Form 10-Q

                   SECURITIES AND EXCHANGE COMMISSION
                        Washington, D. C. 20549


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

For the quarterly period ended March 31, 1997

                                   OR

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

For the transition period from ________________to _________________

For Quarter Ended March 31, 1997


                          TRANSNET CORPORATION
         (Exact name of registrant as specified in its charter)

DELAWARE________________________                     22-1892295
(State or other jurisdiction of         (I.R.S. Employer Identification Number)
incorporation or organization)

45 Columbia Road, Somerville, New Jersey               08876-3576
(Address of principal executive offices)               (Zip Code)

Registrant's Telephone Number, including area code:908-253-0500

----------------------------------------------------------------
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 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 _____

Indicate the number of shares outstanding of each of the issuer's classes of 
common stock, as of April 26, 1997:  5,216,804.




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                          TRANSNET CORPORATION
                               FORM 10-Q

                           TABLE OF CONTENTS


                                                                   Page No.


PART I.  FINANCIAL INFORMATION

      Consolidated Balance Sheets
            March 31, 1997 and June 30, 1996                          1

      Consolidated Statements of Operations
            Three Months Ended March 31, 1997 and 1996                2
            Nine Months Ended March 31, 1997 and 1996                 3


      Consolidated Statements of Cash Flows
            Nine Months Ended March 31, 1997 and 1996                 4


      Notes to Consolidated Financial Statements                      6


      Management's Discussion and Analysis                            8



PART II.  OTHER INFORMATION                                          10




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                  TRANSNET CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS
                               (UNAUDITED)
                                 ASSETS
                                                 March 31,          June 30,
                                                  1 9 9 7            1 9 9 6
CURRENT ASSETS:
   Cash and Cash Equivalents                $   3,109,810       $   2,383,741
   Accounts Receivable - Net                   10,116,736           7,366,019
   Inventories                                  1,673,036           3,642,228
   Deferred Tax Asset                             314,750             314,750
   Other Current Assets                           374,995             465,943
                                            -------------        ------------

   TOTAL CURRENT ASSETS                     $  15,589,327       $  14,172,681
   --------------------                     -------------       -------------

PROPERTY AND EQUIPMENT - NET                $     927,083       $   1,158,083
----------------------------                -------------       -------------

OTHER ASSETS                                $   1,056,937       $   1,051,261
------------                                -------------       -------------

   TOTAL ASSETS                             $  17,573,347       $  16,382,025
   ------------                             =============       =============

                  LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
   Accounts Payable                         $   2,961,446       $   1,739,706
   Accrued Expenses                               463,705             539,104
   Floor Plan Payable                           2,181,323           2,852,328
   Deferred Income                                205,012             319,284
   Other Current Liabilities                      208,076             215,501
                                            -------------      --------------

   TOTAL CURRENT LIABILITIES                $   6,019,562       $   5,665,923
   -------------------------                -------------       -------------

   DEFERRED TAX LIABILITY                   $      48,750       $      48,750
   ----------------------                   -------------       -------------

STOCKHOLDERS' EQUITY:
   Capital Stock - Common $.01 Par Value,
   Authorized 15,000,000 Shares;
   Issued 7,469,524 Shares
   (of which 2,252,720 are in Treasury)     $      74,695       $      74,695

   Paid-In Capital                             10,686,745          10,686,745
   Retained Earnings                            6,961,238           6,123,555
                                            -------------      --------------

   Totals                                   $  17,722,678       $  16,884,995
   Less:  Treasury Stock - At Cost             (6,217,643)         (6,217,643)
                                          ----------------      --------------

   TOTAL STOCKHOLDERS' EQUITY               $  11,505,035       $  10,667,352
   --------------------------               -------------       -------------

TOTAL LIABILITIES AND STOCKHOLDERS'
   EQUITY                                 $    17,573,347       $  16,382,025
   ------                                 ===============       =============

See Notes to Consolidated Financial Statements.



                                   1

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                 TRANSNET CORPORATION AND SUBSIDIARIES

                 CONSOLIDATED STATEMENTS OF OPERATIONS

                              (UNAUDITED)


                                                 THREE MONTHS ENDED MARCH 31,
                                                   1 9 9 7           1 9 9 6


REVENUE                                      $   16,123,401     $  16,000,510
-------


COST OF REVENUE                                  14,354,376        14,212,711
---------------                              --------------     -------------

   GROSS PROFIT                              $    1,769,025     $   1,787,799
   ------------                              --------------     -------------

EXPENSES
Selling, General and
   Administrative Expenses                   $    1,598,060     $   1,553,929
                                             --------------     -------------

OPERATING INCOME                             $      170,965     $     233,870
-----------------                            --------------     -------------

OTHER INCOME (EXPENSE)
   Interest Income                           $       34,458     $      16,507
   Interest Expense                                  (4,752)          (46,962)
                                             ---------------    --------------

   TOTAL OTHER INCOME (EXPENSE) - NET        $       29,706     $    (30,455)
   ----------------------------------        --------------     -------------

INCOME BEFORE PROVISION
   FOR INCOME TAXES                          $      200,671     $     203,415
   ----------------

PROVISION FOR INCOME TAX                                 --                --
------------------------                     --------------     -------------

NET INCOME                                   $      200,671     $     203,415
-----------                                  ==============     =============

EARNINGS PER COMMON SHARE                    $         0.04     $        0.04
-------------------------                    ===============    ==============



See Notes to Consolidated Financial Statements.



                                   2

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                  TRANSNET CORPORATION AND SUBSIDIARIES

                  CONSOLIDATED STATEMENTS OF OPERATIONS

                               (UNAUDITED)


                                                  NINE MONTHS ENDED MARCH 31,
                                                   1 9 9 7           1 9 9 6


REVENUE                                      $   52,159,412     $  49,184,912
-------

COST OF REVENUE                                  46,466,680        43,807,997
---------------                              --------------     -------------

   GROSS PROFIT                              $    5,692,732     $   5,376,915
   ------------                              --------------     -------------


EXPENSES
Selling, General and
   Administrative Expenses                   $    4,894,545     $   4,536,598
                                             --------------     -------------

OPERATING INCOME                             $      798,187     $     840,317
-----------------                            --------------     -------------

OTHER INCOME (EXPENSE)
   Interest Income                           $       80,230     $      48,090
   Interest Expense                                 (40,735)         (158,895)
                                             ---------------    --------------

TOTAL OTHER INCOME (EXPENSE) - NET           $       39,495     $   (110,805)
----------------------------------           --------------     -------------

INCOME BEFORE PROVISION
   FOR INCOME TAXES                          $      837,682     $     729,512
   ----------------

PROVISION FOR INCOME TAX                                 --                --
------------------------                     --------------     -------------

NET INCOME                                   $      837,682     $     729,512
----------                                   ==============     =============

EARNINGS PER COMMON SHARE                    $         0.16     $        0.14
-------------------------                    ===============    ==============


See Notes to Consolidated Financial Statements.



                                   3

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                 TRANSNET CORPORATION AND SUBSIDIARIES

                 CONSOLIDATED STATEMENTS OF CASH FLOWS

                              (UNAUDITED)


                                                 NINE MONTHS ENDED MARCH 31,
                                                   1 9 9 6         1 9 9 5


OPERATING ACTIVITIES:
     Net Income                                 $   837,682     $   729,512
                                                -----------     -----------
     Adjustments to Reconcile Net Income
          to Net Cash:
     Depreciation and Amortization                  288,237         134,268

Changes in Assets and Liabilities:
     (Increase) Decrease in:
     Accounts Receivable                        $(2,750,717)    $ 2,316,044
     Inventory                                    1,969,192       1,744,737
     Other Current Assets                            90,949        (483,780)
     Other Assets                                   (41,676)       (181,573)

Increase (Decrease) in:
     Accounts Payable and Accrued Expenses          475,336      (4,088,376)
     Deferred Income                              (114,272)          75,642
     Other Current Liabilities                       (7,425)        (42,804)
                                                ------------    ------------

Total Adjustments                               $   (90,376)    $  (525,842)
                                                ------------    ------------

NET CASH - OPERATING ACTIVITIES - FORWARD       $   747,306     $   203,670
-----------------------------------------       -----------     -----------


INVESTING ACTIVITIES:
     Capital Expenditures                       $   (21,237)    $   (15,104)
                                                ------------     -----------

NET CASH - INVESTING ACTIVITIES - FORWARD       $   (21,237)    $   (15,104)
-----------------------------------------       ------------    ------------





See Notes to Consolidated Financial Statements.



                                   4

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                 TRANSNET CORPORATION AND SUBSIDIARIES

                 CONSOLIDATED STATEMENTS OF CASH FLOWS

                              (UNAUDITED)



                                                  NINE MONTHS ENDED MARCH 31,
                                                   1 9 9 7          1 9 9 6


NET CASH - OPERATING ACTIVITIES -
     Forwarded                                  $   747,306     $   203,670
     ---------                                  -----------     -----------


NET CASH - INVESTING ACTIVITIES -
     Forwarded                                  $   (21,237)    $   (15,104)
     ---------                                  ------------    ------------

NET INCREASE IN CASH AND
     CASH EQUIVALENTS                           $   726,069     $   188,566
     ----------------                           -----------     -----------

CASH AND CASH EQUIVALENTS AT
     BEGINNING OF PERIODS                       $ 2,383,741     $ 1,549,206
     --------------------                       -----------     -----------

CASH AND CASH EQUIVALENTS AT
     END OF PERIODS                             $ 3,109,810     $ 1,737,772
     --------------                             ===========     ===========




See Notes to Consolidated Financial Statements.



                                   5

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                  TRANSNET CORPORATION AND SUBSIDIARY
               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
        (Information as of March 31, 1997 and 1996 is unaudited)


(1.) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Consolidation:  The consolidated financial statements include the accounts 
     of the Corporation and its wholly-owned subsidiary:  Century American 
     Corporation.  Intercompany transactions and accounts have been eliminated 
     in consolidation.  During the prior year the Corporation liquidated four 
     inactive subsidiaries whose activities were previously merged with the
     Corporation.

     Inventory:  Inventory consists of finished goods.  The Corporation's 
     inventory is valued at the lower of cost (determined on the average cost 
     basis) or market.

     Cash and Cash Equivalents: For the purposes of the statement of cash flows,
     the Corporation considers highly liquid debt instruments,  purchased with a
     maturity of three months or less, to be cash equivalents.

     Earnings  Per  Share:  Earnings  per  common  share are based on  5,216,804
     weighted shares  outstanding for the periods ended March 31, 1997 and 1996,
     respectively.


(2.)  INCOME TAXES

     Effective  July 1,  1993,  the  Corporation  adopted  Financial  Accounting
     Standards Statement No. 109, Accounting for Income Taxes ("FAS 109"). Under
     FAS 109,  deferred  tax  assets and  liabilities  are  determined  based on
     differences  between  financial  reporting  and tax  bases  of  assets  and
     liabilities,  and are  measured  using the  enacted tax rates and laws that
     will be in effect when the differences are expected to reverse. Adoption of
     FAS 109 had no material  effect on the Financial  Statements.  Prior to the
     adoption of FAS 109, income tax expense was reported  pursuant to Financial
     Accounting Standards Statement No. 96.

     The Corporation has a deferred tax asset of $672,000 based on net operating
     loss carryforwards of approximately  $1,200,000.  A valuation  allowance of
     $357,250 has been provided against this deferred asset.  Realization of the
     tax asset is dependent upon future events effecting  utilization of the net
     operating loss carryforwards ("NOL's").  NOL's expire in the years 2005 and
     2006.





                                   6

<PAGE>



     Current tax expense of $334,800 has been offset by the net  operating  loss
     carryforward  benefit of $334,800 for the nine months ended March 31, 1997.
     Tax  expense  and  carryforward  benefit  amounted to $80,000 for the three
     month period ended March 31, 1997.


(3.) RECLASSIFICATION

     Certain  items from prior year's  Balance Sheet and Statement of Operations
     have been reclassified to conform to the current year's presentation.

In the opinion of management,  the accompanying unaudited consolidated financial
statements   contain  all  adjustments   consisting  only  of  normal  recurring
adjustments  necessary to present fairly the financial position,  the results of
operations and cash flows for the periods presented.

These  statements  should be read in conjunction with the summary of significant
accounting  policies and notes contained in the  Corporation's  annual report on
Form 10-K for the year ended June 30, 1996.



                                   7

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


Results of Operations

Revenues for the three months ended March 31, 1997 were  $16,123,401 as compared
with  $16,000,510  for the quarter  ended March 31, 1996.  For the quarter ended
March 31, 1997 the Corporation  reported net income of $200,671 as compared with
net income of $203,415 for the similar period in 1996. For the nine months ended
March 31, 1997, revenues were $52,159,412,  as compared to $49,184,912  reported
for the similar  period in 1996,  with net  earnings of $837,682  for the period
ended March 31, 1997, compared with net earnings of $729,512 for the same period
in 1996.  The increase in revenues is due to increases in hardware sales as well
as increased demand for the Corporation's  technical  services (hardware service
contracts, technical support contracts and training).

Earnings  for the quarter  ended March 31, 1997 are  attributable  to  increased
service  revenues,  management's  concentration  on sales of network  and system
integration  products  which yield  higher  profit  margins,  the  Corporation's
technical service and support programs,  and continued adherence to cost control
measures.  Service  related  revenues,  though  not a  material  source  of  the
Corporation's  revenues,  are  significant  in their  contributions  to earnings
because these  operations yield a higher profit margin than equipment sales. The
Corporation  agressively increased its technical staff in response to the demand
for its services, encountering the high level of competition in the industry and
the shortage of qualified technical personnel.  Management  anticipates that the
technical  service  segments of its  operations  will  continue to expand in the
future,  and that the  competition to hire and retain  qualified  personnel will
similarly  continue.  For the quarter  ended  March 31,  1997,  the  increase in
revenues  from the  provision  of  service,  support,  outsourcing  and  network
integration is largely the result of the  Corporation  renewing  and/or entering
into service contracts with a number of large corporate customers.  The majority
of these  contracts are  short-term,  usually twelve months or less, and contain
provisions  which permit early  termination.  Although the  contracts  generally
contain renewal terms, there is no assurance that such renewals will occur.

The computer industry continually faces manufacturers' reductions in prices on a
wide array of products.  These price reductions increase  competition,  creating
pressure to lower prices to customers in order to remain  competitive,  which in
turn results in the reduction of profit margins.  To maximize the  Corporation's
profit  margin,  management  has modified its marketing  strategy,  has enforced
expense controls,  and continually considers additional cost reduction measures,
such as outsourcing such items as distribution activities.  Management's current
marketing strategy is designed to increase sales of lower revenue/higher  profit
margin products related to service and support operations.  Management's efforts
include  targeting  commercial  customers,  and to a lesser  extent  educational
customers, who provide marketplaces for a wide range of products and services at
one time, a cost-effective  approach to sales.  Management believes it maximizes
profits through concentration on sales of value-added applications; promotion of
the  Corporation's  service  and support  operations;  and strict  adherence  to
cost-cutting  controls.  Management  emphasizes  the  promotion of its technical
service,  support,   outsourcing  and  network  integration  capabilities,   and
continues the aggressive  pursuit of an increased  volume of equipment sales and
promotion of its training services.



                                   8

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Interest  income for the quarter  increased  as  compared  to the  corresponding
period  in the  prior  year  because  of the  increase  in the  amount  of funds
invested.  Interest expense decreased in the quarter and nine-month period ended
March 31,  1997  compared  to the same  periods in fiscal  1996,  as a result of
management's  efforts to shorten the collection  cycles of accounts  receivable,
with a resulting reduction in related financing costs.

Although  actual expenses  increased in 1996 due to the expenses  related to the
significant  increase in the  Corporation's  technical staff (discussed  above),
selling,  general and administrative  expenses remained  relatively  constant at
approximately  10% of  revenues  for the quarter  and  approximately  9% for the
nine-months ended March 31, 1997 and 1996, due to management's  strict adherence
to costcontrol measures.

Liquidity and Capital Resources

There are no material commitments of the Corporation's capital resources.

The  Corporation  currently  finances a portion of its accounts  receivable  and
finances   purchases  of  portions  of  its  inventory  through   floor-planning
arrangements  under  which  such  inventory  secures  the  amount   outstanding.
Inventory decreased in the quarter and nine-month period ended March 31, 1997 as
compared to the corresponding  period in 1996 in response to increased inventory
turns  related to the higher  volume of sales.  Management  shall  continue  its
efforts to increase  turnover  and to provide the  Corporation  with  protection
against inventory  obsolescence  resulting from the rapid technological advances
of the computer industry, as well as to minimize floor plan financing.

Accounts  receivable and payable increased for the quarter and nine-month period
ended March31, 1997 compared with the same periods in fiscal 1996 as a result of
increased sales.  Cash levels increased in the nine month period ended March 31,
1997 as compared to the decrease in the corresponding period in fiscal 1996. The
increase is due to  availability  of funds  resulting from customer  payments of
accounts receivable.

For the fiscal  quarter and nine months ended March 31, 1997,  as in the periods
ended March 31, 1996 the internal  resources of the Corporation  were sufficient
to enable the Corporation to meet its obligations.




                                   9

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Item 6:  Exhibits and Reports on Form 8-K

            A.  Exhibits - None required to be filed for Part II of this report.

            B.  Reports on Form 8-K - None filed during the quarter for which 
                this report is submitted.



                               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.




                                       TRANSNET CORPORATION
                                       (Registrant)




                                       /s/ Steven J. Wilk
                                       Steven J. Wilk, President



                                       /s/ John J. Wilk
                                       John J. Wilk,
                                       Principal Financial and Accounting
                                       Officer
                                       and Chairman of the Board of Directors




DATE:  May 14, 1997





                                   10

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