<PAGE>

                                 UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    FORM 10-Q


(Mark  One)
[X] Quarterly Report pursuant to Section 13 or 15 (d) of the Securities Exchange
Act of 1934 For the quarterly period ended March 31, 1997, 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: 0-13459

                               DH Technology, Inc.
             (Exact name of registrant as specified in its charter)


California                                                            94-2917470
(State or other jurisdiction of                                 (I.R.S. Employer
incorporation or organization)                               Identification No.)



              15070 Avenue of Science, San Diego, California 92128
                     (Address of principal executive office)

       Registrant's telephone number, including area code: (619) 451-3485




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 XXX No____

As of March 31,  1997 there were  7,975,777  shares of the  registrant's  Common
Stock outstanding.


<PAGE>


                      DH TECHNOLOGY, INC. AND SUBSIDIARIES

                                      INDEX

PART I.  FINANCIAL INFORMATION                                         PAGE NO.

     ITEM 1 - Financial Statements

         Condensed Consolidated Balance Sheets                            1
                  March 31, 1997, and December 31, 1996

         Condensed Consolidated Statements of Income                      2
                  Three months ended March 31, 1997,
                  and March 31, 1996

         Condensed Consolidated Statements of Cash Flows                  3
                  Three months ended March 31, 1997,
                  and March 31, 1996

         Notes to Condensed Consolidated Financial Statements             4

     ITEM 2 -

         Management's Discussion and Analysis of                         
         Financial Conditions and Results of Operations                   5


PART II.  OTHER INFORMATION

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


SIGNATURES                                                               10


EXHIBITS INDEX                                                           11


<PAGE>


<TABLE>
<CAPTION>

                                     
                                           PART 1 - FINANCIAL INFORMATION
                                            ITEM 1 - Financial Statements
                                        DH TECHNOLOGY, INC. AND SUBSIDIARIES
                                       Condensed Consolidated Balance Sheets
                                                   (In thousands)

<S>                                                                        <C>                     <C>   

                                                                                March 31              December 31
                                                                                  1997                   1996
                                                                               (Unaudited)
                                                                            ------------------     ------------------

                                                       ASSETS

Current assets:
     Cash and cash equivalents                                                        $34,727                $30,943
     Short-term investment securities held to maturity                                 14,085                 13,835
     Accounts receivable, net                                                          12,534                 16,006
     Inventories                                                                       13,101                 11,582
     Prepaid expenses and other current assets                                          3,108                  2,881
                                                                            ------------------     ------------------
         Total current assets                                                          77,555                 75,247
                                                                            ------------------     ------------------
     Fixed assets                                                                      23,428                 22,524
        Less accumulated depreciation and
        amortization                                                                   14,813                 14,274
                                                                            ------------------     ------------------
                                                                                        8,615                  8,250
     Intangibles                                                                        5,080                 12,464
     Other assets                                                                       3,300                  1,144
                                                                            ==================     ==================
        Total assets                                                                  $94,550                $97,105
                                                                            ==================     ==================

                                        LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
     Accounts payable                                                                  $4,332                 $4,587
     Amount due for acquired company                                                    4,850                     $0
     Current portion of long-term debt                                                    570                    577
     Accrued payroll                                                                    2,545                  2,630
     Accrued expenses                                                                   3,237                  2,441
     Income taxes payable                                                               2,329                  2,406
     Deferred revenue                                                                     235                    577
                                                                            ------------------     ------------------
        Total current liabilities                                                      18,098                 13,218
                                                                            ------------------     ------------------
Non-current portion of long-term debt                                                   2,367                  1,635
                                                                            ------------------     ------------------
        Total liabilities                                                              20,465                 14,853
                                                                            ------------------     ------------------
Shareholders' equity:
     Preferred shares, no par value
        Authorized: 1,000,000 shares, none issued                                          --                     --
     Common shares:
        Common stock, authorized: 28,500,000
        shares; issued and outstanding:
        7,975,777 shares in 1997 and
        7,974,277 shares in 1996                                                       13,188                 13,168
     Foreign currency translation adjustment                                               89                    393
     Retained earnings                                                                 60,808                 68,691
                                                                            ------------------     ------------------
        Total shareholders' equity                                                     74,085                 82,252
                                                                            ==================     ==================
        Total liabilities and shareholders' equity                                    $94,550                $97,105
                                                                            ==================     ==================

                                     The accompanying notes are an integral part of
                                           these condensed consolidated financial
                                                       statements.
</TABLE>
<PAGE>

<TABLE>
<CAPTION>

                                      DH TECHNOLOGY, INC. AND SUBSIDIARIES
                                  Condensed Consolidated Statements of Income
                                           (March 31, 1997 and 1996)
                                     (In thousands, except per share data)

<S>                                                                             <C>             <C>    


                                                                                       THREE MONTHS ENDED
                                                                                            March 31
                                                                                          (Unaudited)
                                                                                -------------   -------------
                                                                                    1997            1996
                                                                                -------------   -------------

Net sales                                                                            $19,185         $28,196
Cost of net sales                                                                     12,527          18,470
                                                                                -------------   -------------
Gross margin                                                                           6,658           9,726

Operating expenses:
     Selling, general and administrative                                               3,963           3,960
     Research and development                                                          1,451           1,288
     In process technology, intangible assets,
       acquisition integration and other charges                                      11,290
                                                                                                          --
                                                                                -------------   -------------
Total operating expenses                                                              16,704           5,248

Income (loss) from operations                                                        (10,046)          4,478

Interest income                                                                          421             330
Interest expense                                                                          40              46
                                                                                -------------   -------------

Income (loss) before income taxes                                                     (9,665)          4,762

Income taxes                                                                          (1,782)          1,727
                                                                                -------------   -------------

Net income (loss)                                                                     (7,883)         $3,035
                                                                                =============   =============


Net income (loss) per share                                                           ($0.95)           $.36

Weighted average number of shares outstanding
Per share (primary and fully diluted):                                                 8,274           8,469





                 The accompanying notes are an integral part of
                     these condensed consolidated financial
                                   statements.
</TABLE>
<PAGE>

<TABLE>
<CAPTION>



                                      DH TECHNOLOGY, INC. AND SUBSIDIARIES
                                Condensed Consolidated Statements of Cash Flows
                                                 (In thousands)
<S>                                                                                          <C>                  <C>   

                                                                                                    THREE MONTHS ENDED
                                                                                                         March 31
                                                                                                        (Unaudited)
                                                                                            -----------------------------------
                                                                                                  1997              1996
                                                                                            -----------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS FROM:

Operating activities:
   Net income (loss)                                                                                 ($7,883)           $3,035
   Adjustments to reconcile net income to net cash provided by operations:
     Depreciation and amortization                                                                       979               775
     Write down of acquired in-process technology                                                      2,440
                                                                                                                            --
     Intangible write down related to previous acquisition                                             7,193
                                                                                                                            --
     Provision for loss on accounts receivable                                                             3                28
     Undepreciated value of asset disposals                                                                                 53
                                                                                                          --
     Changes in assets and liabilities excluding effect of acquisitions                                4,292            (1,149)
     Provision for deferred income taxes                                                              (2,150)               --
                                                                                            -----------------------------------

Net cash provided by operating activities                                                              4,874             2,742

Investing activities:
   Net increase (decrease) in short-term investment securities held to maturity                         (250)           (5,900)
   Capital expenditures                                                                                 (533)           (1,271)
                                                                                            -----------------------------------

Net cash used in investing activities                                                                   (783)           (7,171)

Financing activities:
   Principal repayments on long-term debt                                                                (73)             (501)
   Proceeds from the exercise of stock options                                                            20               295
                                                                                            -----------------------------------

Net cash used in financing activities                                                                    (53)             (206)

Effect of exchange rate changes on cash                                                                 (254)              316

Net increase (decrease) in cash and cash equivalents                                                   3,784            (4,319)

Cash and cash equivalents at beginning of period                                                      30,943            28,971
                                                                                            -----------------------------------

Cash and cash equivalents at end of period                                                           $34,727           $24,652
                                                                                            ===================================

Supplemental Cashflow Disclosures:
   Interest paid on debt                                                                                 $15               $12
   Income taxes paid                                                                                    $441              $696

Supplementary disclosure of noncash investing activity:
   Fair market value of assets acquired                                                               $3,181                --
   Cash paid                                                                                              --                --
   Liabilities assumed                                                                                $3,181                --


                           The accompanying notes are an integral part of these
                               condensed consolidated financial statements

</TABLE>
<PAGE>

                      DH TECHNOLOGY, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                          (March 31, 1997 - Unaudited)

Note 1:  Basis of Presentation

The accompanying  condensed consolidated financial statements have been prepared
in  accordance  with  S.E.C.  requirements  for  interim  financial  statements.
Therefore,  they do not include all  disclosures  that would be presented in the
Company's Annual Report on Form 10-K. The financial statements should be read in
conjunction  with the financial  statements  contained in the  Company's  Annual
Report on Form 10-K for the year ended December 31, 1996.

The information  furnished  reflects all adjustments  (consisting only of normal
recurring adjustments) which are, in the opinion of management,  necessary for a
fair presentation of financial position,  results of operations,  and changes in
cash position for the interim period.  The results of operations for the periods
presented are not necessarily  indicative of results to be expected for the full
year.


Note 2:  Inventories

The composition of inventories at March 31, 1997, and December 31, 1996, were as
follows:


                                            1997                   1996
                                            ----                   ----
         Raw Materials                  $8,249,000             $6,810,000
         Work in Process                   941,000                934,000
         Finished Goods                  3,911,000              3,838,000
                                       -----------            -----------
         Totals                        $13,101,000            $11,582,000


Note 3:  Operations subject to Purchase and Sale Agreements

In October,  1995 the Company  acquired  certain  assets and  liabilities of Mos
Magnetics, a privately held company in San Diego, California, for $752,000 cash.
Mos Magnetics designs,  manufactures,  and markets magnetic read and write heads
and modules for credit card and debit card readers,  check readers,  and airline
ticket readers. This acquisition was accounted for using the purchase method. In
conjunction  with  this  acquisition,  the  Company  has  recorded  goodwill  of
$239,000, which is being amortized over 25 years using the straight-line method.

In March,  1997 the Company purchased certain assets and liabilities of the card
reader  business  of  American  Magnetics  Corporation  (AMC),  a  wholly  owned
subsidiary of Group 4 Securitas Holding (A) BV headquartered in The Netherlands.
AMC designs,  manufactures  and markets card reader modules and stand-alone card
readers,  including  both  magnetics  and chip  card  products.  Based on fourth
quarter 1996 revenues the card reader business has  approximately $12 million in
annualized revenues. The business was profitable in 1996.

This  acquisition  was accounted for under the purchase  method,  which requires
that the  purchase  price be  allocated  to the fair market  value of the assets
acquired.  Of the total consideration of $5.7 million,  which consisted of $4.85
million due to AMC plus  liabilities  assumed of $.8  million,  $3.2 million was
allocated to net assets acquired based on their estimated fair values,  and $2.5
million was written  down as  in-process  technology.  In  conjunction  with the
acquisition,  the Company also  incurred  $1.2 million of  integration  costs as
discussed below.
<PAGE>
Note 4: Non-Recurring Charges In First Quarter Of 1997

In the first quarter of 1997 the Company incurred non-recurring charges totaling
$11.3 million  consisting of the items discussed  below. In conjunction with the
acquisition of AMC discussed above,  the Company wrote down acquired  in-process
technology (projects that had not reached  technological  feasibility and had no
future  alternative  use) that was  valued at $2.5  million.  Additionally,  the
Company incurred  non-recurring,  pre-tax charges of $1.2 million which included
severance,   relocation  and  other  integration  charges  associated  with  the
acquisition.  This amount is included in accrued  expenses and is expected to be
paid out over the next 12 months.

In  March  1997,  based  on a  review  of the  operating  results  of  Cognitive
Solutions,  Inc. and projections for subsequent quarters,  the Company evaluated
the intangible  assets  associated  with the acquisition in accordance with SFAS
121. Based on management's analysis of future undiscounted cashflows the Company
determined that the intangible  assets were impaired.  Accordingly,  the Company
wrote down $7.2  million of  intangibles,  which  represented  the excess of the
carrying  value  over the  estimated  fair value of those  assets,  in the first
quarter of 1997. Also, the Company incurred a $400,000 charge in connection with
the discontinuance of certain product lines.


ITEM 2 -

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF 
OPERATIONS

The following  discussion  and analysis  should be read in  conjunction  with DH
Technology,  Inc.'s condensed  consolidated  financial  statements and the notes
related thereto included herein.

RESULTS OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 1997, COMPARED TO THREE MONTHS ENDED MARCH 31, 1996

Net sales of $19.2 million for the quarter ended March 31, 1997, decreased 32.0%
compared  to net sales of $28.2  million  for the same  period  last  year.  The
decrease was due to delays in orders from several  customers and no sales in the
first quarter of 1997 to one large customer, which represented more than half of
the decline in sales from the first quarter of 1996.  See "Certain  Factors That
May Affect Future Results - Future Operating Results Subject to Fluctuation."

Cost of net sales decreased slightly to 65.3% of net sales for the first quarter
of 1997 from  65.5% of net  sales  for the same  period of 1996 due in part to a
sales mix shift to products with higher  margins,  as well as material and labor
cost reductions  offset by relatively  fixed overhead costs applied to decreased
revenue.

Selling, general, and administrative expenses increased to 20.7% of net sales in
the  first  quarter  of 1997  from  14.0%  in the  same  period  in 1996  due to
relatively  fixed  expenses  applied  to  decreased  net sales.  These  expenses
remained  constant in absolute  dollars at $4.0 million in the first  quarter of
1997 and the first quarter of 1996.

Research and development  expenses as a percentage of sales increased to 7.6% in
the first quarter of 1997  compared to 4.6% in the first quarter of 1996.  Total
dollars  expended for research and development  increased to $1.5 million in the
first quarter of 1997  compared to $1.3 million in the same period of 1996.  The
Company  believes  that the  continued  timely  development  of new products and
enhancements to its existing products are essential to maintaining the Company's
competitive  position.  Accordingly,  the Company anticipates that such expenses
will continue to increase in absolute dollars during 1997.
<PAGE>

In the first quarter of 1997 the Company incurred non-recurring charges totaling
$11.3 million  consisting of the items discussed  below. In conjunction with the
acquisition  of certain  assets and  liabilities  of AMC  discussed in Note 3 of
Notes to Condensed  Consolidated  Financial  Statements,  the Company wrote down
acquired in-process technology that was valued at $2.5 million. The Company also
incurred   non-recurring,   pre-tax  charges  of  $1.2  million  which  included
severance,   relocation  and  other  integration  charges  associated  with  the
acquisition.  This amount is included in accrued  expenses and is expected to be
paid  out  over  the  next  12  months.   Additionally,   the  Company  incurred
non-recurring,  non-cash charges of $7.2 million to write down intangible assets
related to the Cognitive  acquisition,  and a $400,000 charge in connection with
the  discontinuance  of certain product lines.  See Note 4 of Notes to Condensed
Consolidated Financial Statements.

Income from  operations  as a percentage  of net sales  excluding  the effect of
non-recurring  charges  discussed  above decreased to 6.0% for the quarter ended
March 31, 1997,  compared to 15.9% for the same period in 1996 due  primarily to
higher operating expenses as a percentage of revenue as discussed above.  Income
(loss) from  operations  as a percentage  of net sales  including  the effect of
non-recurring charges decreased to (52.4%) for the quarter ended March 31, 1997,
compared  to 15.9%  for the same  period  in 1996  due to the non-recurring
charges discussed above.

Interest income increased to $421,000 in the first quarter of 1997 from $330,000
in the first  quarter  of 1996 as a result of higher  cash  balances  and higher
interest rates in the first quarter of 1997.

Interest expense  decreased to $40,000 in the first quarter of 1997 from $46,000
for the same  period in 1996 due to a $500,000  payment  of debt in August  1996
related to the Cognitive acquisition.

Income taxes as a percentage of income (loss) before income taxes  excluding the
effect of non-recurring  charges, would have been 35.0% for the first quarter of
1997  compared  to 36.3% for the same  period  in 1996 due to the  effect of tax
exempt  interest,  the R & D credit,  and a change in the  effective tax rate of
foreign  subsidiaries.  Income taxes (benefits) as a percentage of income (loss)
before income taxes  (benefits)  including the effect of  non-recurring  charges
decreased to 18.4% for the first  quarter of 1997 from 36.3% for the same period
in 1996 due to the  non-recurring  charges discussed above of which $5.0 million
is not deductible for tax purposes.


Certain Factors That May Affect Future Results

The  Company's  representatives  may  from  time to time  make  forward  looking
statements. The factors set forth below are among certain important factors that
could cause actual results to differ materially from those projected in any such
forward looking statements.

Future Operating Results Subject to Fluctuation. The Company's operating results
may  fluctuate in the future as a result of a number of factors,  including  the
timing of customer orders,  timing of completion of existing customer contracts,
variations  in the  Company's  sales  channels  or the mix of products it sells,
changes  in  pricing  policies  by  the  Company's  suppliers,  fluctuations  in
manufacturing  yields, the market acceptance of new and enhanced versions of the
Company's products and the timing of acquisitions of other businesses,  products
and technologies and any associated charges to earnings.

In 1996,  purchases of transaction  printers by a single customer  accounted for
approximately  13% of total revenue,  or $15,042,000.  The Company  generated no
revenue from this  customer in the first quarter of 1997,  and revenue,  if any,
from  this  customer  in 1997 is  expected  to be  substantially  below  revenue
generated  from this customer in 1996. To the extent that sales to this or other
customers  decline and are not replaced  with sales to other  customers or sales
from the introduction of new products,  the Company's results of operations will
be adversely affected. The Company anticipates that second quarter 1997 revenues
will be below the revenues for the second  quarter of 1996  primarily due to the
expected  lack of  shipments  in the  second  quarter  of 1997 to the  Company's
principal customer in the same period of 1996.
<PAGE>

Further,  the  Company's  expense  levels are based in part on  expectations  of
future revenues.  The Company has established a program to decrease  expenses in
light of the anticipated reduction in revenue previously discussed. However, the
rate of new orders may vary significantly from month to month; consequently,  if
anticipated  sales and  shipments  in any  quarter do not occur  when  expected,
operating expenses and inventory levels could be disproportionately high and the
Company's  operating  results  for that  quarter,  and  potentially  for  future
quarters,  would be adversely  affected.  The Company's  operating results could
also be affected  by general  economic  conditions.  Fluctuations  in  operating
results  are likely to cause  volatility  in the price of the  Company's  Common
Stock.

Management of Acquisitions.  Historically, the Company has achieved a portion of
its growth  through  acquisitions  of other  businesses  and continues to pursue
additional  acquisitions as part of its growth  strategy.  There are a number of
risks  associated  with any  acquisition,  including  the  substantial  time and
attention  required  from  management  of the  Company in  connection  with such
transactions,  the difficulty of predicting  whether the operations will perform
as expected and other  problems  inherent  with any  transition  of one business
organization  into  another.  There  can be no  assurance  that the  anticipated
benefits of any acquisition will be realized. A failure by the Company to manage
any such  acquisitions  effectively  could  materially and adversely  affect the
Company's  business and  operating  results.  Additionally,  there may be future
acquisitions  which could  result in  potentially  dilutive  issuances of equity
securities,  the incurrence of debt and contingent  liabilities and amortization
expenses  related to goodwill and other  intangible  assets  associated with the
acquisitions of other businesses, any of which could materially adversely affect
the Company's operating results and financial condition.

Technological Change;  Competition;  Dependence on New Products. The markets for
some of the  Company's  products  are  characterized  by  frequent  new  product
introductions and declining average selling prices over product life cycles. The
Company's  future  success is highly  dependent  upon the timely  completion and
introduction  of  new  products  at  competitive  price/performance  levels.  In
addition,  the Company  must respond to current  competitors,  who may choose to
increase their presence in the Company's  markets,  and to new competitors,  who
may choose to enter  those  markets.  If the  Company  is unable to make  timely
introduction of new products or respond to competitive threats, its business and
operating results could be materially adversely affected.

Fluctuation in Demand. The Company's  customers encounter uncertain and changing
demand for their products.  They typically order products from the Company based
on their forecasts.  If demand falls below customers' forecasts, or if customers
do not control  their  inventories  effectively,  they may cancel or  reschedule
shipments  previously  ordered  from the  Company.  The  Company has in the past
experienced,  and  may at  any  time  and  with  minimal  notice  in the  future
experience, cancellations and postponements of orders.


FINANCIAL CONDITION, LIQUIDITY, AND CAPITAL RESOURCES

The  Company's  primary  source of liquidity has been cash flow  generated  from
operations. Cash, cash equivalents, and short-term investment securities held to
maturity  totaled  approximately  $48.8  million on March 31, 1997,  compared to
$44.8 million on December 31, 1996.

OPERATING ACTIVITIES

For the three ended March 31, 1997,  the Company  generated  approximately  $4.9
million  in  net  cash  from  operating  activities  primarily  as a  result  of
approximately  $7.9 million in net loss,  offset by $1.0 million in depreciation
and amortization, $2.5 million write down of in-process technology, $7.2 million
intangible write down related to the Cognitive  acquisition,  an increase in net
operating  assets of $4.3 million,  and a provision for deferred income taxes of
$2.2 million.
<PAGE>

INVESTING ACTIVITIES

The Company's principal investing activities in the three months ended March 31,
1997 were the purchase of property and  equipment  for product  development  and
production and the investment in short-term  securities held to maturity.  As of
March  31,  1997,   the  Company  had  no  material   commitments   for  capital
expenditures.  However, the Company anticipates capital expenditures of $3 to $4
million  in  1997,   principally  for  new  product  tooling  and  manufacturing
equipment.

The  Company is also  required  to make  additional  payments,  not to exceed an
aggregate of $3 million,  to the former  shareholder of Cognitive based upon the
attainment of specified net sales of a particular  Cognitive  product line.  The
Company does not expect the payments to be material in 1997.


FINANCING ACTIVITIES

The  Company's  major  financing  activities in the three months ended March 31,
1997 were the principal repayment of debt. As of March 31, 1997, the Company had
$2.9 million in debt outstanding of which the current portion was  approximately
$600,000.  This debt  includes  $1.5  million  payable  to the  former  owner of
Cognitive in annual  installments of $500,000 each due in 1997 through 1999. The
debt also includes $800,000 due to American  Magnetics payable in the years 2000
and 2001.

On August 15, 1996, the Company renewed a $6.5 million line of credit  agreement
originally  signed on August 15, 1994. The line of credit  includes a subfeature
to issue standby and/or commercial letters of credit not to exceed $1.5 million.
Borrowings  under the line bear  interest at a rate per annum equal to the prime
rate in effect  from time to time.  As of March 31,  1997,  no amounts  had been
drawn against this line of credit.

The Company currently expects that current cash balances and cash generated from
operations  will adequately  fund the Company's  anticipated  cash needs for the
next  12  months.   However,   the  Company  continues  to  evaluate   potential
acquisitions  of  businesses  that  would  complement  the  Company's   existing
businesses and product lines, and any such acquisitions could require the use of
the Company's cash resources and/or additional borrowings.

The Company reviews  potential foreign currency risks on an ongoing basis and to
date has been able to  effectively  manage this risk  without the use of hedging
instruments.



<PAGE>



Item 6 -   Exhibits and reports on Form 8-K

    (a)      Exhibits:

                  Exhibit 11       Computation of Net Income Per Share.

                  Exhibit 27       Financial Data Schedule.

    (b)      Reports on Form 8-K
                  No report on Form 8-K was filed  during  the  quarter
                  ended March 31, 1997.


<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.


DH Technology, Inc. by:


    May 15, 1997                           /s/Janet W. Shanks
-------------------               -----------------------------------------
         Date                     Janet W. Shanks, Chief Accounting Officer
                                             (Chief Accounting Officer)


<PAGE>



                               DH TECHNOLOGY, INC.
                    EXHIBITS TO QUARTERLY REPORT ON FORM 10-Q
                      FOR THE QUARTER ENDED MARCH 31, 1997



                                                                  SEQUENTIALLY
EXHIBIT         DESCRIPTION                                       NUMBERED PAGE
--------------------------------------------------------------------------------

  11            Computation of Net Income Per Share                    12

  27            Financial Data Schedule                                13

<PAGE>




                                   EXHIBIT 11


                      DH TECHNOLOGY, INC. AND SUBSIDIARIES
                       Computation of Net Income Per Share
                      (In thousands, except per share data)



                                                    THREE MONTHS ENDED
                                                         March 31

                                               ---------------------------
                                                   1997           1996
                                               ---------------------------

Primary and fully diluted:*

Average shares outstanding                            7,976          7,830

Net effect of dilutive stock
options and warrants based on
the treasury stock method using
average market price                                    298            511
                                                ------------   ------------

Average common and common
equivalent shares outstanding                         8,274          8,469

Net income                                          ($7,883)        $3,035

Per share (primary and fully diluted)
                                                ============   ============
Net income per share                                  ($.95)          $.36
                                                ============   ============







* There is no significant  difference between primary and fully diluted earnings
per share.