UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549 
                                   FORM 10-Q 
                  QUARTERLY REPORT UNDER SECTION 13 OF 15(d) 
                    OF THE SECURITIES EXCHANGE ACT OF 1934 
  
                       For quarter ended April 30, 1997    

                         Commission File Number 0-3825 
 
                      Computer Transceiver Systems, Inc.         
           (Exact name of registrant as specified in its charter) 
 
       New York                                     22-1842747      
(State of Incorporation)             (I.R.S. Employer Identification Number) 

               Registrant's Telephone Number:  (201) 473-4700 

Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. 
 
                        Yes   X                       No      

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by court.            
                                                                      
                        Yes   X                        No      

The number of shares outstanding of the registrant's Common Stock, par value
of $.001 per share, as of June, 10 1997 was 2,716,603.
                                      
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                       COMPUTER TRANSCEIVER SYSTEMS, INC.
	
                                   FORM 10 - Q

                                  April 30, 1997
 
                                       INDEX
            
           
                                                                           Page


Part I.  Financial Information 
 
         Item 1.  Financial Statements  
         Balance Sheets - April 30, 1997
                   and July 31, 1996                                         3
                        
         Statements of Discontinued Operations-
         Three  and Nine Months ended April 30, 1997
                   and January 31, 1996                                      4
  
         Statements of Cash Flows-
         Nine Months ended April 30, 1997
                   and April 30, 1996                                        5

         Notes to Financial Statements                                       6

         Item 2.  Management's Discussion and Analysis of
         Financial Condition and Results of Operations                       7


  II. Other Information

Item 6. Exhibits and Reports on Form 8-K                                     8
    
         Signatures                                                          9
                                     -2-  
<PAGE>
<TABLE>
PART I Financial Information
Item 1. Financial Statements
COMPUTER TRANSCEIVER SYSTEMS, INC.
Balance Sheets
<CAPTION>

                      
                                                          April 30, 1997           July 31, 1996
                                                           (unaudited)                (audited)
                                                            (note 2)
<S>                                                        <C>                     <C>
ASSETS

Current Assets:

Marketable Securities--
     Vertex Industries                                     $      3,052            $      3,052 
                                                           --------------          ------------- 
Total Assets                                               $      3,052            $      3,052 
                                                           ==============          =============

Liabilities and Stockholders' Equity 

Commitments and Contingencies

Stockholders' Equity (Deficit)

Common stock, par value $.001 
per share authorized 
15,000,000 shares; issued and 
outstanding 2,716,603 shares 
at April 30, 1997 and at July 
31, 1996, respectively
                                                                  2,716                   2,716

Capital in excess of par value                                2,452,840               2,452,840

Accumulated deficit                                          (2,450,156)             (2,450,156)

Net unrealized loss on Marketable Securities                     (2,348)                 (2,348) 
                                                             -----------             -----------

Total Stockholders' Equity                                        3,052                   3,052 
                                                             -----------             -----------

Total Liabilities and Stockholder' Equity                    $    3,052              $    3,052  
                                                             ===========             ===========
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
                                      -3-
<PAGE>
<TABLE>
                   COMPUTER TRANSCEIVER SYSTEMS, INC.
                 Statements of Discontinued Operations
                               (Unaudited)
<CAPTION>
                                                    Three Months Ended            Nine Months Ended
                                                         April 30,                    April 30,
                                                 1997               1996          1997             1996    
<S>                                          <C>                <C>           <C>            <C>
Net Income                                   $     --           $     --      $     --       $     --       
                                             ------------       ------------  ------------    -----------    

Retained (Deficit) at beginning of period     (2,450,156)        (2,450,156)   (2,450,156)    (2,450,156) 
                                             ------------       ------------   -----------    -----------

Retained (deficit) at end of period           (2,450,156)        (2,450,156)   (2,450,156)    (2,450,156) 
                                             ============       ============   ===========    ===========

Net Income per share                         $     --            $     --     $     --        $     --     
                                             ============       ============   ===========    ===========

Weighted Average Number
of Shares Outstanding                          2,716,603          2,716,603     2,716,603      2,716,603 
                                             ============       ============   ===========    ===========
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
                                      -4-
<PAGE>
<TABLE>
                       COMPUTER TRANSCEIVER SYSTEMS, INC.
                             Statements of Cash Flows
                                    (Unaudited)
<CAPTION>  
                                                     Nine Months Ended
                                             April 30, 1997      April 30, 1996
<S>                                           <C>                <C>
Cash Flows from Discontinued Operating 
Activities:

Net Income                                    $        --        $         --             
 
Net Adjustments to 
Reconcile Net Income to net cash 
used for operating activities:

Increase (decrease) in 
liabilities:

Accrued expenses                                       --              (43,000)

Net adjustments to reconcile net
income to net cash used for 
discontinued operating activities                      --              (43,000) 

Net Cash used for discontinued
operating activities                                   --              (43,000) 

Cash Flows From Financing 
Activities:
Proceeds from additional 
capital contribution                                   --               43,000  
                                              --------------     ---------------

    Net Cash Provided by 
      Financing Activities                             --               43,000 
                                              --------------     ---------------

   Net (Decrease) in Cash                              --                  --  

   Cash at Beginning of Year                           --                  --      
                                              --------------     --------------- 
     
   Cash at End of Period                        $      --        $         --     
                                              ==============     ===============
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
                                      -5-
<PAGE>

                      COMPUTER TRANSCEIVER SYSTEMS, INC.
                  Notes to Financial Statements - Unaudited
                                 April 30, 1997


Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements have been prepared by the 
Company pursuant to the rules and regulations of the Securities and 
Exchange Commission, and reflect all adjustments which,  in the 
opinion of the management,  are necessary for a fair statement of the 
results of the interim periods presented.  These financial statements 
do not include all disclosures associated with annual financial 
statements, and accordingly should be read in conjunction with the 
notes to financial statements contained in the Company's Form 10-K 
Annual Report for the fiscal year ended July 31, 1996.   

Note 2 - SALE OF ASSETS TO VERTEX AND FUTURE PLANS 

On August 31, 1994, pursuant to an "Asset Purchase Agreement" 
dated May 1, 1993 between the Company and Vertex Industries, Inc. 
("Vertex"), the Company's majority stockholder, and with the approval 
of the Company's directors and shareholders, the Company sold all of 
its assets to Vertex and Vertex assumed the Company's liabilities.  
The assets sold included inventory, equipment, receivables, 
proprietary technology, goodwill and other intangibles.  The selling 
price of $1,699,580 was paid by Vertex through the offset and 
cancellation of the Company's indebtedness to Vertex in the amount of 
$1,257,001, with the balance of $442,579 being paid through the 
issuance of 236,042 shares of Vertex common stock to the Company.  
CTSI subsequently distributed 233,170 shares of Vertex common stock in 
an exchange offer for 746,161 shares of CTSI's common stock.  The 
Vertex shares reflected in the balance sheet as marketable securities 
as of July 31, 1995 represents the remaining shares of 2,872 which 
were not distributed to the CTSI shareholders.  After completion of 
the Exchange Offer, the number of issued and outstanding shares of the 
Company was reduced from 3,462,764 to 2,716,603.  As a result of the 
transaction, Vertex's ownership of the Company is approximately 72.5%.

The Company's current business purpose is to seek out and obtain 
an acquisition, and/or merger transaction, whereby its shareholders 
may benefit by owning an interest in a viable enterprise.  Since the 
Company has no operations or significant assets as a result of the 
sale, its potential for profits will come solely from operations it 
may undertake after any acquisition or merger transaction.  The 
Company has not received from, or made any specific proposals to, any 
possible merger or acquisition candidate and there is no guarantee 
that such transaction will occur.  Vertex will be responsible for, and 
shall be the source of, any funds necessary for the Company to 
continue operating and to comply with any regulatory requirements, 
taxes, and fees.  It will fund any costs associated with pursuing 
merger or acquisition candidates.
                                      -6-
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ITEM 2:	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 
AND RESULTS OF OPERATIONS.


The Company ceased operations on August 31, 1994 and, therefore, 
has no operating results for the three and six months ended April 30, 
1997 and 1996.
                                      -7-
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                     COMPUTER TRANSCEIVER SYSTEMS, INC. 
                                   PART II 

                              OTHER INFORMATION 
 

 
Item 6.	EXHIBITS AND REPORTS ON FORM 8K 
 
         (a)  Exhibits:  None 
 
         (b)  There were no reports on Form 8K filed during the 
              quarter ended April 30, 1997

                                      -8-          
<PAGE>


                                 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. 
 
 
 
 
                     COMPUTER TRANSCEIVER SYSTEMS, INC. 
                                (Registrant) 
 
 
 
Date: June 10, 1997                By:     S/ Thomas J. Tully      
                                           ------------------                  
                                              Thomas J. Tully
                                              President

                                      -9-
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