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 September 30, 1997

(    )		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                                      September 30, 1997
                -----                                      ------------------

Common Stock,  $.0002 par value                            14,448,893 shares
<PAGE>
    
                                FORM 10-QSB

                     Financial Statements and Schedules
                          Magellan Technology, Inc.

                For the Quarter Ended September 30, 1997

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

                     Part I - Financial Information
                     -------------------------------

Item 1.		Financial Statements							

                Consolidated balance sheet                                     
		    for September 30, 1997 and year-end 
                    for December 31, 1996                                    2

                Consolidated statement of 
		    operations for the three and nine months
                    ended September 30, 1997 and 1996                        4

                Consolidated statement of cash flows for the 
		    nine months ended September 30, 1997
                    and 1996                                                5-6

                Notes to consolidated financial statements                   7

Item 2.		Management's Discussion and Analysis
		    of Financial Condition and Results of
                    Operations                                              8-9

                        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                        

                           Consolidated Balance Sheet                    



ASSETS                                Sept. 30, 1997          Dec. 31, 1996
                                       (Unaudited)             (Audited)
                                     -----------------      -----------------

Current Assets:								

        Cash                          $    $87,899             $    88,687 
                                                      
        Other Current Assets               334,071                   6,125 
                                     -----------------      -----------------

            Current Assets                 421,970                  94,812 
                                     -----------------      -----------------
								
Property and Equipment:								
								
        Property and Equipment             114,804                  72,384 
								
        Accumulated Depreciation           (19,766)                 (6,777)
                                     -----------------      -----------------
								
            Net Property and Equipment      95,038                  65,607 
                                     -----------------      -----------------
								
        Investment in Joint Venture      1,459,682               1,468,933 
                                     -----------------      -----------------
								
            Total Assets                $1,976,690              $1,629,352 
                                     =================      =================  























                                        2 

<PAGE>

                             MAGELLAN TECHNOLOGY, INC. 
                                 AND SUBSIDIARIES

                            Consolidated Balance Sheet    



LIABILITIES AND STOCKHOLDERS' EQUITY   Sept. 30, 1997         Dec. 31, 1996
                                        (Unaudited)             (Audited)
                                     -----------------      -----------------

Current Liabilities:								

   Current Portion of long-term debt       $41,788                 $38,516 
								
   Line of Credit                        1,190,000                   -   
								
   Notes Payable                           400,000                   -

   Accounts Payable                        248,642                  43,947 
								
   Accrued Liabilities                     103,189                  75,253 
                                     -----------------      -----------------
								
           Current Liabilities           1,983,619                 157,716 
								
Long-Term Debt                             522,187                 542,390 
                                     -----------------      -----------------
								
           Total Liabilities             2,505,806                 700,106 
                                     -----------------      -----------------
								
Stockholders' Equity/(Deficit):                                 
								
   Common Stock, par value $.0002
   per share; 25,000,000 shares
   authorized, 14,448,893 shares
   and 13,620,838 shares at
   September 30, 1997 and
   December 31, 1996 issued and
   outstanding respectively                  2,890                  2,724
								
   Additional Paid-in Capital            6,316,687              6,309,353 
								
   Accumulated Deficit                  (6,848,693)            (5,382,831)
                                     -----------------      -----------------
								
         Total Stockholders'
          equity/(deficit)                (529,116)               929,246
                                     -----------------      -----------------
								
         Total Liabilities
         and Stockholder's Equity    $   1,976,690          $   1,629,352 
                                     =================      =================  
								
								
								
                                                                               
                                        3                        
<PAGE>
                           MAGELLAN TECHNOLOGY, INC.                    
                               AND SUBSIDIARIES                               
                      Consolidated Statements of Operations            
                                  (Unaudited)
<TABLE>
<S>                                          <C>              <C>               <C>            <C>
                                                   Three Months Ended                  Nine Months Ended      
                                                      Sept. 30,                           Sept. 30,
                                              ----------------------------        --------------------------
								
                                                  1997            1996               1997            1996
                                              --------------  -------------       ------------  ------------

Revenue from Sales:                           $      -         $   164,130        $     -       $  1,150,046 
								
Cost of Sales:                                       -             117,210              -            742,759
                                              --------------  -------------       ------------  ------------

Gross Margin:                                        -              46,920              -            407,287

Operating Expenses:								
								
        Selling, General and Administrative       378,218           31,318           845,036         243,919
        Depreciation & Amortization                 5,329           20,428            12,988         138,029
        R & D Expenses                            207,436              -             499,103            -   
                                              --------------  -------------       ------------  ------------
								
           Total Operating Expenses               590,983           51,746         1,357,127         381,948 
                                              --------------  -------------       ------------  ------------
								
Income (Loss) from Operations:                   (590,983)          (4,826)       (1,357,127)         25,339 
								
Other Income (Expense):								
	Purchased in-process							
          research & development                      -           (596,138)              -          (596,138)
        Equity in Loss of Joint Venture            29,307            5,054            (9,251)          5,054 
        Interest Expense                          (46,521)          (9,182)          (92,446)        (34,060)
        "Other, net"                                 -               1,883            (7,038)         11,472 
                                              --------------  -------------       ------------  ------------
								
           Net Income (Loss)                    $(608,197)       $(603,209)      $(1,465,862)      $(588,333)
                                              ==============  =============       ============  =============
           Net Income (Loss) per share            $(0.04)          $(0.07)           $(0.10)         $(0.08)
                                              ==============  =============       ============  =============
Weighted average shares outstanding            14,448,893        8,250,219         14,448,893      7,636,000 
                                              ==============  =============       ============  =============
</TABLE>
                                                          4
<PAGE>

                            MAGELLAN TECHNOLOGY, INC.
                               AND SUBSIDIARIES                               

                      Consolidated Statements of Cash Flows               
                                  (Unaudited)

                                                  Nine Months Ended
                                                      Sept. 30,
                                     ----------------------------------------
														
Cash Flows form Operating Activities:      1997                     1996       
                                     -----------------      ----------------- 
  Net Income (Loss)                     $(1,465,862)               $(588,333)
  Adjustments to Reconcile
   Net Income (Loss)
    to Net Cash used in
     Operating Activities:
    Depreciation                             12,988                     -   
    Equity in Loss of Joint Venture           9,251                     -   
   (Increase) Decrease in:                                 
      Accounts Receivable                      -                     355,263 
      Other Current Assest                 (327,945)                   7,088 
      Cash Deposits                            -                      37,586 
      Capitalized Software, Net"               -                      87,346 
    Increase (Decrease) in:                                  
      Accounts Payable                      204,695                 (161,956)
      Accrued Liabilities                    27,936                 (160,765)
      Deferred Revenue                         -                        -   
                                     -----------------      -----------------  
    Net Cash used in Operating
     Activities                          (1,538,937)                (423,771)
								
Cash Flows from Investing Activities:								
   Proceeds from transfer of                  
   equipment to SIS, LLC                      -                      464,847 
   Purchase of Machinery and Equipment      (42,420)                    -   
   Investment in Subsidiary                                       (1,583,510)
                                     -----------------      -----------------  
    Net Cash used in
     Investing Activities                   (42,420)              (1,118,663)
								
Cash Flows from Financing Activities:								
   Proceeds from Notes Payable
    and Line of Credit                    1,590,000                  150,000 
   Proceeds from the Issuance of
    Common Stock                              7,500                1,897,566 
   Reduction of Long-Term Debt              (16,931)                (645,875)
                                     -----------------      -----------------  
   Net Cash Provided by (Used in)
     Financing Activities:                1,580,569                1,401,691 
                                     -----------------      -----------------  
    Net Decrease in cash                       (788)                (140,743)
								
"Cash, Beginning of Period                   88,687                  149,778 

"Cash, End of Period                        $87,899                   $9,035 
                                     =================      =================  
                                          5               
   <PAGE>                                                      
								
                            MAGELLAN TECHNOLOGY, INC.
                               AND SUBSIDIARIES                                

                      Consolidated Statements of Cash Flows               
                                   (Unaudited)

                                                  Nine Months Ended
                                                      Sept. 30,
                                     ----------------------------------------
                                                                          
                                           1997                     1996
                                     -----------------      -----------------

Cash paid during the period for:								 

        Interest                     $         40,178       $          9,155 
                                     =================      =================  
        Income Taxes                 $           -          $           -   
                                     =================      =================  



































                                        6
<PAGE>



                              MAGELLAN TECHNOLOGY, INC.
                                 AND SUBSIDIARIES

                     Notes to Consolidated Financial Statements

(1)  The unaudited consolidated financial statements include the 
     accounts of Magellan Technology, Inc. (The Company) and its wholly owned 
     subsidiaries, SkyHook Technologies, Inc. (SkyHook), ProHealth, Inc. 
     (formerly known as Satellite Image Systems, Inc. (SIS, Inc.)) and SIS 
     Jamaica, LTD (SIS Jamaica).  The Company acquired SkyHook effective 
     October 15, 1996.  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.  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.  The Company received a 49% interest in SIS, LLC whose 
     assets include those transferred by the Company as well as $3,000,000 
     cash transferred by the other party to the transaction.  The financial 
     statements reflect the investment in SIS, LLC under the equity method of 
     accounting.  

(2)  The unaudited 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 September 30, 1997 and the results of operations for the 
     nine months and three months ended September 30, 1997 and 1996 and cash
     flows for the nine months ended September 30, 1997 and 1996. The results
     of operations for the nine months ended September 30, 1997 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 September 30, 1997 and 1996, respectively.  Shares 
     outstanding for 1996 and 1997 reflect the 2:1 reverse stock split that 
     occurred on March 8, 1996.

(4)  During the nine months ended September 30, 1997, the Company borrowed 
     $1,190,000 under two separate line-of-credit agreements.  The funds were 
     used to finance operations.  As of September 30, 1997 one of the lines 
     had an outstanding balance of 745,000, and a maturity date of December 
     31, 1997. As of September 30, 1997 the other line had an outstanding 
     balance of 445,000, and matures in August 1998.  Both of these lines of 
     credit are secured by inventory and the personal guarantees of the 
     Company's Chief Executive Officer, a Director, and a major shareholder.   

(5)  During the four month period ended September 30, 1997 the Company 
     borrowed $400,000 from the Company's Chief Executive Officer under four 
     separate $100,000 unsecured  note payable agreements.  Each note payable 
     bears interest at 12% and is payable upon  demand.  The funds were used 
     to finance operations.    




                                       7
<PAGE>


                        PART I - FINANCIAL INFORMATION


ITEM 2 - Management's Discussion and Analysis of Financial Condition and
         ----------------------------------------------------------------
         Results of Operations
         ---------------------

Nine month period ended September 30, 1997 compared to the nine month period 
ended September 30, 1996

Due to the formation of SIS, LLC effective August 1, 1996 and the acquisition 
of SkyHook Technologies, Inc. effective October 15, 1996 the focus of the 
company for the nine month period ended September 30, 1997 has changed 
significantly when compared to the activities of the nine month period ended 
September 30, 1996.  Accordingly, no comparison between current and prior 
year's operating results is meaningful.

Operations for the three months ended September 30, 1997

During the three months ended September 30, 1997 the Company continued to 
aggressively pursue development and marketing of  the SkyHook Cargo 
Management System (SkyHook CMS).  Production models of the SkyHook CMS
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.  The SkyHook CMS product continues to receive
favorable reviews in industry publications.  The Company has also introduced
the SkyHook Light Aerial 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 will compliment the SkyHook
CMS 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 CMS product, the company can effectively meet the varying
needs of its customers. 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 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 September 30, 1997 the Company's books reflect net income 
of  $29,307, its 49% share of the income of SIS, LLC for the Quarter.  SIS, 
LLC in total earned $59,810 on revenues of $1,218,824 for the three months 
ended September 30, 1997.  These results compare favorably with the three 
month period ended June 30, 1997 during which time period SIS, LLC in total 
earned $12,508 on revenues of $998,173. 

Operations for the Nine month period ended September 30, 1997
                                       8
<PAGE>

During the nine month period ended  September 30, 1997, in addition to the 
activity related above, the SkyHook CMS product was successfully demonstrated 
during a prolonged war games exercise with a branch of the United States 
Military during the month of March 1997.

As of June 30, 1997 the company relocated the operations of SkyHook 
Technologies, Inc. to a new facility in Draper, Utah.  The facility provides 
SkyHook with additional office and production space.  The Company has also 
relocated its Magellan Technology, Inc. (Parent Company) functions to the 
Draper, Utah facility.  The Company entered into a lease agreement in 
connection with the move.  The lease has a term of three years with one 
three-year option.

Liquidity and Capital Resources
 
During the nine months ended September 30, 1997, the Company borrowed 
$1,190,000 under two separate line-of-credit agreements.  The funds were used 
to finance operations.  As of September 30, 1997 one of the lines had an 
outstanding balance of 745,000, and a maturity date of December 31, 1997. As 
of September 30, 1997 the other line had an outstanding balance of 445,000, 
and matures in August 1998.  Both of these lines of credit are secured by 
inventory and the personal guarantees of the Company's Chief Executive 
Officer, a Director, and a major shareholder.     

On June 2, 1997 the Board of Directors approved a financing agreement for the 
Company to borrow up to $600,000 in unsecured notes.  The notes bear interest 
at 12% and are payable on demand.  The Company borrowed $400,000 in the form 
of four separate $100,000 notes from the Company's Chief Executive Officer 
under the financing agreement during the months of June, July and August.
  
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 fourth quarter of 1997.  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 
$210,000 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. 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 June 18, 1997 the Company signed a Letter of Intent to acquire BioSource, 
Inc. of Orem, Utah.  BioSource is an international leader in Electro Dermal 
Screening (EDS), a revolutionary computer-based technology used to assist 
healthcare practitioners to screen a broad range of health disorders.

Joe Galloway, President of BioSource , said, "In order to maintain our 
Company's rapid growth, we needed additional executive and financial 
resources.  After considering several offers, our management unanimously 
agreed to join Magellan."  BioSource is expected to increase the revenues of 
Magellan's subsidiary, ProHealth, Inc. (formerly known as SIS, Inc.).  
ProHealth, Inc. through a Joint Venture with UICI (NASDAQ) uses data capture 
technology and imaging to convert payer documents into electronic claims 
submission formats for the healthcare industry.  

William A. Fresh, Chairman and CEO of Magellan Technology indicated that the 
addition of BioSource compliments one of the Company's present missions:  
Providing technology for health services.

Item 6.		Exhibits and Reports on Form 8-K:
			
        (a)     None. 

	(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                                        November 7, 1997
--------------------------                                   -----------------
Douglas M. Angus                                             Date 
Vice President - Finance