UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C. 20549

                                  FORM 10-Q

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

 For the quarterly period ended April 4, 1998 Commission File Number 0-8936

                       DATAMARINE INTERNATIONAL, INC.
           (Exact name of registrant as specified in its charter)

            Massachusetts                            04-2454559
      (State of Incorporation)         (I.R.S. Employer Identification Number)

             7030 220th SW, Mountlake Terrace, Washington 98043
                  (Address of principal executive offices)

                               (425) 771-2182
            (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports to 
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 
during the preceding 12 months, and (2) has been subject to filing 
requirements for the past 90 days.

                            Yes  [X]     No  [ ]

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

                Class                       Outstanding at April 4, 1998
     Common Stock, .01 Par Value                      1,329,912


                       PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

               DATAMARINE INTERNATIONAL, INC. AND SUBSIDIARIES
         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)


<TABLE>
<CAPTION>
                                  Three Months Ended           Six Months Ended
                                -----------------------    ------------------------
                                 April 4,    March 29,      April 4,     March 29,
                                   1998        1997           1998         1997
                                ----------   ----------    -----------   ----------

<S>                             <C>          <C>           <C>           <C>
Net sales                       $3,004,467   $3,386,079    $ 6,096,191   $6,209,156

Cost of products sold            1,983,495    2,413,345      4,123,582    4,212,946
                                ---------------------------------------------------

Gross profit                     1,020,972      972,734      1,972,609    1,996,210

Operating expenses:
  Research and development         342,792      335,962        712,663      640,740
  Selling                          585,409      617,464      1,313,279    1,279,106
  General and administrative       439,780      350,403        698,624      623,895
  Narrowband operations             70,430       63,330        138,888      127,468
                                ---------------------------------------------------
    Operating expenses           1,438,411    1,367,159      2,863,454    2,671,209
                                ---------------------------------------------------

Operating loss                    (417,439)    (394,425)      (890,845)    (674,999)

Interest expense                  (191,994)    (135,268)      (349,804)    (258,144)
Other income, net                   11,310        7,869         21,021       27,941
                                ---------------------------------------------------

Loss before income taxes          (598,123)    (521,824)    (1,219,628)    (905,202)

Benefit for income taxes                 -     (176,703)             -     (305,242)
                                ---------------------------------------------------

Net loss                        $ (598,123)  $ (345,121)   $(1,219,628)  $ (599,960)
                                ===================================================

Net loss per share, basic       $    (0.45)  $    (0.26)   $     (0.92)  $    (0.46)
Net loss per share, diluted     $    (0.45)  $    (0.26)   $     (0.92)  $    (0.46)

Average shares outstanding,
 basic and diluted               1,329,912    1,309,800      1,325,634    1,309,746
</TABLE>


 The accompanying notes are an integral part of these financial statements.


               DATAMARINE INTERNATIONAL, INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                         (Unaudited)
                                                                          April 4,      September 27,
                                                                            1998            1997
                                                                         -----------    -------------

<S>                                                                      <C>             <C>
                               ASSETS
Current assets:
  Cash and cash equivalents                                              $   281,839     $   532,896
  Accounts receivable, net of allowance of $92,870 and
   $234,973, respectively                                                  2,011,756       2,030,641
  Inventories                                                              5,071,149       4,867,708
  Prepaid expenses and other current assets                                  123,335         243,081
                                                                         ---------------------------
    Total current assets                                                   7,488,079       7,674,326

Property, plant and equipment                                              5,069,989       5,032,823
  Less accumulated depreciation                                            3,257,190       3,062,703
                                                                         ---------------------------
    Property, plant and equipment, net                                     1,812,799       1,970,120

Other assets, net                                                            457,885         495,476
                                                                         ---------------------------
    Total assets                                                         $ 9,758,763     $10,139,922
                                                                         ===========================

                LIABILITIES AND STOCKHOLDERS' EQUITY:

Current liabilities:
  Notes payable to bank                                                  $ 1,224,561     $ 1,367,561
  Notes payable to related parties and others                                994,697         850,887
  Accounts payable                                                         1,226,372         556,416
  Accrued expenses                                                         1,660,931       1,517,243
  Current maturities of long-term debt and capital lease obligations       1,805,934         133,286
                                                                         ---------------------------
    Total current liabilities                                              6,912,495       4,425,393

Long-term debt and capital lease obligations, less current maturities        141,947       1,815,693
                                                                         ---------------------------

    Total liabilities                                                      7,054,442       6,241,086
                                                                         ---------------------------

Redeemable preferred stock, $1 par value; none issued                              -               -

Stockholders' equity:
  Convertible preferred stock, $1 par value,
   Authorized 1,000,000 shares;
   including redeemable preferred stock; none issued                               -               -
  Common stock, $.01 par value,
   Authorized 3,000,000 shares; 1,329,912 and 1,320,473
   shares issued and outstanding, respectively                                13,299          13,205
  Capital in excess of par value                                           3,830,027       3,815,415
  Unearned compensation                                                      (42,645)        (53,052)
  Retained earnings (accumulated deficit)                                 (1,096,360)        123,268
                                                                         ---------------------------
      Total stockholders' equity                                           2,704,321       3,898,836
                                                                         ---------------------------
    Total liabilities and stockholders' equity                           $ 9,758,763     $10,139,922
                                                                         ===========================
</TABLE>


 The accompanying notes are an integral part of these financial statements.


               DATAMARINE INTERNATIONAL, INC. AND SUBSIDIARIES
         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                     Six Months Ended
                                                                -------------------------
                                                                 April 4,       March 29,
                                                                   1998           1997
                                                                 --------       ---------

<S>                                                             <C>             <C>
OPERATING ACTIVITIES
  Net loss                                                      $(1,219,628)    $(599,960)
  Adjustments to reconcile net loss 
   to net cash used in operating activities: 
    Depreciation and amortization                                   214,483       216,707
    Gain on asset dispositions                                      (10,790)            -
    Amortization of debenture discount and issue costs              127,777        67,750
    Provision for losses on accounts receivable                      32,008        32,797
    Employee investment plan expense                                 10,092        12,832
    Amortization of unearned compensation                            10,407         5,771
    Benefit of deferred income taxes                                      -      (305,242)
    Changes in operating assets and liabilities:
    Accounts receivable                                             (13,123)      375,610
    Inventories, prepaid expenses and other current assets          (83,695)      155,363
    Accounts payable and accrued expenses                           824,434       (86,799)
                                                                -------------------------
  Net cash used in operating activities                            (108,035)     (125,171)

INVESTING ACTIVITIES
  Purchases of property, plant and equipment, including self-
   constructed equipment                                             (1,225)      (88,665)
    Other                                                            (6,883)      (14,161)
                                                                -------------------------
  Net cash used in investing activities                              (8,108)     (102,826)

FINANCING ACTIVITIES
  Proceeds from sale of common stock                                  4,614         3,199
  Proceeds from notes payable to related parties and others         100,000             -
  Principal payments on note payable to bank, capital lease
   obligations and long-term debt                                  (239,528)      (89,988)
                                                                -------------------------
  Net cash used in financing activities                            (134,914)      (86,789)

  Decrease in cash and cash equivalents during period              (251,057)     (314,786)
  Cash and cash equivalents at beginning of period                  532,896       330,076
                                                                -------------------------

  Cash and cash equivalents at end of period                    $   281,839     $  15,290
                                                                =========================

  Supplementary Cash Flow Information
    Interest paid                                               $    89,152     $  54,579
    Capital lease obligations incurred to acquire equipment          35,941             -
</TABLE>


 The accompanying notes are an integral part of these financial statements.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.    Basis of Presentation:

The accompanying unaudited, consolidated, condensed quarterly financial 
statements have been prepared in accordance with instructions to Form 10-Q 
and, therefore, do not include all information and footnotes normally 
included in financial statements prepared in conformity with Generally 
Accepted Accounting Principles ("GAAP").  The information furnished reflects 
all adjustments (consisting only of normal recurring adjustments) which are, 
in the opinion of management, necessary for the fair statement of financial 
position, results of operations and cash flows for the interim period.  In 
the opinion of management, they fairly represent the operating results of 
the Company for the periods presented.  The year-end condensed balance sheet 
was derived from audited financial statements, but does not include all 
disclosures required by GAAP.  The results of operations for the periods 
presented are not necessarily indicative of the results to be expected for 
the full year.  Accounting policies used in fiscal 1998 are consistent with 
those used in fiscal 1997.  These financial statements should be read in 
conjunction with the financial statements and the notes thereto included in 
the Company's annual report on Form 10-K for the year ended September 27, 
1997.

For the quarter ended April 4, 1998 the Company had total revenue of 
$3,004,467 which was less than the $3,100,000 minimum required by the 
financial covenants of the Company's bank loan agreement.  The Company has 
requested a waiver of the minimum revenue requirement for the quarter, and 
based on discussions with representatives of the bank, expects to receive a 
waiver of the minimum revenue requirement for the quarter ended April 4, 
1998.  However, until any such waiver is obtained there can be no assurance 
that such a waiver will be received.  In the absence of a waiver, the bank 
could declare the note immediately due and payable which would severely 
limit the Company's cash and working capital, and likely prevent the Company 
from being able to fund current operating expenses.  The Company does not 
currently have available funds to repay the note if payment is demanded.  
The same loan agreement requires minimum revenue of $4,000,000 for the 
quarter ending July 4, 1998, a requirement that the Company does not expect 
to meet.  The Company and the bank are currently involved in discussions to 
modify this and other terms of the loan agreement.


2.    Inventory Components:

Inventories consisted of the following at:

<TABLE>
<CAPTION>
                         April 4, 1998    September 27, 1997
                         -----------------------------------

      <S>                 <C>                 <C>
      Finished Goods      $1,779,359          $1,797,292
      Work-In-Process        268,043             178,948
      Raw Material         3,023,747           2,891,468
                          ------------------------------
                          $5,071,149          $4,867,708
                          ------------------------------
</TABLE>

3.    Income Taxes:

Based on the loss incurred in fiscal 1997 and management's expectation that 
the Company will incur a loss for fiscal 1998, a valuation allowance equal 
to 100% of the Company's net deferred tax asset has been established as of 
September 27, 1997 and April 4, 1998.

4.    Earnings Per Share:

Earnings per share is computed using the weighted average number of common 
shares outstanding during the period.  Diluted earnings per share reflects 
adjustments for the assumed exercise of outstanding stock options and other 
potential issuances to the extent these have a dilutive effect on the 
computation.

5.    Reclassifications:

Certain reclassifications have been made to the prior quarters' financial 
statements in order to conform to the fiscal 1998 presentation, with no 
impact on previously reported net loss, stockholders' equity, or cash flow.

6.    New Accounting Standards:

In February 1997, the Financial Accounting Standards Board (the "FASB") 
issued Statement of Financial Accounting Standards No. 128, "Earnings Per 
Share."  This statement specifies the computation, presentation and 
disclosure requirements for earnings per share ("EPS"), to simplify the 
existing computational guidelines and increase comparability on an 
international basis.  The statement is effective for interim and annual 
reporting periods ending after December 15, 1997.  This statement replaces 
"primary" EPS with "basic" EPS, the principal difference being the exclusion 
of common stock equivalents in the computation of basic EPS.  In addition, 
this statement requires the dual presentation of basic and diluted EPS on 
the face of the consolidated statements of operations.  The Company adopted 
the provisions of this statement for the current quarter.  However, because 
there was a net loss the statement did not effect EPS disclosure.

In June 1997, the FASB issued Statement of Financial Accounting Standards 
No. 130, "Reporting Comprehensive Income."  This statement requires that 
changes in comprehensive income be shown in a financial statement that is 
displayed with the same prominence as other financial statements.  The 
statement will be effective for fiscal years beginning after December 15, 
1997.  Reclassification for earlier periods is required for comparative 
purposes.  The Company does not expect the statement to have a material 
impact on its consolidated financial position or results of operations.

In June 1997, the FASB issued Statement of Financial Accounting Standards 
No. 131, "Disclosures About Segments of an Enterprise and Related 
Information."  This statement supersedes Statement of Financial Accounting 
Standards No. 14, "Financial Reporting for Segments of a Business 
Enterprise."  This statement includes requirements to report selected 
segment information quarterly, and entity-wide disclosures about products 
and services, major customers, and the material countries in which the 
entity holds assets and reports revenues.  The statement will be effective 
for fiscal years beginning after December 15, 1997.  Reclassification for 
earlier periods is required, unless impracticable, for comparative purposes.  
Management has not yet determined the effects, if any, of SFAS 131 on the 
consolidated financial statements.

7.    Prior Period Adjustment:

Amounts reported herein for the quarter and six month period ended March 29, 
1997 are after restatement to correct an error in the value of work-in-
process inventory as originally reported.  The effect of such restatement 
was to increase net loss and decrease retained earnings by $88,942, or $.06 
per share for the quarter ended March 29, 1997 and $151,403 or $.12 per 
share for the six months ended March 29, 1997.

8.    Legal Proceedings:

On December 12, 1996 the Company filed a collection action against one of 
its customers for accounts totaling approximately $132,000.  On December 23, 
1996 the same customer filed suit against the Company alleging breach of 
certain express and implied warranty and contractual obligations, and 
negligent representation with respect to sales of the Company's narrowband 
products.  The suit originally sought $6,000,000 - $9,000,000 in damages and 
unspecified amounts for interest and other costs.  The suit was settled in 
April 1998 with both parties agreeing to drop their claims.  The total cost 
of the settlement was accrued in the quarter ended April 4, 1998 as a charge 
to administrative expense.

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

Statements included in this report which are not historical in nature are 
forward-looking statements made pursuant to the safe harbor provisions of 
the Private Securities Litigation Reform Act of 1995, and as such may 
involve risks and uncertainties.  This Quarterly Report on Form 10-Q and the 
Annual Report on Form 10-K contain certain detailed factors that could cause 
the Company's actual results to materially differ from forward-looking 
statements made by the Company.

Introduction

Datamarine International, Inc. and its subsidiaries (collectively the 
"Company") manufacture radio communications and navigation instrumentation 
products.  Presently, the Company's primary operations are in a single 
industry segment, namely electronics.  The Company also owns and manages 
specialized mobile radio ("SMR") licenses in the 220 MHz radio service, 
although such operations to date have been immaterial.

Datamarine International, Inc. was incorporated in Massachusetts on April 
23, 1969.  All of the Company's product development, manufacturing 
facilities and marketing activities are based at its Mountlake Terrace, 
Washington location.  The Company has sales and service facilities on the 
East and West coasts of the United States and in Sydney, Australia.  Marine 
communication products, branded SEA, and marine instrumentation products, 
branded Datamarine, are sold worldwide through approximately 500 dealers in 
the United States and approximately 20 foreign countries.

Sales of narrowband communications products for the land mobile radio market 
are made through the Company's wholly-owned subsidiary, SEA, Inc. ("SEA"), 
to business users nationwide.  SEA has developed and marketed narrowband 
radio equipment since 1984 and began selling its current line of narrowband 
equipment for use in the 220 MHz band in the fourth quarter of fiscal 1993.

On October 19,1992, the Federal Communications Commission ("FCC") conducted 
a lottery which led to the issuance of approximately 3,500 licenses for a 
new land mobile service in the 220-222 MHz band.  The FCC adopted 
challenging technical parameters for the equipment to be used in the 220 MHz 
radio service.  By establishing these parameters the FCC intended to 
encourage the development of new spectrum-efficient technologies for land 
mobile applications.  This service is mandated to use narrowband 
technologies which will result in a fivefold increase in the number of 
communications channels as compared to conventional 25 KHz technologies.  
SEA was the first manufacturer to receive FCC type acceptance for 220 MHz 
radio equipment.  SEA shipped its first 220 MHz radios in July 1993.

As of September 30, 1996 ownership of licenses for locations which had not 
met regulatory build-out requirements reverted to the Federal government.  
Until such time as new licenses are issued, demand for the Company's higher 
margin base station products will be minimal.  The FCC recently announced a 
delay of the previously announced May 19, 1998 auction for the remaining 220 
MHz spectrum licenses, and no new auction date has been set.  The auction 
will be for licenses covering "Economic Areas", "Regions" and "Nationwide" 
areas as defined by the FCC and no new auction date has been set.  The delay 
in auctioning spectrum licenses negatively impacts the Company's land mobile 
sales, total gross profit and cash flow.

During fiscal 1995 Narrowband Network Systems, Inc. ("NNS") was incorporated 
in the state of Washington as a subsidiary of SEA, and SEA owns 97.5% of 
NNS's outstanding stock.  NNS was formed to participate in the business of 
providing SMR services.  NNS has entered into both "Management Agreements" 
and "Operator Agreements" with the holders of 220 MHz licenses granted by 
the FCC related to SMR services in approximately 47 market areas across the 
United States.  Management Agreements require NNS to construct, develop and 
operate SMR systems in certain markets.  Operator Agreements require NNS to 
provide licenses, system facilities and "SMR Operators" in certain markets.  
The Management Agreements typically allow NNS to acquire the license 
holder's interest in exchange for a percentage of gross receipts from the 
system and a percentage of any profit realized by NNS upon the system's 
ultimate disposition.  The Operator Agreements typically give NNS a 
contractual percentage of system revenue based on the level of support 
provided to each system.  The Company has met all regulatory build-out 
requirements related to its licenses.  Because NNS commenced only limited 
operations at the end of 1995, revenues have been immaterial since 
inception.

Foreign sales typically account for approximately 6% of the Company's 
consolidated sales.  In recent years, foreign sales have represented a 
smaller percentage of total sales because narrowband products are only sold 
domestically.

Products and Marketing

Land Mobile Communications -- The Company's narrowband land mobile radio 
system products have been type accepted by the FCC for use in the 220 MHz 
radio service.  These products consist of hand held, mobile and base station 
components, utilizing narrowband technology in an enhanced form of single 
sideband that is ideal for the 5 KHz channel width used in the 220 MHz radio 
service, and were developed for sale to business users of private land 
mobile radio services.  The narrowband technology helps solve the problem of 
frequency congestion by allowing five narrowband channels to be operated 
within the same spectrum as would presently be utilized by one 25 KHz FM 
channel.

Marine Communications -- The SEA marine communications products are high 
performance radios used on commercial vessels, fishing vessels and yachts 
over 40 feet in length.  The product line currently consists of 28 products 
with suggested list prices between $765 and $40,000.  The SEA products 
include HF/SSB and VHF/FM radios, Satcom C, Weather fax, Search and rescue 
transponders (SARTS) and Global Maritime Distress and Safety Systems 
(GMDSS).

Marine Instrumentation -- Marine instrumentation products are sold 
primarily to the recreational boating market.  The products are well 
established in the marketplace with up-to-date instruments for each type of 
pleasure craft: small boats and yachts; sail and power; inshore and 
offshore. The Datamarine product line currently consists of 15 products sold 
under the DART, LINK, Corinthian and ChartLINK names, with suggested list 
prices between $400 and $3,900. The Datamarine products include depth 
sounders, knotmeters and water temperature instruments, wind speed and 
direction instruments, integrated instruments, and electronic chart 
plotters.

Results of Operations

The following table sets forth the components of sales and gross profit by 
product line for the Quarter Ended April 4, 1998 and the comparable quarter 
in the prior fiscal year.

<TABLE>
<CAPTION>
         Sales                                                   Gross Profit
------------------------                                    -----------------------
 April 4,     March 29,                                      April 4,     March 29,
   1998         1997                                           1998         1997
-----------------------------------------------------------------------------------

<C>           <C>            <S>                            <C>           <C>
$  724,144    $1,479,378     Land Mobile Communications     $   80,885    $244,740
 1,678,165     1,292,250       Marine Communications           686,993     532,008
   602,158       614,451       Marine Instrumentation          253,094     195,986
----------------------------------------------------------------------------------
$3,004,467    $3,386,079               Total                $1,020,972    $972,734
----------------------------------------------------------------------------------
</TABLE>


Sales order backlogs at April 4, 1998 were as follows:  Land Mobile 
Communications $149,000, Marine Communications $410,000 and Marine 
Instrumentation $27,000. 

The following table sets forth income and expense items as a percentage of 
net sales for the quarter, and the percentage change in those items from the 
comparable quarter in the prior year.

<TABLE>
<CAPTION>
  Income and Expense Items                                  Percentage
as a Percentage of Net Sales                            Increase (Decrease)
----------------------------                            -------------------
                                                           1997     1996
   April 4,    March 29,                                    to       to
     1998        1997                                      1998     1997
--------------------------------------------------------------------------

     <C>         <C>        <S>                            <C>      <C>
     100%        100%              Net sales                (11)     (15)
      66          71         Cost of products sold          (18)       3
      34          29              Gross profit                5      (40)
      48          40           Operating expenses             5       (2)
     (14)        (11)            Operating loss               6     (250)
      (6)         (4)           Interest expense             42      187
     (20)        (15)          Loss before taxes             15     (442)
       -          (5)       Benefit for income taxes       (100)    (402)
     (20%)       (10%)              Net loss                 73     (468)
</TABLE>


Net sales decreased by $381,612 or 11% compared to the same quarter in the 
prior fiscal year.  Net sales of the Company's land mobile products 
decreased by $755,234 or 51% compared to the same quarter in the prior 
fiscal year.  Net sales of the Company's marine communications systems 
increased by $385,915 or 30%.  Net sales of the Company's marine 
instrumentation systems decreased by $12,293 or 2% compared to the same 
quarter in the prior fiscal year.

Sales of marine communications and marine instrumentation products continued 
to contribute to the Company's performance.  Marine communications sales 
outperformed management's estimates and marine instrument sales were lower 
than management's estimates.  Overall, the marine segment continued to 
improve.  Land mobile revenues were comprised almost entirely of mobile 
radio products and will continue to be so until new licenses are auctioned 
by the FCC.  The FCC announced that the auction would commence on May 19, 
1998, then later delayed the auction until a still to be announced date.  
The lack of an auction date continues to make it extremely difficult for the 
Company to plan and promote its land mobile products.

Gross profit was $1,020,972 (34% of net sales), as compared to $972,734 (29% 
of net sales) in the prior year, an increase of $48,238 or 5%.  The gross 
profit on land mobile products was $80,885 (11% of such sales), as compared 
to $244,740 (17% of such sales) in the prior year, a decrease of $163,855 or 
67%.  The gross profit on marine communications systems was $686,993 (41% of 
such sales), as compared to $532,008 (41% of such sales) in the prior year, 
an increase of $154,985 or 29%.  The gross profit on marine instrumentation 
systems was $253,094 (42% of such sales), as compared to $195,986 (32% of 
such sales) in the prior year, an increase of $57,108 or 29%.  The increase 
in overall gross profit margin was due to a greater portion of the Company's 
revenues coming from marine products as compared to lower margin land mobile 
radio products.  Land mobile margins vary depending upon the sales mix 
across the product line, and mobile radio products typically have 
substantially lower gross margins than base station equipment.  The market 
for communications products is very competitive and downward pressure on 
selling prices for mobile radios is expected to continue.  Profit margins on 
marine communication and marine instrumentation products vary according to 
product sales mix and are mostly comparable to the prior year.  The 
improvement in gross margin on instrumentation products was due to slightly 
higher selling prices for some products.  The Company expects marine 
products sales will continue the growth started in fiscal 1997.

Operating expenses were $1,438,411 (48% of net sales), as compared to 
$1,367,159 (40% of net sales) last year, an increase of $71,252 or 5%.  
Engineering expenses were comparable to the prior year as a result of 
increased consulting expenses being offset by lower salary and consumable 
supplies.  Total selling expenses decreased due to a reduction in 
advertising expense as a result claims for co-op advertising being lower 
than previously estimated.  The lower advertising expense was partially 
offset by higher commission expense and fees related to type acceptance 
certifications of marine products.  Commission expense was higher in 1998 
because commission rates on certain products were temporarily lowered during 
part of fiscal 1997.  Administrative expenses were higher as a result of 
increased professional fees and the settlement costs incurred in connection 
with the matter discussed in Note 8.  These increases were partially offset 
by a reduction in previously accrued profit sharing because the Company 
failed to meet the required performance criteria.  Narrowband operating 
expenses increased due to higher site rental costs.

Interest expense increased $56,726 as a result of new borrowings during 1997 
and the first quarter of 1998 in the form of Subordinated Short Term Notes, 
and the higher effective carrying value on both the Short Term Notes and the 
Subordinated Convertible Debentures.  The maturity date of the Subordinated 
Convertible Debentures was changed from December 2000 to February 1999 which 
resulted in increased amortization of the related discount and debt issuance 
costs.

Other income, net was approximately the same as the comparable quarter in 
fiscal 1997.

Income taxes were zero for the quarter as compared to a benefit of $176,703 
in the prior year.  Based on the loss incurred in fiscal 1997 and 
management's expectation that the Company will incur a loss for fiscal 1998, 
a valuation allowance equal to 100% of the Company's net deferred tax asset 
has been established as of September 27, 1997 and April 4, 1998.


Liquidity and Capital Resources

On April 4, 1998, the Company's principal sources of liquidity consisted of 
approximately $282,000 in cash and equivalents, $775,000 in the unused 
portion of bank working capital credit line (of which only an additional 
$289,000 was available with the current accounts receivable and inventory 
borrowing base), and $55,000 available under a subordinated bank line from 
an officer of the Company.  The Company continues to have operating losses 
and negative cash flow from operating activities.  The Company's current 
operating plans include a strategy for reducing expenses and certain cash 
payments in order to decrease the net cash used.  Based on these operating 
plans, the Company believes its cash flow from operations, available bank 
lines of credit and other committed financing sources are sufficient to meet 
its working capital and other capital requirements at least through October 
3, 1998.  In order to redeem its obligations as scheduled in 1999, and meet 
its operating and capital requirements into fiscal 1999, the Company will 
require additional funding.  The Company is considering various sources of 
funding including additional private or publicly placed debt or equity, 
mergers, or the sale of assets.  No such funding is committed at this time, 
and there is no assurance that the Company will be able to obtain additional 
financing on acceptable terms.

For the quarter ended April 4, 1998 the Company had total revenue of 
$3,004,467 which was less than the $3,100,000 minimum required by the 
financial covenants of the Company's bank loan agreement.  The Company has 
requested a waiver of the minimum revenue requirement for the quarter, and 
based on discussions with representatives of the bank, expects to receive a 
waiver of the minimum revenue requirement for the quarter ended April 4, 
1998.  However, until any such waiver is obtained there can be no assurance 
that such a waiver will be received.  In the absence of a waiver, the bank 
could declare the note immediately due and payable which would severely 
limit the Company's cash and working capital, and likely prevent the Company 
from being able to fund current operating expenses.  The Company does not 
currently have available funds to repay the note if payment is demanded.  
The same loan agreement requires minimum revenue of $4,000,000 for the 
quarter ending July 4, 1998, a requirement that the Company does not expect 
to meet.  The Company and the bank are currently involved in discussions to 
modify this and other terms of the loan agreement.

Other

In April 1998 the Company announced it has agreed in principle to merge its 
NNS subsidiary into a new entity with three other unrelated mobile 
communications companies.  The merger is subject to, among other things, 
documentation, due diligence, funding of the new entity, and approval by the 
Company's Board of Directors and lenders.  Any gain or loss that may be 
recognized on the transaction cannot be determined until an agreement is 
finalized.

                         PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

On December 12, 1996 the Company filed a collection action against one of 
its customers for accounts totaling approximately $132,000.  On December 23, 
1996 the same customer filed suit against the Company alleging breach of 
certain express and implied warranty and contractual obligations, and 
negligent representation with respect to sales of the Company's narrowband 
products.  The suit originally sought $6,000,000 - $9,000,000 in damages and 
unspecified amounts for interest and other costs.  The suit was settled in 
April 1998 with both parties agreeing to drop their claims.  The total cost 
of the settlement was accrued in the quarter ended April 4, 1998 as a charge 
to administrative expense.

Items 2, 3 and 4

There were no reportable events or matters under these captions during the 
quarter ended April 4, 1998.

Item 5.  Other Information

The Company's common stock is currently listed on the Nasdaq SmallCap Market 
via an exception from the net tangible assets requirement.  The exception 
was granted through June 30, 1998 by which time the Company is required to 
evidence a minimum of $4,500,000 in net tangible assets.  The Company is 
pursuing sources of additional equity in order to meet the requirements, 
however, there can be no assurance that it will do so.  If at some future 
date the Company's securities should cease to be listed on the Nasdaq 
SmallCap Market, they may continue to be listed on the OTC-Bulletin Board.

Item 6.  Exhibits and Reports on Form 8-K
(a)  Exhibits

4  Debenture Purchase Agreement with exhibits, incorporated by reference to 
Annual Report on Form10-K for the Fiscal Year Ended September 30, 1995.

4.1  Subordinated Notes Agreement with exhibits, incorporated by reference 
to Annual Report on Form10-K for the Fiscal Year Ended September 27, 1997.

4.2  Terms for Amendment of December 19, 1995 Debenture Agreement, 
incorporated by reference to Annual Report on Form10-K for the Fiscal Year 
Ended September 27, 1997.

10.1  Datamarine International, Inc. 1991 Stock Option Plan, incorporated by 
reference to Registration Statement 33-48532 on Form S-8.

10.2  1992 Stock Option Plan for Non-employee Directors, incorporated by 
reference to Annual Report on Form 10-K for the Fiscal Year Ended October 1, 
1994.

10.3  Debenture Purchase Agreement with exhibits, same as 4 above.

10.4  1995 Stock Option Plan for Non-employee Directors, incorporated by 
reference to Annual Report on Form10-K for the Fiscal Year Ended September 
28, 1996.

27  Financial Data Schedule

(b)  The following reports on Form 8-K were filed during the quarter ended 
April 4, 1998.
            Form 8-K dated January 15, 1998.  Delayed filing of 10-K and 
            issues related to Subordinated Convertible Debenture.


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.

                                       Datamarine International, Inc.
                                                (Registrant)



Date:  May 11, 1998                    /s/  JAN KALLSHIAN
       ------------                    -----------------------------
                                            Jan Kallshian
                                            Chief Financial Officer