SECURITIES AND EXCHANGE COMMISSION
									 WASHINGTON, D.C.  20549
									 -----------------------
											 FORM 10-QSB

(Mark One)

	 (X)  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
				SECURITIES EXCHANGE ACT OF 1934                                     

					 For the quarterly period ended June 30, 1997.
															  -------------

	 (  )        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 1-11236
													--------

								XEROGRAPHIC LASER IMAGES CORPORATION
					 ------------------------------------------------------
					 (Exact name of registrant as specified in its charter)

				  Delaware                               51-0319174
	 ---------------------------         ------------------------------------
	 (State or other jurisdiction        (I.R.S. Employer Identification No.)
		  of incorporation or
				organization)

		 101 Billerica Avenue, 5 Billerica Park, North Billerica, MA    01862
		 ----------------------------------------------------------------------
					  (Address of principal executive offices)           (Zip Code)

											 (508) 670-5999
					----------------------------------------------------
					(Registrant's telephone number, including area code)




		  Transitional Small Business Disclosure Format:
					 Yes       No   X
						 -----     -----


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 requirement for the past 90 days.
				YES  X               NO 
					-----                -----












	Indicate the number of shares outstanding of each of the issuer's
classes of Stock, as of the latest practicable date.


			  Class                              Outstanding at July 24, 1997
----------------------------                  ----------------------------
Common Stock, $.01 par value
		  per share                                       2,039,310

Series A Convertible Preferred
	Stock, $.01 par value
		  per share                                         315,238




		  Common stock including equivalents, options and warrants exercisable
at current market price or lower equal 3,383,770 shares.







							 XEROGRAPHIC LASER IMAGES CORPORATION

												  INDEX

																							  PAGES

PART I      FINANCIAL INFORMATION

	Item 1      Financial Statements

			Balance Sheets as of June 30, 1997           
								 (unaudited) and December 31, 1996                4

			Statements of Operations for the six and three
			 month periods ended June 30, 1997 and
								 1996 (unaudited)                                 5

								Statements of Cash Flows for the six month
								  periods ended June 30, 1997 and 1996
								  (unaudited)                                     6

			Notes to Financial Statements
								  (unaudited)                                     7-8

	Item 2      Management's Discussion and Analysis of
			  Financial Condition and Results of
								  Operations                                      9-10

PART II     OTHER INFORMATION

	Item 1      Legal Proceedings
	Item 2      Changes in Securities
	Item 3      Defaults Upon Senior Securities
		  Item 4          Submission of Matters to a Vote of Security-     
								Holders
		  Item 5          Other Information
		  Item 6          Exhibits and Reports on Form 8-K                  11

Signatures                                                                12









<TABLE>
								 Xerographic Laser Images Corporation
												Balance Sheets                   

<CAPTION>
															 June 30,         December 31,
																1997               1996
															-----------       -----------
															(unaudited)                           

<S>                                           <C>               <C>

ASSETS
------
Current assets:            
		  Cash                                    $145,652          $219,723 
		  Accounts receivable, less allowance            
			 for doubtful accounts of $2,000 in          
			 1997 and $5,000 in 1996                 24,937            20,314 
															  ----------        ----------
		  Total current assets                     170,589           240,037 
															  ----------        ----------
Property and equipment, net                       25,835            35,191 
Other assets                                       7,274             4,432 
															  ----------        ----------
		  Total assets                            $203,698          $279,660 
															  ==========        ==========

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)           
----------------------------------------------

Current liabilities:
		  Accounts payable                        $318,416          $352,346 
		  Deferred revenue                          34,333           101,000 
		  Accrued expenses                         269,947           179,943 
		  Accrued severance costs                   28,022            68,704 
		  Current portion of capital leases         11,731            11,731 
															  ----------        ----------
		  Total current liabilities                662,449           713,724 
															  ----------        ----------
Capital lease obligations                          9,421            16,908 
Subordinated notes payable                       283,688           283,688 
															  ----------        ----------
		  Total liabilities                        955,558         1,014,320 
															  ----------        ----------
Stockholder's equity (deficit)            
		  Series A Preferred stock, $.01 par value;              
			 authorized 1,000,000 shares; 315,238                
			 issued and outstanding at June 30, 1997            
			 and December 31, 1996.                   3,152             3,152 
		  Common stock, $.01 par value; 30,000,000               
			 shares authorized:  2,039,310 issued and            
			 outstanding at June 30, 1997 and           
			 1,778,646 outstanding at
			 December 31, 1996.                      20,393            17,786
		  Additional paid-in capital             8,463,323         8,434,353 
		  Accumulated deficit                   (9,238,728)       (9,189,951)
															 -----------       ------------
		  Total stockholders' equity (deficit)    (751,860)         (734,660)
															 -----------       ------------
Total liabilities and stockholders' equity      $203,698          $279,660 
															 ===========       ============
				
The accompanying notes are an integral part of the financial statements.            

</TABLE>









<TABLE>
											Xerographic Laser Images Corporation
												  Statements of Operations                                                                     

<CAPTION>
														 Three Months Ended                            Six Months Ended                 
												-----------------------------------        -----------------------------------
												June 30, 1997         June 30, 1996        June 30, 1997         June 30, 1996
												-------------         -------------        -------------         -------------
												 (unaudited)           (unaudited)          (unaudited)           (unaudited)

<S>                                      <C>                   <C>                   <C>                   <C>
Product revenues                $           48,649       $        49,130       $        68,703        $      108,841  
Contract and license revenues              449,051                     -               690,718                25,000  
													-------------         -------------        -------------         -------------
	 Total revenues                         497,700                49,130               759,421               133,841 
													-------------         -------------        -------------         -------------           
Cost and expenses:                              
	 Cost of product revenues                11,957                34,315                22,752                72,076  
	 Cost of contract and license revenues  161,023                     -               201,955                     -  
	 Research and development               155,555                87,283               268,046               157,766  
	 Sales and marketing                     14,036                 7,073                21,366                19,863  
	 General and administrative             151,175               167,103               296,443               268,519  
													-------------         -------------        -------------         -------------
	 Total cost and expenses                493,746               295,774               810,562               518,224
													-------------         -------------        -------------         -------------

Profit or (loss) from operations             3,954              (246,644)              (51,141)             (384,383)
													-------------         -------------        -------------         -------------

Other income                                 1,050                     -                 5,789                     -  
Net interest expense                        (1,700)               (5,361)               (3,425)              (11,189)  
													-------------         -------------        -------------         -------------        

Net profit or (loss)            $            3,304       $      (252,005)      $       (48,777)       $     (395,572)
													=============         =============        =============         =============        

Net loss per common share       $            0.00        $         (0.18)      $         (0.03)       $        (0.29)
										
Weighted average common and common                             
	 equivalent shares outstanding        1,908,978             1,396,146             1,843,812             1,367,396  
										
											
											
The accompanying notes are an integral part of the financial statements.         
																			
</TABLE>                                                                       
			









<TABLE>
										 Xerographic Laser Images Corporation
												 Statements of Cash Flows                                 

<CAPTION>
																			Six Months Ended       Six Months Ended
																			 June 30, 1997          June 30, 1996
																			  (unaudited)            (unaudited)
<S>                                                            <C>                  <C>
Cash flows from operating activities:              
		  Net loss                                      $        (48,777)     $       (395,572)
	Adjustments to reconcile net loss to net cash            
		  used in operating activities:                    
		  Depreciation and amortization                            9,356                14,537 
		  Issuance of common stock for services rendered          31,577                 3,450 
	(Increase) decrease:          
			  Accounts receivable                                  (4,623)              263,835  
			  Inventory                                                 -                (1,740) 
			  Other assets                                         (2,842)                2,891  
	Increase (decrease):             
			  Accounts payable                                    (33,930)               67,270  
			  Deferred revenues                                   (66,667)                    -    
			  Accrued expenses                                     90,004               (95,738) 
			  Accrued severance costs                             (40,682)              (37,101) 
																			---------------       ---------------
Net cash used by operating activities                          (66,584)             (178,168)
																			---------------       ---------------

Cash flows from financing activities:
		  Cash overdraft                                               -                (1,432) 
		  Proceeds from issuance of Subordinated Notes                 -               195,000  
		  Payments of notes payable                                    -                (5,500) 
		  Payments under capital lease obligations                (7,487)               (5,651) 
																			---------------       ---------------
Net cash provided (used) by financing activities                (7,487)              182,417 
																			---------------       ---------------
							
Net increase (decrease) in cash                                (74,071)                4,249         
Cash at beginning of period                                    219,723                     -       
																			---------------       ---------------
Cash at end of period                                 $        145,652      $          4,249 
																			===============       ===============

Supplemental disclosure of cash flow information:
	Cash paid for interest                             $          3,424      $         17,281        
							
							
The accompanying notes are an integral part of the financial statements.                     

</TABLE>









							 XEROGRAPHIC LASER IMAGES CORPORATION

								  Notes to Financial Statements

											 June 30, 1997


1. Nature of Business and Basis of Presentation
	--------------------------------------------

During the first half of 1997, Xerographic Laser Images Corporation, ("XLI"
or the "Company") has focused on the implementation and commercialization
of the XLI SuperChip Enhancement Technology ("SuperChip Technology") in ASIC
(Application Specific Integrated Circuit) and VHDL (Virtual Hardware
Description Language) product forms.  These product are targeted for the
large printer and printer controller OEM's that provide products to mass-
markets.  These SuperChip Technology products are expected to provide the
Company with a family of revenue producing product offerings for the next
several years.  To date five (5) companies have licensed the SuperChip VHDL
product for the incorporation of the Company's SuperChip Technology into
their own ASIC products.  In addition, in the second quarter of 1997, the
Company entered into a co-development and license agreement with a Colorado-
based designer and marketer of integrated circuits.  Pursuant to this
agreement, a SuperChip ASIC will be designed and fabricated for sale directly
by XLI.  XLI expects to have samples of this SuperChip ASIC available for
evaluation during the third quarter of 1997, with chips available for sale
to printer OEMs.  Initial sales activity for this ASIC has been focused
primarily in Japan and the USA where the majority of laser printer and
printer controller manufacturers are located.

The Company hopes to increase revenue through additional corporate
alliances and additional licensing of the SuperChip Technology.  The Company
also plans to add additional engineering resources in 1997 in order to meet
the demands from existing and anticipated OEM agreements.  The addition of
such resources will result in increased research and development costs and
may negatively affect cash flow.  For the six months ending June 30, 1997,
the Company had negative cash flow from operations of $66,584.

Despite the favorable reception the Company has received for its SuperChip
Technology and the potential revenue that may be generated pursuant to
future co-development agreements with OEMs, significant risk remains due to
the Company's short range cash needs.  The financial statements do not
include any adjustments relating to the recovery and classification of
recorded asset amounts or the amounts and classifications of liabilities
that might be necessary should the Company be unable to continue as a
going concern.

The information furnished has been prepared from the Company's accounts
without audit.  In the opinion of management, all adjustments and accruals
(consisting only of normal recurring adjustments), which are necessary for
a fair presentation of operating results, are reflected in the accompanying
financial statements. Certain information and footnote disclosures normally
included in the Company's annual financial statements have been condensed or
omitted.  These interim financial statements should be read in conjunction
with the audited financial statements for the year ended December 31, 1996,
which are contained in the Company's 1996 Form 10-KSB filed with the
Securities and Exchange Commission.



2. Net Loss per Common Share
	-------------------------

Net loss per share is computed based upon the weighted average number of
common shares outstanding.  Common equivalent shares are not included in
the per share calculations as the effect of their inclusion would be
nondilutive.









3. Management's Discussion and Analysis of Financial Condition and
	---------------------------------------------------------------
Results of Operations
---------------------

Results of Operations

The Company's strategy is to design and develop products derived from XLI's
current technology in collaboration with strategic partners.

Revenues for the second quarter of 1997, which ended June 30, 1997 were
$497,700, an increase of $448,570 from 1996's second quarter revenues of
$49,130.  Revenues for the six-month period ended June 30, 1997 were
$759,421, an increase of $625,577 from the $133,841 of revenue recorded for
the six months ended June 30, 1996.  The Company recognized $449,051 in
contract and license revenues in connection with agreements with Samsung
Electronics Co., Ltd. and Xionics Document Technologies, Inc. in the
second quarter of 1997 and none in the second quarter of 1996.

The Company recorded a net profit of $3,304 for the second quarter of 1997,
as compared to a net loss of $252,005 for the same period in 1996.  The
increase in profitability is attributable to the increase in contract and
license revenues in the second quarter of 1997.

The Company's gross margin on product sales was 75% for the second quarter
of fiscal year 1997 compared to 30% for the same period in 1996.  The gross
margin for the six months ended June 30, 1997 was 67% compared to 34% for the
same period in 1996.  This was mainly due to the board inventory being
written off in December 1996.
 
Research and development costs for the three month period ended June 30, 1997
were $155,555 or approximately 31% of revenues as compared to $87,283 or
approximately 178% of revenues for the second quarter of 1996.  Research and
development costs for the six months ended June 30, 1997 were $268,046, as
compared to $157,766 for the same period in 1996.  The increase in research
and development costs from June 30, 1996 to June 30, 1997 of $110,280 was
due to the hiring of additional engineering personnel and increased use of
independent engineering consultants.  The Company's engineering emphasis
will continue to be on the development of ASICs incorporating the Company's
proprietary high resolution technology for the OEM market.

Selling and marketing expenses for the three month period ended June 30, 1997
were $14,036 or approximately 3% of revenues as compared to $7,073 or
approximately 14% of revenues for the three month period ended June 30, 1996.
Selling and marketing expenses for the six months ended June 30, 1997 were
$21,366, as compared to $19,863 for the same period in 1996.  The slight
increase of $1,503 is attributable to a change in the commissions structure
in connection with board sales as the Company attempts to sell off its
remaining board inventory. The Company will promote its board products
primarily through telemarketing and its ASIC technology through third party
partnerships.

General and administrative expenses for the three month period ended June 30,
1997 were $151,175 or approximately 30% of revenues as compared to $167,103
or approximately 340% of revenues for the three month period ended June 30,
1996.  The decrease is attributable to the refund of foreign income taxes
from the Korean Tax Authority in April 1997.  General and administrative
expenses for the six months ended June 30, 1997 were $296,443 as compared to
$268,519 for the same period in 1996.  This increase was primarily due to
professional fees (patent legal fees).


Liquidity and Capital Resources

At June 30, 1997 the Company had current assets of $170,589, current
liabilities of $662,449 and cash of $145,652.

The Company continues to fund its operations from its cash account and from
cash flow provided from contract development agreements and technology
licenses.  Additionally, in April 1997 the Company received from Samsung
Electronics Co., Ltd. a $62,446 refund for taxes withheld on a development
contract in 1996.

The Company has no current plans to undertake a debt or equity financing in
1997.  Funds for operations and development efforts will come from the
Company's available cash and from current or anticipated licensing and
royalty fees.  If the Company is unable to fund its operations from cash
flow, the Company's development efforts and operations will be materially
adversely effected.

The Company has no current commitments for any material capital
expenditures.







									PART II OTHER INFORMATION


Item 1.  Legal Proceedings

		  The Company is not currently involved in any material    
		  legal proceedings.

Item 2.  Changes in Securities
		
		  Not Applicable

Item 3.  Defaults Upon Senior Securities

		  Not Applicable

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

		  No matters were submitted to a vote of security-holders
		  during the period covered by this report.

Item 5.  Other Information

		  Not Applicable

Item 6. Exhibits and Reports on Form 8-K

		  (a) The following exhibits are filed herewith:

				  Exhibit Number          Title
				  --------------          -----

						  10.43             Development and License Agreement
												  dated May 30, 1997, between the 
												  Company and SIS Microelectronics, Inc.

						  10.44             License and Royalty Agreement dated 
												  June 26, 1997, between the Company 
												  and PCPI Technologies, Inc.


		  (b) There were no reports on Form 8-K filed by the Company during 
				the quarter ended June 30, 1997.










Signatures



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



										  Xerographic Laser Images Corporation
									 ------------------------------------------------
																 (Company)
	




Date: July 28, 1997         By:  /s/ James L. Salerno
		-------------             --------------------------------------------
											 James L. Salerno, Chief Financial Officer
											(Principal Financial and Accounting Officer)