Income (Expense):                                                   
    Loss from Discontinued Operations          (198)           (44,687)    
    Interest Expense                        (93,145)           (17,070)
    Other, net                                   -                 752
                                       -----------------   ----------------
        Net Income (Loss)              $   (848,374)       $  (428,093)
                                       -----------------   ----------------
                                       -----------------   ----------------
        Net Income (Loss) per share    $       (0.06)      $      (0.03)
                                       -----------------   ----------------
                                       -----------------   ----------------
Weighted average shares outstanding       14,434,203         13,620,838    
                                       =================   ================




                                  4                                           
                                                                              
<PAGE>                                                                  
                                                                              
                                                                              
                           MAGELLAN TECHNOLOGY, INC.
                              AND SUBSIDIARIES
                                                                              
                 Condensed Consolidated Statements of Cash Flows
                                (Unaudited)                           
                                                                              
                                                      Three Months Ended
                                                           March 31,
                                                ------------------------------ 
Cash Flows from Operating Activities:                 1998          1997    
                                                --------------    ------------ 

Net Income (Loss)                               $    (848,374)    $   (428,093)
Adjustments to Reconcile Net Income (Loss)
to Net CAsh used in Operating Activities:
  Depreciation & Amortization                          36,644            3,356
  Loss From Discontinued Operations                       198           44,687
  Stock Compensation                                   26,283
  (Increase) Decrease in:
    Accounts Receivable                               (12,950)
    Other Current Assets                             (253,594)         (76,791)
   Increase (Decrease) in:
    Accounts Payable                                  (70,802)          18,161
    Accrued Liabilities                               (25,003)          11,910
    Deferred Revenue                                      -                -
                                                 ---------------   ------------

Net Cash used in Operating Activities               (1,147,598)       (426,770)

                                                 ---------------    -----------
Cash Flows from Investing Activities:            
 Purchase of Machinery and Equipment                 (136,717)          (9,710)
                                                 ----------------   -----------
  Net Cash used in Investing Activities              (136,717)          (9,710)
                                                 ----------------   -----------

Cash Flows from Financing Activities:
  Net Proceeds from Notes Payable,
  Related Party Notes Payable 
  and Long-Term Debt                                  509,000          375,000
  Reduction of Long-Term Debt                        (391,173)          (6,244)
  Proceeds from Issuance of Common Stock            1,196,551
  (Conversion of Debt to Common Stock)           ----------------    ----------
     Net Cash Provided by Financing                 
     Activities:                                    1,314,378          368,756
                                                 ----------------   -----------
     Net Increase (Decrease) in cash                   30,063          (67,724)

Cash, Beginning of Period                             111,402           88,687
                                                 ----------------   -----------
Cash, End of Period                              $    141,465       $   20,963
                                                 ================   ===========

                                       5
<PAGE>

                                                                              
                           MAGELLAN TECHNOLOGY, INC.
                              AND SUBSIDIARIES
                                                                              
                 Condensed Consolidated Statements of Cash Flows
                                (Unaudited)                               

                                                      Three Months Ended
                                                           March 31,
                                                ------------------------------
                                                       1998          1997   
                                                --------------    ------------ 

                                                                               
Cash paid during the period for:
     Interest                                   $    59,497       $   13,806
                                                ==============    ============ 

     Income Taxes                               $       500       $      -
                                                ==============    ============ 
                                                                              
                                                                              
                                                                              
                                      6                                        
                                                                              
                                                                              
<PAGE>                                                                     
                                                                              
                              
                              
                              
                  MAGELLAN TECHNOLOGY, INC.
                      AND SUBSIDIARIES
                              
    Notes to Condensed Consolidated Financial Statements

(1)  The    unaudited   condensed   consolidated   financial
     statements include the accounts of Magellan Technology,
     Inc.  (The  Company) and its wholly owned subsidiaries,
     ProHealth,  Inc.  (formerly known  as  Satellite  Image
     Systems,  Inc. (SIS, Inc.)) and SIS Jamaica,  LTD  (SIS
     Jamaica),  SkyHook Technologies, Inc. (SkyHook),  which
     the  Company acquired effective October 15,  1996,  and
     BioMeridian International, Inc. (BioMeridian) (formerly
     BioSource,  Inc.) which the Company acquired  effective
     October  15, 1997.  The acquisition of SkyHook included
     the  issuance  of  4,874,936 shares of Magellan  common
     stock  and  cash for all of the outstanding  shares  of
     SkyHook  common stock.  The transaction  was  accounted
     for  as  a  purchase transaction.  The  acquisition  of
     BioSource  included the issuance of 225,000  shares  of
     Magellan  common  stock  and  cash  for  all   of   the
     outstanding  shares  of BioSource  common  stock.   The
     transaction   was   accounted   for   as   a   purchase
     transaction.   The  Company  recognized   goodwill   of
     $358,997.   On  August 1, 1996 the Company  transferred
     its interest in the assets, liabilities, and operations
     conducted by SIS, Inc. to Satellite Image Systems,  LLC
     (SIS, LLC), a joint venture.  As of March 31, 1998  the
     Company was the owner of a 46.5% interest in SIS,  LLC.
     The financial statements reflect the investment in SIS,
     LLC under the equity method of accounting.

(2)  The  unaudited condensed consolidated financial
     statements  include  all  adjustments  (consisting   of
     normal  recurring items) which are, in the  opinion  of
     management,  necessary to present fairly the  financial
     position  as  of  March 31, 1998  and  the  results  of
     operations  for the three months ended March  31,  1998
     and  1997  and  cash flows for the three  months  ended
     March 31, 1998 and 1997. The results of operations  for
     the   three  months  ended  March  31,  1998  are   not
     necessarily  indicative of the results to  be  expected
     for the entire year.

(3)  (Loss)  per  share  is  based on the  weighted  average
     number of shares outstanding at March 31, 1998 and 1997,
     respectively.

(4)  During  the  three  months ended March  31,  1998,  the
     Company borrowed $10,000 under a line-of-credit agreements.
     The  Company also borrowed $499,000 under a term credit
     agreement.  The funds from each of these agreements were
     used  to finance operations.  As of March 31, 1998  the
     company had the following outstanding balances payable under
     credit agreements; 745,000 due April 15, 1998, $750,000 due
     July 20, 1998 and $1,199,000 due May 19, 1998.  Each of
     these credit agreements are secured by inventory and the
     personal  guarantees of the Company's  Chief  Executive
     Officer,  a Director, and a major shareholder.    Notes
     payable at March 31, 1998 also include a small line  of
     credit for approximately $25,000 and a note payable to an
     individual for approximately $15,000.

(5)  During  the  three  months ended  March  31,  1998  the
     Company borrowed $800,000 from the Company's Chief Executive
     Officer, or from entities controlled by this individual,
     under  five  separate $100,000 unsecured  note  payable
     agreements and under two separate $150,000 unsecured  note
     payable agreements.  Each note payable bears interest at 12%
     and is payable upon  demand.  The funds were used to finance
     operations.

(6)  Effective February 27, 1998 $1,150,000 of related party
     notes  payable  were converted to common stock  of  the
     Company.  In addition, interest payable of approximately
     $46,500 was used by the individuals to exercise warrants to
     purchase common stock.

(7)  Subsequent  Event.  Effective May 12, 1998 the  Company
     entered into an agreement to sell its 46.5% interest in SIS,
     LLC.  Terms of the agreement include an initial payment of
     $1,500,000 and additional payments not to exceed $1,000,000
     that will be earned over the next 27 months based upon the
     operating results of SIS, LLC.  The Company intends to use
     the funds for working capital and debt reduction.
                              
                              7

<PAGE>

               PART I - FINANCIAL INFORMATION


ITEM 2 - Management's Discussion and Analysis of Financial
         -------------------------------------------------
         Condition and Results of Operations
         -----------------------------------
Operations for the three months ended March 31, 1998

Results of SkyHook

During  the  three months ended March 31, 1998  the  Company
continued  to aggressively pursue development and  marketing
of   the  SkyHook External Cargo Management System  (SkyHook
ECMS).   The  Company also continued to improve the  SkyHook
Light  Ariel Delivery System (SkyHook LADS). This new  lower
cost  system  is  designed to carry three or  four  separate
loads with total system load capacity of 12,000 pounds.  The
SkyHook  LADS compliments the SkyHook ECMS which is designed
to  carry  three or six separate loads with a  total  system
capacity  of  36,000 pounds.  With the introduction  of  the
LADS system to compliment the ECMS product, the company  can
effectively  meet the varying needs of its customers.   Both
the   SkyHook  ECMS  and  SkyHook  LADS  were   tested   and
demonstrated with potential customers.  Marketing and  sales
professionals have participated in several trade  shows  and
other   marketing  activities.   These  activities  included
demonstrations  of  the  product  and  visits  to  potential
customers.  Both products have received favorable reviews in
industry   publications.   Notwithstanding  these  continued
favorable  preliminary results, there is no  assurance  that
marketing  of  the SkyHook CMS or the SkyHook LADS  will  be
successful.

Results of BioMeridian

For  the  three  months  ended March  31,  1998  BioMeridian
achieved  sales of $242,617 which resulted in  an  operating
loss of $132,864.  BioMeridan continues to focus its efforts
on   enhancing   domestic  and  international   distribution
channels   for  its  Computerized  Electro-Dermal  Screening
(CEDS)  products.  Management of BioMeridian  believes  that
the   company   is  being  well  positioned  to   experience
significant   growth   in   the  alternative   health   care
marketplace.  On May 6, 1998 the Company announced  that  it
has  entered  into an agreement to acquire  Digital  Health,
LLC,  a  competitor to BioMeridian in the CEDS  marketplace.
The   combined  companies  will  pool  their  resources  and
expertise   to  maintain  leadership  through  technological
advantages and superior distribution channels.

Results of SIS, LLC

Since  the  formation of SIS, LLC, the Company has accounted
for  the  earnings and transactions of SIS,  LLC  under  the
equity  method  of accounting.  For the three  months  ended
March  31,  1998 the Company's books reflect a net  loss  of
$198,  its  46.5% share of the income of SIS,  LLC  for  the
Quarter  based  upon revenues of $1,188,000.  These  results
compare  favorably with the three month period  ended  March
31,  1997 during which time period the Company record a loss
of  $44,687  for  its 49% ownership of  SIS,  LLC  on  total
revenues of $772,172.


Liquidity and Capital Resources

During  the  three months ended March 31, 1998, the  Company
borrowed  $10,000  under a line-of-credit  agreements.   The
Company   also  borrowed  $499,000  under  a   term   credit
agreement.   The  funds from each of these  agreements  were
used  to  finance  operations.  As of  March  31,  1998  the
company had the following outstanding balances payable under
credit  agreement; 745,000 due April 15, 1998, $750,000  due
July  20,  1998  and $1,199,000 due May 19, 1998.   Each  of
these  credit  agreements are secured by inventory  and  the
personal   guarantees  of  the  Company's  Chief   Executive
Officer, a Director, and a major shareholder.







                              8


<PAGE>


During  the  three months ended March 31, 1998  the  Company
borrowed $800,000 from the Company's Chief Executive Officer
or  from entities controlled by this individual,  under five
separate  $100,000  unsecured  note payable  agreements  and
under   two   separate  $150,000  unsecured   note   payable
agreements.  Each note payable bears interest at 12% and  is
payable  upon   demand.   The funds  were  used  to  finance
operations.

Effective  February  27, 1998 $1,150,000  of  related  party
notes  payable   were  converted  to  common  stock  of  the
Company.  In addition, the interest payable of approximately
$46,500 was used by the individuals to exercise warrants  to
purchase common stock.

SkyHook Technologies, Inc. is still in the development stage
and is not expected to generate any revenue through sales of
products or services until the third quarter of 1998.  As  a
result,  the Company must rely solely on its lines-of-credit
and   its  ability  to  raise  additional  debt  and  equity
financing in order to finance continued product development,
sales and marketing, and all operating activities related to
the  SkyHook CMS and the SkyHook LADS.  On-going  operations
of   the   Company  are  currently  consuming  approximately
$195,000  of  cash  each month and the  Company  expects  to
continue   to  incur  substantial  additional  expenses   in
connection with the finalization of the development  of  the
SkyHook product lines and their introduction into the market
place.   BioMeridian  has also experience  operating  losses
duringthe  three  month period ended March  31,  1998.   The
Company is forecasting profitable operations for BioMeridian
as  of  the  third quarter 1998.  There can be no  assurance
that the Company will be able to obtain needed financing  on
terms favorable to the Company.  If the company is unable to
raise  additional  capital, the ability of  the  Company  to
successfully market and distribute the SkyHook CMS  and  its
financial condition would be materially adversely affected.

                              
                              
                              9

<PAGE>


                 PART II - OTHER INFORMATION



Item 1.        Legal proceedings:  None.

Item 2.        Changes in Securities:  None.

Item 3.        Defaults upon Senior Securities:  None.

Item 4.        Submission of Matters to a Vote of Security Holders:  None.

Item 5.        Other information:

On  May  6,  1998 the Company signed a Letter of  Intent  to
acquire  Digital Health of Draper, Utah.  Digital Health  is
an   international  leader  in  Computerized  Electro-Dermal
Screening  (CEDS), a revolutionary computer-based technology
used  to  assist healthcare practitioners to screen a  broad
range of health disorders.

On May 12, 1998 the Company entered into an agreement to
sell its 46.5% interest SIS, LLC.  Terms of the agreement
include a $1,500,000 initial payment and additional payments
not to exceed $1,000,000 that will be earned over the next
27 months based upon the performance of SIS, LLC.  The
Company intends to use the funds for working capital and
debt reduction.


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

               (a)  Sale Purchase Agreement
     
               (b)  None.

                             10

<PAGE>

                              
                              
                              
                         SIGNATURES

     In accordance with the requirements of the Exchange
Act, the registrant caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                   MAGELLAN TECHNOLOGY, INC.
                   -------------------------
                          (Registrant)




/s/ Douglas M. Angus                              May 14, 1997
___________________________                      --------------
Douglas M. Angus                                 Date 
Vice President - Finance