--------------------------------------------------------------------------------

                UNITED STATES 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, 1998

                                       OR

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

         For the transition period from ________to________

                           COMMISSION FILE NO. 0-21324

                             TRINITECH SYSTEMS, INC.
             (Exact name of registrant as specified in its charter)

          NEW YORK                                       06-1344888
   (State of incorporation)              (I.R.S. Employer identification number)

            333 LUDLOW STREET, STAMFORD, CONNECTICUT           06902
            (Address of principal executive offices)        (Zip Code)

       Registrant's telephone number, including area code: (203) 425-8000


            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 / /


8,777,030  shares of Common  Stock  were  issued  and  outstanding  as of August
5,1998.

<PAGE>
Trinitech Systems, Inc.

FORM 10-Q
   For the quarterly period ended June 30, 1998


CONTENTS                                                                   PAGE


PART I.    FINANCIAL INFORMATION

Item 1.    Financial Statements

        Condensed consolidated balance sheets at June 30, 1998
        (unaudited) and December 31, 1997                                   3

        Condensed consolidated statements of operations
        (unaudited) for the three months and six months
        ended June 30, 1998  and 1997                                       4

        Condensed consolidated statements of cash flows (unaudited)
        for the months ended June 30, 1998  and 1997                        5

        Notes to condensed consolidated financial statements (unaudited)    6

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

PART II.    OTHER INFORMATION                                              16


                                       2
<PAGE>
                     TRINITECH SYSTEMS, INC. AND SUBSIDIARY

                      CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                                         June 30,                December 31,
ASSETS                                                                                    1998                      1997
                                                                                       -----------              ------------
                                                                                       (Unaudited)                    (a)
<S>                                                                                     <C>                       <C>       
CURRENT ASSETS:
    Cash and cash equivalents                                                           $1,549,021                $2,141,307
    Accounts receivable - less allowance of $100,000 and $144,000                        2,347,791                 1,859,301
    Inventories - less allowance of $156,000 and $82,000                                 1,258,760                 1,208,373
    Prepaid expenses and other current assets                                              180,011                   102,500
    Receivable from officers                                                                96,101                    91,597
                                                                                        ----------                ----------
                      Total Current Assets                                               5,431,684                 5,403,078

EQUIPMENT - net of accumulated depreciation of $992,415 and $714,759                     1,663,316                 1,361,707

OTHER ASSETS  - net of accumulated amortization of $1,256,089 and
$1,040,952                                                                                 972,919                   782,478
                                                                                        ----------                ----------
                      TOTAL                                                             $8,067,919                $7,547,263
                                                                                        ==========                ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
    Accounts payable                                                                      $938,692               $   927,672
    Accrued expenses                                                                       470,256                   389,174
    Current portion of term loans payable                                                        -                    47,709
    Advance billings                                                                     1,067,906                   171,414
    Payroll and other taxes payable                                                         63,609                    63,706
                                                                                        ----------                ----------
                      Total Current Liabilities                                          2,540,463                 1,599,675

CREDIT LINE PAYABLE                                                                        346,539                         -

TERM LOANS PAYABLE                                                                          67,740                    45,855
                                                                                        ----------                ----------
                      Total Liabilities                                                  2,954,742                 1,645,530
                                                                                        ----------                ----------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
    10% Convertible preferred stock - par value $1.00; 1,000,000 shares
      authorized; -0- issued and outstanding                                                  -                          -
    Common stock - par value $.001; 15,000,000 authorized 8,754,530 and
      8,524,530 shares issued and outstanding                                                8,755                     8,525
    Additional paid-in capital                                                          11,168,408                10,419,763
    Accumulated deficit                                                                 (5,622,555)               (4,096,555)
    Due from officers                                                                     (441,431)                 (430,000)
                                                                                        ----------                ----------
                      Total Stockholders' Equity                                         5,113,177                 5,901,733
                                                                                        ----------                ----------
                      TOTAL                                                             $8,067,919                $7,547,263
                                                                                        ==========                ==========
</TABLE>

(a) The balance  sheet at December  31, 1997 has been  derived from the audited
financial statements at that date.

See accompanying notes.

                                       3
<PAGE>
                     TRINITECH SYSTEMS, INC. AND SUBSIDIARY

           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)


TRINITECH SYSTEMS, INC.
--------------------------------------------------------------------------------

STATEMENTS OF OPERATIONS (Unaudited)
------------------------------------

<TABLE>
<CAPTION>

                                             -- Three Months Ended --                    -- Six Months Ended --
                                           June 30,              June 30,          June 30,           June 30,
                                            1998                  1997               1998               1997
                                         --------------     --------------     -------------     ---------------

<S>                                           <C>                <C>             <C>                   <C>
REVENUES:
Recurring contracts                           $832,890           $318,574        $1,464,365            $577,897
Sales                                          728,657            821,971         1,137,458           2,372,225
                                         --------------     --------------     -------------     ---------------
     Total Revenues                          1,561,547          1,140,545         2,601,823           2,950,122

COST OF RECURRING CONTRACTS AND SALES
                                               604,336            409,764         1,067,650           1,241,195
                                         --------------     --------------     -------------     ---------------

GROSS PROFIT                                   957,211            730,781         1,534,173           1,708,927
                                         --------------     --------------     -------------     ---------------

EXPENSES:
Selling, general and administrative          1,517,318          1,193,871             2,975,842       2,235,035
Depreciation                                    87,751             42,001           168,632              80,165
Amortization                                     4,595              9,211             9,190              18,421
                                         --------------     --------------     -------------     ---------------
     Total Expenses                          1,609,664          1,245,083         3,153,664           2,333,621
                                         --------------     --------------     -------------     ---------------

LOSS FROM OPERATIONS                         (652,453)          (514,302)       (1,619,491)           (624,694)

OTHER INCOME - NET                              67,453             51,523            93,491              76,516
                                         --------------     --------------     -------------     ---------------

NET LOSS                                     ($585,000)         ($462,779)      ($1,526,000)          ($548,178)
                                         ==============     ==============     =============     ===============

 NET LOSS PER COMMON SHARE                      $(0.07)           $( 0.06)           $(0.18)            $( 0.07)
                                         ==============     ==============     =============     ===============

AVERAGE COMMON SHARES
        OUTSTANDING                          8,709,030          8,187,500         8,647,530           7,916,530
                                         ==============     ==============     =============     ===============
</TABLE>


See accompanying notes.

                                       4
<PAGE>
                     TRINITECH SYSTEMS, INC. AND SUBSIDIARY


           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


<TABLE>
<CAPTION>

                                                                      Six                              Six
                                                                  Months Ended                     Months Ended
                                                                     June 30,                        June 30,
                                                                      1998                             1997
                                                                  ------------                     ------------

<S>                                                               <C>                               <C>       
NET CASH USED IN OPERATING ACTIVITIES                               $(636,035)                      $ (114,125)


INVESTING ACTIVITIES:
    Payments for equipment, net of retirements                       (620,263)                        (253,710)
    Payments for other assets                                        (405,578)                        (160,791)
                                                                  -----------                       ----------
              Net cash used in investing activities                (1,025,841)                        (414,501)
                                                                  -----------                       ----------

FINANCING ACTIVITIES:
    Proceeds from line of credit                                      500,000                                -
    Issuance of common stock                                          748,875                        3,565,376
    Repayment of borrowings                                          (179,285)                        (682,896)
                                                                  -----------                       ----------
              Net cash provided by financing activities             1,069,590                        2,882,480
                                                                  -----------                       ----------

(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                     (592,286)                       2,353,854

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                      2,141,307                        1,198,730
                                                                  -----------                       ----------

CASH AND CASH EQUIVALENTS, END OF PERIOD                          $ 1,549,021                       $3,552,584
                                                                  ===========                       ==========
</TABLE>

See accompanying notes.


                                       5
<PAGE>
TRINITECH SYSTEMS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited
--------------------------------------------------------------------------------


1.          BASIS OF PRESENTATION

            The  accompanying   unaudited   condensed   consolidated   financial
            statements have been prepared in accordance with generally  accepted
            accounting principles for interim financial information and with the
            instructions  to Form  10-QSB  and ITEM 310 (b) of  Regulation  S-B.
            Accordingly,  they  do  not  include  all  of  the  information  and
            footnotes required by generally accepted  accounting  principles for
            complete  financial  statements.  In the opinion of management,  all
            adjustments  considered  necessary for a fair presentation have been
            included.  All such  adjustments are of a normal  recurring  nature.
            Operating  results for the six-month  period ended June 30, 1998 are
            not  necessarily  indicative of the results that may be expected for
            the year ending December 31, 1998. For further information, refer to
            the consolidated financial statements and footnotes thereto included
            in the  Company's  annual  report on Form  10-KSB for the year ended
            December 31, 1997.


2.          INVENTORIES

            Inventories are stated at the lower of cost (first-in, first-out) or
            market. Inventories consisted of the following:

                                                 June 30,      December 31,
                                                   1998           1997
                                                 --------      ------------

            Parts                               $870,857      $   875,822
            Finished goods                       543,903          414,551
            Less allowance for obsolescence      156,000           82,000
                                              ----------      -----------
                                  Total       $1,258,760      $1,208,373
                                              ==========      ===========


                                       6

<PAGE>
3.          EQUIPMENT

            Equipment consists of the following:

<TABLE>
<CAPTION>
                                                              June 30,                December 31,
                                                               1998                       1997
                                                            ----------                ------------
<S>                                                         <C>                      <C>        
             Computer software                              $  357,452               $   331,668
             Leasehold improvements                             93,178                    81,957
             Furniture and equipment                         1,011,405                   878,518
             Subscription and service bureau equipment       1,193,696                   784,323
                                                            ----------                ----------
                           Subtotal                          2,655,731                 2,076,466

             Less accumulated depreciation                     992,415                   714,759
                                                            ----------                ----------
                           Total                            $1,663,316                $1,361,707
                                                            ==========                ==========
</TABLE>

4.           DEBT

            On July 13, 1998,  the Company  entered into a three year $3 million
line of credit  agreement (the  "Agreement")  with a financial  institution with
advances on such agreement  available to the Company during the first 18 months.
The  Agreement is primarily  intended to finance  existing and future  equipment
expenditures.  The  Agreement  bears  interest at either LIBOR plus 1.25% or the
Bank's Prime Rate and is  personally  secured by a Company  shareholder  and the
Company's  president.  The rate used is  management's  discretion.  The  Company
initially drew down $1 million under the Agreement  bearing  interest at the six
month LIBOR rate plus 1.25% (7%).  The Agreement  requires  monthly  payments of
interest only until January 30, 2000,  at which time monthly  ratable  principal
and interest payments are made until the Agreement matures.  Principal drawdowns
under  the  Agreement  can not be  prepaid  in the  first  eighteen  months.  In
consideration  for securing the Agreement,  the said  shareholder  and president
will receive 150,000 and 25,000 warrants respectively, to purchase the Company's
common stock at $6.375 per share,  which was the market  value of the  Company's
common stock on the date such warrants were issued.

            In  association  with  obtaining  the  $3  million  line  of  credit
facility,  the Company terminated its previous $500,000 line of credit agreement
(revised  from $1 million line of credit  agreement in June 1998) and repaid all
outstanding term loans, which aggregated  approximately  $415,000 as of June 30,
1998.

5.           PER SHARE INFORMATION

In 1997,  the Financial  Accounting  Standards  Board issued  Statement No. 128,
"Earning Per Share". Statement 128 replaced the calculation of primary and fully
diluted  earnings per share with basic and diluted  earnings  per share.  Unlike
primary  earnings  per share,  basic  earnings  per share  excludes any dilutive
effects of options,  warrants and convertible  securities.  Diluted earnings per
share is very similar to the  previously  reported  fully  diluted  earnings per
share.  Diluted  earning per share is not presented in either period because the
effect of the Company's


                                       7
<PAGE>
common stock equivalents  (employee stock options and warrants) is antidilutive.
All earnings per share amounts for all periods have been restated, and presented
to conform to the Statement 128 requirements.

6.          COMMITMENTS

In January 1998,  the Company  entered into a seven and one-half year  operating
lease for its  facilities in New York City.  Monthly  payments  under such lease
aggregate  approximately  $12,100  for the first  five  years and  approximately
$12,500 thereafter.


7.          IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In October 1997, the American  Institute of Certified Public  Accountants issued
Statement of Position 97-2,  "Software  Revenue  Recognition,"  which supercedes
SOP-91-1 and clarifies the existing guidance  regarding  revenue  recognition of
certain computer  software  products.  The Company adopted SOP 97-2 in the first
quarter of 1998 and the effect is not material to the  Company's  operations  or
financial position taken as a whole.

In June 1997, the Financial Accounting Standards board issued FASB Statement No.
131,  "Disclosures  about  Segments of an Enterprise  and Related  Information."
Statement  131 requires that segment data be disclosed  based on how  management
makes  decisions  about  allocating  resources to segments and  measuring  their
performance.  While the Company is studying the  application  of the  disclosure
provisions, it does not expect this statement to materially affect its financial
position or results of  operations.  This  Statement is  effective  for the year
ended December 31, 1998.



8.           OTHER INCOME

Included in other income is approximately $50,000 pertaining to the payment of a
liability for which the Company had established a full reserve.



                                       8

<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

The  management  discussion  and analysis in this Form 10-QSB  contains  certain
forward-looking  statements regarding the Company's future plans, objectives and
expected performance. Those statements are based on assumptions that the Company
believes  are  reasonable,  but  are  subject  to a  wide  range  of  risks  and
uncertainties,  and a number of factors could cause the Company's actual results
to differ  materially  from those  expressed in the forward  looking  statements
referred to above. These factors include, among others, the Company's ability to
further  penetrate  the  financial  services  market  with a full  range  of the
Company's  products  and the  highly  competitive  market in which  the  Company
operates.

The following  discussion and analysis  should be read in  conjunction  with the
consolidated  financial  statements  and notes thereto.  Historical  results and
percentage relationships are not necessarily indicative of the operating results
for any future period.

Trinitech Systems, Inc. develops and markets advanced electronic trading systems
to  brokerage  firms,  international  banks  and  global  exchanges  trading  in
equities,  futures & options,  and currencies.  The Company's  NYFIX Network,  a
combined  FIX and  Exchange  Access  Network,  enables  users to  electronically
communicate  trade  data  among the  buy-side,  sell-side,  and  exchange  floor
environments.  The Company's goal is to become the leading provider of real-time
electronic  trade entry and  routing  systems to the global  financial  services
industry.  Trinitech is  headquartered  in Stamford,  Connecticut  and maintains
operations in New York, Chicago, and London.

The Company  commenced its present  business  operations in January 1991 through
the acquisition of a software license for its  Guided-Input(R)  Touchpad system.
Since  that time,  the  Company  has  transitioned  from a hardware  vendor to a
software  development  company  focusing  exclusively  on  applications  for the
financial  marketplace.  The Company is in process of transforming  its business
from that of traditional  capital equipment sales to that of licensing-based and
subscription-based  revenue for its software and systems. The Company provides a
complete line of workstation products for the financial trading desk environment
and its systems provide order  management and routing software for firms engaged
in  financial  trading.  The  Company  currently  offers  its  trading  products
(integrated  systems  including  hardware and  software)  together  with linkage
through its NYFIX data-center. The data-center is a communication infrastructure
enabling Trinitech to provide its customers with global electronic  connectivity
for order  routing  and allows  Trinitech  to deploy and monitor its systems and
services from a single location. Customers subscribe to various products, paying
a monthly fee per terminal for the Company's  integrated software systems.  Most
contracts  provide the customer with a basic system or  infrastructure,  via the
Company's  NYFIX  data-center  and are  entered  into by the  customer  with the
intention to expand the level of services  subscribed  to, once the basic system
and infrastructure are operational. Subscription revenue contracts are generally
for an  initial  period  of one year  with one to three  year  renewal  periods.
Initial  annual  revenues  range  from  $15,000 to over  $100,000  per annum per
contract. The Company begins recording subscription revenue once installation is
complete.

                                       9
<PAGE>
Although  subscription-based  revenue  has the  short-term  negative  impact  of
reduced  revenues in the early stage,  management  believes that the change will
have a long-term  positive  impact on the future  revenue growth of the Company.
Management is of the opinion that this change has already resulted in new orders
and increased  market share that it otherwise would not have had, in addition to
leading to longer-term and more predictable revenues per customer.

Management  has made a  considerable  effort with respect to an expansion of its
operations,  development of various  trading systems and changes to its business
model to that of a  subscription-based  product  offering.  The Company believes
that  this   expansion  of   personnel,   facilities,   product   portfolio  and
subscription-based  model will better  position the Company and  facilitate  its
future growth. Management is of the opinion that the Company's transition from a
capital  sales  model to a  subscription  sales  model  will  not  only  lead to
additional orders on top of the original contract, but will create a longer term
and more stable revenue stream for the Company going forward. It is important to
note that this  transition  is causing  revenue to be  recognized  over a longer
period of time than the previous  capital  sales  model.  The Company is excited
about the subscription  based model because as the Company continues to add more
customers,  the Company will collect  revenue from each customer as long as they
are  utilizing  Trinitech's  products or services.  In the previous  model,  the
Company  would only  receive  revenue one time for  products  or services  sold.
Management  believes  the new  business  model  will  strengthen  the  Company's
marketshare and its financial position going forward.

THREE MONTHS ENDED JUNE 30, 1998 COMPARED TO THREE MONTHS ENDED JUNE 30, 1997

REVENUES

The  increase  in  revenues  for the three  months  ended June 30, 1998 over the
comparable  1997  period  was  principally  due to the  Company's  changing  its
strategy to electronic  order routing which it began  executing in late 1997. In
addition to the conversion from capital sales to subscription sales, a number of
new  products  and  order  routing   services   under  the  NYFIX  umbrella  are
contributing to the Company's  continued ramp up in new orders and corresponding
recurring revenues.  Recurring  contracts are comprised of subscription  revenue
and service revenue.  Recurring contractual revenue for the Company increased by
approximately  161% in the three  months  ended June 30, 1998 (from  $318,574 to
$832,890) over the comparable  1997 period.  During the three month period ended
June 30, 1998,  subscription  contracts and service contracts were approximately
60% and 40% of recurring contractual revenue,  respectively,  as compared to 14%
and 86%,  respectively,  during the three-month  period ended June 30, 1997. The
increase in recurring  contractual  revenue is due  principally to the Company's
strategy of offering its products  and services on a  subscription  basis rather
than capital sales coupled with increased service  agreements.  Sales revenue is
comprised of capital  equipment sales and software sales.  Sales revenue for the
Company  decreased by approximately  11% in the three months ended June 30, 1998
over the comparable  1997 period (from  $821,971 to $728,657).  During the three
month period ended June 30, 1998,  capital  equipment sales and software revenue
were  approximately  38% and 62% of sales revenues,  respectively as compared to
55% and 45%,  respectively  during the three month period ended June 30,  1997.)
The  decrease in sales  (capital  equipment  and  software)  corresponds  to the
increase in recurring revenue as previously mentioned. Revenue from export sales
approximated  $210,000  (less than 29% of sales)  during the three month  period
ended June 30,


                                       10
<PAGE>
1998 as compared to approximately  $220,000  (approximately 25% of sales) during
the  comparable  period  in  1997.   Foreign  operation   revenues  amounted  to
approximately  $688,000 and $274,000 for the three-month  periods ended June 30,
1998 and 1997, respectively.

COST OF RECURRING CONTRACTS AND SALES AND GROSS PROFIT

The Company's cost of recurring contracts and sales are principally comprised of
labor,  materials,  overhead,  amortization of capitalized  product  enhancement
costs and  depreciation  of  subscription  based  equipment.  Gross  profit as a
percentage of total revenue was approximately 61% and 64% during the three-month
periods ended June 30, 1998 and 1997, respectively. The decrease in gross profit
percentage  experienced  by the Company during the three month period ended June
30, 1998  principally  resulted  from a decrease in the amount of higher  margin
software  installations  and the Company's  lower margin touch vending  terminal
products  which were  partially  offset by higher  margins  associated  with the
subscription  and service  contracts.  The Company  obtains  its  materials  and
supplies  from a variety of vendors in the U.S.  and the Far East.  Included  in
cost  of  sales  is  amortization  expense  for  product  enhancement  costs  of
approximately  $110,000 and $74,000 for the  three-month  periods ended June 30,
1998 and 1997,  respectively.  Also  included  in cost of sales is  depreciation
expense for subscription based equipment of approximately  $62,000 for the three
month period ended June 30, 1998.

SELLING, GENERAL AND ADMINISTRATIVE

During the three months ended June 30, 1998,  selling general and administrative
expenses  increased  approximately  27% (from  $1,193,871  to  $1,517,318)  when
compared to the three  months ended June 30, 1997.  Such  increases  reflect the
continued expansion of the development teams both in the U.S. and in London. The
expansion in development  efforts relates to the Company's plans of providing an
increased number of new additional  services.  These services relate to offering
subscription  and  transaction  based  order-routing,  via the  Company's  NYFIX
data-center,  to multiple exchange-floors and between "Buy-side" and "Sell-side"
institutions.  As a result,  the Company  experienced  increases in salaries and
related  personnel  costs,  travel  expenses and various  office  expenses.  The
Company's   recruitment   effort   continues   to   strengthen   the   Company's
infrastructure  and  position  the Company to respond to  increasing  market and
revenue opportunities. Included in selling, general & administrative expenses is
rent expense for the  Company's  offsite data center and  equipment in such data
center of approximately  $79,000 for the three-month period ended June 30, 1998.
The Company, during the past several years, has committed considerable resources
to  developing  a variety  of "trader  desk-top"  and  "exchange-floor"  trading
systems.  Management  believes  that the  investment in  development  of the new
data-center,  and its  services,  is designed to better  leverage  the  existing
products  while  providing  additional  sources  of  revenue.  The  Company  has
continued its marketing programs in the first quarter of 1998 primarily focusing
on public relations  activities,  production of various product  brochures,  and
representation  at  technological  exhibitions.  Research and  development  (new
explorative research) expenses for the three months ended June 30, 1998 and 1997
were  approximately  $102,000  and  $79,000,   respectively,   (an  increase  of
approximately  29%) and are  included  in selling,  general  and  administrative
expenses.

                                       11
<PAGE>
OTHER INCOME

Other income consists  principally of settlement of a fully reserved  liability,
interest earned on cash balances and sublease  income earned.  Included in other
income is  approximately  $50,000  pertaining  to the payment of a liability for
which the Company had  established a full reserve.  Interest income in the three
months  ended  June  30,  1998  and  1997  approximated   $17,000  and  $48,000,
respectively.  Interest income  decreased  principally  because of lower average
cash balances  maintained by the Company  during the three months ended June 30,
1998 versus the three months ended June 30, 1997. The Company  previously leased
a portion of its corporate  office  facility  under a six-year  sublease,  which
expired on April 30, 1997. Due to the continuing  expansion of operations,  (See
"Selling,  General and  Administrative"  above) the Company decided not to renew
the sublease and incorporated such space into its existing  corporate  facility.
Sublease  rental  income  earned  during the three  months  ended June 30,  1997
approximated $3,200.

NET LOSS

Net loss for the three months ended June 30, 1998 was $585,000 ($0.07 per share)
as  compared to a net loss of  $462,779  ($0.06 per share) for the three  months
ended June 30, 1997.  The  increase in net loss,  principally  resulted  from 1)
decrease in "capital sales" type revenue  resulting from the Company moving to a
subscription-based  revenue  model  which  presently  is in its  early  stage of
growth,  and 2) increase in selling,  general and administrative  expenses.  See
"Revenues",  "Cost of sales and Service and Gross Profit" and "Selling,  General
and Administrative" above.

SIX MONTHS ENDED JUNE 30, 1998 COMPARED TO SIX MONTHS ENDED JUNE 30, 1997

REVENUES

The  decrease  in  revenues  for the six  months  ended  June 30,  1998 over the
comparable 1997 period was principally due to the Company's  ongoing  transition
from capital equipment sales to subscription  based sales,  specifically for the
Company's  FIXtalk  software  system.   Recurring  contracts  are  comprised  of
subscription revenue and service revenue.  Recurring contractual revenue for the
Company  increased by  approximately  153% in the six months ended June 30, 1998
(from $577,897 to $1,464,365)  over the comparable  1997 period.  During the six
month period ended June 30, 1998,  subscription  contracts and service contracts
were approximately 57% and 43% of recurring  contractual revenue,  respectively,
as compared to 12% and 88%, respectively, during the six-month period ended June
30, 1997. The increase in recurring  contractual  revenue is due  principally to
the Company's  strategy of offering its products and services on a  subscription
basis rather than capital sales coupled with increased service agreements. Sales
revenue is  comprised  of capital  equipment  sales and  software  sales.  Sales
revenue for the Company  decreased by approximately  52% in the six months ended
June 30, 1998 over the comparable  1997 period (from  $2,372,225 to $1,137,458).
During the six month  period ended June 30, 1998,  capital  equipment  sales and
software revenue were approximately 40% and 60% of sales revenues,  respectively
as


                                       12
<PAGE>
compared to 60% and 40%, respectively during the six month period ended June 30,
1997.) The decrease in sales (capital equipment and software) corresponds to the
increase in recurring revenue as previously mentioned. Revenue from export sales
approximated  $xx (less than xx% of revenue)  during the six month  period ended
June 30, 1998 as compared to  approximately  $1,441,000  (61% of revenue) during
the  comparable  period  in  1997.   Foreign  operation   revenues  amounted  to
approximately  $1,093,000 and $914,000 for the six-month  periods ended June 30,
1998 and 1997, respectively.

COST OF RECURRING CONTRACTS AND SALES AND GROSS PROFIT

The Company's cost of recurring contracts and sales are principally comprised of
labor,  materials,  overhead,  amortization of capitalized  product  enhancement
costs and  depreciation  of  subscription  based  equipment.  Gross  profit as a
percentage  of total  revenue was  approximately  59% during both the  six-month
periods  ended June 30, 1998 and 1997.  The Company  obtains its  materials  and
supplies  from a variety of vendors in the U.S.  and the Far East.  Included  in
cost  of  sales  is  amortization  expense  for  product  enhancement  costs  of
approximately  $206,000 and $154,000  for the six month  periods  ended June 30,
1998 and 1997,  respectively.  Also  included  in cost of sales is  depreciation
expense for subscription  based equipment of approximately  $118,000 for the six
month period ended June 30, 1998.


SELLING, GENERAL AND ADMINISTRATIVE

During the six months ended June 30, 1998,  selling  general and  administrative
expenses  increased 33% (from $2,235,035 to $2,975,842) when compared to the six
months ended June 30, 1997.  Such increases  reflect the continued  expansion of
the  development  teams  both  in the  U.S.  and in  London.  The  expansion  in
development  efforts  relates to the  Company's  plans of providing an increased
number of new  services.  These  services  relate to offering  subscription  and
transaction  based  order-routing,  via  the  Company's  NYFIX  data-center,  to
multiple exchange-floors and between "Buy-side" and "Sell-side" institutions. As
a result,  the Company  experienced  increases in salaries and related personnel
costs,  travel expenses and various office expenses.  The Company's  recruitment
effort  continues to strengthen  the Company's  infrastructure  and position the
Company to respond to increasing market and revenue  opportunities.  Included in
selling,  general &  administrative  expenses is rent expense for the  Company's
offsite data center and equipment in such data center of approximately  $151,000
for the  six-month  period  ended June 30, 1998.  The  Company,  during the past
several years, has committed  considerable  resources to developing a variety of
"trader desk-top" and "exchange-floor" trading systems. Management believes that
the  investment in  development of the new  data-center,  and its services,  are
designed to better  leverage the existing  products while  providing  additional
sources of revenue.  The Company has  continued  its  marketing  programs in the
second  quarter  of 1998  primarily  focusing  on public  relations  activities,
production of various product  brochures,  and  representation  at technological
exhibitions.  Research and development (new explorative  research)  expenses for
the six months  ended June 30,  1998 and 1997 were  approximately  $343,000  and
$141,000,  respectively, (an increase of approximately 143%) and are included in
selling, general and administrative expenses.


                                       13
<PAGE>
OTHER INCOME

Other income consists principally of a settlement of a fully reserved liability,
interest earned on cash balances and sublease  income earned.  Included in other
income is  approximately  $50,000  pertaining  to the payment of a liability for
which the Company had  established  a full reserve.  Interest  income in the six
months  ended  June  30,  1998  and  1997  approximated   $43,400  and  $63,500,
respectively.  Interest income  decreased  principally  because of lower average
cash  balances  maintained  by the Company  during the six months ended June 30,
1998 versus the six months ended June 30, 1997. The Company  previously leased a
portion  of its  corporate  office  facility  under a six-year  sublease,  which
expired on April 30, 1997. Due to the continuing  expansion of operations,  (See
"Selling,  General and  Administrative"  above) the Company decided not to renew
the sublease and incorporated such space into its existing  corporate  facility.
Sublease  rental  income  earned  during  the six  months  ended  June 30,  1997
approximated $13,000.

NET LOSS

Net loss for the six months ended June 30, 1998 was $1,526,000 ($0.18 per share)
as compared to a net loss of $548,178 ($0.07 per share) for the six months ended
June 30, 1997. The increase in net loss,  principally  resulted from 1) decrease
in  "capital  sales"  type  revenue  resulting  from  the  Company  moving  to a
subscription-based  revenue  model  which  presently  is in its  early  stage of
growth,  and 2) increase in selling,  general and administrative  expenses.  See
"Revenues",  "Cost of sales and Service and Gross Profit" and "Selling,  General
and Administrative" above.


LIQUIDITY AND CAPITAL RESOURCES

The Company's  primary  source of liquidity has been equity  capital.  Since the
commencement of operations, the Company has raised approximately $9.8 million of
working capital through  various  private  placements of its securities.  During
March 1997,  the  Company  completed a private  placement  of 800,000  shares of
Common  Stock  at a  price  of  $4.50  per  share,  for an  aggregate  value  of
$3,600,000.  Costs related to this offering  amounted to  approximately  $85,000
resulting in net proceeds to the Company of  approximately  $3,515,000.  At June
30, 1998, cash balances  decreased to $1,549,021 from $2,141,307 at December 31,
1997.

The Company's  current assets at June 30, 1998 exceeded its current  liabilities
by approximately  $2.9 million.  The Company at June 30, 1998 had long-term debt
totaling  approximately  $415,000 which represents  secured term loans (three at
June 30, 1998) on the purchase of development equipment and draw downs on a line
of credit that was  refinanced in July 1998 with a new line of credit which does
not  require  repayments  for the first two  years.  Interest  on the term loans
varies from 7.95% to 9.0%.  The line of credit bore  interest at the Banks Prime
Rate plus 1% (9.5% at June 30,  1998).  The term  loans and line of credit  were
repaid on July 29, 1998 in association  with the Company  obtaining a $3 million
line of credit facility.  See discussion  below. In addition,  at June 30, 1998,
the Company had no material  commitments  for capital  expenditures or inventory
purchases.


                                       14
<PAGE>
On July 13,  1998,  the  Company  entered  into a three year $3 million  line of
credit agreement (the "Agreement") with a financial institution with advances on
such  Agreement  available  to the  Company  during  its  first 18  months.  The
Agreement  is  primarily  intended  to finance  existing  and  future  equipment
expenditures.  The  Agreement  bears  interest at either LIBOR plus 1.25% or the
Bank's Prime Rate and is  personally  secured by a Company  shareholder  and the
Company's  president.  The rate used is  management's  discretion.  The  Company
initially drew down $1 million under the Agreement  bearing  interest at the six
month LIBOR rate plus 1.25% (7%).  The Agreement  requires  monthly  payments of
interest only until January 30, 2000,  at which time monthly  ratable  principal
and interest payments are made until the Agreement matures.  Principal drawdowns
under  the  Agreement  can not be  prepaid  in the  first  eighteen  months.  In
consideration  for securing the Agreement,  the said  shareholder  and president
will receive 150,000 and 25,000 warrants respectively, to purchase the Company's
common stock at $6.375 per share,  which was the market  value of the  Company's
common stock on the date such warrants were issued.

In  association  with  obtaining  the $3 million  line of credit  facility,  the
Company  terminated its previous $500,000 line of credit agreement (revised from
$1 million  line of credit  agreement  in June 1998) and repaid all  outstanding
term loans, which aggregated approximately $415,000 as of June 30, 1998.

The Company  believes  that with its available  capital,  including the proceeds
from the line of credit facility, it will be able to fund its cash needs through
the end of 1998.  The  Company  intends to  internally  finance  its  continuing
research and  development  activities.  The Company's line of credit facility is
primarily  utilized to finance equipment  purchases.  The Company is considering
numerous  alternatives  to finance  its  anticipated  sales  growth and  growing
infrastructure.  The Company's  financial  requirements  and its ability to meet
them  thereafter  will  depend  largely  on its  future  financial  performance.
However,  in the event the  Company's  operations  do not  generate  cash to the
extent currently  anticipated by management of the Company and grow more rapidly
than anticipated, it is possible that the Company could require additional funds
beyond 1998. At this time, the Company does not know what sources, if any, would
be available to it for such funds, if required.

In addition,  at June 30, 1998,  the Company has  warrants  outstanding  for the
purchase of 220,837  shares of its Common  Stock.  Assuming  the exercise of all
such outstanding warrants,  the Company would receive approximately  $797,600 in
gross proceeds.

WORKING CAPITAL

At June 30, 1998 and  December  31,  1997,  the  Company had working  capital of
approximately  $2,891,000 and $3,803,000,  respectively.  The Company's  present
capital resources include its available borrowing capacity under its bank credit
facility.  Through June 30, 1998, 230,000 stock options and warrants to purchase
common stock were exercised with the Company receiving proceeds of approximately
$749,000.


                                       15
<PAGE>
CASH USED IN OPERATING ACTIVITIES

During the  six-months  ended June 30,  1998,  net cash used in  operations  was
approximately  $636,000 as compared to cash used in operations for the six-month
ended  June  30,  1997 of  approximately  $114,125.  The  decline  is  primarily
attributable to the Company's increasing losses as previously discussed.

CASH USED IN INVESTING ACTIVITIES

During the six months  ended June 30, 1998 and 1997,  net cash used in investing
activities  was  approximately  $1,026,000  and  $415,000,   respectively,   and
principally  represents  payments for the  purchases  of equipment  and payments
related to product enhancement costs for the Company's product portfolio.

PROCEEDS FROM FINANCING ACTIVITIES

During the six months  ended June 30,  1998 and 1997,  proceeds  from  financing
activities  were  approximately  $1,070,000 and  $2,882,480,  respectively.  The
decrease is primarily  attributable to there being no equity offering during the
six  months  ended June 30,  1998 as there was in the six months  ended June 30,
1997.

YEAR 2000 COMPLIANCE

Some of the Company's  older computer  programs for certain clients were written
using two digits  rather than four to define the  applicable  year. As a result,
those computer programs have time-sensitive software that recognize a date using
"00" as the year 1900 rather than the year 2000.  The Company has  completed  an
assessment and may have to modify some of the software and hardware with certain
clients so its computer systems will function  properly with respect to dates in
the year 2000 and  thereafter.  The total year 2000  project  cost,  if any,  is
estimated by management to be not material.

SEASONALITY

The Company  believes  that its  operations  are not  significantly  effected by
seasonality.

NEW ACCOUNTING PRONOUNCEMENTS

In October 1997, the American  Institute of Certified Public  Accountants issued
Statement of Position 97-2,  "Software  Revenue  Recognition,"  which supercedes
SOP-91-1 and clarifies the existing guidance  regarding  revenue  recognition of
certain computer  software  products.  The Company adopted SOP 97-2 in the first
quarter of 1998 and the effect is not material to the  Company's  operations  or
financial position taken as a whole.

In June 1997, the Financial Accounting Standards board issued FASB Statement No.
131,  "Disclosures  about  Segments of an Enterprise  and Related  Information."
Statement  131


                                       16
<PAGE>

requires that segment data be disclosed based on how management  makes decisions
about allocating  resources to segments and measuring their  performance.  While
the Company is studying the  application of the disclosure  provisions,  it does
not expect this statement to materially affect its financial position or results
of operations. This Statement is effective for the year ended December 31, 1998.


PART II

                                OTHER INFORMATION


Item 1.   LEGAL PROCEEDINGS

     Not applicable


Item 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS.

       Not applicable


Item 3.   DEFAULTS UPON SENIOR SECURITIES

     Not applicable


Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

The Annual  Meeting of  Stockholders  of the  Company  was held on June 3, 1998.
Votes were cast with  respect to the  election of four  directors to serve until
the next Annual Meeting of Stockholders as follows:

                                                        Number of Shares of
                         Number of Shares of              Common Stock As To
                               Common                   Which Authority
Nominees                Stock Voted In Favor           To Vote Was Withheld
--------                --------------------           --------------------
Peter K. Hansen              6,741,589                        29,781
John H. Chapman              6,741,589                        36,631
Craig M. Shumate             6,741,589                        29,781
Carl E. Warden               6,741,589                        39,381


                                       17
<PAGE>
Item 5.  OTHER INFORMATION

 Not applicable

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K.

(a)  EXHIBITS

     27  Financial  Data  Schedule

(b)     REPORTS ON FORM 8-K

On August 7, 1998 the  Company  filed a current  report on Form 8-K  relative to
obtaining  a $3  million  line of  credit  facility,  terminating  its  $500,000
previous line of credit agreement and repaying its three term loans.


                                   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.




                                       Trinitech Systems, Inc.
                                            (Registrant)



                                       By: /s/ Peter Kilbinger Hansen
                                          -------------------------------------
                                          Peter Kilbinger Hansen
                                          Chairman of the Board
                                             and President
                                          (Chief Executive Officer)


                                       By: /s/ Kevin C. Cassidy
                                          -------------------------------------
                                          Kevin C. Cassidy
                                          Chief Financial Officer and Secretary
                                          (Principal Financial and Accounting
                                          Officer)


                                       18