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

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549



                                   FORM 10-QSB


( X ) QUARTERLY REPORT                                     ( ) TRANSITION REPORT


                         PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


For the Quarterly Period Ended June 30, 1998     Commission File No. 33-20015-NY
                          ---------------------------



                             SENTECH EAS CORPORATION
             (Exact name of Registrant as specified in its charter)


          FLORIDA                                        65-0734041
(State or other jurisdiction of          (I.R.S. Employer Identification Number)
incorporation or organization)


    484 SOUTHWEST 12TH AVENUE
     DEERFIELD BEACH, FLORIDA                                    33442-3108
(Address of principal executive offices)                         (Zip Code)


         Registrant's telephone number including area code: 954-426-2965


               Former name, former address and former fiscal year,
                       if changed since last report: SAME


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Sections 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 __ No X

As of July 31, 1998, there were 1,677,201 shares of the common stock
outstanding.

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



<PAGE>


                             SENTECH EAS CORPORATION

                                      INDEX

                                   FORM 10-QSB

                         SIX MONTHS ENDED JUNE 30, 1998




PART I.    FINANCIAL INFORMATION

     Item 1.    Financial Statements

                  Consolidated Balance Sheets                                 2

                  Consolidated Statements of Operations                       3

                  Consolidated Statement of Shareholders' Equity              4

                  Consolidated Statements of Cash Flows                       5

                  Notes to Consolidated Financial Statements                  6

     Item 2.    Management's Discussion and Analysis of Financial 
                Condition and Results of Operations                           8




PART II. OTHER INFORMATION

     Item 1.    Legal Proceedings                                             10

     Item 4.    Submission of Matters to a Vote of Security Holders           11

     Item 5.    Other Information                                             11

     Item 6.    Exhibits and Reports on Form 8-K                              11

     Signatures                                                               11



                                      -1-
<PAGE>





                            SENTECH EAS CORPORATION
                          CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>

                                                                 JUNE 30,
                                                                   1998           DECEMBER 31,
                                                                (UNAUDITED)          1997
                                                                ------------     -------------
ASSETS
------------------------------------------------------------

Current assets
<S>                                                             <C>            <C>        
     Cash and cash equivalents                                  $   249,427    $   475,263
     Accounts receivable, net of allowances of $5,000               152,321        199,802
     Inventories                                                    536,105        531,197
     Other current assets                                            41,716         62,150
                                                                -----------    -----------
        Total current assets                                        979,569      1,268,412
Property and equipment, net                                          41,931         50,916
Other assets                                                        131,159         96,407
                                                                -----------    -----------

                                                                $ 1,152,659    $ 1,415,735
                                                                ===========    ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------------------------------

Current liabilities
     Accounts payable                                           $   134,765    $   390,759
     Accrued liabilities                                            101,072         63,051
     Current maturities of long-term debt                              --           16,657
                                                                -----------    -----------
         Total current liabilities                                  235,837        470,467
                                                                -----------    -----------
Long-term debt less current maturities                              203,000        203,000
                                                                -----------    -----------


Shareholders' equity
     Common stock; $0.00024 par value; 20,833,333 authorized;
        1,677,201 and 1,640,427 issued and outstanding                  403            394
     Additional capital                                           2,470,683      2,444,054
     Accumulated deficit                                         (1,757,264)    (1,702,180)
                                                                -----------    -----------
         Total shareholders' equity                                 713,822        742,268
                                                                -----------    -----------

                                                                $ 1,152,659    $ 1,415,735
                                                                ===========    ===========

</TABLE>

------------------------------------------------------------
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.



                                      -2-
<PAGE>



                             SENTECH EAS CORPORATION
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>


                                        THREE MONTHS                  SIX MONTHS
                                       ENDED JUNE 30,               ENDED JUNE 30,
                                   1998           1997           1998              1997
----------------------------   -----------    -----------    -----------    ------------
                                                                                                              --

<S>                            <C>            <C>            <C>            <C>        
Revenues                       $   530,818    $   383,527    $ 1,216,681    $   619,621
Cost of revenues                  (332,095)      (237,610)      (796,836)      (393,319)
                               -----------    -----------    -----------    -----------
Gross profit                       198,723        145,917        419,845        226,302
Selling, general, and
     administrative expenses      (230,746)      (194,227)      (475,908)      (363,923)
                               -----------    -----------    -----------    -----------
Operating loss                     (32,023)       (48,310)       (56,063)      (137,621)
Interest expense                    (1,057)        (2,218)        (2,320)        (4,816)
Interest income                      1,009          5,430          3,299          8,132
                               -----------    -----------    -----------    -----------
 Net loss                       $   (32,071)   $   (45,098)   $   (55,084)   $  (134,305)
                               ============   ============   ============   ============
Net loss per share              $     (0.02)   $     (0.03)   $     (0.03)   $     (0.09)
                                                                            
                               ===========    ============   ============   ============

</TABLE>



-----------------------------------------------------------
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.



                                      -3-
<PAGE>



                             SENTECH EAS CORPORATION
                 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

<TABLE>
<CAPTION>




                                                     COMMON STOCK       ADDITIONAL     ACCUMULATED
                                                --------------------
                                                  SHARES     AMOUNT      CAPITAL         DEFICIT         TOTAL
                                                ---------  ---------   -----------    ------------   -----------

<S>                                            <C>        <C>         <C>            <C>            <C>        
BALANCE AT DECEMBER 31, 1997                    1,640,427  $    394    $ 2,444,054    $(1,702,180)   $   742,268

Conversion of debt interest                           891         1          2,137           --            2,138

Issued in lieu of payment for  professional         5,883         1         13,999           --           14,000
services

Issued pursuant to compensation agreements         30,000         7         10,493           --           10,500

Net loss                                          (55,084)  (55,084)

                                              ============   =======   ===========    ===========    ===========
BALANCE AT JUNE 30, 1998 (UNAUDITED)
                                                1,677,201    $  403    $ 2,470,683    $(1,757,264)   $   713,822
                                              ============   =======   ===========    ===========    ===========
</TABLE>



------------------------------------------------------------
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.


                                      -4-
<PAGE>





                             SENTECH EAS CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>



                                                                     SIX MONTHS ENDED JUNE 30,
                                                                         1998         1997
------------------------------------------------------------------   ----------   ----------

CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                  <C>          <C>       
   Net loss                                                          $ (55,084)   $(134,305)
   Adjustments to reconcile net loss to net cash used in operating
   activities:
       Depreciation and amortization                                    10,368       12,243
       Debt interest converted to common stock                           2,138         --
       Stock issued in lieu of payment for professional services        14,000         --
       Stock based compensation                                         10,500         --
       Net changes in operating assets and liabilities:
               Accounts receivable                                      47,481      (15,988)
               Inventories                                              (4,908)    (137,811)
               Other current assets                                     20,434       24,569
               Other assets                                            (34,752)     (58,333)
               Accounts payable                                       (255,994)     (47,824)
               Accrued liabilities                                      38,021        9,520
                                                                     ---------    ---------
       Net cash used in operating activities                          (207,796)    (347,929)
                                                                     ---------    ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Capital expenditures                                                 (1,383)        --
                                                                     ---------    ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Payments on note payable to bank                                   (16,657)     (30,077)
    Payments on notes payable to shareholders                             --        (17,500)
    Net proceeds from issuance of common stock                            --        190,366
                                                                     ---------    ---------
         Net cash (used in) provided by financing activities           (16,657)     142,789
                                                                     ---------    ---------
Net decrease in cash and cash equivalents                             (225,836)    (205,140)
Cash and cash equivalents at beginning of year                         475,263      567,212
                                                                     ---------    ---------
Cash and cash equivalents at end of quarter                          $ 249,427    $ 362,072
                                                                     =========    =========
</TABLE>



------------------------------------------------------------
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.


                                      -5-
<PAGE>




                             SENTECH EAS CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


1.   BASIS OF PRESENTATION

     The consolidated financial statements include the financial statements of
     SenTech EAS Corporation and its wholly owned subsidiary, SenTech EAS
     International, Inc., (collectively, the "Company"). All significant
     intercompany balances and transactions have been eliminated in
     consolidation.

     The interim consolidated financial statements presented have been prepared
     by the Company without audit and, in the opinion of the management, reflect
     all adjustments of a normal recurring nature necessary for a fair statement
     of (a) the results of operations for each of the three and six months ended
     June 30, 1998 and June 30, 1997, (b) the financial position at June 30,
     1998, and (c) the cash flows for each of the three and six months ended
     June 30, 1998 and June 30, 1997. Interim results are not necessarily
     indicative of results for a full year.

     The consolidated balance sheet presented as of December 31, 1997 has been
     derived from the consolidated financial statements that have been audited
     by the Company's independent public accountants. The consolidated financial
     statements and notes are condensed as permitted by Form 10-QSB and do not
     contain certain information included in the annual financial statements and
     notes of the Company. The consolidated financial statements and notes
     included herein should be read in conjunction with the financial statements
     and notes included in the Company's Annual Report on Form 10-KSB.

2.   INVENTORIES

     Inventories consisted of the following:

                                                   JUNE 30,
                                                     1998        DECEMBER 31,
                                                  (UNAUDITED)        1997
                                                 ------------    ------------

     Raw materials                                $ 315,537       $ 339,015
     Finished goods                                 220,568         192,182
                                                 -------------    ----------
                                                  $ 536,105       $ 531,197
                                                 =============    ==========

     Inventories are stated at the lower of cost or market. Cost is determined
     using the first-in, first-out method.

3.   NET LOSS PER SHARE

     Net loss per share is calculated using the weighted average number of
     common shares and dilutive potential common stock outstanding during the
     year. The number of shares used in the per share computations were
     1,651,839 and 1,540,087 for the three months ended June 30, 1998 and 1997,
     respectively; and 1,646,165 and 1,520,869 for the six months ended June 30,
     1998 and 1997, respectively. Potential common stock, when included in the
     computation of dilutive earnings per share, was anti-dilutive at June 30,
     1998 and 1997.


                                      -6-
<PAGE>



     In February 1997, the Financial Accounting Standards Board issued Statement
     of Financial Accounting Standards No. 128 "Earnings Per Share" and
     Statement of Financial Accounting Standards No. 129 "Disclosure of
     Information about Capital Structure" which are both effective for fiscal
     years beginning after December 15, 1997. SFAS No. 128 simplifies the
     current required calculation of earnings per share ("EPS") under APB No.
     15, "Earnings per Share", by replacing the existing calculation of primary
     EPS with a basic EPS calculation. It requires a dual presentation for
     complex capital structures of basic and diluted EPS on the face of the
     income statement and requires a reconciliation of basic EPS factors to
     diluted EPS factors. SFAS No. 129 requires disclosure of the Company's
     capital structure. There was no material impact to the Company's financial
     reporting or presentation due to the adoption of SFAS No. 128 and SFAS No.
     129.

4.   SUPPLEMENTAL CASH FLOW INFORMATION

     The Company paid cash for interest of approximately $0 and $200 for the
     three and six months ended June 30, 1998 and $1,200 and $2,700 for the
     three and six months ended June 30, 1997, respectively.

     The Company paid no cash for income taxes for the three and six months
     ended June 30, 1998 and 1997.

5.   RECENT PRONOUNCEMENTS IN ACCOUNTING STANDARDS

     In June 1997, the Financial Accounting Standards Board issued Statement of
     Financial Accounting Standards No. 130 "Reporting Comprehensive Income,"
     which is effective for fiscal years beginning after December 15, 1997. SFAS
     No. 130 establishes standards for the reporting and display of
     comprehensive income and its components in a full set of general purpose
     financial statements which requires the Company to (i) classify items of
     other comprehensive income by their nature in a financial statement and
     (ii) display the accumulated balance of other comprehensive income
     separately from retained earnings and additional paid-in-capital in the
     equity section of the balance sheet. There was no material impact to the
     Company's financial reporting or presentation due to the adoption of SFAS
     No. 130.

     Also in June 1997, the Financial Accounting Standards Board issued
     Statement of Financial Accounting Standards No. 131 "Disclosures about
     Segments of an Enterprise and Related Information," which is effective for
     fiscal years beginning after December 15, 1997. SFAS No. 131 supersedes
     SFAS No. 14, "Financial Reporting for Segments of a Business Enterprise",
     and amends SFAS No. 94, "Consolidation of All Majority-Owned Subsidiaries".
     SFAS No. 131 requires annual financial statements to disclose information
     about products and services, geographic areas, and major customers based on
     a management approach, along with interim reports. The management approach
     requires disclosing financial and descriptive information about an
     enterprise's reportable operating segments based on reporting information
     the way management organizes the segments for making business decisions and
     assessing performance. It also eliminates the requirement to disclose
     additional information about subsidiaries that were not consolidated. This
     new management approach may result in more information being disclosed than
     presently practiced and require new interim information not previously
     presented. There was no material impact to the Company's financial
     reporting or presentation due to the adoption of SFAS No. 131.

6.   PURCHASE AND MANUFACTURING AGREEMENT

     In June 1997, the Company entered into a three year purchase and
     manufacturing agreement (the "Agreement") with a company whose President
     and Chief Executive Officer is a director of the Company. The Agreement
     provides for the development and manufacture of the Company's third
     generation EAS system. The Agreement requires the Company to pay $175,000
     of non-recurring engineering costs in exchange for an assignment of fifty
     percent of the joint technology as defined by the Agreement. Payments made
     for non-recurring engineering are recorded at cost and are amortized as a



                                      -7-
<PAGE>

     component of cost of revenues using the units-of-production method. As of
     June 30, 1998, approximately $152,000 of non-recurring engineering costs
     were capitalized of which $29,000 and $123,000 are included in other
     current assets and other assets, respectively. At June 30, 1998, there were
     no amortized non-recurring engineering costs included in cost of revenues.
     The Agreement also requires the Company to purchase minimum quantities of
     the system each year representing an aggregate purchase commitment of
     $2,250,000 with annual obligations of $1,125,000 by January 1999 and
     $1,125,000 by January 2000.


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


     FORWARD LOOKING STATEMENTS AND ASSOCIATED RISKS

     This Quarterly Report on Form 10-QSB contains forward-looking statements
     within the meaning of Section 27A of the Securities Act of 1933 and Section
     21E of the Securities Exchange Act of 1934. The Company's actual results
     could differ materially from those set forth in the forward-looking
     statements.

     The following discussion should be read in conjunction with the attached
     consolidated financial statements and notes thereto and with the Company's
     audited financial statements and notes thereto for the fiscal year ended
     December 31, 1997.


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

     REVENUES

     Revenues were approximately $531,000 for the second quarter 1998, an
     increase of $147,000 or 38% from revenues of $384,000 for the second
     quarter 1997. Revenues of approximately $1,217,000 for the six months ended
     June 30, 1998 increased $597,000 or 96% from revenues of approximately
     $620,000 for the six months ended June 30, 1997. The increase in revenues
     during 1998 was primarily attributed to sales from a new customer which
     generated 10% and 34% of the Company's total revenues for the three and six
     months ended June 30, 1998, respectively. There is no assurance of future
     sales from the new customer. At June 30, 1998, the Company ended the
     quarter with nearly $30,000 in backlog compared to nearly $52,000 in
     backlog at June 30, 1997.

     GROSS PROFIT

     Gross profit was approximately $199,000 for the second quarter 1998, an
     increase of $53,000 or 36% from gross profit of $146,000 for the second
     quarter 1997. Gross profit of approximately $420,000 for the six months
     ended June 30, 1998 increased $194,000 or 86% from gross profit of
     approximately $226,000 for the six months ended June 30, 1997. The increase
     in gross profit during 1998 was primarily a result of the increase in
     revenues. Gross profit margins remained fairly constant approximating 37%
     and 38% for the second quarter 1998 and 1997, respectively, and 35% and 37%
     for the six months ended June 30, 1998 and 1997, respectively. The Company
     realizes substantially higher gross profit margins on its manufactured
     products than it realizes on its purchased products due to the proprietary
     nature of purchased products, however, the current sales mix is expected to
     remain consistent as the Company's customer base expands.


                                      -8-
<PAGE>





     SELLING, GENERAL, AND ADMINISTRATIVE EXPENSE

     Selling, general, and administrative expenses were approximately $231,000
     for the second quarter 1998, an increase of $37,000 or 19% from selling,
     general, and administrative expenses of approximately $194,000 for the
     second quarter 1997. Selling, general, and administrative expenses of
     approximately $476,000 for the six months ended June 30, 1998 increased
     $112,000 or 31% from approximately $364,000 for the six months ended June
     30, 1997. Overall, operating expenses remained stable during 1998 with the
     exception of compensation expense and legal fees. Compensation expense
     increased nearly $25,000 for the three months ended June 30, 1998 primarily
     as a result of an increase of approximately $7,000 paid to new employees
     net of employee turnover, $7,500 of non-employee directors' compensation,
     and $10,500 of common stock granted to the Company's officers and
     directors. Compensation expense increased nearly $42,000 for the six months
     ended June 30, 1998 primarily as a result of an increase of approximately
     $16,000 paid to new employees net of employee turnover, $15,000 of
     non-employee directors' compensation, and $10,500 of common stock granted
     to the Company's officers and directors. Legal expenses increased
     approximately $25,000 and $49,000 for the three and six months ended June
     30, 1998 primarily due to the costs of litigating existing trade claims
     against a competitor of the Company and the costs of increased compliance
     reporting.

     INTEREST EXPENSE AND INTEREST INCOME

     Interest expense decreased to approximately $1,000 and $2,300 for the
     second quarter 1998 and for the six months ended June 30, 1998 compared to
     $2,200 and $4,800 for the comparable periods in 1997 primarily due to the
     payment in full of the Company's 7.5% note payable to bank in March 1998.
     Interest income for each of the second quarters and the six months ended
     June 30, 1998 and 1997 primarily represents interest earned on cash
     balances in excess of operating requirements.

     NET LOSS AND NET LOSS PER SHARE

     Net loss was approximately $(32,000) for the second quarter 1998, a
     decrease of $13,000 or 29% from the net loss of $(45,000) for the second
     quarter 1997 primarily as a result of an increase of approximately $53,000
     in gross profit offset by an increase in operating costs of nearly $40,000.

     Net loss was approximately $(55,000) for the six months ended June 30,
     1998, a decrease of $79,000 or 59% from the net loss of $(134,000) for the
     six months ended June 30, 1997 primarily as a result of an increase of
     approximately $193,000 in gross profit offset by an increase in operating
     costs of over $114,000.

     Net loss per share was $(0.02) for the second quarter 1998, a decrease of
     $0.01 per share or 33% from the net loss per share of $(0.03) for the
     second quarter 1997 resulting from the $13,000 decrease in net loss and an
     increase of 111,752 weighted average number of common shares from 1,540,087
     during the second quarter 1997 to 1,651,839 during the second quarter 1998.

     Net loss per share was $(0.03) for the six months ended June 30, 1998, a
     decrease of $0.06 per share or 66% from the net loss per share of $(0.09)
     for the six months June 30, 1997 resulting from the $79,000 decrease in net
     loss and an increase of 125,296 weighted average number of common shares
     from 1,520,869 during the six months ended June 30, 1997 to 1,646,165
     during the six months ended June 30, 1998.

     LIQUIDITY AND CAPITAL RESOURCES

     The Company's accumulated deficit was approximately $(1,757,000) and
     $(1,702,000) at June 30, 1998 and December 31, 1997, respectively. Working
     capital decreased approximately $54,000 from $798,000 at December 31, 1997
     to $744,000 at June 30, 1998.



                                      -9-
<PAGE>


     Net cash used in operating activities was approximately $(208,000) during
     the six months ended June 30, 1998, a decrease of $140,000 from $(348,000)
     during the six months ended June 30, 1997.

     The Company believes the expected results of operations in 1998 will be
     sufficient to fund current business operations and anticipated growth.
     However, the Company believes it may need to raise additional capital
     through debt or equity financing to fund its anticipated growth beyond
     1998. There is no assurance that such additional financing will be
     available when needed or available with terms acceptable to the Company.

     SEASONALITY

     The Company's revenues are substantially dependent on its customers'
     seasonal retail sales. Historically, the Company has experienced higher
     sales volume in the third and fourth quarters of each year.

     YEAR 2000 ISSUE

     Computer programs used by businesses worldwide were written using two
     digits rather than four digits to define the applicable year. Accordingly,
     these programs recognize the dates "00" and "01" as the years 1900 and 1901
     rather than the years 2000 and 2001. The Company recognizes the need to
     ensure its operations will not be adversely impacted by year 2000 computer
     program failures arising from program processes and calculations
     misinterpreting the year 2000 date. The Company is currently evaluating its
     financial and operational systems to determine the impact the year 2000
     issue will have on its operations. The Company also plans to communicate
     with its significant suppliers, dealers, financial institutions, and others
     with which it conducts business to determine the extent the Company may be
     impacted by third parties' failure to address the year 2000 issue. Although
     the Company plans to be year 2000 compliant prior to December 31, 1999 and
     expects no material impact to the Company's operations, there can be no
     assurance that the failure of the Company or such third parties to
     successfully address their respective year 2000 issues will not have a
     material adverse effect on the Company's business, financial condition,
     cash flows, and result of operations.


PART II.  OTHER INFORMATION


ITEM 1.   LEGAL PROCEEDINGS

     In October 1996, the Company was named as a defendant in a lawsuit filed in
     New Jersey Superior Court whereby the plaintiff is seeking damages with
     respect to certain alleged invoices totaling approximately $20,000. A
     motion to amend the pleadings was filed and granted to assert counterclaims
     and third party claims against the plaintiff and its officers for, among
     other things, false designation of origin under the federal Lanham Act,
     violations of statutory and common law unfair competition, trademark and
     trade dress infringement, and breach of contract all of which may result in
     damages exceeding $1,000,000. The Company's counterclaim and third party
     claims arose from an alleged intentional breach of a requirements type
     contract in which the plaintiff was authorized to manufacture for the
     Company certain equipment for sale to third parties. Although the Company
     has recorded in accrued liabilities a provision of approximately $20,000
     for any liability which may result from the plaintiff's claims, the Company
     plans to continue to vigorously defend against the plaintiff's alleged
     claims and to pursue its counterclaims and third party claims against the
     plaintiff. While there is no assurance as to the outcome of this legal
     action, management and legal counsel for the Company believe the ultimate
     resolution of this matter will not have a material adverse effect on its
     consolidated financial position or results of operations.


                                      -10-
<PAGE>






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

     The Annual Meeting of Shareholders of the Company was held on April 30,
     1998. The election of directors and the ratification of the appointment of
     the Company's independent certified public accountants were the only
     matters submitted to a vote of security holders. All five of the Company's
     incumbent directors were re-elected for the ensuing year which are Edward
     A. Mulhare, Thomas A. Nicolette, Saul Pozensky, Milan Resanovich, and
     Richard J. Spagna. The re-appointment of Spear, Safer, Harmon & Co. as the
     Company's independent certified public accountants for the ensuing year was
     ratified.

ITEM 5.   OTHER INFORMATION

     MARKET FOR REGISTRANT'S COMMON STOCK

     The Company's common stock has not commenced trading but is listed on the
     National Association of Securities Dealers, Inc. ("NASD") OTC Electronic
     Bulletin Board ("Bulletin Board") under the symbol "SETE". There have been
     no quotes on the Company's common stock since its listing on the Bulletin
     Board.

     No assurance can be given that a public trading market for the Company's
     common stock will develop or if developed will be sustained.

     In April 1997, in connection with a private placement of the Company's
     common stock under Regulation D Rule 506 of the Securities Act of 1933, as
     amended, the Company consummated the sale of 343,894 units, each unit
     consisting of one share of common stock and one common stock purchase
     warrant. Each warrant expires after five years of issuance and entitles the
     registered holder to purchase one share of common stock at a purchase price
     equal to the lesser of $5.50 or ten percent above the offering price of a
     share of common stock in a proposed public offering. The net proceeds
     received by the Company from this offering were approximately $707,000 of
     which approximately $198,000 from the sale of 88,173 units was received
     during the year ended December 31, 1997.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     There were no exhibits or reports on Form 8-K filed during the six month
     period ended June 30, 1998.


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 hereunto duly authorized.


                                             SENTECH EAS CORPORATION

                                             By: /s/ RONALD L. MEGGISON, JR.
                                             -----------------------------------
                                             Ronald L. Meggison, Jr.
                                             Executive Vice President and
                                             Chief Financial Officer
                                             (Principal Financial and Accounting
                                              Officer)


                                              Date:   July 31, 1998




                                      -11-