SECURITIES AND EXCHANGE COMMISSION
                       Washington, D.C.  20549
                                  
                                  
                              FORM 10-Q
                                  
    [X]  Quarterly Report Pursuant to Section 13 or 15(d) of the
                   Securities Exchange Act of 1934
                                  
            For the Quarterly Period Ended June 30, 1998

                                 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:  0-22737

                Advanced Communication Systems, Inc.
       (Exact name of registrant as specified in its charter)

          Delaware                        54-1421222
(State or other jurisdiction  (I.R.S. Employer Identification No.)
incorporation or organization)

             10089 Lee Highway, Fairfax, Virginia  22030
        (Address of principal executive office and zip code)
                                  

                           (703) 934-8130
         Registrant's telephone number, including area code:

                                  
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 [    ]

As of the close of business on August 11, 1998, the registrant had
outstanding 8,584,583 shares of Common Stock, par value $.01 per
share.

<PAGE>
                ADVANCED COMMUNICATION SYSTEMS, INC.
                    QUARTERLY REPORT ON FORM 10-Q
                                INDEX

                                                             PAGE

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements:

        Condensed Consolidated Balance Sheets as of
        June 30, 1998 and September 30, 1997                    3

        Condensed Consolidated Statements of Operations
        for the Three Months and Nine Months Ended
        June 30, 1998 and 1997                                  4

        Condensed Consolidated Statements of Cash Flows
        for the Nine Months Ended June 30, 1998 and 1997        5

        Notes to Condensed Consolidated Financial Statements    6

Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations                     9

PART II.       OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K                       14

<PAGE>
<TABLE>

                ADVANCED COMMUNICATION SYSTEMS, INC.
                CONDENSED CONSOLIDATED BALANCE SHEETS
           (in thousands, except share and per share data)
                             (Unaudited)
                                  
<CAPTION>
                                      June 30,   September 30,
                                       1998            1997

                               ASSETS
<S>                                   <C>            <C>
Current assets:
Cash and cash equivalents             $ 1,383        $ 2,744
Contract receivables                   48,263         17,643
Other receivables                       1,024            154
Income taxes receivable                   651            529
Prepaid expenses                        1,474            296
Inventories                               765            544

   Total current assets                53,560         21,910


Property and equipment, net             7,285          1,261
Other assets:
Other related party receivables           265             86
Software development costs, net         1,802            950
Intangibles, net                       43,636          1,706
Long-term deferred tax asset               87            147
Other non-current assets                  400            152

   Total other assets                  46,190          3,041

      Total assets                   $107,035        $26,212


                LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt    $     86        $     -
Current portion of obligation under
 capital leases                         1,148              -
Accounts payable                        2,656          3,321
Accrued expenses and other current
 liabilities                           19,885          8,838
Billings in excess of revenue             274            225
Deferred income tax liability           2,545              -
Payable to stockholders                    95              -


   Total current liabilities           26,689         12,384
Obligation under capital leases           112              -
Long-term debt                         37,089              -

   Total liabilities                   63,890         12,384
Stockholders' equity:
Preferred stock, $.01 par value,
 1,000,000 shares authorized, no
 shares issued and outstanding              -              -
Common stock, $.01 par value,
 40,000,000 shares authorized,
 11,450,000 shares issued at June 30,
 1998 and 8,975,000 shares issued at
 September 30, 1997                       115             90
Paid-in-capital                        40,989         14,409
Retained earnings (deficit)             2,370          (382)
Less - Treasury stock, 2,871,000
 shares at June 30, 1998 and
 2,945,000 shares at September 30,
 1997                                   (329)          (289)

   Total stockholders' equity          43,145         13,828

      Total liabilities and
       stockholders' equity          $107,035        $26,212


   The accompanying notes are an integral part of these condensed
                 consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
                ADVANCED COMMUNICATION SYSTEMS, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (in thousands, except per share data)
                                  
                             (Unaudited)
                                  
<CAPTION>
                               Three Months Ended   Nine Months Ended
                                   June 30,            June 30,
                                1998      1997         1998    1997
<S>                           <C>        <C>       <C>       <C>
Revenues                     $25,848    $14,379   $58,398   $35,510

Direct costs                  16,374     10,432    37,364    25,179

Indirect, general and
 administrative expenses       7,309      3,040    16,130     8,066


Income from operations         2,165        907     4,904     2,265

Interest expense               (409)        (2)     (787)     (136)


Other income, net                 32         16        47        60


Income before taxes            1,788        921     4,164     2,189

Provision for income taxes       626         33     1,505        33


Net income                   $ 1,162    $   888   $ 2,659   $ 2,156


Net income per share-basic   $  0.16              $  0.40


Net income per share-diluted $  0.16              $  0.39


Weighted average shares
 outstanding-basic             7,310                6,855

Weighted average shares
 outstanding-diluted           7,448                6,855


Pro forma statements of
 operations data

Income before taxes as
 reported                                $  921              $2,189
Pro forma income tax
 provision                                  359                 854


Pro forma net income                     $  562              $1,335


Pro forma net income per share-basic     $ 0.13              $ 0.31


Pro forma net income per share-diluted   $ 0.13              $ 0.31


Pro forma weighted average shares
 outstanding-basic                        4,361               4,307

Pro forma weighted average shares
 outstanding-diluted                      4,442               4,378


   The accompanying notes are an integral part of these condensed
                 consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
                ADVANCED COMMUNICATION SYSTEMS, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (in thousands)
                             (Unaudited)
<CAPTION>

                                                  Nine Months Ended
                                                      June 30,
                                                  1998           1997
<S>                                              <C>          <C>
     Cash flow from operating activities:
     Net income                                 $ 2,659     $2,156
     Adjustments to reconcile net income to net
      cash provided by (used in) operating
      activities-
      Depreciation and amortization                 983         323
      Increase in reserves                           65           -
      Changes in assets and liabilities:
       Contract receivables                     (4,207)     (3,288)
       Other receivables                          (278)       (135)
       Prepaid expenses                              82       (559)
       Inventories                                (221)           -
       Other related party receivables            (397)       (230)
       Long-term deferred tax asset                  60           -
       Other assets                                 (4)       (164)
       Accounts payable                         (3,182)       2,720
       Accrued expenses and other current
        liabilities                               1,906       2,565
       Billings in excess of revenue                 49          25
       Income taxes payable                        (40)           -
       Deferred income taxes                      1,329        (19)

          Net cash (used in) provided by
           operating activities                 (1,196)       3,394


     Cash flows from investing activities:
     Acquisitions, net of cash acquired        (55,067)           -
     Purchases of property and equipment        (1,251)       (441)
     Capitalized software development costs       (791)       (196)
     Increase in goodwill                         (401)           -
     Intangible assets                            (665)           -



        Net cash used in investing
         activities                            (58,175)       (637)



     Cash flows from financing activities:
     Net proceeds from the sale of common
      stock                                      22,838           -
     Net borrowings repaid                        (876)           -
     Net borrowings  (repayments) under line
      of credit                                  35,528     (2,688)
     Collection of receivables on behalf of
      stockholders                                   95         678
     Purchase of treasury stock                       -        (65)
     Sale of treasury stock                         425          57


        Net cash provided by (used in)
         financing activities                    58,010     (2,018)



     Net (decrease) increase in cash            (1,361)         739
     Cash and cash equivalents, beginning of
      period                                      2,744       1,177



     Cash and cash equivalents, end of period    $1,383      $1,916



     Income taxes paid                             $169         $15



     Interest paid                                 $787        $136



     The accompanying notes are an integral part of these condensed
                 consolidated financial statements.
</TABLE>
<PAGE>
                                  
                ADVANCED COMMUNICATION SYSTEMS, INC.
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                            June 30, 1998
                             (Unaudited)

1. Basis of Presentation

The  accompanying condensed consolidated balance sheet as of June 30,
1998, and the statements of operations and cash flows for all periods
presented have been prepared by Advanced Communication Systems,  Inc.
(the   "Company"),  and  have  not  been  audited.   These  financial
statements,  in  the opinion of management, include all  adjustments,
consisting  of  normal recurring adjustments, necessary  for  a  fair
presentation  of  the financial position, results of  operations  and
cash  flows  for all periods presented.  These condensed consolidated
financial statements should be read in conjunction with the financial
statements and notes thereto for the fiscal year ended September  30,
1997  included  in the Company's Annual Report on Form 10-K.  Interim
operating results are not necessarily indicative of operating results
for the full year.

2. Management's Use of Estimates

The  preparation of financial statements in conformity with generally
accepted  accounting principles requires management to make estimates
and  assumptions  that  affect the reported  amounts  of  assets  and
liabilities  and disclosure of contingent assets and  liabilities  at
the date of the financial statements and reported amounts of revenues
and  expenses  during  the reporting period.   Actual  results  could
differ from those estimates.

3. Completion of Secondary Offering of Common Stock

In  May  1998,  the Company consummated a secondary offering  of  its
common  stock, selling 2,000,000 shares for $12.375 per  share.   The
offering  resulted  in net proceeds to the Company  of  approximately
$22.8  million  after deducting underwriting discounts  and  offering
expenses  payable by the Company.  The majority of the  proceeds  was
used  to  pay  the  outstanding debt incurred in the  acquisition  of
Advanced Management, Incorporated (Note 7).

4. Provision for Income Taxes

Prior  to June 25, 1997, the Company elected to be treated  as  an  S
corporation  and was not subject to federal and certain state  income
taxes.   As a result, no provision for federal or state income  taxes
has been included in the historical statements of operations prior to
June  25,  1997.   On June 25, 1997, in connection with  the  initial
public  offering  the  S corporation status was  terminated,  thereby
subjecting  future income of the Company to federal and state  income
taxes  at  the  corporate level.  Subsequent to June  25,  1997,  the
Company  has  provided  for federal and state  income  taxes  in  the
statements of operations based on the effective tax rate.

5. Pro Forma Net Income Per Share

<PAGE>
Pro forma net income is based on the assumption that the Company's  S
corporation status was terminated at the beginning of the year.   Pro
forma  net  income per share has been computed by dividing pro  forma
net  income by the pro forma weighted average number of common shares
outstanding during the period.

6. Net Income Per Share

Effective December 31, 1997, the Company adopted the Financial
Accounting Standards Board Statement of Financial Accounting
Standards ("SFAS") No. 128, "Earnings Per Share".  This statement
replaces the previously reported primary and fully diluted net income
per share with basic and diluted net income per share.  Unlike
primary net income per share, basic net income per share excludes any
dilutive effects of stock options.  Diluted net income per share is
very similar to the previously reported fully diluted net income per
share.  All net income per share amounts have been restated to
conform to SFAS No. 128.  No reconciling items existed between the
net income used for basic and diluted net income per share.  The only
reconciling item between the shares used for basic and diluted net
income per share related to outstanding stock options.

7. Acquisitions

Integrated Systems Control, Inc.

In November 1997, the Company acquired all the outstanding shares of
Integrated Systems Control, Inc. ("ISC") in exchange for 475,000
shares of the Company's common stock.  The acquisition has been
accounted for as a purchase and accordingly the total purchase price
has been allocated to acquired assets and liabilities assumed at
their estimated fair values.  The excess of the purchase price over
the net assets acquired is being carried as goodwill, in the amount
of approximately $1.3 million, which will be amortized over its
estimated useful life of 30 years.

Advanced Management, Incorporated

In February 1998, the Company acquired all the outstanding shares of
Advanced Management, Incorporated ("AMI") for $19.5 million in cash
and additional contingent payments for each of two consecutive twelve
month periods following the closing date of the acquisition up to a
maximum of $5.25 million for each period.  The acquisition has been
accounted for as a purchase, and accordingly, the purchase price has
been allocated to the acquired assets and liabilities assumed at
their estimated fair values.  The excess of the purchase price over
the net assets acquired is being carried as intangible assets,
including goodwill and customer lists, in the amounts of
approximately $12.2 million and $4.1 million, respectively, which
will be amortized over their estimated useful lives ranging from 16
to 40 years.

<PAGE>
SEMCOR, Inc.

In June 1998, the Company acquired all the outstanding shares of
SEMCOR, Inc. ("SEMCOR") for the preliminary purchase price of $38
million, which is subject to adjustment based on the net equity shown
on the closing date balance sheet.  The purchase price consisted of
$37 million in cash and $1 million in the Company's common stock.  In
addition, the Company may pay additional amounts to the former
shareholders based on achievement of certain financial goals by
SEMCOR for the six-month period ending December 31, 1998, and the
twelve-month period ending December 31, 1999.  The Company will also
pay the shareholders up to $1.25 million for certain tax liabilities
of the shareholders incurred pursuant to Section 338(h)(10) of the
Internal Revenue Code.  The acquisition has been accounted for as a
purchase and accordingly the preliminary purchase price has been
allocated to the acquired assets and liabilities assumed at their
estimated fair values.  The excess of the preliminary purchase price
over the net assets acquired is being carried as intangible assets,
in the amount of $23.3 million, and will be amortized over its estimated
useful life.

The following unaudited preliminary pro forma summary presents
information as if the acquisitions had occurred at the beginning of
each period presented.  The pro forma information does not
necessarily reflect the actual results that would have occurred nor
is it necessarily indicative of future results of operations of the
combined companies.
<TABLE>
<CAPTION>
                                             (unaudited)
                                          Nine Months Ended
                                         June 30,      June 30,
                                          1998          1997

(in thousands, except per share data)
<S>                                        <C>         <C>
Revenues                                  $138,405    $131,323
Net Income                                $  2,958    $  2,023
Net income per share-basic                $   0.43    $   0.42
Net income per share-diluted               $  0.43     $  0.41
</TABLE>

8. Long-Term Debt

Notes payable and line of credit consist of the following:
<TABLE>
<CAPTION>
                                         June 30,    September 30,
                                          1998           1997

                                      (Unaudited)
<S>                                        <C>          <C>
Line of credit:
     $45 million line of credit with
      a commercial bank expiring
      February 28, 2000                    $35,516     $     -

<PAGE>
Notes payable:
     Note payable to bank, interest at
      9.9%, due February 2005, secured
      by a First Deed of Trust on an
      office building                          966           -

     Note payable to Urban Business
      Development Corporation, interest
      at 8.575%, due January 2015,
      guaranteed by the Small Business
      Administration and secured by a
      Second Deed of Trust on an office
      building                                 693           -

                                            37,175           -
     Less current maturities                    86           -


                                           $37,089     $     -

</TABLE>
Line of Credit

In June 1998, the Company increased its existing credit facilities
with a commercial bank from $35 million to $45 million to finance the
acquisition of SEMCOR and to provide for its other working capital
needs.  This line of credit consists of two separate facilities,
permitting the Company to borrow up to an aggregate of $45 million.
The first facility, in an amount up to $20 million, may be used to
finance acquisitions, working capital, and other corporate purposes,
and bears interest at either the bank's prime rate or at a London
interbank offered rate ("LIBOR") for one, two or three month periods,
plus a percentage, not more than 2.2%, which depends on the Company's
historical performance.  The second facility, in an amount up to $25
million, may be used to finance acquisitions, and bears interest at
either the bank's prime rate or at a LIBOR rate plus a percentage,
not more than 2.45%, which depends on the Company's historical
financial performance.  Each facility expires on February 28, 2000.
The credit agreement contains various covenants requiring the Company
and its subsidiaries, on a consolidated basis, to maintain certain
financial ratios, including debt to net income, minimum net income
and minimum net worth.  The credit agreement also prohibits the
payment of dividends.  As of June 30, 1998, the outstanding balance
on its line of credit was $35.5 million and the weighted average
interest rate for the nine months ended June 30, 1998, was
approximately 8.2%.

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

The following Management's Discussion and Analysis of Financial
Condition and Results of Operations contains forward-looking
statements based on management's current expectations, estimates and
projections about the Company's industry, management's beliefs and
certain assumptions made by management.  These forward-looking
statements involve risks and uncertainties, and actual results may
differ materially from those anticipated or expressed in such
statements.  Potential risks and uncertainties include, among others,
those set forth under the "Risk Factors" section of the Company's
prospectus dated May 20, 1998, as filed with the Securities and
Exchange Commission.  Except as required by law, the Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or otherwise.

<PAGE>
Results of Operations
The following table sets forth certain statement of operations data
as a percentage of revenues for the periods indicated:
<TABLE>
<CAPTION>
                               Three Months          Nine Months
                               Ended June 30,        Ended June,
                               1998     1997         1998    1997
<S>                            <C>      <C>          <C>     <C>
Revenues                      100.0%   100.0%       100.0%  100.0%
Direct costs                    63.3     72.6        64.0     70.9
Indirect, general and
 administrative                 28.3     21.1        27.6     22.7


Income from operations           8.4      6.3         8.4      6.4

Other income (expense), net    (1.5)      0.1       (1.3)    (0.2)

Income before taxes              6.9      6.4         7.1      6.2
Pro forma income taxes (1)       2.4      2.5         2.6      2.4

Pro forma net income            4.5%     3.9%         4.5%    3.8%


</TABLE>

(1)  Prior to June 25, 1997,the Company elected to be treated as an S
corporation and was not subject to federal and certain state income
taxes.  The pro forma income taxes data reflects federal and state
income taxes based on estimated tax rates, as if the Company had
elected C corporation status for the periods indicated.  Amounts for
the three month and nine month periods ended June 30, 1998, are based
on actual results.

Three Months Ended June 30, 1998 Compared to Three Months Ended June
30, 1997

Revenues increased 79.2%, or $11.4 million, to $25.8 million for  the
three  months  ended June 30, 1998, from $14.4 million for  the  same
period  in 1997.  The increase was principally due to an increase  in
revenues  from  communication systems resulting  from  the  Company's
acquisitions   of  RFM  and  ISC,  information  technology   services
resulting  from  the acquisition of AMI and systems  engineering  and
communication  systems  services resulting from  the  acquisition  of
SEMCOR.

Direct   costs   include  labor  costs,  related   fringe   benefits,
subcontract  costs,  material  costs  and  other  non-overhead  costs
directly  related  to a contract.  Direct costs  increased  to  $16.3
million  for the three months ended June 30, 1998 from $10.4  million
for  the same period in 1997 due primarily to increased revenues from
the  Company's acquisitions.  Direct costs, expressed as a percentage
of  revenues, decreased to 63.3% for the three months ended June  30,
1998  from  72.6%  for the same period in 1997, primarily  due  to  a
decrease   in   the  proportion  of  revenues  coming  from   systems
integration services.  These services have higher direct  costs  than
the  other  services  the  Company  provides  because  the  contracts
generally require the Company to purchase hardware components as part
of the services.

Indirect,   general  and  administrative  expenses   include   fringe
benefits,  overhead,  selling and administrative costs,  depreciation
and amortization, bid and proposal costs and research and development
expenses.  Indirect expense increased to $7.3 million for the three
months ended June 30, 1998, from $3.0 million for the same period  in
1997.  The increase was due primarily to the higher level of revenues

<PAGE>
discussed  above.  Indirect expenses, expressed as  a  percentage  of
revenues,  increased to 28.3% from 21.1% for the three  months  ended
June  30,  1998,  due to both the higher proportion of  communication
systems  revenues,  which typically have higher  associated  indirect
expenses  and  to the amortization of intangible assets,  principally
goodwill, from the acquisitions of RFM, ISC, AMI and SEMCOR.

Income  from  operations increased 138.7%, to $2.2  million  for  the
three  months ended June 30, 1998, from $907,000 for the same  period
in  1997,  primarily due to increased communication systems  revenues
and information technology services revenues from the acquisition  of
RFM,  ISC, AMI and SEMCOR.  As a percentage of revenues, income  from
operations  increased  to 8.4% for the three months  ended  June  30,
1998,  from  6.3%  for  the  comparable period  in  the  prior  year,
principally attributable to increased revenues from fixed  price  and
time-and-material   contracts  of  AMI  and  ISC which typically carry
higher margins.

Other income (expense), net, consists of interest expense, offset  in
part  by  interest income from short-term deposits of cash.  Interest
expense  was  $409,000 and $2,000 for the three-month  periods  ended
June  30,  1998 and 1997, respectively.  Interest income was  $13,000
and  $16,000  for  the three months ended June  30,  1998  and  1997,
respectively.

The Company's effective tax rate was 35.0% for the three months ended
June  30, 1998.  The Company's pro forma effective tax rate was 39.0%
for  the three months ended June 30, 1997. This decrease is primarily
due   to   the  change  in  the  valuation  allowance  on   temporary
differences.

Nine  Months Ended June 30, 1998 Compared to Nine Months  Ended  June
30, 1997

Revenues increased 64.5%, or $22.9 million, to $58.3 million for  the
nine  months  ended June 30, 1998, from $35.5 million  for  the  same
period  in 1997.  The increase was principally due to an increase  in
revenues  from  communication systems resulting  from  the  Company's
acquisitions   of  RFM  and  ISC,  information  technology   services
resulting  from  the acquisition of AMI and systems  engineering  and
communication  systems  services resulting from  the  acquisition  of
SEMCOR.

Direct  costs  increased to $37.3 million for the nine  months  ended
June  30,  1998, from $25.1 million for the same period in  1997  due
primarily  to  increased  revenues from the  Company's  acquisitions.
Direct  costs,  expressed as a percentage of revenues,  decreased  to
64.0%  for  the nine months ended June 30, 1998, from 70.9%  for  the
same period in 1997, primarily due to a decrease in the proportion of
revenues  coming from systems integration services.   These  services
have  higher  direct costs than other services the  Company  provides
because  the  contracts  generally require the  Company  to  purchase
hardware components as part of the services.

Indirect,  general  and administrative expenses  increased  to  $16.1
million for the nine months ended June 30, 1998 from $8.0 million for
the  same  period  in 1997.  The increase was due  primarily  to  the
higher level of revenues discussed above.  Indirect expenses,

<PAGE>
expressed  as  a percentage of revenues, increased to 27.6%  for  the
nine months ended June 30, 1998, from 22.7% for the comparable period
last  year,  due to the amortization of intangible assets,  primarily
goodwill,  resulting  from the acquisitions  of  RFM,  ISC,  AMI  and
SEMCOR.

Income from operations increased 116.5%, to $4.9 million for the nine
months ended June 30, 1998, from $2.3 million for the same period  in
1997,  primarily  due  to  increased  communication  systems  and  IT
Services  revenues from the acquisition of RFM, ISC, AMI and  SEMCOR.
As a percentage of revenues, income form operations increased to 8.4%
for the nine months ended June 30, 1998, from 6.4% for the comparable
period  in  the  prior  year, principally attributable  to  increased
revenues  from  fixed-price  and time-and-materials  contracts  which
typically carry higher margins.

Other income (expense), net, consists of interest expense, offset  in
part  by  interest income from short-term deposits of cash.  Interest
expense  was  $787,000 and $136,000 for the nine month periods  ended
June  30,  1998  and  1997, respectively.  The increase  in  interest
expense  resulted  primarily from the $19.5  and  the  $34.0  million
borrowed to fund the AMI and SEMCOR acquisitions, respectively.   The
$19.5  million borrowed to finance the purchase of AMI was repaid  in
May 1998 with the proceeds of the Company's secondary offering of its
common  stock.  Interest income was $28,000 and $60,000 for the  nine
months ended June 30, 1998 and 1997, respectively.

The  Company's effective tax rate was 36% for the nine  months  ended
June  30, 1998.  The Company's pro forma effective tax rate  was  39%
for  the nine months ended June 30, 1997.  This decrease is primarily
due   to   the  change  in  the  valuation  allowance  on   temporary
differences.

Liquidity and Capital Resources

The  Company used cash from operating activities of $1.7 million  for
the  nine  months ended June 30, 1998, resulting primarily  from  net
income,  for  increases  in  contract receivables  and  decreases  in
accounts  payable, partially offset by increases in accrued  expenses
and  deferred income taxes.  The increase in contract receivables was
due  to  increases  in  revenue recognized  on  contracts  for  which
billings  had not been presented to the customer, particularly  on  a
contract  with the Australian Navy.  For the nine months  ended  June
30,  1997,  the  Company generated cash from operating activities  of
$3.4  million  resulting  primarily from  net  income,  increases  in
accounts  payable  and  accrued  expenses  and  partially  offset  by
increases in contract receivables.

The  principal use of cash for investing activities has been for  the
purchases of computers and equipment and the acquisitions of AMI  and
SEMCOR.   The  purchases  of  computers and  equipment  totaled  $1.3
million  and $441,000 for the nine-month period ended June  30,  1998
and  1997,  respectively.  Further the Company invested  $791,000  in
software development costs for its communications products, including
the latest Microsoft Exchange-based product, INFORMATION 2000 and its
Impact  software product for patient education , in the  nine  months
ended June 30, 1998.  In February 1998, the Company acquired AMI  for
$19.5   million in cash and additional contingent payments  based  on
achievement  of certain financial goals.  In June 1998,  the  Company
acquired  SEMCOR,  Inc.  for  a preliminary  purchase  price  of  $38
million, of which $37 million was in cash and $1 million was in the

<PAGE>
form  of  the  Company's  common stock.  The  Company  may  also  pay
additional amounts contingent on the achievement of certain financial
goals  by SEMCOR.  The Company will also pay the shareholders  up  to
$1.25  million  for  certain  tax  liabilities  of  the  shareholders
incurred pursuant to Section 338(h)(10) of the Internal Revenue Code.

In  February  1998,  the  Company  entered  into  a  line  of  credit
arrangement,  consisting  of  two credit facilities  aggregating  $35
million,  with  a  commercial bank, refinancing the  Company's  then-
existing line of credit and the outstanding commercial bank  debt  of
ISC.  The credit facility was used to finance the acquisition of  AMI
and  to  provide for the working capital needs of the  Company.   The
first  facility,  in  an amount up to $15 million,  may  be  used  to
finance  acquisitions, working capital, and other corporate purposes,
and  bears  interest at either the bank's prime rate or at  a  London
interbank offered rate ("LIBOR") for one, two or three month periods,
plus a percentage, not more than 2.2%, which depends on the Company's
historical performance.  The second facility, in an amount up to  $20
million,  may be used to finance acquisitions, and bears interest  at
either  the  bank's prime rate or at a LIBOR rate plus a  percentage,
not  more  than  2.45%,  which depends on  the  Company's  historical
financial   performance.  The  credit  agreement   contains   various
covenants   requiring  the  Company  and  its  subsidiaries,   on   a
consolidated  basis, to maintain certain financial ratios,  including
debt  to  net income, minimum net income and minimum net worth.   The
credit agreement also prohibits the payment of dividends.

In  May 1998, the Company consummated a secondary public offering  of
its  common  stock, selling 2,000,000 shares for $12.375  per  share.
The   offering   resulted  in  net  proceeds  to  the   Company    of
approximately  $22.8  million after deducting underwriting  discounts
and  offering expenses payable by the Company.  The net  proceeds  of
the  offering were used to reduce the debt referred to above that was
incurred to finance the acquisition of AMI.

In  June  1998, the line of credit arrangement was increased  to  $45
million,  from $35 million, to finance the acquisition of SEMCOR  and
to provide for the working capital needs of the Company.  This credit
arrangement  was  subject  to similar terms  and  conditions  as  the
original arrangement that was entered into in February 1998.   As  of
June  30, 1998, the outstanding balance on the credit facilities  was
$35.5 million.

The  Company  currently anticipates that its current  cash  balances,
amounts  available under its credit facilities and net cash  provided
by  operating  activities  will be sufficient  to  meet  its  working
capital  and capital expenditure requirements for at least  the  next
twelve months.

<PAGE>
PART II - OTHER INFORMATION

                                  
Item 6. Exhibits and Reports on Form 8-K

  (a)  Exhibit 11.1   Statement Regarding Computation of Per Share
                      Earnings

       Exhibit 11.2   Statement Regarding Computation of Pro Forma
                      Per Share Earnings

       Exhibit 27.1   Financial Data Schedule


  (b)  (i)  On May 12, 1998, the Company filed a current report
       on Form 8-K/A, containing the audited financial statements
       and the unaudited pro forma information required by Item 7 of
       Form 8-K with respect to the March 12, 1998, acquisition of
       all the outstanding shares Advanced Management, Incorporated.

<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.




Date:  August 14, 1998   ADVANCED COMMUNICATION SYSTEMS, INC.



                              /S/    George A. Robinson

                                 George A. Robinson
                                 Chairman, President
                              and Chief Executive Officer


                              /S/   Dev Ganesan

                                 Dev Ganesan
                              Executive Vice President, Chief
                              Financial Officer and Treasurer

<PAGE>
<TABLE>
                                  
          EXHIBIT 11.1 - COMPUTATION OF PER SHARE EARNINGS
                Advanced Communication Systems, Inc.
                (in thousands, except per share data)
<CAPTION>
                                    Three Months        Nine Months
                                        Ended              Ended
                                    June 30, 1998      June 30, 1998
<S>                                      <C>                <C>
Basic:
  Total basic average shares
   outstanding                            7,310              6,729


  Net income                             $1,162             $2,659


  Net income per share-basic              $0.16              $0.40


Diluted:
  Total basic average shares
   outstanding                            7,310              6,729
  Plus dilutive stock options               138                126


  Total diluted average shares            7,448              6,855


  Net income per share-diluted            $0.16              $0.39

</TABLE>
<TABLE>
     EXHIBIT 11.2 - COMPUTATION OF PRO FORMA PER SHARE EARNINGS
                Advanced Communication Systems, Inc.
                (in thousands, except per share data)
<CAPTION>
                                    Three Months        Nine Months
                                        Ended              Ended
                                    June 30, 1997      June 30, 1997
<S>                                      <C>                <C>
Basic:
  Basic average shares outstanding        3,812              3,788

  Stock issued to satisfy S corporation
   distribution in excess of preceding
   twelve months earnings based on the
   initial public offering price per
   share                                    549                519


  Total basic average shares
  outstanding                             4,361              4,307


  Pro forma net income                   $  562             $1,335


  Pro forma net income per share-basic   $ 0.13             $ 0.31

Diluted:
  Total basic average shares
   outstanding                            4,361              4,307
  Plus dilutive stock options                81                 71


  Total diluted average shares            4,442              4,378


  Net income per share-diluted            $0.13              $0.31

</TABLE>