SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                  --------------------------------------------
                                 F O R M  10-Q

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


For Quarter Ended  September 28, 1998              Commission File Number 0-7282
                   

                            COMPUTER HORIZONS CORP.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


           New York                                         13-2638902
-------------------------------                       ----------------------
(State or other jurisdiction of                          (I.R.S. Employer
incorporation or organization)                        Identification Number)

        49 Old Bloomfield Avenue, Mountain Lakes, New Jersey 07046-1495
--------------------------------------------------------------------------------
(Address of principal executive offices)                          (Zip code)

       Registrant's telephone number, including area code (973) 299-4000
                                                          --------------

                                 Not Applicable
            -------------------------------------------------------
            (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  twelve 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   [   ]

As of  November  2, 1998 the  issuer  had  31,160,384  shares  of  common  stock
outstanding.
<PAGE>
                             COMPUTER HORIZONS CORP.


                                      Index



   Part I                       Financial Information

                                Consolidated Balance Sheets
                                September 28, 1998 and December 31, 1997      

                                Consolidated Statements of Income
                                Three Months and Nine Months Ended
                                September 28, 1998 and September 27, 1997     

                                Condensed Consolidated Statements of
                                Cash Flows  -  Nine Months Ended
                                September 28, 1998 and September 27, 1997     

                                Notes to Consolidated Financial Statements    

                                Management's Discussion and Analysis
                                of Financial Condition and Results of
                                Operations                                    

   Part II                      Other Information                             

                                Signatures                                    


<PAGE>
<TABLE>
<CAPTION>
COMPUTER HORIZONS CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Unaudited)

                                                                                        September 28,     December 31,
                                                                                             1998             1997
                                                                                        -------------     ------------
                                                                                             (dollars in thousands)
<S>                                                                                       <C>               <C>     
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents ....................................................          $ 52,863          $ 92,087
  Short term investments .......................................................            13,293            13,165
  Accounts receivable, net of allowance for doubtful
    accounts of $2,190,000 and $1,742,000 at September 28, 1998
    and December 31, 1997, respectively ........................................           122,310            81,547
  Deferred income tax benefit ..................................................             2,668             1,818
  Other ........................................................................             3,720             1,207
                                                                                          --------          --------
          TOTAL CURRENT ASSETS .................................................           194,854           189,824
                                                                                          --------          --------

PROPERTY AND EQUIPMENT .........................................................            21,279            12,801
  Less accumulated depreciation ................................................             9,090             7,101
                                                                                          --------          --------
                                                                                            12,189             5,700
                                                                                          --------          --------

OTHER ASSETS - NET:
  Goodwill .....................................................................            66,932            17,090
  Deferred income tax benefit ..................................................             1,818               852
  Other ........................................................................             7,857             4,280
                                                                                          --------          --------
          TOTAL OTHER ASSETS ...................................................            76,607            22,222
                                                                                          --------          --------

TOTAL ASSETS ...................................................................          $283,650          $217,746
                                                                                          ========          ========


LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
  Current portion of long-term debt ............................................          $  1,056          $  1,473
  Accrued payroll, payroll taxes and benefits ..................................            22,925            18,231
  Accounts payable .............................................................             2,650             2,211
  Income taxes payable .........................................................             4,010             4,309
  Other accrued expenses .......................................................            15,859             3,145
                                                                                          --------          --------
          TOTAL CURRENT LIABILITIES ............................................            46,500            29,369
                                                                                          --------          --------

LONG-TERM DEBT .................................................................             1,022              --
                                                                                          --------          --------

OTHER LIABILITIES ..............................................................             5,218             2,283
                                                                                          --------          --------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
COMPUTER HORIZONS CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Unaudited) (continued)

                                                                                        September 28,     December 31,
                                                                                             1998             1997
                                                                                        -------------     ------------
                                                                                             (dollars in thousands)
<S>                                                                                       <C>               <C>     
SHAREHOLDERS' EQUITY:
  Preferred stock, $.10 par;  authorized and unissued 200,000 shares,  including
    50,000 Series A
  Common stock,  $.10 par,  authorized  100,000,000  shares;  issued  32,201,282
    shares and 31,247,069 shares at September 28, 1998
    and December 31, 1997, respectively ........................................             3,220             3,125
  Additional paid-in capital ...................................................           124,559           117,979
  Retained earnings ............................................................           111,792            78,862
                                                                                          --------          --------
                                                                                           239,571           199,966
  Less shares held in treasury, at cost;  1,056,885 shares and
    1,692,253 shares at September 28, 1998 and December 31, 1997, respectively .             8,661            13,872
                                                                                          --------          --------
          TOTAL SHAREHOLDERS' EQUITY ...........................................           230,910           186,094
                                                                                          --------          --------


TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY .....................................          $283,650          $217,746
                                                                                          ========          ========

</TABLE>

See notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
COMPUTER HORIZONS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

                                                 THREE MONTHS ENDED                              NINE MONTHS ENDED
                                  ------------------------------------------------------------------------------------------------  
                                     SEPT. 28, 1998             SEPT. 27, 1997          SEPT. 28, 1998             SEPT. 27, 1997
                                  -------------------      ---------------------     --------------------     --------------------
                                                            (dollars in thousands, except per share data) 
<S>                               <C>          <C>         <C>            <C>       <C>           <C>         <C>            <C>   
REVENUES: 
    Services                        $130,625    95.6%         $89,861     100.0%      $356,742      95.9%        $250,711    100.0% 
    Products                           6,008     4.4%              -                    15,138       4.1%               -           
                                    --------    ----          -------     -----       --------      ----         --------    -----  
                                                                                                                                    
                                     136,633   100.0%          89,861     100.0%       371,880     100.0%         250,711    100.0% 
                                                                           
COSTS AND EXPENSES:                                                                                                                 
     Direct costs - Services          85,595    62.6%          59,698      66.4%       234,449      63.0%        168,285      67.1% 
     Direct costs - Products             992     0.7%               -                    2,503       0.7%              -            
     Selling, general and                                                
        administrative                28,075    20.5%          18,510      20.6%        78,025      21.0%         53,586      21.4% 
    Amortization of intangibles        1,052     0.8%             174       0.2%         1,785       0.5%            518       0.2%
    Merger-related expenses              735     0.5%               -                    4,272       1.1%              -            
                                    --------    ----          -------     -----       --------      ----        --------     -----
                                                         
                                     116,449    85.2%          78,382      87.2%       321,034      86.3%        222,389      88.7% 
                                    --------    ----          -------     -----       --------      ----        --------     -----  
                                                      
INCOME FROM OPERATIONS                20,184    14.8%          11,479      12.8%        50,846      13.7%         28,322      11.3% 
                                    --------    ----          -------     -----       --------      ----        --------     -----  
                                                 
OTHER INCOME (expense):                         
     Interest income                   1,011     0.7%             160       0.2%         3,886       1.0%            473       0.2% 
     Interest expense                    (60)    0.0%             (46)     (0.1%)          (76)      0.0%           (271)     (0.1%)
     Equity in Joint Venture                                                                                                        
        net earnings (loss)                0     0.0%             (75)     (0.1%)          (90)       0.0%           138       0.1% 
                                    --------    ----          -------     -----       --------      ----        --------     -----  
                                         951     0.7%              39       0.0%         3,720       1.0%            340       0.1% 
                                    --------    ----          -------     -----       --------      ----        --------     -----  
                                                                                                                                    
INCOME BEFORE INCOME TAXES            21,135    15.5%          11,518      12.8%        54,566      14.7%         28,662      11.4% 
                                    --------    ----          -------     -----       --------      ----        --------     -----  
                                           
INCOME TAXES:                            
     Current                          10,149     7.4%           4,731       5.3%        26,426       7.1%         12,773       5.1% 
     Deferred                           (833)   (0.6%)            167       0.2%        (1,852)     (0.5%)          (577)     (0.2%)
                                    --------    ----          -------     -----       --------      ----        --------     -----  
                                       9,316     6.8%           4,898       5.5%        24,574       6.6%         12,196       4.9% 
                                    --------    ----          -------     -----       --------      ----        --------     -----  
                                         
                                        
NET INCOME                           $11,819     8.7%          $6,620       7.4%       $29,992       8.1%       $ 16,466       6.6% 
                                    ========    ====          =======     =====       ========      ====        ========    ======  
                                                     
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
COMPUTER HORIZONS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (continued)

                                           THREE MONTHS ENDED                                  NINE MONTHS ENDED
                               ------------------------------------------------------------------------------------------------ 
                                 SEPT. 28, 1998          SEPT. 27, 1997            SEPT. 28, 1998             SEPT. 27, 1997
                               ----------------         ----------------          ----------------            ----------------- 
                                                            (dollars in thousands, except per share data) 

<S>                               <C>                      <C>                      <C>                       <C>           
EARNINGS PER SHARE:                                                                                                         
    Basic                              $0.38                    $0.25                    $0.97                     $0.61  
                                       =====                    =====                    =====                     =====  
    Diluted                            $0.37                    $0.23                    $0.93                     $0.58  
                                       =====                    =====                    =====                     =====  
                                                                                                                          
                                                                                                                          
WEIGHTED AVERAGE NUMBER OF                                                                                                
SHARES OUTSTANDING:                                                                                                       
    Basic                         30,960,000               26,830,000               30,834,000                26,978,000  
    Diluted                       32,209,000               28,248,000               32,234,000                28,194,000  
                                  ==========               ==========               ==========                ==========  
                                                   
</TABLE>
See notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
COMPUTER HORIZONS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

                                                                                   Nine Months Ended
                                                                              --------------------------
                                                                              Sept. 28,        Sept. 27,
                                                                                 1998             1997
                                                                               --------        --------- 
                                                                                     (in thousands)
<S>                                                                            <C>              <C>      
CASH FLOWS FROM OPERATING ACTIVITIES ..................................        $ 12,220         ($ 1,559)
                                                                               --------         --------

CASH FLOWS FROM INVESTING ACTIVITIES
   Sales of short-term investments ....................................           1,197                0
   Purchases of property and equipment ................................          (6,299)          (1,500)
   (Increase)/decrease in other assets ................................             169             (800)
   Acquisitions, net of cash ..........................................         (47,344)            (115)
                                                                               --------         --------
                                                                                (52,277)          (2,415)
                                                                               --------         --------

CASH FLOWS FROM FINANCING ACTIVITIES
   Repayment of long-term debt ........................................          (1,432)          (1,867)
   Dividends paid .....................................................            (773)            (973)
   Proceeds from issuance of stock ....................................               0           83,713
   Stock options exercised ............................................           3,038            2,553
                                                                               --------         --------
                                                                                    833           83,426
                                                                               --------         --------

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS ..................         (39,224)          79,452

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR ........................          92,087           14,127
                                                                               --------         --------

CASH AND CASH EQUIVALENTS AT END OF PERIOD ............................        $ 52,863         $ 93,579
                                                                               ========         ========

Supplemental disclosure of non-cash investing and financing activities:

Details of Acquisitions:
     Fair value of assets acquired, net of cash .......................        $ 61,588
     Less liabilities assumed .........................................           5,037
     Less stock issued in connection with acquisitions ................           9,207
                                                                               --------
     Net cash paid for acquisitions ...................................        $ 47,344
                                                                               ========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
                             COMPUTER HORIZONS CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

        For the Quarters Ended September 28, 1998 and September 27, 1997


               The information  furnished reflects all adjustments which, in the
opinion  of the  Company,  are  necessary  to present  fairly  its  consolidated
financial  position and the results of its  operations  and changes in financial
position for the periods indicated.

               Reference is made to the Company's  annual  financial  statements
for the year ended  December  31,  1997,  for a  description  of the  accounting
policies,  which have been continued without change. Also refer to the footnotes
with those annual statements for additional  details of the Company's  financial
condition, results of operations and changes in cash flows. The details in those
notes have not changed except as a result of normal transactions in the interim.

               On September 23, 1998, the Company  completed the  acquisition of
Enterprise Solutions Group, LLC, a Cincinnati,  Ohio-based provider of training,
educational and consulting services,  for cash and stock totaling  approximately
$7.3 million.  On August 4, 1998, the Company  completed the  acquisition of RPM
Consulting,  Inc.  ("RPM"),  for cash and  stock  totaling  approximately  $27.7
million.  RPM, based in Maryland,  is a leading  provider of enterprise  network
design and implementation  services.  On July 3, 1998, the Company completed the
acquisition of ISG Careers Inc. and ISG Contracts  Inc.(collectively "ISG"), for
approximately  $21.6 million ($US) in cash. Based in Toronto,  Canada,  ISG is a
Toronto,  Canada-based  information  technology  services  firm,  offering  both
professional staffing and career placement services.  All three acquisitions are
being  accounted  for  under  the  purchase   method  of  accounting.   Had  the
acquisitions  occurred on January 1, 1998,  the effect on revenue and net income
would have been immaterial.

               On June 24, 1998, the Company completed the acquisition of Spargo
Consulting  PLC  ("Spargo"),   an  information  technology  consultancy  service
provider, organized under the laws of the United Kingdom for 1,877,000 shares of
Computer Horizon stock.  This transaction has been accounted for as a pooling of
interests and, accordingly the consolidated financial statements for the periods
presented have been restated to include the accounts of Spargo.

               The reconciliation below details the effects of the pooling noted
above on the previously reported revenues,  net income and earnings per share of
the separate companies for the periods preceding the acquisition.
<PAGE>
<TABLE>
<CAPTION>
                                           Three Months
                                              Ended           Year Ended        Year Ended        Year Ended
                                          March 31, 1998         1997              1996               1995
                                          --------------      ----------        ----------        ----------  
<S>                                         <C>               <C>               <C>               <C>    
Revenues
             Computer Horizons Corp.           107,101           334,729           249,152           213,165
             Spargo ................             4,410            15,581            12,259            11,327
                                            ----------        ----------        ----------        ----------
             Combined ..............           111,511           350,310           261,411           224,492
                                            ==========        ==========        ==========        ==========

Net Income
             Computer Horizons Corp.             8,176            22,644            11,864            10,425
             Spargo ................               461             1,902             1,212               873
                                            ----------        ----------        ----------        ----------
             Combined ..............             8,637            24,546            13,076            11,298
                                            ==========        ==========        ==========        ==========

Earnings Per Share
Basic
             Computer Horizons Corp.              0.28              0.88              0.48              0.46
             Spargo ................              0.00              0.01              0.02              0.00
                                            ----------        ----------        ----------        ----------
             Combined ..............              0.28              0.89              0.50              0.46
                                            ==========        ==========        ==========        ==========
Diluted
             Computer Horizons Corp.              0.27              0.84              0.46              0.44
             Spargo ................              0.00              0.01              0.01              0.00
                                            ----------        ----------        ----------        ----------
             Combined ..............              0.27              0.85              0.47              0.44
                                            ==========        ==========        ==========        ==========

Shares Outstanding
             Basic .................        30,714,000        27,567,000        26,380,000        24,312,000
             Diluted ...............        32,287,966        29,013,000        27,939,000        25,842,000

</TABLE>
               On  February  27,  1998 the  Company  acquired  all the shares of
Princeton Softech, Inc. ("Princeton") in exchange for 954,213 shares of Computer
Horizons  stock.  The results of Princeton,  which is being  accounted for as an
immaterial pooling, are included from January 1, 1998.
<PAGE>
Earnings per Share:  Basic  Earnings Per Share  ("EPS") is based on the weighted
average  number of common shares  outstanding  without  consideration  of common
stock  equivalents.  Diluted earnings per share is based on the weighted average
number of common and common equivalent shares outstanding. The calculation takes
into  account  the shares that may be issued  upon  exercise  of stock  options,
reduced by the shares that may be  repurchased  with the funds received from the
exercised, based on the average price during the year.

                In accordance  with SFAS No.128,  the table below  presents both
basic and diluted earnings per share:
<TABLE>
<CAPTION>
                                                                   Nine Months Ended
                                                                Sept. 28,       Sept. 27,
                                                              -----------     -----------
                                                                  1998            1997
                                                              -----------     -----------
<S>                                                           <C>             <C>        
Numerator:
               Net income (in thousands) ................     $    29,992     $    16,466

Denominator:
               Denominator for basic earnings per share
                  Weighted average shares outstanding ...      30,834,000      26,798,000

Effect of stock options .................................       1,400,000       1,396,000
Dilutive potential earnings per share:
               Denominator for diluted earnings per share
                  Adjusted weighted average shares
                  outstanding and assumed conversions ...      32,234,000      28,194,000

Basic earnings per share ................................     $      0.97     $      0.61

Diluted earnings per share ..............................     $      0.93     $      0.58
</TABLE>


               The  computation of diluted  earnings per share excludes  options
with exercise prices greater than the average market price.  During 1998,  there
were 581,975  excluded  options  outstanding at September 28, 1998 with exercise
prices of $33.41 to $45.50 per share.  All options to purchase  shares of common
stock were included in the computation of diluted earnings per share in 1997.
<PAGE>
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

        For the Quarters Ended September 28, 1998 and September 27, 1997


     Revenues. Revenues increased to $136.6 million in the third quarter of 1998
from $89.9 million in the third quarter of 1997, an increase of $46.7 million or
51.9%. Staffing revenues increased to $69.0 million in the third quarter of 1998
from $56.8 million in the third quarter of 1997, an increase of $12.2 million or
21.5%.  Total  solutions  revenues,  including Year 2000 revenues,  increased to
$61.6  million  in the third  quarter  of 1998 from  $33.1  million in the third
quarter of 1997 , an  increase  of $28.5  million or 86.1%.  Year 2000  services
revenues  increased  to $36.9  million  in the third  quarter of 1998 from $19.6
million in the third quarter of 1997, an increase of $17.3 million or 88.3%. The
Company's Year 2000 business  accounted for 27.0% of total revenues in the third
quarter of 1998 versus  21.8% of total  revenues  in the third  quarter of 1997.
Solutions revenues,  excluding Year 2000 services, increased to $24.7 million in
the third  quarter of 1998 from $13.5  million in the third  quarter of 1997, an
increase of $11.2 million or 83.0%. The Company's  product revenues totaled $6.0
million for the third quarter of 1998.

     Revenues  increased to $371.9 million in the first nine months of 1998 from
$250.7 million in the first nine months of 1997, an increase of $74.3 million or
48.3%. Staffing revenues increased to $190.1 million in the first nine months of
1998 from $164.0  million in the first nine months of 1997, an increase of $26.1
million  or 15.9%.  Total  solutions  revenues,  including  Year 2000  revenues,
increased to $166.6  million in the first nine months of 1998 from $86.7 million
in the first nine months of 1997 , an increase of $79.9  million or 92.2%.  Year
2000 services  revenues  increased to $106.7 million in the first nine months of
1998 from $47.5  million in the first nine months of 1997,  an increase of $59.2
million or 124.6%. The Company's Year 2000 business accounted for 28.7% of total
revenues in the first nine months of 1998 versus 18.9% of total  revenues in the
first nine months of 1997.  Solutions  revenues,  excluding  Year 2000 services,
increased to $59.9  million in the first nine months of 1998 from $39.2  million
in the first nine months of 1997,  an increase  of $20.7  million or 52.8%.  The
Company's  product  revenues  totaled $15.1 million for the first nine months of
1998.

     Direct Costs. Direct costs increased to $86.6 million and $237.0 million in
the third  quarter  and first  nine  months of 1998,  respectively,  from  $59.7
million  and  $168.3  million  in the  comparable  1997  periods.  Gross  margin
increased to 36.6% and 36.3% in the third quarter and first nine months of 1998,
respectively, from 33.6% and 32.9% in the third quarter and first nine months of
1997,  respectively.  The increase in gross margin was  primarily  due to stable
margins in the  Company's  staffing  business  and an increase in the  Company's
higher  margin  solutions  business.   The  Company's  margins  are  subject  to
fluctuations due to a number of factors, including the level of salary and other
compensation necessary to attract and retain qualified technical personnel,  and
the mix of staffing versus solutions business during a particular quarter.
<PAGE>
     Selling,  General and Administrative.  Selling,  general and administrative
expenses  (excluding   merger-related  expenses  and  amortization  expenses  of
intangible  asses),  increased to $28.1  million and $78.0  million in the third
quarter  and first nine  months of 1998,  respectively,  from $18.5  million and
$53.6  million in the  comparable  1997  periods.  The increase was  primarily a
result of salaries and commissions for additional sales and recruiting personnel
and, to a lesser  extent,  growth in the  Company's  general and  administrative
infrastructure.  The Company incurred  merger-related  expenses of approximately
$0.7  million  and $4.3  million in the third  quarter  and first nine months of
1998,  respectively.  Amortization  expenses  of  intangible  assets  (primarily
goodwill  from  acquisitions)  increased to $1.1 million and $1.8 million in the
third quarter and first nine months of 1998, respectively, from $0.2 million and
$0.5 million in the comparable 1997 periods.

     Income from Operations.  Operating  margins increased to 14.8% and 13.7% in
the third  quarter and first nine months of 1998,  respectively,  from 12.8% and
11.3% in the  comparable  1997 periods.  These  increases  were primarily due to
increases in the Company's higher margin solutions business, partially offset by
merger-related  expenses in 1998. The Company's business is labor-intensive and,
as such, is sensitive to inflationary trends. This sensitivity applies to client
billing rates, as well as to payroll costs.

     Other  Income.  Other income  increased to $1.0 million and $3.7 million in
the third quarter and first nine months of 1998, respectively, from nil and $0.3
million in the comparable  1997 periods.  This increase was primarily the result
of  increased   interest  income  resulting  from  the  follow-on   offering  of
approximately $84 million completed in the third quarter of 1997.

     Provision for Income Taxes. The effective tax rates for Federal,  state and
local  income  taxes were 44.1% and 45.0% for the third  quarter  and first nine
months of 1998,  respectively.  For the comparable 1997 periods,  the rates were
42.5% and 42.6%, respectively. The increase in the 1998 rates were primarily due
to certain non-deductible merger-related expenses incurred during the year.

     Net  Income.  Net income  increased  to $11.8  million,  or $0.37 per share
(diluted) for the third quarter of 1998,  from $6.6 million,  or $0.23 per share
(diluted)  for the third  quarter of 1997, an increase of $5.2 million or 78.8%.
For the first nine months of 1998,  net income  increased to $30.0  million,  or
$0.93 per share (diluted),  from $16.5 million, or $0.58 per share (diluted) for
the first nine months of 1997.

     Liquidity and Capital  Resources.  At September  28, 1998,  the Company had
$148.4  million  in working  capital,  of which  $66.2  million  was cash,  cash
equivalents and short-term investments.  There were no borrowings under its bank
lines of credit.

     Net cash provided by operating  activities in the first nine months of 1998
was $12.2  million,  consisting  primarily  of net income,  offset in part by an
increase in accounts receivable.  During the first nine months of 1997, net cash
used in  operating  activities  was $1.6  million,  primarily  as a result of an
increase  in  accounts  receivable,  largely  due to  growth  in  the  Company's
solutions business.

     Net cash used in investing  activities in the first nine months of 1998 was
$52.3 million,  consisting  primarily of the three acquisitions that the Company
completed  during the third quarter,  as well as purchases of equipment.  During
the first  nine  months  of 1997,  cash used in  investing  activities  was $2.4
million,  primarily as a result of equipment  purchases and an increase in other
assets.
<PAGE>
     Net cash  provided by financing  activities  was $0.8 million for the first
nine  months  of 1998,  with  proceeds  received  from  stock  option  exercises
exceeding the amount of repayment of long-term  debt and dividend  payments made
by Spargo.  For the first nine months of 1997,  net cash  provided by  financing
activities was $83.4 million,  consisting primarily of the net proceeds from the
Company's public offering of common stock.

     At September 28, 1998,  the Company had a current ratio  position of 4.2 to
1,  approximately  $1.0 million of long-term debt and no outstanding  borrowings
under its two unsecured lines of credit.  The Company believes that its cash and
cash  equivalents  and  short-term  investments,  lines of credit and internally
generated  funds will be  sufficient  to meet its working  capital needs through
1999.

     Year 2000  Issue.  The Year 2000  ("Y2K")  issue is the result of  computer
programs using a two-digit  format,  as opposed to four digits,  to indicate the
year.  Such computer  systems will be unable to interpret  dates beyond the year
1999,  which could cause a system failure or other computer  errors,  leading to
disruptions in operations.

     In an effort  to  address  the Y2K  situation,  the  Company  is  currently
implementing a new firmwide  accounting/information system. In addition to being
Year 2000 compliant,  the system will support the Company's  future growth.  The
implementation  is expected to be completed in late 1998,  and the related cost,
estimated  at $4.5  million,  is not  expected to have a material  impact on the
Company's  financial  condition or results of  operations.  The Company is still
assessing the impact of the Year 2000 for its recent acquisitions.

     In the area of third-party relationships, the Company has contacted most of
its major third parties.  Most of these parties state that they intend to be Y2K
compliant by 2000. The Company is developing a plan to perform certain functions
internally that are currently provided by outside parties,  should those parties
not become Y2K  capable.  There can be no  assurance  that  third  parties  will
succesfully update their Year 2000-dependant systems or that the Company will be
able to implement the necessary  procedures to replace the services  provided by
third parties.  Such failures on the part of either third parties or the Company
could cause a disruption in the Company's business,  and such a disruption could
have a material adverse effect on the Company's  operating results and financial
condition.

     Certain   Disclosures.   This  report  contains   certain   forward-looking
statements  for  purposes  of  the  "safe  harbor"  provisions  of  the  Private
Securities  Litigation  Reform Act of 1995 that involve risks and  uncertainties
that could cause actual results to differ materially.  Such statements are based
upon,  among  other  things,  assumptions  made by,  and  information  currently
available to management,  including management's own knowledge and assessment of
the Company's industry and competition.
<PAGE>

                            PART II Other Information


Item 6.

               b) Three  reports on Form 8-K have been filed  during the quarter
for  which  this  report  is  filed.  One form was  filed on  August  25,  1998,
consistent with the Company's acquisition of RPM Associates,  Inc. Another form,
consistent with the Company's  acquisition of ISG Careers Inc. and ISG Contracts
Inc., was filed on July 20, 1998. The remaining form was filed on July 15, 1998,
consistent with the Company's acquisition of Spargo Consulting, PLC.



                                   Signatures

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


                                                  COMPUTER HORIZONS CORP.
                                                        (Registrant)



DATE:       November 3, 1998                      /s/John J. Cassese
            ----------------                      ------------------ 
                                                  John J. Cassese, 
                                                  Chairman of the Board
                                                  and President


DATE:       November 3, 1998                      /s/William J. Murphy
            ----------------                      -------------------- 
                                                  William J. Murphy, 
                                                  Executive Vice President
                                                  and Chief Financial Officer
                                                  (Principal Financial Officer)


DATE:       November 3, 1998                      /s/Michael J. Shea
            ----------------                      ------------------ 
                                                  Michael J. Shea
                                                  Vice President and Controller
                                                  (Principal Accounting Officer)