SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C.  20549

                                   __________

                                  Form 10-QSB/A


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

For the quarterly period ended             June 30, 1995                

                                     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 0-21662

                      Dataguard Recovery Services, Inc.
            (Exact name of registrant as specified in its charter)

              Kentucky                              61-1064606               
   (State or other jurisdiction of               (I.R.S. Employer
    incorporation or organization)                Identification No.)           
              

    10301 Linn Station Road, P.O. Box 37144, Louisville, KY 40233-7144     
        (Address of principal executive offices)            (Zip Code)

Registrant's telephone number, including area code        502-426-3434     


Former name, former address, and former fiscal year, if changed since last
report.

Indicate by check [X] 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      
  
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date - 4,981,770.

                               DATAGUARD RECOVERY SERVICES, INC. AND SUBSIDIARY
<TABLE>
   

Condensed Consolidated Balance Sheets

<CAPTION>

                                                   June 30,     December 31,
                                                     1995           1994
                                                  (Unaudited)    (Audited)
Assets
<S>                                                <C>            <C>
Current assets:
  Cash and cash equivalents                        $   771,973   $   108,603
  Accounts receivable, net                           2,143,200       122,769
  Other current assets                                 137,634        99,149

        Total current assets                         3,052,807       330,521

Property and equipment, net                          9,565,487     5,224,022

Software development costs, net                            -          11,254
Other assets                                           161,786       137,896

                                                   $12,780,080   $ 5,703,693

  Liabilities and Stockholders' Equity

Current liabilities:
  Current installments of long-term debt           $   326,128   $   198,725
  Current installments of obligations under
    capital leases                                   2,226,836       783,927
  Notes payable to stockholders                        991,176       491,176
  Accounts payable                                   1,100,411       538,426
  Accrued expenses                                   1,016,720       242,491
  Accrued income taxes                                  88,280           -
  Deferred revenue                                         -         285,562

        Total current liabilities                    5,749,551     2,540,307

Long-term debt, excluding current installments       1,047,292     1,191,862
Obligations under capital leases, 
    excluding current installments                   3,141,711       705,769
Customers' deposits                                     69,922        48,783
Deferred income taxes                                  206,020           -
Deferred revenue                                     1,356,093           -

        Total liabilities                           11,570,589     4,486,721

Stockholders' equity:
  Preferred stock without par value.  Authorized 
    2,000,000 shares:  Series A Preferred Stock 
    ($10 stated value); authorized 100,000 shares; 
    issued and outstanding 34,167 shares at June 30, 
    1995 and December 31, 1994                         341,670       341,670
  Common stock without par value.  Authorized  
    6,000,000 shares; issued and outstanding 
    4,981,770 shares at June 30, 1995 and 
    4,949,770 shares at December 31, 1994            3,013,833     2,997,833
  Foreign currency translation adjustment               (3,206)          -
  Accumulated deficit                               (2,142,806)   (2,122,531)

        Total stockholders' equity                   1,209,491     1,216,972

                                                   $12,780,080   $ 5,703,693

</TABLE>
    
See notes to unaudited condensed consolidated financial statements.

                               DATAGUARD RECOVERY SERVICES, INC. AND SUBSIDIARY
<TABLE>
   
Condensed Consolidated Statements of Operations
(Unaudited)

<CAPTION>
                               Three Months Ended   Six Months Ended
                                    June 30,            June 30,
                               1995          1994   1995        1994

<S>                         <C>         <C>         <C>         <C>
Service revenues            $2,224,475  $1,152,311  $4,228,284  $2,223,765

Operating expenses:
  Cost of services           1,139,888     791,739   2,520,068   1,596,083
  Selling, general and
    administrative expenses    669,270     252,843   1,111,162     516,003
                             1,809,158   1,044,582   3,631,230   2,112,086
    
      Operating income         415,317     107,729     597,054     111,679

Other income (expense):
  Interest expense            (185,962)   (105,024)   (317,025)   (200,946)
  Other                         (4,792)        237      21,594         681
                              (190,754)   (104,787)   (295,431)   (200,265)

      Income (loss) before
        income taxes        $  224,563  $    2,942   $ 301,623  $  (88,586)

Provision for income taxes  $  176,600  $      -     $ 294,300  $      -

  Net income (loss)         $   47,963  $    2,942   $   7,323  $   (88,586)

Net income (loss) per share
  of common stock           $      .01  $      -     $     -    $     (.02)

Weighted average number
  of common shares
  outstanding                4,978,957   4,737,506   4,970,897   4,734,521


</TABLE>
    
See notes to unaudited condensed consolidated financial statements.

                               DATAGUARD RECOVERY SERVICES, INC. AND SUBSIDIARY
<TABLE>
   
Condensed Consolidated Statement of Stockholders' Equity
(Unaudited)
<CAPTION>
                        Series A              Foreign
                        Preferred Common      Currency   Accumulated
                          Stock    Stock     Translation   Deficit     Total
<S>                    <C>       <C>        <C>        <C>          <C>
Balance at December
  31, 1994             $ 341,670 $2,997,833 $     -    $(2,122,531) $1,216,972

Issuance of 16,000
  shares of Common
  Stock                      -        8,000       -            -         8,000 

Net loss for three
  months ended March
  31, 1995                   -          -         -        (40,640)    (40,640)

Translation adjustment
  at March 31, 1995          -          -      14,212          -        14,212

Balance at March 31,
  1995                   341,670  3,005,833    14,212   (2,163,171)  1,198,544

Issuance of 16,000
  shares of Common
  Stock                      -        8,000       -            -         8,000

Payment of dividends         -          -         -        (27,598)    (27,598)

Net income for three
  months ended June
  30, 1995                   -          -         -         47,963      47,963

Translation adjustment
  at June 30, 1995           -          -     (17,418)         -       (17,418)

Balance at June 30,
  1995                 $ 341,670 $3,013,833 $  (3,206) $(2,142,806) $1,209,491

</TABLE>
    
See notes to unaudited condensed consolidated financial statements.

                               DATAGUARD RECOVERY SERVICES, INC. AND SUBSIDIARY
<TABLE>
   
Condensed Consolidated Statements of Cash Flows
(Unaudited)
<CAPTION>
                                                    Six Months Ended
                                                         June 30,
                                                  1995             1994
<S>                                               <C>              <C> 
Cash flows from operating activities:
  Net income (loss)                               $     7,323      $   (88,586)
  Adjustments to reconcile net income (loss) to    
    net cash provided by operating activities:
      Depreciation and amortization                   956,147          544,988
      Deferred income taxes                           206,020              -
      Other                                           (34,235)             155
    Change in operating assets and liabilities:
      Accounts receivable                          (2,020,431)         138,421
      Other current assets                            (38,485)          (8,182)
      Accounts payable                                585,266          (45,240)
      Accrued expenses                                660,707           49,563 
      Accrued income taxes                             88,280              -
      Other current liabilities                       (25,851)             -
    Increase in other assets                          (22,486)         (14,005)
    Increase (decrease) in deferred revenue         1,156,638         (168,746)
    Increase (decrease) in customers' deposits          2,586            4,261 

         Net cash provided by operating activities  1,521,479          412,629

Cash flows from investing activities:
  Acquisition of property and equipment              (345,868)         (39,726)
  Investment in subsidiary                           (218,568)             -

         Net cash used in investing activities       (564,436)         (39,726)

Cash flows from financing activities:
  Proceeds from note payable to stockholder           500,000              -  
  Proceeds from long-term debt                            -             19,000
  Principal payments on long-term debt and 
    obligations under capital leases                 (766,075)        (400,017)
  Payment of dividends                                (27,598)             -

            Net cash used in financing                           
              activities                             (293,673)        (381,017) 

Net increase (decrease) in cash and cash equivalents  663,370           (8,114)

Cash and cash equivalents at beginning of period      108,603           47,834

Cash and cash equivalents at end of period        $   771,973      $    39,720


</TABLE>
    
See notes to unaudited condensed consolidated financial statements.

                               DATAGUARD RECOVERY SERVICES, INC. AND SUBSIDIARY


Notes to Condensed Consolidated Financial Statements
(Unaudited)

June 30, 1995

(1)  In the opinion of the Company, the accompanying unaudited condensed 
consolidated financial statements contain all adjustments (consisting of only 
normal recurring accruals) necessary to present fairly the  financial position 
as of June 30, 1995 and the results of operations for the three and six months
then ended and cash flows for the six months then ended.

     Certain reclassifications of amounts in the condensed consolidated 
financial statements have been made to reflect comparability.

(2)  This financial information should be read in conjunction with the
financial statements and the notes thereto included in the Company's Annual
Report on Form 10-KSB for the period ended December 31, 1994 and the
information included on Forms 8-K, 8-K/A, and 8-K/A (Amendment No. 2) dated
February 3, 1995, April 19, 1995 and May 15, 1995, respectively.

(3)  On February 3, 1995, the Company purchased certain operating assets of
Twinsys, S.A., a Paris, France-based provider of disaster recovery services in
Europe.  Dataguard financed the purchase with funds borrowed from EPI
Corporation, Dataguard's largest stockholder, under an amendment to an existing
loan agreement.  John P. Snyder, EPI's President and Chairman, is a director of
Dataguard.  Dataguard also issued 16,000 shares of its common stock to EPI in
connection with the loan.

Summarized below are the proforma combined results of operations for the 
three and six months ended June 30, 1995 and 1994, as though the acquisition
had occurred on January 1, 1995 and 1994, respectively adjusted to reflect the
impact of certain lease terms which have been renegotiated; reduction of
personnel costs as a result of fewer required Twinsys employees, reduced
equipment and office rent expense by combining the Twinsys office locations;
and the borrowing of $500,000 by Dataguard from a stockholder to finance the
acquisition of Twinsys and to provide working capital for its initial
operations.

<TABLE>
   
<CAPTION>
                             Three months             Six months
                             ended June 30,          ended June 30,
                            1995        1994        1995        1994
<S>                      <C>         <C>         <C>         <C>
Revenues                 $2,224,000  $2,754,000  $4,888,000  $5,105,000
Net income (loss)            48,000     (43,000)    100,000    (589,000)

Net income (loss) per 
  share of common stock  $      .01  $     (.01) $      .02  $     (.13)

</TABLE>

(4)  For financial reporting purposes, income (loss) before income taxes for
the three and six months ended June 30, 1995 and 1994, includes the following
components:
<TABLE>
<CAPTION>
                                        Three months           Six months
                                        ended June 30,        ended June 30,
           Pretax income (loss):  1995        1994      1995        1994
           <S>                    <C>         <C>       <C>         <C>
             United States        $ (252,861) $ 2,942   $(493,953)  $ (88,586) 
             Foreign                 447,424      -       795,576         -  

                                  $  224,563  $ 2,942   $ 301,623   $ (88,586)

</TABLE>
The provision for income tax expense for the three and six months ended June
30, 1995 ($176,600 and $294,300, respectively; $0 in 1994) is attributable to
earnings from foreign operations, the components of which follows:
<TABLE>
<CAPTION>
                                        Three months           Six months
                                     ended June 30 1995    ended June 30, 1995 
           <S>                          <C>                   <C>
           Foreign - current             $  52,980            $  88,280 
           Foreign - deferred              123,620              206,020

                                         $ 176,600            $ 294,300

</TABLE>
A reconciliation of the income tax expense for the three and six months ended
June 30, 1995 and 1994 with the federal statutory rate is as follows:
<TABLE>
<CAPTION>
                                         Three months           Six months
                                         ended June 30,        ended June 30,
                                       1995        1994      1995        1994
      <S>                          <C>         <C>       <C>         <C>
      Tax expense (benefit) at
        U.S. statutory rates        $  76,352  $ 1,000    $ 102,552  $ (30,119)

      Operating losses in the 
        U.S. generating no
        current tax benefit            85,973   (1,000)     167,944    30,119

      Higher effective income tax
        rate of foreign operations     14,275      -         23,804       -

                                    $ 176,600  $   -      $ 294,300  $    -  

</TABLE>
    

(5)  Earnings per common share are computed based on the weighted average
number of common and equivalent shares outstanding during the period using the
treasury stock method.  Dividends on the cumulative Series A Preferred Stock
are deducted from net income (added to net loss) in the calculation of earnings
per common share.  There are 66,012 unexercised stock options outstanding under
the Dataguard 1988 Stock Option Plan at June 30, 1995.  Warrants to purchase
68,334 shares of common stock were outstanding at June 30, 1995.  These
outstanding stock options and warrants had no dilutive effect on earnings per
common share.

MANAGEMENT'S DISCUSSION AND ANALYSIS

Results of Operations
   
The Company reported revenues of $2,224,475 and $4,228,284 for the three and
six months ended June 30, 1995, respectively.  This compares to revenues of
$1,152,311 and $2,223,765 for the comparable periods in 1994.  The Company
reported net income of $47,963 and $7,323 for the three and six month periods
ended June 30, 1995 after reporting net income of $2,942 and a net loss of
$88,586 for the same periods in 1994.  The increase in revenue and net income
for the three and six month periods in 1995 is attributable almost entirely to
the Company's subsidiary, Twinsys Dataguard S.A. (hereinafter referred to as
"Twinsys").  Dataguard acquired certain operating assets of Twinsys, S.A., a
Paris, France-based provider of disaster recovery services in Europe on
February 3, 1995.  See Note 2 of Notes to Condensed Consolidated Financial
Statements for a more detailed explanation of the Twinsys acquisition.  For the
first two quarters of 1995, Twinsys' revenues exceeded expenses before income
taxes by $795,577, which offset the net loss for the period from the Company's
North American operations.
    
Backup service revenues through June 30, 1995 for the Company's North American
operations decreased 21% when compared to the same period in 1994.  A
significant decrease in Bull backup service revenues resulted from the
renegotiation of the backup services contract with the Company's largest
customer effective June 1, 1995, and the expiration of the backup services
contract with the Company's second largest customer effective January 1, 1995. 
Revenues under the renegotiated contract were significantly reduced on June 1,
1995.  The expired contract represented approximately 16% of the Company's
total revenues in 1994.  IBM backup service revenues in the second quarter of
1995 and year to date through June 30, 1995 grew by 54% and 67%, respectively,
but were more than offset by this decrease in Bull backup service revenues. 
Consulting service revenues for the quarter and year to date ended June 30,
1995 exceeded revenues for the same periods last year.  These increases were
offset by comparable decreases in revenues from other data processing services 
during these periods.  Based upon the current consulting contracts that have
been awarded to the Company, the Company expects revenues for 1995 from 
consulting services will exceed the consulting revenues recorded for 1994. 
Consulting services and other data processing services, by their nature, are 
not recurring, and therefore, significant changes in these service revenues can
occur from year to year.

The Company's operating expenses increased to $1,809,158 and $3,631,230 for the
three and six months ended June 30, 1995, from $1,044,582 and $2,112,086 for
the same periods in 1994.  These increases are principally attributable to
Twinsys.  The Company's North American operations' operating expenses has
decreased slightly in 1995 when compared to 1994 principally from reductions in
Bull computer equipment costs and certain marketing expenses.  Selling, general
and administrative expenses in North America has doubled during the six months
ended June 30, 1995 when compared to the same period in 1994 due to the
increased personnel, travel, professional fees, and telephone expenses incurred
relative to Twinsys.  General and administrative expenses prior to 1995 had
remained stable for a number of years.  These expenses are expected to be
higher throughout 1995 as the Company establishes, refines and coordinates
technical, sales and administrative procedures for its European operations.

Interest expense totaled $185,962 and $317,025 for the three and six months
ended June 30, 1995, respectively, and $105,024 and $200,946 for the same
periods in 1994.  Interest costs increased as a result of the additional debt
incurred to purchase Twinsys as well as the addition of interest costs
associated with capitalized computer equipment leases incurred by Twinsys in
1995.
   
The provision for income taxes totalled $176,600 and $294,300 for the three and
six months ended June 30, 1995, respectively, and $0 for the same periods in
1994.  This provision is attributable to income from foreign operations.  No
income tax benefits can be recognized for operating losses that have been
generated in the U.S.
    
Liquidity and Capital Resources

Accounts payable, accrued expenses and current installments of obligations
under capital leases for computer equipment were the largest components of
current liabilities, which exceeded current assets by $2,608,464 at June 30,
1995.  

The principal resources available to reduce the Company's liquidity deficiency
are monthly revenues payable under its backup service contracts.  As noted
above, the Company's second largest customer, Honeywell, Inc., elected not to
renew its backup agreement with the Company, which expired on December 31,
1994.  Honeywell's action was the result of its decision to outsource certain
of its data processing operations to an affiliate of Bull HN.  The arrangement
also included the provision of backup services.  Revenues under the expired
agreement totaled $720,000 per year, which represented approximately 16% of the
Company's total service revenues during 1994.  The Company did not
significantly decrease its equipment costs as a result of the expiration of the
Honeywell agreement.  Thus, the expiration of the Honeywell agreement had a
material adverse impact on the Company's revenues, income, and cash flows, in
the first and second quarters of 1995.  The Company currently cannot predict
when it will be able to generate new revenues to offset lost revenues from
Honeywell.  Competitive pressures resulting from the presence of an affiliate
of Bull HN as the first alternate provider of backup services to users of Bull
computers in several years may also adversely affect revenues receivable under
future contracts for such services.

The Company's backup agreement with the General Electric Company (GE) expired
in May 1995.  Service revenues under the GE Agreement totaled approximately 
$1,200,000 in 1994, representing approximately 26% of the Company's total
service revenues for that year.  The Company has entered into a new agreement
with GE.  Annual revenues from this new agreement will be significantly less 
than under the existing agreement, due to GE's reduced backup service 
requirements.  Beginning in the third quarter of 1995, the Company's equipment 
cost associated with the GE agreement will also significantly decrease. 
Revised revenue should exceed the revised equipment costs associated with the
GE agreement. 

Backup service revenues for the Company's customers are generated in most cases
under multi-year, non-cancelable contracts that will provide quantifiable
revenues over the next five years.  These contractual revenues, net of
unrecorded lease obligations, though not recorded on the Company's balance
sheet, will be available to help meet the Company's liabilities as recorded at
June 30, 1995.  The Company expects to meet its other cash flow needs in 1995
through payments of consulting revenues by existing customers, the addition of
new customers for both backup and consulting services, as well as the extension
of payment terms on certain monthly expenses and other debt.  In addition, cash
flow from operations in 1995 is expected to be positively affected as certain
computer equipment leases expire during 1995 and are replaced by new leases on
more favorable terms.  The Company has obtained and will continue to seek more
favorable terms for its lease and maintenance agreements to reduce its costs
and expenses.  The Company's computer equipment will meet the technological
requirements of the Company's current and prospective customers without the
need for any material capital expenditure during 1995.  The Company's objective
is to finance the expansion of its services with the smallest possible adverse
impact on the Company's liquidity position.

Twinsys Acquisition

As noted above, Dataguard purchased certain operating assets of Twinsys on
February 3, 1995.  The purchase price for the Twinsys assets was 1,050,000
French francs (approximately $210,000).  To finance the purchase of the Twinsys
assets and to provide working capital to Twinsys, the Company increased its
borrowing under a short-term loan from a stockholder from $300,000 to $800,000.
The Company expects this loan to be renewed at least through 1995.  The
purchased multi-year customer contracts are expected to generate annual
revenues of approximately 30 million French francs (approximately $6,000,000 at
current exchange rates) in 1995.  In the Twinsys acquisition, the Company
assumed obligations under backup contracts for which revenues of approximately
4.9 million French francs (approximately $1 million) had been prepaid prior to
the acquisition.

The Twinsys operating results and cash flows in 1995, and Twinsys' ability to
operate without additional funding from sources other than its own operations,
depend upon Twinsys' ability to lease certain computer equipment necessary to
support its existing customer contracts.  Twinsys has entered into long-term
computer equipment leases on terms that should allow it to operate without
additional funding.  The Company has renegotiated most leases and believes the
negotiations on the remaining leases are progressing.  The acquisition of a
leading European disaster recovery provider gives the Company, which is the
leading provider to Bull users in North America, an immediate presence in the
much larger Bull market in Europe.  The continued profitability and liquidity
of Twinsys in the future depends upon its ability to maintain existing
customers and increase its share of the European market.
   
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

              None
    


                                        SIGNATURES

   
In accordance with the requirements of the Exchange Act of 1934, the registrant
has caused this amendment to its quarterly report to be signed on its behalf by
the undersigned, hereunto duly authorized.


                                        DATAGUARD RECOVERY SERVICES, INC.


Date:         March 12, 1996             By:  \s\  Richard W. Smith          
                                              Richard W. Smith, President



Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed by the following persons in the capacities and on the
dates indicated.
    
<TABLE>
   
<CAPTION>
        Signature                    Title                      Date
<S>                                  <C>                        <C>
\s\ Richard W. Smith                 President and Director     March 12, 1996
Richard W. Smith                     (Chief Executive Officer)
                                     (Chief Financial Officer) 
                                     (Chief Accounting Officer)

</TABLE>