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:                                June 30, 1998

Commission File Number:  1-11020

                                     Micel Corp.
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          (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  
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      (Address of Principal executive offices)           (Zip Code)

                                    (516) 569-1234
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                 (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 June 30, 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 
          	Consolidated Balance Sheets as of June 30,
          	1998 (Unaudited) and September 30, 1997.             	    		3

         	Condensed Consolidated Statements of Income (loss)
          for the nine and three months ended June 30, 1998 
         	and 1997 (Unaudited).                                 	 			  4

         	Condensed Consolidated Statements of Cash Flows
         	for the nine months ended June 30, 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

Signatures                                                           13

Exhibit  27 	                                                  			  	14

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                                                                               3
MICEL CORP. AND SUBSIDIARIES
PART I  - FINANCIAL INFORMATION                                           
MICEL CORP. AND SUBSIDIARIES
---------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS

                                 					June 30 	        September 30
                                     	1998           		1997
            	                         (UNAUDITED)     	(AUDITED)
             	             	     	   ---------------- 	-----------------
          ASSETS
         ----------
CURRENT ASSETS
Cash and cash equivalents		           $ 814,828         $ 491,000
Accounts receivable                  	852,290  	      	 521,332 
Inventories         	              	  846,943		         894,992
                                      ---------      		 ----------
         Total current assets         2,514,061    	   	1,907,324
                                  	  	----------    	  	---------
Investment in 
Affiliated Company                  		150,980         		119,745

Deposits With Insurance 
Companies and 
Pension Funds                      			366,890	         	196,988
PLANT AND 
EQUIPMENT (net)                    	 	575,650      		   210,398
                                  			 --------        	 --------
Total assets        			               3,607,581	       	2,434,455
                                      =========   		    =========

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

CURRENT LIABILITIES:
Accounts payable and 
accrued liabilities 		               	1,093,376	       	933,188
Bank Overdraft Facilities	     	      94,394     		     7,621
Current maturities of long 
term debt  	      			                 16,006			         18,416
Advances from customers             		110,411		         323,838
         					                        -------           --------
Total current liabilities             1,314,187       		1,283,063
                                  		 	--------      	 	 --------

ACCRUED SEVERANCE PAY	                429,431		         251,062

LONG TERM DEBT:
net of current maturities		           11,478			         23,312

Minority Interest			                  326,828			        0
                              	    			-------  	      		-------
           Total liabilities          2,081,924      		 1,557,437
                                   	 	--------     		   ----------

SHAREHOLDERS' EQUITY:
Common Stock             		           60,004			         57,504
Additional paid-in capital	        	  7,766,371       		7,031,626
Capital Reserve			                    710,907
Accumulated deficit       		          (6,550,177)		    (5,848,812)
Deferred Compensation		               (461,448)		      (363,300)
                     	      		        ----------- 	   	-----------
       Total shareholders' equity    	1,525,657        	877,018
                                   			----------       	--------
       Total liabilities and 
       shareholders' equity		         3,607,581      	 	2,434,455
                                      =========        	=========

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                                                                              4

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

                    				9 Months Ended June 30   3 Months Ended June 30
	            		         ----------------------   ----------------------
                    			 1998	      	 1997	       1998        		1997
                        (Unaudited)  (Unaudited) (Unaudited)   (Unaudited)
                     			-----------  ----------- -----------   -----------
Sales             			   2,070,208	   3,223,000    543,927	      571,970
Cost Of  Sales		       	1,348,339	   2,372,093    474,870       362,117
                      		---------  	 ---------    -------       --------
Gross Profit         			721,869	     850,907      69,057 	      209,853
                    				---------    ---------    --------      --------
Research and Development
Expenses, net	 		       863,712	     376,997      301,633       128,844

Selling	Expenses (net)		163,514	     94,495       42,593 	      31,414

General and Administrative
Expenses              		710,880	     347,761      176,839	      107,539
                      		-------     	-------      -------       -------
 Total operating 
 expenses               1,738,106	   819,253      521,065	      267,797
                    				---------   	-------      --------      --------
    Income (loss) From 
    Operations  			     (1,016,237)	 31,654       (452,008)     (57,944)

Interest and Other 
Income	                 19,590		     32,663	       807          22,872 

Interest and Other 
Expense   	             (50,136)	    (39,039)      (4,319)	     2,506

Income (Loss) of 
Subsidiaries	  	 	      (3,765)		    23,364        (5,706)      27,068

Minority Interest in Losses 
of Subsidiaries  		     349,183                    160,601
                      		-------- 	  ---------      --------    ---------
Net Income (Loss)     		(701,365)	  48,642         (300,625)    5,498
                       	======      ======         ======       ======
Loss per share			       ($0.12)		   $0.01	         ($0.05)    	    -
                      		-------     ---------	     ---------    ---------
Shares used in computing
loss per share		       	5,945,801	  5,526,087	     6,000,380    5,585,133
                       	---------	  ---------	     ---------    ---------


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                                                                              5


                             MICEL CORP. AND SUBSIDIARIES
                        CONDENSED CONSOLIDATED STATEMENTS OF 
                                     CASH FLOWS
  
                                            	  	9 MONTHS  ENDED  JUNE 30
                                             -------------------------------
              		                              1998          	1997
                      			                     (Unaudited)   	(Unaudited)

Cash Flows From Operating Activities:
Net income (loss)                           		(701,365)	      48,642
Adjustments to reconcile net income (loss)			
to net cash used in operating activities:	
Depreciation & amortization                  	73,230         	65,644
Amortization of deferred compensation	        139,097		
Gain on sale of equipment			                  (10,593)
Minority interest in losses of subsidiaries	  (349,183)	
Loss (gain) in affiliated company             3,765		         (23,364)
 Changes in operating assets and liabilities:
   Accounts receivable                       	(330,958)	      674,617
   Inventories                               	48,049	         (212,624)
  Accounts payable and accrued liabilities    160,188	        (400,301)  
  Advances from customers                    	(213,427)	      43,976   	     
  Accrued severance pay                 		    8,467		         8,626
                                              ---------      	-------- 
Net cash provided by (used in) 
operating activities			                       (1,172,730)    	205,216
                                              ---------      	---------
CASH FLOWS From Investing Activities:                 
  Purchase of equipment                       (438,482)      	(79,730)   
  Proceeds from sale of equipment		10,593		
  Investment in affiliated company            (35,000)        (100,000)
                                              ---------       	---------
 Net cash used in investing activities		      (462,889)	      (179,730)         

CASH FLOWS From Financing Activities:

Repayment of long term debt                   (14,244)        (105,208)
Net Changes in short-term bank
overdraft facilities	                       		86,773	         (202,776)  
Issuance of common stock      	    	          500,000	        420,000
Issuance of subsidiary shares to minority	    1,211,918	       -
Receipt on account of shares of minority     	175,000      	   -
                                             	---------       	--------
  Net cash provided (used in) by financing 
  activities  			                           		1,959,447       	112,016

  Increase In Cash and Cash 
  Equivalents                                 323,828	         137,502

CASH AND CASH EQUIVALENTS, 
Beginning of Period                           491,000        	 81,089
                                              --------        	---------
CASH AND CASH EQUIVALENTS, end 
of period                                   		814,828         	 218,591
                                             	=======           =======
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                                                                            6



  MICEL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF 
CHANGES IN SHAREHOLDERS' EQUITY FOR THE NINE MONTHS ENDED JUNE 30, 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			-		       -	     710,907	         -       	    -			      710,907

Deferred Compensation     	    237,245			                   (237,245)

Amortization of Deferred 
Compensation                                   										    139,097		 139,097

 	            	                     	    	     (701,365)	    -			      (701,365)
           		------- 	----- 	-------------     ----------     -------  ---------
Balance, June  
30, 1998   	6,000,380 60,004  8,477,278   	    (6,550,177)  (461,448) 	1,525,657


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

1.   CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
     The condensed consolidated balance sheet at June 30, 1998, the
     consolidated statements of Income (loss) for the nine and three months    
     ended June 30, 1998 and 1997, and the consolidated statements of 
     cash flows for the nine months ended June 30, 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 audited 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 (Clal), 
H.B. Radio Investment Limited Partnership (HB), and ComSor Investment Fund 
LDS (ComSor) agreed to purchase 95,000,  95,000 and 125,000 shares 
respectively, at a purchase price of $10 per share- total investment 
of $ 3,150,000. To date $ 2,275,000 were received. 
In the event that all the shares are purchased and paid for, Clal, HB and 
ComSor will own 11.69%, 11.69% and, 15.38% respectively, and the company will 
own 41.23%, of RadioTel Ltd.

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).

     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.

<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 nine 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 nine 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 $206,000 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 $27,484 of long term borrowings from Israel Industrial 
Development Bank Ltd., to be repaid between 1998 and 2000. This also includes 
approximately $84,000 of performance guarantees pursuant to contracts with 
customers. 

In the nine months ended June 30, 1998 net cash equivalents increased by
$323,828 as a result of $1,886,918 proceeds from issuance of common 
stock (including issuance of common stock of consolidated company to 
third parties, and receipt on account of shares of minority), $86,773 from bank 
overdraft facilities and proceeds from sale of 
equipment of $10,593, offset by the repayment of long term liabilities of 
$14,244, purchases of fixed assets of $438,482, a loan to an affiliated 
company of $35,000 and used in operating activities of $1,172,730.

The company is committed to fund RadioTel in the amount of $708,575
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

Nine months ended June 30, 1998 compared to the Nine months ended 
March 31, 1997.

Sales in the nine months ended June 30, 1998 were $2,070,208 as 
compared with $3,223,000 in the nine 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 nine months ended June 30, 1998 was 
65.13% of sales or $1,348,339 as compared with 73.6% or $2,372,093 in 
the same period in 1997.

Research and development expenses (net) increased to $863,712 or 42% 
of sales in the nine months ended June 30, 1998 from $376,997 or 12% 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 nine months ended June 30, 1998 were $163,514 or
7.90% of sales compared to $94,495 or 2.90% 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 $710,880 or 34% of 
sales in the nine months ended June 30, 1998 from $347,761 or 11.0% of sales 
in the same period in 1997. The increase was mainly due to the increase in 
operations of RadioTel.

Financial expenses in the nine months ended June 30, 1998 were $50,136 or
2.4% of sales compared with $39,039 or 1.2% of sales in the same period in
1997.

Minority share in RadioTel losses amounted to $349,183 (see also note 3b above).

Company's share in the loss of its 50% held affiliate, Micel Wireless, for 
the nine months of fiscal year 1998, were $3,765 compared with a 
profit of $23,364 in the nine months of 1997.

In the nine months ended June 30, 1998, the company reported a loss of
$701,365. In the same period in 1997, the Company had profit of 
$48,642. The loss is attributable mainly to the operations of RadioTel. 

The inventories at June 30, 1998, consisted of $469,306 raw materials 
and $377,637 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 nine months of fiscal 1998, in the 
amount of $15,709.

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                                                                           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, and to Form 10-QSB for the period ended 
          March 31, 1998.

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

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                                                                             13

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: August 12th, 1998          By:  /s/ Ron Levy
                                      -------------------------------
                                        President and
                                        Chief Executive and Financial Officer