FORM  10-QSB

                          SECURITIES AND EXCHANGE COMMISSION

                               WASHINGTON,  D. C. 20549

                    Quarterly Report Under to Section 13 or 15(d)
                        of the Securities Exchange Act of 1934

For Quarter Ended:                                March 31, 1998

Commission File Number:  1-11020

                                     Micel Corp.
       --------------------------------------------------------------------
          (Exact name of Small Business Issuer as specified in its charter)

           NEW YORK                                          11-2882297
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  (State of other jurisdiction of                        (I.R.S. Employer
   incorporation of organization)                       Identification No.)


       445 Central Ave., Cedarhurst New York               11516  
       --------------------------------------------------------------------
      (Address of Principal executive offices)           (Zip Code)

                                    (516) 569-1234
       --------------------------------------------------------------------
                 (Registrant's telephone number, including area code)

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


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 such shorter period that the registrant 
was required to file such reports) and (2) has been subject to such filing 
requirements for 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.

                Common Stock,  Par Value  $.01               6,000,380
                ------------------------------------------------------
                (Title of each Class)   (Outstanding at March 31, 1998)
                                        

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                                                                               2


                    MICEL CORP. AND SUBSIDIARIES CONSOLIDATED REPORT
                                           
                                  TABLE OF CONTENTS
                                           

PART I - FINANCIAL INFORMATION                                 	
		PAGE


Item 1.   Consolidated Financial Statements:Condensed 
          onsolidated Balance Sheets as of	March 31,
          1998 (Unaudited) and September 30, 1997.             	    3

         	Condensed Consolidated Statements of Income (loss)
         	for the six and three months ended March 31, 1998 
         	and 1997 (Unaudited).                                 	 		4

         	Condensed Consolidated Statements of Cash Flows
         	for the six months ended March 31, 1998 and 
          1997 (Unaudited).                                         5

          Condensed Consolidated Statements of Changes in
          Shareholders' Equity.                                   		6

         	Notes to Condensed Consolidated Financial Statements   	  7-8

Item 2.  Management's Discussion and Analysis of Financial
       	 Conditions and Results of Operations                  		   9-12


PART II - OTHER  INFORMATION                                    	   13

Exhibit  27 	                                                  			  14

Signatures          	                                          			  15



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                                                                               3


                   MICEL CORP. AND SUBSIDIARIES
                                           
                  PART I  - FINANCIAL INFORMATION
                                           
                   MICEL CORP. AND SUBSIDIARIES
              ---------------------------------------

                        CONDENSED CONSOLIDATED BALANCE SHEETS

                      		MARCH 31		               SEPTEMBER 30
                        1998                     1997
            	           (UNAUDITED)              (AUDITED)
       	                	-------------------     ------------------
          ASSETS
         ----------

CURRENT ASSETS
Cash and cash equivalents		$ 690,816       	    $ 491,000
Accounts receivable        778,380  	           521,332 
Inventories         	      802,097	  	          894,992
                           ---------         		-----------
   Total current assets   	2,271,293       	   	1,907,324
                           ----------         	---------
Investment in 
Affiliated Company      		21,686			            19,745
Note Receivable From
affiliated Company			     135,000	            	100,000
Deposits With Insurance 
Companies and 
Pension Funds          			249,657  	          	196,988
PLANT AND 
EQUIPMENT (net)        	 	350,037            		210,398
                          ----------    	     	---------

   Total assets        			3,027,673	          	2,434,455
                          =========   	        =========

LIABILITIES AND SHAREHOLDERS EQUITY
------------------------------------

CURRENT LIABILITIES:
Accounts payable and 
accrued liabilities 			   1,043,665	           933,188
Bank Overdraft Facilities	13,172             		7,621
Current maturities of long 
term debt  	      			     16,789            			18,416
Advances from customers   128,821		            323,838
         					            ----------	         	-----------
Total current liabilities 1,202,447	          	1,283,063
                       			-------           	 	-------

ACCRUED SEVERANCE PAY	    311,379	             251,062

LONG TERM DEBT:
net of current maturities	15,376		            	23,312

Minority Interest			      53,983 		            0   
                  	    			-------  			         -------
  Total liabilities      	1,583,185          		1,557,437
                          --------           		----------

SHAREHOLDERS' EQUITY:
Common Stock            		 60,004		            57,504
Additional paid-in capital 7,742,435		         7,031,626
Capital Reserve		         	372,584	
Accumulated deficit       (6,249,552)		       (5,848,812)
Deferred Compensation		   (480,983)	         	(363,300)
                     	   	----------- 	       	-----------
   Total shareholders' 
               equity 	   1,444,488           	877,018
                          ----------         		--------
   Total liabilities and 
   shareholders' equity	 	3,027,673          		2,434,455
                         	=========            =========

<PAGE>

                                                                              4


                    MICEL CORP. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF 
                           INCOME (LOSS)

                   			6 Months Ended March 31   3 Months Ended March 31
	            		------------------------------- --------------------------

                   			1998	      	  1997	         1998		        1997
                    (Unaudited)    (Unaudited) (Unaudited)   (Unaudited)
                 			-----------   	-----------  ----------   -----------
Sales             			1,526,281	    2,651,030    779,392	     	835,848
Cost Of  Sales			    873,469	      2,009,976    450,308      	521,538
                 		---------   	 ---------      ---------     ---------
Gross Profit   			   652,812      	641,054       329,084	    	314,310
               				----------    ----------     ---------     ---------
Research and Development
Expenses, net	 	    	562,079	      248,153       353,645	    	106,634

Selling	Expenses
(net)		              120,921	      63,081        65,684	      29,049

General and Administrative
Expenses           		534,041	      240,222       310,888	    	136,161
                   		-------      	-------      ---------  	 ---------
    Total operating 
    expenses         1,217,041	    551,456      730,217	     	271,844
                 				----------    ---------    ---------    ---------
    Income (loss) From 
    Operations    			(564,229)	    89,598	      (401,133)    42,466

Interest and Other 
Income	              18,783		      9,791	        5,805       	8,103 

Interest and Other 
Expense   	         (45,817)	     (41,545)      (35,985)	    (6,404)

Income (Loss) of 
Subsidiaries	  	 	   1,941       	(3,704)        16,391	      982

Minority Interest in Losses 
of Subsidiaries  		  188,582   	               	160,246 	
                    	-------   	  ---------	    ---------    ---------
Net Income (Loss) 		 (400,740)    54,140       	(254,676)   	45,147
       	              ======     	======	         ======    	======
Loss per share			    ($0.07)			                 	($0.05)
                   			------- 	  ---------	      --------	   ---------
Shares used in computing
loss per share		     	5,875,380			               5,812,880
                     	----------  ---------	     ---------   ---------



<PAGE>

                                                                              5


                             MICEL CORP. AND SUBSIDIARIES
                        CONDENSED CONSOLIDATED STATEMENTS OF 
                                     CASH FLOWS
  
                                     	  	6 MONTHS  ENDED  MARCH 31             
                                       -----------------------------
                 		                          1998            	1997
                         			                 (Unaudited)   	(Unaudited)

Cash Flows From Operating Activities:
Net income                               			 (400,740)	      54,140	
Adjustments to reconcile net income (loss)			
to net cash used in operating activities:	
Depreciation & amortization                  	51,016        	45,021
Amortization of deferred compensation	        95,626		
Gain on sale of equipment			                  (10,593)
Minority interest in losses of subsidiaries	  (188,582)	
Loss (gain) in affiliated company             (1,941)	       3,704
 Changes in operating assets and liabilities:
   Accounts receivable                       	(257,048)      455,690
   Inventories                               	92,895	        (118,898)
  Accounts payable and accrued liabilities    110,477	       (232,692)  
  Advances from customers                    	(195,017)	     26,726   
	     
  Accrued severance pay                 	    	 7,648		       6,980            
	                                             	---------    	-------- 
Net cash provided by
operating activities	                        		(696,259)   	240,671
                                              	---------   	---------
CASH FLOWS From Investing Activities:                 
  Purchase of equipment                       	(190,655)   	(95,294)   
  Proceeds from sale of equipment		            10,593		
  Investment in affiliated company             (35,000)    	(100,000)
                                               --------    	---------
 Net cash used in investing activities		       (215,062)   	(195,294)          

CASH FLOWS From Financing Activities:

Repayment of long term debt                    	(9,563)		   (86,516)
Net Changes in short-term bank
overdraft facilities	                         		5,551	     	(263,544)  
Issuance of common stock      	    	            500,000     400,000
Issuance of Subsidiary Shares
to Minority					                                615,149	
                                               	---------  	--------
  Net cash provided (used in) by financing 
  activities  				                             	1,111,137	  49,940

  Increase (decrease) In Cash and Cash 
  Equivalents                                  	199,816	    95,317

CASH AND CASH EQUIVALENTS, 
Beginning of Period                             491,000    	81,089
                                                --------   	---------
CASH AND CASH EQUIVALENTS, end 
of period                                     		690,816     176,406
                                               	=======     =======
Supplemental Cash Flow Information:
Interest Paid:                                		31,119		    22,791
<PAGE>
                                                                            6


  MICEL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN 
       SHAREHOLDERS' EQUITY FOR THE SIX MONTHS ENDED MARCH 31, 1998

           			Common          	Additional Paid  Accumulated Deferred	  	Total 
           			Stock No. Value  in Capital and   Deficit 	   Compensation  
		          		of Shares		      capital reserve
           		---------- -----  ---------------  ------------ ----------- ----- 
Balance, 
September
30, 1997  		 5,750,380 	57,504	7,031,626	      (5,848,812)   (363,300)		877,018

Issuance of Common Stock
(Net of issuance expenses)
in a private 
placement		  250,000	   2,500  497,500	           -		              -		 	500,000

Capital Reserves resulting form
Issuance of subsidiary shares to a 
third party			-	          	-	  372,584            -		              - 			372,584

Deferred Compensation			       213,309			                     (213,309)

Amortization of Deferred 
Compensation	                                      								    95,626	   95,626

Net Income  	                     	    	      (400,470)	           -		 (400,470)
	
         		------- -----  	--------------     ------------   ------------------ 
Balance, March  
31, 1998 6,000,380 60,004  8,115,019	         (6,249,282)   (480,983)		1,444,758





                   MICEL CORP. AND SUBSIDIARIES 
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL
                      STATEMENTS (UNAUDITED)

1.   CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
     The condensed consolidated balance sheet at March 31, 1998, the
     consolidated statements of Income (loss) for the six and three months    
     ended March 31, 1998 and 1997, and the consolidated statements of 
     cash flows for the six months ended March 31, 1998 and 1997, have 
     been prepared by the Company, and are unaudited.

     Reference should be made to the notes to the Company's September 
     30,1997 consolidated financial statements for additional details of the
     company's consolidated financial condition, results of operations and
     cash flows. The details in those notes have not changed except as a
     result of normal transactions in the interim. All adjustments (of
     normal recurring nature) which are, in the opinion of management,
     necessary to a fair presentation of the results of the interim period
     have been included.

2.   Common Stock
     During the first and second quarter of 1998, the company raised
     $500,000 in a private placement of Common Stock at $2.00 per 
     share.  

3.   Micel's Subsidiaries:

a.   Microkim
     Founded in 1972, by M/A Comm, Microkim is dedicated to   
     providing advanced products for a broad range of military and 
     commercial applications. The company is a leading supplier of 
     portable field testers and simulators, RF and microwave systems,   
     sub-systems and components for application in Communication, 
     Electronic warfare, Radar, Test Equipment, Simulators/Testers.


b.   RadioTel
     RadioTel  Ltd., located in Israel, was established to develop managed
     wireless SDH transmission network.
     Through the use of novel techniques and state of the art technologies 
     the Company's mission is to extend wideband wireline/fiber services 
     into the wireless domain. These wireless networks are used to extend 
     the existing and future infrastructure while at the same time 
     supplying full transparency of all protocols (i.e. ATM, IP, SDH) with 
     the same reliability and uninterrupted service of wireline services. 

     On March 31, 1998, RadioTel supplied an ISDN (Integrated Service Digital 
     Network) Multi-Link, for technology evaluation, to MadenTech Consulting
     Engineering Inc.

     The financial statements of RadioTel are consolidated into the 
     Company's financial statements.

<PAGE>
                                                                              8
     Since September 30 ,1997, Clal Venture Capital Fund Limited 
     Partnership invested $619,580 of its total investment commitments
     which amounts to $1,000,000. 
     As a result of these investments Micel's share in RadioTel was diluted
     to 76.46% and a capital reserve of $372,584 was created as a result. 

     On April 1, 1998, the company signed a share purchase agreement 
     with H.B. Radio Investment Limited Partnership (HB), under 
     which HB would invest over time $750,000 into RadioTel and would 
     receive 11.11% of RadioTel issued share capital, on a fully diluted basis.
     HB has an option to invest additional $250,000 for which it would receive 
     3.57% of RadioTel issued share capital, on a fully diluted basis.
     The option expires on May 31, 1998. In the event HB exercises its option
     HB will hold 14.28% of RadioTel issued share capital, on a fully diluted 
     basis.



c.   MICEL Wireless Corp.

     MICEL Wireless Corp., a Florida corporation and 
     a joint venture  between the Company and Export Business & Services, 
     Inc.("EBS"), is an international telecommunications company engaged 
     in the sourcing, marketing and sales of wireless telephone terminals and
     other related products. MICEL Wireless currently represents certain
     manufacturing companies and telecom agencies as a purchasing 
     agent and sales representative.

     MICEL Wireless Corp. designs, manufactures, and sells fixed 
     cellular terminals for WLL applications in developing countries. The 
     Company capitalizes on the technical capabilities of  RadioTel, the 
     existing knowledge of the cellular and wireless local loop markets and a
     network of distribution channels. Micel Wireless' initial focus has
     been in Latin America, where Micel Wireless expects to take 
     immediate advantage of existing WLL opportunities. 

     The Company owns 50% of MICEL Wireless. Refer to the 
     Company's Form 10-KSB for the period ended September 30, 1997 for 
     additional details.
     The Company is committed to provide to Micel Wireless a working 
     capital loan in the amount of $150,000. As of March 31, 1998 the 
     outstanding loan to Micel Wireless is $135,000. The working capital loan 
     shall bear interest at 12% per annum, payable annually.  The loan will 
     become due after 12 months from the date of the loan or when otherwise 
     mutually agreed upon by the Company and EBS. At a time and terms to be 
     mutually agreed upon among the Company, EBS and MICEL Wireless, the 
     working capital loan may be converted into nonvoting preferred stock of 
     MICEL Wireless. 

     Micel Wireless commenced activities in the first quarter of Fiscal 
     1997. The Company applies the equity method of accounting for its 
     investments in Micel Wireless.

4.   Legal Proceedings
     
     In July 1994, the Company  commenced a civil action in Israel in the
     approximate amount of $3,000,000 against M/A Com and Hillel 
     Weinstein for false representations made by M/A Com and Dr. Weinstein in
     connection with the purchase of Microkim Ltd. from M/A Com and for
     subsequent damages resulting from such misrepresentations.  Dr.
     Weinstein is no longer a defendant or counter claimant in this action
     as a result of an agreement reached on May 27, 1996. 
     On March 30, 1997, the judge granted M/A Com's motion for the 
     cancellation of the company's request for "out of boundaries" 
     jurisdiction. 
     On July 23, 1997, the company resubmitted the request and it was 
     granted.
     In November 1997, the complaint and accompanying papers were 
     again served on M/A Com.
     During the second quarter of 1998, M/A Com filed a motion to 
     cancel the "out of boundaries" Jurisdiction service and requested to 
     take the deposition of a former officer of the company. The motion 
     has been fixed for hearing on July 5, 1998.



<PAGE>


ITEM 2





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

General

Impact of inflation, devaluation and fluctuation of currencies on the 
results operations.
     
The Company's operations are conducted through its Israeli subsidiaries,
Microkim and RadioTel. A substantial portion of sales and purchases of 
materials are in, or linked to the United States dollar. Most of other expenses
are linked to the Israeli Shekel. Transactions and balances originally 
denominated in dollars are presented at their original amounts.

Transactions and balances in currencies other than the dollar are translated
into dollars in accordance with the principles set forth in statement No. 
52 of the Financial Accounting Standards Board. All transactions gains and 
losses from remeasurement of monetary balance sheet items denominated in
non-dollar currencies are reflected in the statements of operations as 
financial income or expenses, as appropriate.


<PAGE>

                                                                            10




FINANCIAL CONDITION:

In the six months of Fiscal 1998 the company raised $500,000 through the
issuance of 250,000 shares of common stock in a private placement at $2.00 per
share.

The company's operations in the first six months of  the fiscal year 
ending on September 30, 1998 ('Fiscal 1998') have been financed principally
from revenues from sales, research and development grants, by a private
placement of shares of common stock and by a private placement in RadioTel.

The total amount of outstanding loans, credit facilities and guarantees 
from banks is approximately $388,000 and is secured by liens on certain of 
Microkim's property and equipment, share capital and insurance rights, 
and by a secured interest in all of Microkim's assets. This amount includes 
approximately $32,165 of long term borrowings from Israel Industrial 
Development Bank Ltd., to be repaid between 1997 and 2000. This also includes 
approximately $343,000 of performance guarantees pursuant to contracts with 
customers. 

In the six months ended March 31, 1998 net cash equivalents increased by
$199,816 as a result of $1,115,149 proceeds from issuance of common 
stock (including issuance of common stock of consolidated company to 
a third party), $5551 from bank overdraft facilities and proceeds from sale of 
equipment of $10,593, offset by the repayment of long term liabilities of 
$9563, purchases of fixed assets of $190,655, a loan to an affiliated 
company of $35,000 and in operating activities $696,259.

The company is committed to fund RadioTel in the amount of $735,000
through October 30, 1998. In the event that additional funding is not 
provided to RadioTel, Micel's ownership in RadioTel may be diluted.          

                                                                           11
RESULTS OF OPERATIONS

Six months ended March 31, 1998 compared to the Six months ended 
March 31, 1997.

Sales in the six months ended March 31, 1998 were $1,526,281 as 
compared with $2,651,030 in the six months ended March 31, 1997. The decrease 
in sales compared to the 1997 period resulted from the completion of a 
certain project in the first quarter of fiscal 1997 representing sales of  
$1,189,000. Cost of sales in the six months ended March 31, 1998 was 
57.23% of sales or $873,469 as compared with 75.8% or $2,009,976 in 
the same period in 1997.

Research and development expenses (net) increased to $562,079 or 37% 
of sales in the six months ended March 31, 1998 from $248,153 or 9% of sales 
in the same period in 1997. The increase was caused by new research and 
development activities performed by RadioTel.

Selling expenses in the six months ended March 31, 1998 were $120,921 or
7.91% of sales compared to $63,081 or 2.37% of sales in the same period in 
1997. The increase was mainly due to the increase in operations of RadioTel.

General and administrative expenses increased to $534,041 or 35% of 
sales in the six months ended March 31, 1998 from $240,222 or 9.0% of sales 
in the same period in 1997. The increase was mainly due to the increase in 
operations of RadioTel.

Financial expenses in the six months ended March 31, 1998 were $45,817 or
3% of sales compared with $41,545 or 1.57% of sales in the same period in
1997.

Minority share in RadioTel losses amounted to $188,582 (see also note 3b above).

Company's share in profit of its 50% held affiliate, Micel Wireless, for 
the first six months of fiscal year 1998, were $1,941 compared with a 
loss of $3,704 in the first half of 1997.

In the six months ended March 31, 1998, the company reported a loss of
$400,470. In the same period in 1997, the Company had profit of 
$54,140. The loss is attributable mainly to the operations of RadioTel. 

The inventories at March 31, 1998, consisted of $448,086 raw materials 
and $354,011 work in process as compared to $450,518 raw materials and 
$444,474 work in process at September 30, 1997.

The company is committed to pay royalties to the office of the Chief 
Scientist of the State of Israel ("OCS") in respect to products under 
development for which the OCS participated by way of grant. The royalty is
computed at the rate of 2%-3% of proceeds from sales of such products up to the 
amount of such grant.

Royalties were paid during the first six months of fiscal 1998, in the 
amount of $15,709.

<PAGE>
                                                                           12

                             MICEL CORP. AND SUBSIDIARIES

                             PART II - OTHER INFORMATION

Item 1.   Legal Proceeding
          Reference is made to Form 10-KSB for the year ended
          September 30, 1997.

Item 2.   Changes in Securities
          None.

Item 3.   Default on Senior Securities
          None.

Item 4.   Submission of Matters to a Vote of Security Holders
          None.

Item 5.   Other Information
          None.

Item 6.   Exhibits and Reports on Form 8-K
          Exhibit 27

<PAGE>
                                                                             14

MICEL CORP. AND SUBSIDIARIES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has caused this report to be signed on behalf by the undersigned
hereunto duly authorized.


                                   MICEL CORP.

                                   Registrant



Date: May 14th, 1998          By:  /s/ Ron Levy
                                      -------------------------------
                                        President and
                                        Chief Executive and Financial Officer