SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549



                            FORM 10-Q

           QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
             OF THE SECURITIES EXCHANGE ACT OF 1934


For Quarter Ended February 28, 1998     Commission File No. 0-5940


                     TEMTEX INDUSTRIES, INC.
     -----------------------------------------------------
     (Exact name of Registrant as specified in its Charter)



           Delaware                         75-1321869
-------------------------------         --------------------
(State or other jurisdiction of         ( I.R.S. Employer
 incorporation or organization)         Indentification No.



5400 LBJ Freeway, Suite 1375, Dallas, Texas               75240
-------------------------------------------            ----------
(Address of principal executive offices)               (Zip Code)



                  972/726-7175
--------------------------------------------------
(Registrant's telephone number including area code)


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 such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing
requirement for the past 90 days.

                         Yes   X      No
                             -----      -----

The  Registrant had 3,477,141 shares of common stock,  par  value
$.20 per share, outstanding as of the close of the period covered
by this report.


<PAGE>

                 PART I.  FINANCIAL INFORMATION

            TEMTEX INDUSTRIES, INC. AND SUBSIDIARIES
   Condensed Consolidated Statements of Operations (Unaudited)
               (In Thousands Except Share Amounts)
<TABLE>
<CAPTION>

                                              3 Mths. Ended                 6 Mths. Ended
                                         2/28/98        2/28/97        2/28/98       2/28/97
                                        ---------      ---------      ---------     ---------
<S>                                     <C>            <C>            <C>           <C>
Net sales                               $   8,449      $   8,985      $  18,875     $  22,071
Cost of goods sold                          6,170          6,687         13,436        15,762
                                        ---------      ---------      ---------     ---------
                                            2,279          2,298          5,439         6,309

Cost and expenses:
  Selling, general and administrative       2,110          2,402          4,501         5,020
  Interest                                    120            123            243           281
Other income                                  (16)           (80)           (12)         (100)
                                        ---------      ---------      ---------     ---------
                                            2,214          2,445          4,732         5,201
                                        ---------      ---------      ---------     ---------
  INCOME (LOSS) FROM OPERATIONS
    BEFORE INCOME TAXES                        65           (147)           707         1,108

State and federal income taxes--Note A         26            (59)           283           443
                                        ---------      ---------      ---------     ---------

    NET INCOME (LOSS)                   $      39      $     (88)     $     424     $     665
                                        =========      =========      =========     =========

Income per common share--Note B

    NET INCOME (LOSS)                       $ .01          $(.03)         $ .12         $ .19
                                            =====          =====          =====         =====
Weighted average common and common
  equivalent shares outstanding         3,485,518      3,475,141      3,488,501     3,484,416
</TABLE>


See notes to condensed consolidated financial statements.


                               -2-

<PAGE>


            TEMTEX INDUSTRIES, INC. AND SUBSIDIARIES
        Condensed Consolidated Balance Sheets (Unaudited)
              February 28, 1998 and August 31, 1997
                         (In Thousands)

<TABLE>
<CAPTION>
                                                                      February 28,    August 31,
                                                                          1998          1997
                                                                      ------------   ------------
<S>                                                                   <C>            <C>
ASSETS
CURRENT ASSETS
  Cash and cash equivalents                                           $      919     $      575
  Accounts receivable, less allowance for doubtful accounts of
     $376,000 at February 28, 1998 and $364,000 at August 31, 1997         4,618          5,100
  Inventories                                                              8,415          8,172
  Prepaid expenses and other assets                                          259            258
  Income taxes recoverable                                                   653            653
  Deferred taxes                                                             440            440
                                                                      ----------     ----------
          TOTAL CURRENT ASSETS                                            15,304         15,198

DEFERRED TAXES                                                               163            163

OTHER ASSETS                                                                 168            183

PROPERTY, PLANT AND EQUIPMENT
  Land and clay deposits                                                     405            405
  Buildings and improvements                                               3,491          3,491
  Machinery, equipment, furniture and fixtures                            24,207         24,086
  Leasehold improvements                                                     914            869
                                                                      ----------     ----------
                                                                          29,017         28,851
  Less allowances for depreciation,
    depletion and amortization                                            21,772         21,162
                                                                      ----------     ----------
                                                                           7,245          7,689
                                                                      ----------     ----------
                                                                      $   22,880     $   23,233
                                                                      ==========     ==========

                               -3-

<PAGE>



                                                                      February 28,    August 31,
                                                                          1998           1997
                                                                      ------------   ------------
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Notes payable--Note C                                               $      300     $      800
  Accounts payable                                                         2,471          2,459
  Accrued expenses                                                         1,308          1,738
  Income taxes payable                                                       246             --
  Current maturities of indebtedness to related parties                       10              9
  Current maturities of long-term obligations--Note C                        161            202
                                                                      ----------     ----------
     TOTAL CURRENT LIABILITIES                                             4,496          5,208

INDEBTEDNESS TO RELATED PARTIES,
  less current maturities                                                  1,599          1,604

LONG-TERM OBLIGATIONS,
  less current maturities--Note C                                            580            640

COMMITMENTS AND CONTINGENCIES--Note D

STOCKHOLDERS' EQUITY--Note E
  Preferred stock - $1 par value; 1,000,000
    shares authorized, none issued                                            --             --
  Common stock - $.20 par value; 10,000,000
    shares authorized, 5,278,625 shares issued                               718            718
  Additional capital                                                       9,246          9,246
  Retained earnings                                                        6,568          6,144
                                                                      ----------     ----------
                                                                          16,532         16,108
Less:
    Treasury stock:
      At cost - 113,696 shares                                               327            327
      At no cost - 1,687,788 shares                                           --             --
                                                                      ----------     ----------
                                                                          16,205         15,781
                                                                      ----------     ----------
                                                                      $   22,880     $   23,233
                                                                      ==========     ==========

</TABLE>

See notes to condensed consolidated financial statements.



                               -4-
                                
<PAGE>


            TEMTEX INDUSTRIES, INC. AND SUBSIDIARIES
   Condensed Consolidated Statements of Cash Flows (Unaudited)
                         (In Thousands)
<TABLE>
<CAPTION>

                                                                             6 Months Ended
                                                                              February 28,
                                                                           ------------------
                                                                            1998        1997
                                                                           -------    -------
<S>                                                                        <C>        <C>
OPERATING ACTIVITIES
  Net income                                                               $   424    $   665
  Adjustments to reconcile net income to net cash
      provided by operating activities:
    Depreciation, depletion and amortization                                   824      1,000
    Gain on disposition of property, plant and equipment                       (14)        98
    Provision for doubtful accounts                                             79        182
    Changes in operating assets and liabilities:
      Accounts receivable                                                      403      2,017
      Inventories                                                             (243)     1,164
      Prepaid expenses and other assets                                         14       (204)
      Accounts payable and accrued expenses                                   (418)    (1,868)
      Income taxes payable                                                     246        161
                                                                           -------    -------
      NET CASH PROVIDED BY OPERATING ACTIVITIES                              1,315      3,215

INVESTING ACTIVITIES
  Purchases of property, plant and equipment                                  (382)      (653)
  Proceeds from disposition of assets and other receipts  
    related to discontinued operations - Note F                                 --        411
  Expenditures on assets related to discontinued operations - Note F            --        (57)
  Proceeds from disposition of property, plant and equipment                    16        150
                                                                           -------    -------
      NET CASH USED IN INVESTING ACTIVITIES                                   (366)      (149)

FINANCING ACTIVITIES
  Proceeds from revolving line of credit and long-term borrowings              --          --
  Principal payments on revolving line of credit, long-term obligations
      and indebtedness to related parties                                     (605)    (3,282)
  Proceeds from issuance of common stock                                        --         12
                                                                           -------    -------
      NET CASH USED IN FINANCING ACTIVITIES                                   (605)    (3,270)
                                                                           -------    -------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                               344       (204)

Cash and cash equivalents at beginning of year                                 575        445
                                                                           -------    -------

     CASH AND CASH EQUIVALENTS AT END OF PERIOD                            $   919    $   241
                                                                           =======    =======

</TABLE>

See notes to condensed consolidated financial statements.

                               -5-

<PAGE>

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE A--INCOME TAXES

Income taxes have been provided using the liability method in
accordance with the Financial Accounting Standards Board
Statement No. 109, Accounting for Income Taxes.  Income for the
first six months of fiscal 1998 reflects an estimated annualized
tax rate of approximately 40%.

NOTE B--INCOME PER COMMON SHARE

Income per common share is based on the weighted average number
of common stock and common stock equivalents outstanding during
each period.  Common stock equivalents include options granted to
key employees and outside directors.  The number of common stock
equivalents was based on the number of shares issuable on the
exercise of options reduced by the number of common shares that
are assumed to have been purchased, at the average price of the
common stock during each quarter, with the proceeds from the
exercise of the options. Fully diluted income per common share is
not presented because dilution is not significant.

NOTE C--NOTES PAYABLE AND LONG-TERM DEBT

In May 1996, the Company entered into a two-year credit agreement
with a bank whereby the Company may borrow a maximum of
$4,000,000 under a revolving credit facility.  At the option of
the Company, borrowings under the note may bear interest at the
lending bank's prime commercial interest rate or at the London
Interbank Offered Rate ("LIBOR") plus 1.25 percentage points.
Interest is payable on a monthly basis.  The loan agreement
contains covenants that require the maintenance of a specified
ratio of quick assets to current liabilities, as defined, and a
specified ratio of total liabilities to tangible net worth, as
defined, both ratios to be measured on a quarterly basis.  At
February 28, 1998, $300,000 was outstanding under the revolving
credit note.

NOTE D--CONTINGENCIES

Due to the complexity of the Company's operations, disagreements
occasionally occur.

In the opinion of management, the Company's ultimate loss from
such disagreements and potential resulting legal action, if any,
will not be significant.


                               -6-

<PAGE>

NOTE E-CAPITAL STOCK

At February 28, 1998 and August 31, 1997, there were 1,000,000
shares of preferred stock, with a par value of $1 authorized.
None have been issued.

At February 28, 1998 and August 31, 1997, there were 10,000,000
shares of par value $.20 common stock authorized of which
5,278,625 shares were issued.  Of the shares issued, 3,477,141
were outstanding.  The remainder of the issued stock is comprised
of 113,696 shares of treasury stock at cost and 1,687,788 shares
of treasury stock at no cost.

NOTE F--DISCONTINUED OPERATIONS

In 1993, management of the Company decided to discontinue the
Company's contract products segment.

In fiscal 1996, the Company leased the building and the majority
of the land. The initial lease term was for a period of five
years with an option to extend the lease for an additional five-
year period.  The lease also contained an option to purchase the
property during the first two years of the initial lease period.
In fiscal 1997, the leased building and land were sold to the
lessee.  The remaining parcel of land, which has a net book value
of $0, is on the market to be sold.









                               -7-


<PAGE>


        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS


The following discussion and analysis of the financial condition
and results of operations of the Company should be read in
conjunction with the unaudited condensed consolidated financial
statements and related notes of the Company included elsewhere in
this report.  This Management's Discussion and Analysis of
Financial Condition and Results of Operations and other parts of
this Quarterly Report on Form 10-Q contain forward-looking
statements that involve risks and uncertainties.  Among the risks
and uncertainties to which the Company is subject are the risks
inherent in the cyclical and unpredictable nature of the housing
and home products business generally, fluctuations in interest
rates, geographic concentration of the Company's primary market,
the fact that the Company has experienced fluctuations in
revenues and operating results, and the highly competitive nature
of the industries in which the Company competes, together with
each of those other factors set forth in the Company's filings
made with the Securities & Exchange Commission.  As a result, the
actual results realized by the Company could differ materially
from the results discussed in the forward-looking statements made
herein.  Words or phrases such as "will," "anticipate," "expect,"
"believe," "intend," "estimate," "project," "plan" or similar
expressions are intended to identify forward-looking statements.
Readers are cautioned not to place undue reliance on the forward-
looking statements made in this Quarterly Report on Form 10-Q.

Net Sales
---------

The Company reported a 6% decrease in net sales to $8,449,000 in
the second quarter of fiscal 1998 compared to net sales of
$8,985,000 in the second quarter of fiscal 1997.  For the first
six months of 1998, sales of $18,875,000 were approximately 14%
less than sales of $22,071,000 reported for the first six months
of 1997.

FIREPLACE PRODUCTS.  Net sales decreased approximately 13% in the
second quarter of fiscal 1998 compared to the second quarter of
1997.  The sales decrease was attributed to small decreases in
the average unit selling prices for both fireplaces and gas logs
as well as a 40% decrease in the number of gas log sets delivered
during the most recent quarter compared to last year.  Fireplace
quantities delivered during the most recent quarter were
approximately the same as those delivered in the comparative
quarter of last year.  Between the comparative six-month periods,
net sales decreased approximately 19% in fiscal 1998.  Reduced
quantities delivered of both fireplace units and log sets along
with an overall reduction in prices received for the products
were responsible for the decrease in sales.

FACE BRICK PRODUCTS.  Net sales increased approximately 22% in
the second quarter of fiscal 1998 compared to the second quarter
of fiscal 1997.  An increase in the number of bricks delivered
along with a small increase in the selling price accounted for
the increase in net sales in the most recent quarter. Between the
comparative six-month periods, net sales increased by
approximately 6%.  As in the quarterly comparison, the increase
in sales was caused by an increase in the quantity delivered
along with an increase in the selling price received for the
product.


                               -8-

<PAGE>


Gross Profit
------------

FIREPLACE PRODUCTS.  Gross profit decreased approximately 19% in
the second quarter of fiscal 1998 compared to the second quarter
of fiscal 1997.  Between the comparative six-month periods, gross
profit decreased approximately 24%.  The decrease in gross profit
for both periods in fiscal 1998 was caused by the decrease in
sales volume compared to the corresponding periods of fiscal
1997.

FACE BRICK PRODUCTS.  Gross profit increased approximately 51% in
the second quarter of fiscal 1998 compared to the second quarter
of fiscal 1997.  Between the comparative six-month periods, gross
profit increased approximately 26%.  The increase in gross profit
for both comparison periods was caused by the increase in sales
price in combination with an increase in sales volume and a
decrease in the cost to produce the face brick.

Selling, General and Administrative Expenses
--------------------------------------------

Selling, general and administrative expenses decreased by
$292,000 or 12% in the second quarter of fiscal 1998 compared to
the second quarter of fiscal 1997.  Between the comparative six-
month periods, expenses decreased approximately $519,000 or 10%.
Reductions in selling commissions and advertising expenses during
the current fiscal year were primarily responsible for the
decrease in selling, general and administrative expenses.

Interest Expense
----------------

Interest expense decreased $3,000 or 2% in the second quarter of
1998 compared to the second quarter of 1997.  Between the
comparative six-month periods, interest expense decreased $38,000
or 14%.  The decrease in expense in both the second quarter and
the first six months of 1998 was caused by the decrease in the
average debt outstanding during both periods compared to those in
1997.

Income Taxes
------------

Income tax expense of $283,000 for the first six months of fiscal
1998 includes the provision for both federal and state income
taxes.  An estimated annualized effective tax rate of 40% was
applied to pre-tax income for the first six months of fiscal
1998.

Liquidity and Capital Resources
-------------------------------

Net cash provided by operating activities was $1,315,000 for the
first six months of 1998 compared to $3,215,000 for the first six
months of 1997.  The decreased cash flow from operations in the
first six months of fiscal 1998 was due primarily to the
reduction in net income as well as changes in working capital,
principally increases in inventories and decreases in accounts
payable and accrued expenses..

In May 1996, the Company entered into a two-year credit agreement
with a bank whereby the Company may borrow up to $4,000,000 under
a revolving credit facility.  The outstanding principal balance
may bear interest at a variable or fixed rate, at the Company's
option, at the time funds are requested.  Interest is payable on
a monthly basis and also at the end of the borrowing period if
borrowing at a fixed rate.  At the time of this report, the bank
has indicated that it intends to extend the credit agreement
under the same terms and conditions as previously negotiated in
the original agreement.



                               -9-

<PAGE>


Working capital increased by $818,000 at February 28, 1998
compared to August 31, 1997.  The current ratio also increased
from 2.9 at August 31, 1997 to 3.4 at February 28, 1998.

Capital expenditures and capitalized lease obligations for the
first six months of 1998 were $382,000 compared to $660,000 for
the first six months of 1997.  Expenditures include amounts for
tooling, dies, replacement items and repairs to manufacturing
equipment.  The capital additions have been financed by cash flow
from operations.

The Company anticipates that cash flow from operations together
with funds available from the existing revolving credit facility
or funds that will be available from the anticipated facility
should provide the Company with adequate funds to meet its
working capital requirements as well as requirements for capital
expenditures for at least the next twelve months.

Management of the Company anticipates that in the future it will
review a number of strategic and/or structural corporate
alternatives, certain of which could have a material impact on
the Company's liquidity and capital resources.  In this regard,
although the Company does not currently have any specific plans
or arrangements, it may consider selling, expanding or otherwise
restructuring certain definable business segments.


                              -10-


<PAGE>


The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with generally
accepted accounting principles for interim financial information
and with the instructions for Form 10-Q and Rule 10-01 of
Regulation S-X.  Accordingly, they do not include all of the
information and notes required by generally accepted accounting
principles for complete financial statements.  In the opinion of
management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been
included.  Operating results for the six-month period ended
February 28, 1998 are not necessarily indicative of the results
that may be expected for the year ending August 31, 1998.  For
further information, refer to the consolidated financial
statements and notes thereto included in the Company's annual
report on Form 10-K for the year ended August 31, 1997.










                              -11-


<PAGE>


     PART II.  OTHER INFORMATION



Item 6.        EXHIBITS AND REPORTS ON FORM 8-K

     (a).      Exhibits
               --------

               Exhibit
                 No.          Description
               -------        -----------

                 27.1         Financial Data Schedule
                              (filed herewith)


     (b).      Report on Form 8-K
               ------------------

The Registrant did not file any reports on Form 8-K during the
quarter for which this report is filed




                              -12-


<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.

                         TEMTEX INDUSTRIES, INC.



DATE:  3/27/98           BY:    /s/  E.R.BUFORD
                            --------------------------------
                            E. R. Buford
                            President



DATE:  3/27/98           BY:    /s/  R. N. STIVERS
                            --------------------------------
                            R. N. Stivers
                            Vice President-Finance











                              -13-