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 September 30, 1996.

                                       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  0-14870
                                                                                
                                                                                
                                                                                
                                    QUIPP, INC.                                 
             (Exact name of registrant as specified in its charter)


                                                                              
            Florida                                      59-2306191 
(State or other jurisdiction                (I.R.S. Employer Identification No.)
of incorporation or organization)

                 4800 N.W. 157th Street, Hialeah, Florida 33014
                    (Address of principal executive offices)

Registrant's telephone number, including area code (305) 623-8700

Indicate  by  check  mark  whether  the  registrant  ( 1 ) has filed all reports
required  to  be  filed by Section 13 or 15(d) of the Securities Exchange Act of
1934  during  the  preceding  12  months  (or  for  such shorter period that the
registrant  was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes       X             No                

The  number  of  shares  of  the  registrant's  common  stock,  $.01  par value,
outstanding at October 31, 1996 was 1,565,765.


                                   QUIPP, INC.
                        THIRD QUARTER REPORT ON FORM 10-Q
                                      INDEX     


PART I - FINANCIAL INFORMATION                                          PAGE

Item 1 - Consolidated Financial Statements

      Consolidated Balance Sheets -                                       3
        September 30, 1996 and  December 31, 1995

      Consolidated Statements of Operations - three and nine months       4
        ended September 30, 1996 and 1995
      Consolidated Statement of Changes in Stockholders' Equity -         5
       nine months ended September 30, 1996

      Consolidated Statements of Cash Flows -nine months                  6
        ended September 30, 1996 and 1995
                        
      Notes to Consolidated Financial Statements                          7

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

PART II - OTHER INFORMATION

Item 6 - Exhibits and Reports on Form 8-K

                         PART I - FINANCIAL INFORMATION
                          ITEM 1:  FINANCIAL STATEMENTS
                           QUIPP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS

                                                  September  30,    December 31,
                                                      1996              1995 
                                                (Unaudited)     (Summarized from
                                                                     audited
                                                                    financial 
                                                                   statements)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                       $   315,587       $  1,251,020
Securities available for sale                     7,075,000          5,486,438
Accounts receivable, net of allowance 
   for doubtful accounts of $ 715,275     
   ($846,171 at December 31, 1995)                6,730,646          6,907,402
Inventories                                       3,731,332          3,474,885
Prepaid expenses and other receivables            1,220,621          1,263,201

TOTAL CURRENT ASSETS                             19,073,186         18,382,946

Property, plant and equipment - net               1,867,528          1,991,665

Other assets                                        778,382            892,517
                                          
TOTAL ASSETS                                    $21,719,096        $21,267,128

LIABILITIES AND STOCKHOLDERS   EQUITY

CURRENT LIABILITIES:                                        
  Current portion of long-term debt             $   400,000        $   400,000
  Accounts payable - trade                          853,606            821,957
  Accrued salaries and wages                        290,041            499,041
  Deferred revenues and customer deposits         2,135,789          3,159,502
  Current tax liability                             323,166            213,997
  Other accrued liabilities                       1,807,337          1,760,019

TOTAL CURRENT LIABILITIES                         5,809,939          6,854,516

Long-term debt                                    1,550,000          1,550,000

TOTAL LIABILITIES                                 7,359,939          8,404,516

STOCKHOLDERS  EQUITY:
Common stock - par value $.01,
 8,000,000 shares authorized 1,634,465
 shares issued and 1,565,765 outstanding 
 (3,000,000 authorized at December 31, 1995)         16,345             16,345
Capital contributed in excess of par value        5,113,190          5,113,190
Retained earnings                                  9,525,022          8,028,477
Less treasury stock, 68,700 shares at cost         (295,400)          (295,400)

TOTAL STOCKHOLDERS  EQUITY                       14,359,157         12,862,612



TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $21,719,096        $21,267,128

See accompanying notes to the consolidated financial statements.



                           QUIPP, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)

                            THREE MONTHS ENDED           NINE MONTHS ENDED   
                              SEPTEMBER 30,                SEPTEMBER 30, 
                            1996        1995             1996         1995

NET SALES               $6,009,445  $5,819,482       $14,857,950  $16 ,747,140
Cost of goods sold       3,838,800   3,846,689         9,410,622    11,259,344
GROSS PROFIT             2,170,645   1,972,793         5,447,328     5,487,796

Operating expenses

Selling, general and 
 administrative expenses   921,740   1,076,500          2,783,987    3,027,412
Research and development   144,706      63,370            498,783      126,570

                         1,066,446   1,139,870          3,282,770    3,153,982

OPERATING INCOME         1,104,199     832,923          2,164,558    2,333,814

Interest  income (expense):               
  Interest income           92,747     112,187            248,418      269,323
  Interest expense         (12,446)    (14,713)           (38,063)     (50,945)

                            80,301      97,474            210,355      218,378
INCOME BEFORE 
 INCOME TAXES            1,184,500     930,397          2,374,913    2,552,192

Provision for 
 income taxes              437,906     400,509            878,368      951,509

NET INCOME                $746,594    $529,888         $1,496,545   $1,600,683

Net income per common 
 share and common
 equivalent share            $0.42       $0.32              $0.90        $0.99

Weighted average 
 number of  common
 equivalent shares 
 outstanding              1,782,293  1,631,017          1,663,993    1,624,040


See accompanying notes to the consolidated financial statements
<TABLE>
                           QUIPP, INC. AND SUBSIDIARY
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS  EQUITY
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
                                   (UNAUDITED)
<CAPTION>
                                                                   ADDITIONAL         TREASURY STOCK,
                              COMMON STOCK            PAID-IN      RETAINED              AT COST      
                         SHARES ISSUED   AMOUNT       CAPITAL      EARNINGS         SHARES   AMOUNT    TOTAL
<S>                     <C>             <C>        <C>            <C>          <C>     <C>         <C> 
Balance,
  December 31, 1995     1,634,465       $16,345    $ 5,113,190    $ 8,028,477  68,700  ($295,400)  $12,862,612

Net income                                                          1,496,545                        1,496,545

BALANCE,
  SEPTEMBER 30, 1996    1,634,465       $16,345    $ 5,113,190    $ 9,525,022  68,700  ($295,400)  $14,359,157
</TABLE>
                           QUIPP, INC. AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF CASH FLOWS 
                  NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
                                   (UNAUDITED)

                                                      NINE MONTHS ENDED
                                                         SEPTEMBER 30, 
                                                       1996          1995

CASH PROVIDED BY OPERATIONS:
Net income                                      $  1,496,545      $  1,600,683 

Reconciliation of net income to net cash
   provided by (used in) operations:
Add back noncash (income) expense items
   Depreciation and amortization                     249,683           190,645
   Bad debt recovery                                (133,000)               -   
                                                   1,613,228         1,791,328
Changes in operational assets and liabilities:
   Decrease (increase) in accounts receivable        314,246        (3,474,050)
  (Increase) in inventories                         (256,447)       (1,295,264)
   Decrease in other assets and prepaid
    expenses and other receivables                    42,580           572,403
   (Decrease) increase in accounts payable-trade      31,649          (477,910)
   (Decrease) in deferred revenues and
      customer deposits                           (1,023,713)       (1,202,215)
   (Decrease) increase in current tax liability      109,169          (420,090)
   (Decrease) increase in accrued 
     salaries and wages                             (209,000)         (421,042)
   (Decrease) in other accrued liabilities            47,409           112,434
                                                    (944,107)       (6,830,602)

Net cash provided by (used in) operations            669,030        (5,039,274)

CASH FLOWS FROM INVESTING ACTIVITIES:
(Increase) decrease in securities 
  available for sale                              (1,588,562)        3,537,854
Capital expenditures                                 (15,901)          (55,850) 
Acquisition of business                                   -           (280,000)
Net cash (used in) provided by 
  investing activities                            (1,604,463)        3,202,004

CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance (repayment) of debt                              -                - 
            
Repurchase of stock                                       -                -   
Conversion of stock options                               -            175,000
Net cash provided by financing activities                 -            175,000

INCREASE (DECREASE)  IN CASH 
  AND CASH EQUIVALENTS                             ( 935,433)          137,730
                                                                    
CASH AND CASH EQUIVALENTS AT 
  BEGINNING OF PERIOD                              1,251,020           744,770

CASH AND CASH EQUIVALENTS AT 
  END OF PERIOD                                  $   315,587       $   882,500
 
Supplemental disclosure of cash payments made for:
 Interest                                        $   38,062        $    50,945
 Income taxes                                    $  718,000        $ 1,298,600

See accompanying notes to the consolidated financial statements
                           QUIPP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE 1 - GENERAL

Quipp, Inc. through its subsidiary, Quipp Systems, Inc., is engaged primarily in
the manufacture of material handling equipment for the newspaper industry.

The financial information included herein, which includes the accounts of Quipp,
Inc.  and  Quipp  Systems,  Inc.  (a wholly-owned subsidiary) is unaudited.  All
significant intercompany transactions have been eliminated in consolidation. The
accompanying  consolidated  financial  statements  have been prepared on a basis
consistent  with  that  used  as of and for the year ended December 31, 1995, in
conformity  with  generally  accepted  accounting principles, (GAAP) and, in the
opinion of management, reflect all adjustments (principally consisting of normal
recurring accruals) necessary to present fairly the financial position of Quipp,
Inc.  as  of  September 30, 1996 and the results of its operations for the three
and  nine  months    ended  September  30,  1996  and 1995 , and  changes in its
stockholders  equity for the nine months ended September 30, 1996 and cash flows
for  the  nine  months ended September 30, 1996 and 1995.  Operating results for
the  three  and  nine  months  ended  September  30,  1996  are  not necessarily
indicative  of  the results to be expected for the full year ending December 31,
1996.

NOTE 2 - INVENTORIES

Inventories  at  September  30,  1996 have been recorded at the lower of cost or
market.    Cost  is determined using the first-in, first-out (FIFO) method.  The
composition  of  inventories at September 30, 1996 and December  31, 1995 was as
follows:

                                               SEPTEMBER 30,      DECEMBER 31,
                                                   1996              1995

RAW MATERIALS                                   $1,787,723        $2,945,575
WORK IN PROCESS                                  1,729,578           247,572
FINISHED GOODS                                     214,031           281,738

                                                $3,731,332        $3,474,885



                           QUIPP, INC. AND SUBSIDIARY
              MANAGEMENT S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


RESULTS OF OPERATIONS - NINE MONTHS ENDED SEPTEMBER 30, 1996 VS 1995

Net  sales  for  the  nine  months  ended September 30, 1996 were $14,857,950 as
compared to $16,747,140 for the corresponding period in 1995.  Although revenues
for  the  current  nine months are lower than the comparable period in 1995, the
gross  profit and its corresponding percentage of net  sales for the nine months
ended  September  30,  1996  was  $5,447,328 or 37% of net sales, as compared to
$5,487,796  or  33% of net sales in 1995.  Management believes that the decrease
in  net  sales  for  the nine months ended September 30, 1996 as compared to the
same  period  in  1995  was  mainly  attributable to reduced  newspaper industry
demand  resulting  from  increased  newsprint costs in the earlier part of 1996.
The increase in the gross profit and its percentage of net sales is attributable
to  an  improved    product  mix,  combined  with  the  implementation  of  cost
improvement  projects, that yielded higher gross profit margins on products sold
in the nine months ended September 30, 1996.  

Selling, general and administrative expenses for the nine months ended September
30,  1996  decreased  8%    to  $2,783,987  as  compared  to  $3,027,412 for the
corresponding  period  in 1995.  The decrease is principally due to a  decreased
s a les  volume.    As  a  percentage  of    net  sales,  selling,  general  and
administrative expenses were 18% for both the current and prior period.

Research  and  development expenses for the nine months ended September 30, 1996
increased  to  $498,783 as compared to $126,570 for the same period in the prior
year.   This increase is a result of the Company's increased emphasis on product
development  and product improvement.  Management anticipates that the Company's
higher  level  of  research  and development expenditures will continue.  R&D is
impacted  from  quarter to quarter by the level of the Company's backlog and the
related  engineering efforts required to customize and expedite shipments within
each quarter. The costs associated with the customization are charged to cost of
goods sold as incurred.
  
THREE MONTHS ENDED SEPTEMBER 30, 1996 VS 1995

Net  sales  for  the  three  months  ended September 30, 1996 were $6,009,445 as
compared  to  $5,819,482  for  the corresponding period in 1995. The increase of
$189,963  or  3%  was  mainly  attributable  to  increased  order activity which
management  believes  is  caused by  a recent decrease in newsprint costs to the
publishing industry.  Gross profit for the three months ended September 30, 1996
was $2,170,645 or 36% of net sales as compared to $1,972,793 or 34% of net sales
in the same period of 1995.  The increase is a result of the increased sales for
the  quarter,  in  addition  to  cost  efficiencies  achieved  in production and
purchasing.

Selling,  general  and  administrative  expenses  for  the  three  months  ended
September  30,  1996  decreased 14% to $921,740 as compared to $1,076,500 in the
same period of 1995. The decrease in expenses is mainly  a result of the Company
incurring one-time costs for professional services related to the upgrade of its
computer software systems in 1995.

Research  and development expenses for the three months ended September 30, 1996
increased  to  $144,706  from  $63,370  for  the  corresponding  period in 1995.
Several  R&D  projects  were  completed  during  the third quarter of 1996.  The
Company  expects  to  complete  its current R&D projects, as well as develop new
projects for the future.

GENERAL

The  Company  s  backlog  as  of September 30, 1996 was approximately $9,305,629
compared  to $8,616,651  at September 30, 1995.  The Company expects to ship all
backlog within the next twelve months.

LIQUIDITY

Net  income,  as  adjusted  for  non-cash  income  and  expense items, generated
$1,613,228  of operating cash flow for the nine months ended September 30, 1996.
Net  changes  in  operational  assets  and  liabilities  used  operating cash of
$944,107, resulting in cash provided by operations of  $669,030.  The changes in
Operational  assets and liabilities were principally a result of the decrease in
customer  deposits and deferred revenues of $1,023,713 when compared to December
31,  1995.    A  record  level  of  shipments in the fourth quarter of 1995 with
related  deposits  from  customers collected in the first quarter of 1996 caused
the  decrease  in  customer  deposits  and  deferred revenues.  The Company also
increased  its investments in securities available for sale during the period by
$1,588,562, which should positively impact interest income in future periods.

Net  income,  as  adjusted  for  non-cash  income  and expense items,  generated
$1,791,328 of operating cash flow for the nine months ended September 30, 1995. 
Net  changes  in  operational  assets  and  liabilities  used  operating cash of
$6,830,602  resulting in cash  used by operations of $5,039,274. The acquisition
of certain assets of  Hall Processing Systems and higher volume in 1995 resulted
in increases in operational assets as required to support these higher levels of
business.   Additionally, the conversion of stock options during the nine months
ended September 30, 1995 generated $175,000 in cash from financing activities.

The  Company  believes  that  its  cash  and  securities  available  for sale of
7,390,587 at September 30, 1996 are adequate to support the Company s operations
at its current level.



                           PART II - OTHER INFORMATION


Items 1-5   Not applicable

Item 6            Exhibits and Reports on Form 8-K

            (a)   Exhibits

            Exhibit number

            10    Agreement, dated as of July 16, 1996 between the registrant,
                  Quipp Systems, Inc., and Ralph M. Branca

            (b)   Financial Data Schedule

            27    No reports on Form 8-K were filed by the registrant during the
                  quarter for which this report is being filed          


      



                                    SIGNATURE


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.



                                                QUIPP, INC.

      Date:  November 13, 1996                  By: s\Ralph M. Branca

                                                Ralph M. Branca
                                                President and Chief Executive
                                                 Officer

                                                By: s\Jeffrey S. Barocas
      
                                                Jeffrey S. Barocas
                                                Chief Financial Officer



QUIPP, INC.
FORM 10-Q
EXHIBIT INDEX


Exhibit 10  Agreement dated as of July 16, 1996 between the registrant, Quipp
             Systems, Inc. and Ralph M. Branca

         27 Financial Data Schedule<PAGE>