SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)

              [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 1996
                             -----------------------

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

                For the transition period from ________ to_______

                         Commission file number 0-18109
                                                -------

                            BCAM INTERNATIONAL, INC.
                            ------------------------
        (Exact name of small business issuer as specified in its charter)

              New York                                 13-3228375
   ------------------------------           ------------------------------
  (State or other jurisdiction of          (I.R.S. Employer Identification No.)
   incorporation or organization)

                1800 Walt Whitman Road, Melville, New York 11747
                ------------------------------------------------
                    (Address of principal executive offices)

                                 (516) 752-3550
                                 --------------
                           (Issuer's telephone number)

                                 Not applicable
                                 --------------
              (Former name, former address and former fiscal year,
                         if changed since last report.)


     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the Securities 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
    ---    ---
     Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities  under a plan confirmed by a court. Yes     No
                                                   ---    ---
     State the number of shares  outstanding of each of the issuer's  classes of
common equity as of the latest practicable date:  14,877,233  
                                                  ----------
Transitional Small Business Disclosure Format (check one): Yes     No  X 
                                                               ---    ---

                                       1
<PAGE>

                                   FORM 10-QSB

                            BCAM INTERNATIONAL, INC.



PART I.  FINANCIAL INFORMATION:

Item 1.  Financial Statements

Condensed Consolidated Balance Sheet--September 30, 1996 (Unaudited).... ......3

Condensed Consolidated Statements of Operations - Three Months
   and Nine Months Ended September 30, 1996 and 1995 (Unaudited)...............4

Condensed Consolidated Statements of Cash Flows - Nine Months Ended
   September 30, 1996 and 1995 (Unaudited).....................................5

Notes to Condensed Consolidated Financial Statements - September 30, 1996
(Unaudited)....................................................................6

Item 2.  Management's Discussion and Analysis of Financial Condition
             and Results of Operations.........................................7

PART II.  OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K......................................9


SIGNATURES....................................................................10

INDEX OF EXHIBITS.............................................................11

                                       2
<PAGE>
<TABLE>
<CAPTION>
     
                            BCAM International, Inc.
                Condensed Consolidated Balance Sheet (Unaudited)
                               September 30, 1996
<S>                                                                               <C>

Assets
Current assets:
    Cash and cash equivalents                                                     $        1,434,089
    Held to maturity securities                                                                    -
    Accounts receivable, less allowance for doubtful accounts of $11,245                     169,378
    Prepaid expenses and other current assets                                                176,922
                                                                                  ------------------
Total current assets                                                                       1,780,389

Property, plant, and equipment, at cost:
    Furniture and fixtures                                                                   220,318
    Equipment                                                                                587,511
    Leasehold improvements                                                                    50,519
                                                                                  ------------------
                                                                                             858,348
    Less accumulated depreciation and amortization                                          (649,036)
                                                                                  ------------------
                                                                                             209,312
Other assets, principally patents (net of accumulated amortization of $202,067)              252,102
                                                                                  ------------------
Total assets                                                                      $        2,241,803
                                                                                  ==================

Liabilities and shareholders' equity Current liabilities:
    Accounts payable                                                              $           86,027
    Secured notes payable                                                                    600,000
    Accrued expenses and other current liabilities                                           126,634
    Deferred revenue                                                                          34,000
                                                                                  ------------------
Total current liabilities                                                                    846,661

Other liabilities                                                                             12,550
Commitments and contingencies                                                                                       -
Acquisition preferred stock, par value $.01 per share:
    Authorized 750,000 shares, no shares issued or outstanding                                                       -

Common shareholders' equity:
    Common stock, par value $.01 per share; authorized 40,000,000 shares,
    15,640,415 shares issued and 14,877,233 shares outstanding                               156,404
    Paid-in surplus                                                                       14,984,139
    Deficit                                                                              (12,858,851)
                                                                                  ------------------
                                                                                           2,281,692
    Less 763,182 treasury shares                                                            (899,100)
                                                                                  ------------------
                                                                                           1,382,592
                                                                                  ------------------
Total liabilities and shareholders' equity                                        $        2,241,803
                                                                                  ==================

See accompanying notes
</TABLE>
                                       3
<PAGE>
                            BCAM International, Inc.
           Condensed Consolidated Statements of Operations (Unaudited)

<TABLE>
<CAPTION>

                                                Three months ended September 30             Nine months ended September 30
                                              -----------------------------------         -----------------------------------
                                                    1996               1995                     1996                1995
                                              ----------------   ----------------         ----------------   ----------------
<S>                                           <C>                <C>                      <C>                <C> 

Net revenue                                   $        173,182   $        158,485         $        383,903   $        572,881

Costs and expenses:
   Direct costs of revenue                             107,505            143,147                  156,793            531,310
   Selling, general and administrative                 294,467            450,652                1,369,782          1,274,513
   Research, development and engineering                32,897             43,432                   79,457            152,838

                                              ----------------   ----------------         ----------------   ----------------
Total operating expenses                               434,869            637,231                1,606,032          1,958,661

                                              ----------------   ----------------         ----------------   ----------------
Net loss from operations                              (261,687)          (478,746)              (1,222,129)        (1,385,780)

Interest income (expense), net                           8,894             40,707                   50,428            141,820

                                              ----------------   ----------------         ----------------   ----------------
Net loss                                      $       (252,793)  $       (438,039)        $     (1,171,701)  $     (1,243,960)  
                                              ================   ================         ================   ================

Net loss per share                            $          (0.02)  $          (0.03)        $          (0.08)  $          (0.08) 
                                              ================   ================         ================   ================

Weighted average number of common 
   shares outstanding                               14,877,233         14,857,233               14,864,605         14,804,852
                                              ================   ================         ================   ================

See accompanying notes
</TABLE>
                                       4
<PAGE>
                            BCAM International, Inc.
           Condensed Consolidated Statements of Cash Flows (Unaudited)
<TABLE>
<CAPTION>


                                                                                       Nine months ended September 30
                                                                                 ------------------------------------------
                                                                                        1996                    1995
                                                                                 ------------------      ------------------
<S>                                                                              <C>                     <C>   

Operating activities
Net loss                                                                         $       (1,171,701)     $       (1,243,960)
Reconciliation of net cash provided by (used in) operating activities: 
      Depreciation and amortization                                                         106,753                 126,105
      Accrued interest on held to maturity securities                                         7,172                (107,198)
      Changes in operating assets and liabilities:
         Accounts receivable                                                                (33,383)               (195,219)
         Prepaid expenses and other current assets                                           56,663                 136,686
         Other assets                                                                      (112,378)                (32,109)
         Accounts payable, accrued expenses and sundry liabilities                         (210,010)               (310,828)
         Deferred revenue                                                                    34,000                       -
         Other liabilities                                                                    4,707                 (29,241)
                                                                                 ------------------      ------------------
Net cash (used in) operating activities                                                  (1,318,177)             (1,655,764)
                                                                                 ------------------      ------------------

Investing activities 
Purchase of property, plant and equipment                                                         -                  (5,188)
Proceeds from sale of equipment                                                                   -                   1,200
Purchase of held to maturity securities                                                           -              (1,299,782)
Proceeds from sale of held to maturity securities                                         1,500,000               4,535,000
                                                                                 ------------------      ------------------
Net cash provided by investing activities                                                 1,500,000               3,231,230
                                                                                 ------------------      ------------------

Financing activities
Net proceeds from short-term debt                                                           600,000                       -
Net proceeds from sale of common stock and exercise of options                               18,440                       -
Payment of stock registration and issuance costs                                            (67,860)                (77,234)
                                                                                 ------------------      ------------------
Net cash provided by (used in) financing activities                                         550,580                 (77,234)
                                                                                 ------------------      ------------------

Increase (decrease) in cash and cash equivalents                                            732,403               1,498,232
Cash and cash equivalents at beginning of period                                            701,686               1,040,101
                                                                                 ==================      ==================
Cash and cash equivalents at end of period                                       $        1,434,089      $        2,538,333
                                                                                 ==================      ==================

See accompanying notes
</TABLE>
                                       5
<PAGE>

                                                                  
                            BCAM International, Inc.
                                 ("the Company")

              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

                               September 30, 1996

1. Basis of Presentation

     The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally  accepted  accounting  principles for
interim  financial  information  and  with  the  instructions  to  Form  10-QSB.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting  principles for complete financial  statements.
In the opinion of management,  all adjustments  (consisting of normal  recurring
accruals)  considered  necessary  for a fair  presentation  have been  included.
Operating results for the three-month and nine-month periods ended September 30,
1996 are not necessarily  indicative of the results that may be expected for the
year  ending  December  31,  1996.  For  further   information,   refer  to  the
consolidated   financial  statements  and  footnotes  thereto  included  in  the
Company's annual report on Form 10-KSB for the year ended December 31, 1995.
2. Per Share Data

     Net loss per share has been  computed on the basis of the weighted  average
number of common shares  outstanding for each of the periods  presented.  Common
share equivalents have been excluded since their effect is anti-dilutive.

3. Income Taxes

     The  Company  accounts  for  income  taxes  in  accordance  with  Financial
Accounting  Standards Board ("FASB")  Statement No. 109,  "Accounting for Income
Taxes".  The  Company  has not  reflected  a  benefit  for  income  taxes in the
accompanying  Condensed  Consolidated  Statements  of  Operations  for the three
months and nine months  ended  September  30, 1996 and the three months and nine
months ended September 30, 1995, since the future  availability of net operating
loss  carryforwards  have  been  offset  in  full  by  valuation  allowances  in
accordance with FASB Statement No. 109.

4.  Reclassifications

     Certain  reclassifications  have  been made to the  consolidated  financial
statements  for the three  months and nine months  ended  September  30, 1995 in
order to conform to the classifications used in the current period.

                                       6
<PAGE>



                                                                  
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     The September 30, 1996 Form 10-QSB  represents the third  quarterly  report
after the Form 10-KSB for the year ended December 31, 1995. The 10-QSB should be
read  in  conjunction  with  the  aforementioned   document,  and  represents  a
comparison  between the quarter  ended  September 30, 1996 and the quarter ended
September 30, 1995.

Results of Operations

     Net revenue is derived from services rendered and the sale of products that
are adjunct to services,  generally pursuant to fixed price contracts with terms
of less  than one  year.  The  Company's  policy is to  recognize  revenue  when
services are rendered or when the related products are shipped.

     Direct costs,  that include  salaries,  equipment  purchases for contracts,
consulting  fees and certain other costs,  may fluctuate  from period to period.
Factors  influencing  fluctuations  include  the nature  and volume of  services
provided to individual  customers which affect contract  pricing,  the Company's
success in estimating contract costs (principally professional time), the timing
of hiring new  professionals  who may require  training  before gaining  certain
efficiencies and meeting customer demands.

     The following is a summary of net revenue,  direct costs,  and gross profit
for the periods indicated.

<TABLE>
<CAPTION>

                            Three Months Ended September 30        Nine Months Ended September 30
                                1996                 1995              1996                1995
<S>                          <C>                  <C>               <C>                 <C>  

Net revenue                  $ 173,182            $ 158,485         $ 383,903           $ 572,881
                                                                   

Direct costs                   107,505              143,147           156,793             531,310
                             ---------            ---------         ---------           ---------

Gross profit                 $  65,677            $  15,338         $ 227,110           $  41,571

Gross profit %                     38%                  10%               59%                  7%

</TABLE>

     Net revenue increased by $14,697, to $173,182 during the three months ended
September  30,  1996,  as  compared  to the same  period  in 1995.  Net  revenue
decreased by  $188,978,  to $383,903,  for the nine months ended  September  30,
1996, as compared to the same period in 1995. Contributing to the decrease was a
decline  in  Ergonomic  Consulting  Services  revenue,  mostly  due to  customer
postponements to several  projects.  These projects are expected to be completed
by the end of 1996, or the first quarter of 1997.

                                       7
<PAGE>

     Direct  costs  decreased  by $35,642 and  $374,517 for the three months and
nine months  ended  September  30, 1996,  respectively,  as compared to the same
periods in 1995.  The  decrease was  primarily  due to a more  favorable  mix of
internal versus external resources in 1996 versus 1995, and the elimination of a
reserve established in 1994.

     As a result of the above, gross profit increased by $50,339 for the quarter
ended September 30, 1996 as compared with the same period in 1995, and increased
by $185,539 for the nine months  ended  September  30, 1996,  as compared to the
comparable period in 1995.

     Selling,  general and administrative expenses decreased by $156,185 for the
three months ended  September  30, 1996, as compared to the same period in 1995.
Contributing to the decrease was a reduction in rent expense, and consulting and
legal fees for the current quarter. Selling, general and administrative expenses
increased by $95,269 for the nine months ended  September  30, 1996, as compared
with the same period in 1995.  This  increase was  primarily  attributable  to a
growth in salaries,  benefits and related expenses,  as a result of the addition
of sales  and  marketing  positions.  Also  contributing  to the  increase  were
marketing and severance expenses which were one-time in nature.

     Research,  development  and  engineering  costs  decreased  by  $10,535  to
$32,897,  for the three  months  ended  September  30,  1996,  and by $73,381 to
$79,457 for the nine months ended  September 30, 1996,  from the same periods in
1995. This was primarily due to projects in 1995 relating to Intelligent Surface
Technology, which have been completed, as well as the capitalization of software
development costs in 1996.

     Interest  income  decreased by $26,349 for the three months ended September
30,  1996,  as compared to the three  months ended  September  30, 1995,  and by
$85,928 for the nine months ended  September  30, 1996,  as compared to the nine
months ended September 30, 1995. This was due to a decrease in assets  available
for investment . Additionally there was interest expense of $5,464 for the three
months and the nine months ended September 30, 1996 due to short term borrowing,
which did not occur in 1995.

     As a result,  interest  income,  net of  expense,  decreased  by $31,813 to
$8,894, and decreased by $91,392 to $50,428,  respectively, for the three months
and nine months ended  September  30,  1996,  as compared to the same periods in
1995.

     Net loss,  as a result of the above,  for the three months ended  September
30, 1996, was $252,793, as compared to a net loss of $438,039 for the comparable
period  in 1995.  Net loss for the nine  months  ended  September  30,  1996 was
$1,171,701, as compared to a net loss of $1,243,960 for the same period in 1995.
 
     There  was no tax  benefit  for the  three  months  and nine  months  ended
September  30, 1996 and the three  months and nine months  ended  September  30,
1995,  due to losses which have  increased  the future  availability  of the net
operating loss carryforward which has been offset by valuation allowances.

                                       8
<PAGE>

Liquidity and Capital Resources

     Cash,  cash  equivalents  and marketable  securities  were $1,434,089 as of
September  30, 1996,  compared to  $2,208,858  as of December 31, 1995.  Working
capital was $933,729 as of  September  30, 1996,  compared to  $2,155,767  as of
December 31, 1995.  The decrease of $1,222,038  or 56.7% in working  capital was
primarily  attributable  to the net  loss  incurred  in the  nine  months  ended
September 30, 1996.

     The Company  expects that its working  capital,  together with revenue from
operations  will be more  than  sufficient  to meet any  liquidity  and  capital
requirements for the remainder of 1996.

     The   Company  has  no  material   commitments   for  any  future   capital
expenditures.



         PART II. OTHER INFORMATION


Item 6.           Exhibits and Reports on Form 8-K

         (a)      Exhibits.

                  27       Financial Data Schedule

         (b)      Reports on Form 8-K

     No  reports  were filed on Form 8-K  during  the nine  month  period  ended
September 30, 1996.


                                       9
<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.


                            BCAM INTERNATIONAL, INC.


Dated: November 14, 1996               By:  /s/  Michael Strauss
       -----------------                    --------------------
                                            Michael Strauss
                                            Chairman of the Board of Directors
                                            Chief Executive Officer


Dated: November 14, 1996               By:  /s/ Robert P. Wong
       -----------------                    ------------------
                                            Robert P. Wong
                                            Vice Chairman
                                            Interim Chief Financial Officer



                                       10
<PAGE>


                                INDEX OF EXHIBITS

Exhibit No.                Exhibit

        27                 Financial Data Schedule, Unaudited

                                       11
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