SECURITIES AND EXCHANGE COMMISSION
                       ----------------------------------
                             Washington, D.C. 20549
                             ----------------------

                                    FORM 10-Q
                                    ---------

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


       For Quarter Ended April 30, 1999           Commission File #0-15284


                                J2 COMMUNICATIONS
                                -----------------
             (Exact name of registrant as specified in its charter)
             ------------------------------------------------------


          California                               95-4053296
     -----------------                       ---------------------
(State or other jurisdiction                 (IRS Employer Identification
incorporation or organization)                           Number)


             10850 Wilshire Blvd., Ste. 1000, Los Angeles, CA 90024
                     (Address of principal executive office)


Registrant's telephone number, including area code: 310-474-5252


     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 and (2) has been  subject to such  filing
requirements for the past 90 days. Yes X No


Number of shares  outstanding of each of the issuers  classes of common stock as
of the latest  practicable  date:  1,217,000  common  shares,  no par value were
outstanding as of June 10, 1999.


                                       1
<PAGE>






J2 COMMUNICATIONS AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS


                                                    Unaudited
                                                    04/30/99          07/31/98
                                                    --------          --------
Assets

Cash and cash equivalents ....................     $ 1,679,000      $   879,000
Short-term investments .......................         191,000        1,352,000
Accounts receivable - net ....................          34,000            7,000
Intangible assets, less accumulated
  amortization of $2,488,000 and
  $2,310,000 as of 04/30/99 and
  7/31/98, respectively ......................       3,476,000        3,656,000
Other assets .................................          60,000           68,000

Total assets .................................     $ 5,440,000      $ 5,962,000
                                                   ===========      ===========


Liabilities and Shareholders' Equity

Liabilities:

Accounts payable .............................     $    99,000      $   154,000
Accrued expenses .............................         466,000          519,000
Accrued royalties ............................         308,000          327,000
Accrued income taxes .........................          38,000           38,000
Deferred income ..............................         167,000          800,000
Common stock payable .........................         203,000          203,000
Minority interest ............................         182,000          118,000
                                                   -----------      -----------
Total liabilities ............................       1,463,000        2,159,000
                                                   -----------      -----------

Shareholders' Equity:

Preferred stock, no par value;
  authorized 2,000,000 shares;
  none issued and outstanding ................            --               --

Common stock, no par value;
  authorized 15,000,000 shares;
  issued and outstanding, 1,217,000
  as of 04/30/99 and 1,200,000
  as of 7/31/98 ..............................       8,699,000       8,661,000
Less: notes receivable on common stock .......        (133,000)       (128,000)
Accumulated deficit ..........................      (4,589,000)     (4,730,000)

Total shareholders' equity ...................       3,977,000       3,803,000

Total liabilities and
shareholders' equity .........................     $ 5,440,000      $5,962,000
                                                   ===========     ===========



The  accompanying  notes  are an  integral  part of these consolidated  balance
sheets.




                                       2
<PAGE>

<TABLE>


J2 COMMUNICATIONS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS AND NINE MONTHS ENDED APRIL 30, 1999 AND 1998

                                                                      3 mos           3 mos.         9 mos.        9 mos.
                                                                      Ended           Ended          Ended          Ended
                                                                   04/30/99        04/30/98         04/30/99    04/30/98
                                                                    ---------      -----------      -----------  ---------

Revenues:
<S>                                                              <C>            <C>            <C>            <C>
 Movies, television, and theatrical ..........................   $   167,000    $   156,000    $   888,000    $   607,000
 Video sales, net of returns .................................         3,000          1,000          9,000         (3,000)
 Royalty income                                                       22,000         81,000         57,000        133,000
 Other .......................................................        16,000         19,000         37,000        133,000
                                                                 -----------    -----------    -----------    -----------
  Total revenues .............................................       208,000        257,000        991,000        870,000

Costs and expenses:
 Cost of videocassettes sold .................................         1,000          1,000         48,000          5,000
 Royalty expense .............................................          --           12,000         12,000         29,000
 Cost of movies, television and theatrical ...................          --             --           55,000           --
 Selling, general and administrative .........................       166,000        183,000        555,000        588,000
 Amortization of intangible assets ...........................        60,000         60,000        180,000        180,000

   Total expenses ............................................       227,000        256,000        850,000        802,000

(Loss)Income from operations .................................       (19,000)         1,000        141,000         68,000

Other Income (Expense)
 Interest income .............................................        35,000         25,000         74,000         67,000
 Minority Interest in income of
  consolidated subsidiary ....................................          --           (1,000)       (64,000)       (33,000)


Income before income taxes ...................................        16,000         25,000        151,000        102,000

Provision for income taxes ...................................        10,000           --           10,000          6,000

Net income ...................................................   $     6,000    $    25,000    $   141,000    $    96,000
                                                                    ===========    ===========    ===========    ==========

Income per common share:

 Basic and diluted income per share ..........................   $      0.01    $      0.02    $      0.12    $      0.08
                                                                    ===========    ===========    ===========   ===========

 Weighted average number of shares
  of common stock outstanding ................................     1,217,000      1,200,000      1,209,000      1,200,000
                                                                  ===========    ===========    ===========    ===========


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

</TABLE>



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<PAGE>




J2 COMMUNICATIONS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
nine MONTHS ENDED APRIL 30, 1999 AND 1998

                                                          1999           1998
                                                      ----------    -----------

Cash flows from operating activities:

Net income ...........................             $   141,000    $    96,000
Adjustments to reconcile net income to
 net cash used in) provided by
 operating activities:

    Amortization of intangible assets                   180,000        180,000
    Minority interest in income
      of consolidated subsidiary .....                   64,000         33,000
    Changes in assets and liabilities:
    Accounts receivable, net .........                  (27,000)        34,000
    Accounts payable .................                  (55,000)        19,000
    Accrued expenses .................                  (20,000)       (15,000)
    Accrued royalties ................                  (19,000)      (109,000)
    Deferred income ..................                 (633,000)      (127,000)
    Other assets .....................                    8,000        (16,000)

    Net cash (used in) provided by
    operating activities .............                 (361,000)        95,000


Cash flows from investing activities:

    Net sale of short-term investments                1,161,000        184,000

    Net cash provided by investing
     activities ......................                1,161,000        184,000


Net increase in cash
 and cash equivalents ................                  800,000        279,000
Cash and cash equivalents,
 beginning of period .................                  879,000        641,000

Cash and cash equivalents,
 end of period .......................              $ 1,679,000    $   920,000
                                                    ===========    ===========



Non Cash transaction:

    Harvard Lampoon settlement
     through issuance of stock .......                38,000








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




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<PAGE>




                                J2 COMMUNICATIONS
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                 APRIL 30, 1999


Item 1

Basis of Financial Statement Presentation

The  consolidated  financial  statements of J2  Communications  and subsidiaries
(collectively  the  "Company")  have been prepared in accordance  with generally
accepted  accounting  principles  for  interim  financial  information.  Interim
financial  statements  do  not  include  all of the  information  and  footnotes
required by generally  accepted  accounting  principles  for  complete  year-end
financial  statements.  The accompanying  financial statements should be read in
conjunction with the more detailed  financial  statements and related  footnotes
for the fiscal  year ended July 31,  1998,  as included  in the  Company's  1998
Annual Report on Form 10-K (the "Annual  Report")  filed with the Securities and
Exchange  Commission.  A signed independent  accountant's report relating to the
July 31,  1998  balance  sheet is  included  in the Annual  Report.  Significant
accounting  policies  used  by  the  Company  are  summarized  in  Note 1 to the
financial statements included in the Annual Report.

In the opinion of  management,  all  adjustments  (which  include only recurring
normal  adjustments)  required for a fair presentation of the financial position
of the Company as of April 30, 1999,  and the results of its operations and cash
flows for the  periods  ended April 30,  1999 and 1998  respectively,  have been
made. Operating results for the three-month period ended April 30, 1999 and nine
months  ended April 30, 1999 are not  necessarily  indicative  of the  operating
results for the entire fiscal year.


Earnings Per Share

The Company  has  adopted  SFAS No.  128,"Earnings  Per  Share",  for the period
commencing in its quarter ending January 31, 1998.  Under SFAS No. 128,  primary
EPS is replaced  by "Basic"  EPS,  which  excludes  dilution  and is computed by
dividing income available to common  shareholders by the weighted average number
of common shares  outstanding  for the period.  "Diluted" EPS, which is computed
similarly to fully diluted EPS, reflects the potential dilution that could occur
if  securities  or other  contracts  to issue  common  stock were  exercised  or
converted into common stock.

     When dilutive, stock options are included as share equivalents in computing
diluted earnings per share using the treasury stock method. The weighted average
number of shares used in computing basic earnings per share was 1,217,000 in the
three  months  ended April 30,  1999,  1,209,000  in the nine months ended April
30,1999,  and  1,200,00 in the three months ended April 30, 1998 and nine months
ended April 30, 1998.  Options of 283,000 shares for the period ending April 30,
1999 and 659,000 shares for the period ending April 30, 1998, were  antidilutive
for the periods.

At a special  meeting of stockholders of the Company held on September 16, 1998,
an amendment was approved to the Company's  article of incorporation to effect a
1 for 3 reverse stock split of the  Company's  outstanding  common stock.  Prior
period  financial  information  in the  statements  have been adjusted to
reflect corresponding changes.





                                       5
<PAGE>




Joint Venture

As part of the acquisition of NLI, the Company acquired a 75 percent interest in
a joint venture of which the only operations  consist of revenues  received from
the  licensing of a certain  "National  Lampoon"  motion  picture.  The minority
interest's  share in the  joint  venture's  revenue  is  deducted  from  movies,
television and theatrical revenue.  Total revenues received by the joint venture
related to this motion  picture were $251,017 and $123,000 for the periods ended
April 30, 1999 and 1998.


Revenue

Through a memorandum of agreement  made as of April 15, 1998 between the Company
and International  Family  Entertainment,  Inc. ("IFE"), an exclusive option was
granted by the Company to IFE for the use of "National  Lampoon"  trade name for
television  movies and series for an annual fee of $800,000.  IFE  exercised the
first year option in August 1998.  IFE had an option to renew this agreement for
four additional  consecutive  years, but has elected not to do so. This deprives
the Company of $800,000 income for the next year, which would have represented a
significant share of any projected  revenues.  Although  management believes the
trade  name  National   Lampoon  can  generate  revenue  from  other  television
producers, it is too early to project whether a similar arrangement could be put
into place.


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

Special Note Regarding Forward Looking Statements

Certain  statements in this Quarterly  Report on Form 10-Q,  particularly  under
Item 2, may  constitute  "forward-looking  statements"  within  the  meaning  of
Private  Securities  Litigation  Reform  Act of 1995 (the  "Reform  Act").  Such
forward-looking statements involve known and unknown risks,  uncertainties,  and
other factors which may cause the actual results, performance or achievements of
the Company to be materially  different from any future results,  performance or
achievements, expressed or implied by such forward-looking statements.


Results of Operations

Quarter Ended April 30, 1999 Versus April 30, 1998

Total revenues for the current  quarter were $208,000  compared with $257,000 in
the prior year quarter. Movies, television and theatrical revenues were $167,000
compared with $156,000 in the prior year quarter. Video sales net of returns was
$3,000 up $1,000  from the  corresponding  prior year  quarter.  The Company has
de-emphasized  this  segment of its  business  due to  declining  profitability.
Royalty  income  decreased  $59,000 in the current  year quarter to $81,000 from
$22,000 from the prior year  quarter,  primarily due to the  recognition  of the
balance of an advance  license fee upon  expiration  of the  license  agreement.
Other  income  decrease  $3,000 to $16,000 in the current  quarter,  compared to
$19,000 in the prior year quarter.

Cost of videocassettes  sold represents  duplication,  shipping and other costs,
remained  at $1,000 in the  current  year  quarter  as well as in the prior year
quarter.




                                       6
<PAGE>




Royalty expense  decreased $12,000 to $0.00 in the current year quarter compared
to $12,000 in the prior year quarter.

Selling,  general and administrative  expenses decreased $17,000 to $166,000, in
the current  quarter,  compared  with $183,000 in the  corresponding  prior year
quarter.  The decrease  was  primarily  due to a reduction in salary,  legal and
insurance expenses  partially offset by increased  corporate expenses related to
the Company's efforts to increase its visibility within the financial community.

Interest  income  increased  $10,000  to  $35,000 in the  current  year  quarter
compared  to  $25,000  in the prior  year  quarter  primarily  due to  increased
interest income recognized on the maturity of short-term investments, as well as
higher cash balances  invested in interest  bearing  accounts during the current
quarter.

The net  income for the  current  quarter  was  $6,000  equal to $0.01 per share
compared  with net income of $25,000 in the  corresponding  prior year  quarter,
equal to $0.02 per  share.  The  decrease  in net income is  primarily  due to a
reduction in movies, television and theatrical as well as video sales, partially
offset by a reduction in general and administrative  expenses and an increase in
interest income.

On October  1, 1998,  the  Company  entered  into two  agreements  with  Harvard
Lampoon, Inc. ("HLI") to settle all outstanding past disputes and to confirm the
Company's  exclusive  ownership  of the  National  Lampoon  trademark  in a wide
variety of areas, including all media currently being used as well as restaurant
services and new electronic media not contemplated in earlier agreements.  Under
the agreement  the Company will give up the right and  obligation to publish new
issues in print of National  Lampoon  magazine,  which in recent years detracted
from the Company's  financial  results.  The Company has retained full rights to
its extensive library of past issues of the magazine.  On December 17, 1998, the
Company  delivered  16,667 of common stock of the company to Harvard  Lampoon as
per  agreement  for a price of $2.25 per share.  Also,  per the  agreement,  the
royalty level for certain  expanded  rights of exploitation  increased,  but the
financial  terms  between  the  Company  and HLI for the  Company's  ongoing and
exiting operations remain the same.

The Company believes the new agreement represents a significant  improvement for
the  Company as the  agreement  clarifies  the  relationship  with HLI,  expands
opportunities  for business  activities,  and reduces the  possibility of future
disputes  with HLI  (which  have  occurred  periodically  over  three  decades).
Moreover,  the Company is now relieved of the financial obligation of publishing
the magazine.


Nine Months Ended April 30, 1999 Versus April 30, 1998

Total  revenues for the period were  $991,000  compared to $870,000 in the prior
year period.  Movies,  television and theatrical  revenues increased $281,000 to
$888,000 in the current  year period  compared  with  $607,000 in the prior year
period.  The  increase  was  primarily  due  to  $800,000  annual  fee  paid  by
International Family Entertainment, Inc. for the current year, of which $633,000
is  reflected  in the  current  period.  Video  sales net of  returns  is $9,000
compared to negative $3,000 in the corresponding prior year period




                                       7
<PAGE>



primarily  due to  reduction  of video sales  which were offset by returns  from
distributors. Royalty income for the current period increased $57,000 from $0.00
in the prior year period  primarily due to the  recognition  of the balance from
two advance license fees upon expiration of the license agreements. Other income
decreased $37,000 from $133,000 from the prior year period, primarily due to the
reversal  of  previous  accruals  related  to  potential  royalties,  which were
extinguished at a reduced amount, shown in the prior period.

Cost of  videocassettes  sold  represent  duplication,  shipping and other costs
which increased $43,000 to $48,000 in the current year period from $5,000 in the
prior year period.  This was primarily due to an increase in distribution fee in
the current year period.

Royalty expense  increased  $12,000 in the current year period compared to $0.00
in the prior year  period  due to a lump sum  payment  made to  Harvard  Lampoon
during this period.

Cost of movies for the current period reflects  $55,000 compared with no cost of
movies in the prior year period.  These results from certain  payments made over
the new agreement made with Harvard Lampoon as of October 1, 1998.

Selling,  general and  administrative  expenses decreased $33,000 to $555,000 in
the current year period,  compared with $588,000 in the corresponding prior year
period. The decrease was primarily due to reduced legal and insurance  expenses,
partially  offset by  increased  corporate  expenses  related  to the  Company's
efforts to increase its visibility within the financial community.

Interest income  increased $7,000 to $74,000 in the current year period compared
to $67,000 in the prior year period  primarily due to increased  interest income
recognized  on the maturity of  short-term  investments,  as well as higher cash
balances invested in interest bearing accounts during the current period.

The net income for the  current  period  was  $141,000  equal to $0.12 per share
compared with net income of $96,000 in the corresponding prior year period equal
to $0.08 per share. The increased in net income is primarily due to the increase
in  revenues  from  movies  from the  annual  fee paid by  International  Family
Entertainment, Inc.


Liquidity and Capital Resources

Cash and  short-term  investments  at April  30,  1999  totaled  $1,870,000, a
decrease of $361,000 from the July 31, 1998 fiscal year end.


Cash Flows

For nine months ended April 30, 1999 compared to the nine months ended April 30,
1998.

Net cash provided by operating activities decreased $456,000, primarily due to a
decrease  in  deferred  revenues.  Net cash  provided  by  investing  activities
increased by $977,000  from the prior year  quarter due to  increased  cash flow
from  sales of  short-term  investments.  The  Company  had no cash  flows  from
financing activities in either periods.




                                       8
<PAGE>




PART II.  OTHER INFORMATION

Item 1 - Legal Proceedings

On March 10, 1997 counsel for Harvard  Lampoon,  Inc. ("HLI") filed a demand for
arbitration  with  the  American  Arbitration  Association,  asserting  that the
Company  underpaid  royalties under the HLI royalty  agreement by  approximately
$226,000,  plus  unspecified  late  charges,  for the period  from July 1, 1992,
through  June 30,  1995,  based on HLI's  interpretation  of the  agreement.  By
agreement of both parties arbitration was stayed in order to mediate the dispute
under the auspices of the Judicial Arbitration and Mediation Services.

On October 1, 1998, the parties  participated  again in a mediation in New York,
outcome of which resulted in an agreement  which  consolidates  the terms of the
1969  agreement  and the 1977,  1983,  and 1998  amendments  thereto  into a new
"Agreement" which became effective as of October 1, 1998.  Concurrently with the
execution of this  Agreement,  the parties  have  entered  into the  "Settlement
Agreement  and Mutual  General  Releases"  agreement  effective as of October 1,
1998, which releases and forever  discharges J2 and HLI from any and all actions
against each other.  The full terms and conditions set out in the new agreements
are included as Exhibit 1 under Item 6.

The impact of the  settlement  resulted in no material  impact on the  financial
condition or results of operation of the Company.

Item 2 - Changes in Securities

                  None

Item 3 - Defaults Upon Senior Securities

                  None

Item 4 - Submission of Matters to a Vote of Security Holders

A Special Meeting of Stockholders of the Company was held on September 16, 1998.
James Jimirro,  James Fellows,  Bruce Vann and John DeSimio were each elected to
the board of directors  until the next annual meeting or until their  successors
are elected and qualified. The other proposal submitted for shareholder approval
at the special meeting along with the results of voting is as follows:

The approval of an  amendment  to the  Company's  Articles of  Incorporation  to
effect a 1 for 3 reverse stock split of the Company's  outstanding common stock.
This proposal was approved by a vote of 3,038,536  for and 234,652  against with
14,698  abstentions and no broker  non-votes.  The split has been  retroactively
reflected in the income statements.

Item 5 - Other Events

On August  13,  1998 the  Company  was  notified  by Nasdaq  that the  Company's
security  was not in  compliance  with the new  minimum  bid price  requirement,
pursuant to NASD Marketplace  Rule 431(c) (04), which became effective  February
23, 1998.  As a result,  the Company was provided with 90 calendar  days,  which
expired November 13, 1998, in order to regain compliance with this standard.




                                       9
<PAGE>




On  November  9, 1998 the  Company  was  notified  by Nasdaq  that its staff had
reviewed the Company's  common stock trading history with respect to the closing
bid price and had deemed  that the Company  was in  compliance  with the new bid
requirement for continued listing on the Nasdaq Stock market.

The Company believes that it will be able to comply with the Nasdaq requirements
for minimum bid price,  pursuant to NASD  Marketplace  Rule 431(c) (04),  but no
assurance can be given that the Company will be able to continue to maintain the
minimum bid price requirement on a going forward basis.

Item 6 - Future Activity

The Company this spring embarked on a new project which involves the development
of a National  Lampoon  Website.  This site will be comprised of a wide range of
comedic  entertainment  and activities,  and will be marketed as a new "network"
delivered  via  Internet.  The  entertainment  will  be made  available  free to
internet  users,  and the Company  will  generate  revenues  through the sale of
advertising on the site as well as merchandising sales, so called "e-commerce."

The Company  will be investing  substantial  capital in the project and believes
that its current level of funds augmented by internally  generated  funds,  will
provide sufficient resources to satisfactorily complete this venture.

While the  prospects  for Internet  ventures such as these are promising and the
Company  believes  there is a good market for this Internet  site, a substantial
amount of the  Company's  capital  is being  invested  in this  project  with no
guarantee  that  sufficient  revenues  will be  generated  to make the project a
success.

Since the company began a full-scale development of this Website, the stock
prices of the company has gone up from $2.00 per share(as of April 26, 1999) to
$3.50 per share (as of June 11, 1999).  There is no guarantee that the company
will be able to maintain this trend and the current market value of the company
shares.


Item 7 - Exhibits And Reports On Form 8-K

         (a)  Reports on Form 8-K
              None filed during the Quarter






                                       10
<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 its
duly authorized officers.


                                                     J2 COMMUNICATIONS


Date:   June 11, 1999                               By:         SIGNED
     ------------------                           ---------------------------
                                                    JAMES P. JIMIRRO
                                                    Chairman of the Board
                                                    President
                                                   (Principal Executive Officer)




Date:  June 11, 1999                                    By:         SIGNED
----------------------                            ----------------------------
                                                    ANDREW WEERARATNE
                                                    Chief Financial Officer
                                                   (Principal Financial Officer)


                                       11