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 Fiscal Quarter Ended March 29, 1997, or

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

               For the Transition period from _____ to _________.

                         Commission file number: 0-26620

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

           Delaware                                             94-3055907
(State or other jurisdiction of                                (IRS Employer
incorporation or organization)                            Identification Number)

                               1490 O'Brien Drive
                          Menlo Park, California 94025
                    (Address of principal executive offices)

               Registrant's telephone number, including area code:
                                 (415) 328-3818

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

      Yes     X                                                No
           ------                                                 ------
         As of May 1, 1997  6,593,325  shares of the  Registrant's  common stock
$0.001 par value, were outstanding.


<PAGE>

<TABLE>

                                                  ACCOM, INC.

                                 FORM 10-Q For the Quarter Ended March 29,1997

                                                     INDEX
<CAPTION>

                                                                                                             Page
                                                                                                             ----
<S>          <C>                                                                                              <C>
             Facing sheet                                                                                      1

             Index                                                                                             2

Part I.      Financial Information

Item 1.      a)     Condensed consolidated balance sheets at March 29, 1997 and September 30, 1996             3

             b)     Condensed consolidated statements of operations for the three months ended
                    March 29, 1997 and March 31, 1996 and for the six months ended March 29, 1997 and          4
                    March 31, 1996

             c)     Condensed consolidated statements of cash flows for the six months ended March 29,         5
                    1997 and March 31, 1996

             d)     Notes to condensed consolidated financial statements                                       6

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

Part II.     Other Information                                                                                12

             Signature                                                                                        13

             Exhibit 11.1                                                                                     14
                    Statement re computation of net loss per share

             Exhibit 27.1                                                                                     15
                    Financial Data Schedule (EDGAR version only)

</TABLE>


                                                      -2-
<PAGE>

<TABLE>

                                                    PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

                                                             ACCOM, INC.
                                                CONDENSED CONSOLIDATED BALANCE SHEETS
                                                           (In thousands)
<CAPTION>

                                                                                             March 29,     September 30,
                                                                                               1997              1996
                                                                                             --------          --------
                                                                                            (Unaudited)         (Note)
<S>                                                                                          <C>               <C>     
Assets                                                                                      
Current assets
     Cash and cash equivalents                                                               $  4,483          $  4,221
     Accounts receivable, net                                                                   3,337             4,714
     Inventories                                                                                1,651             5,447
     Deferred tax assets                                                                          695               695
     Prepaid expenses and other current assets                                                    338               377
                                                                                             --------          --------

Total current assets                                                                           10,504            15,454

Property and equipment, net                                                                       762             1,683
Other assets                                                                                      149               142
                                                                                             --------          --------
                                                                                             $ 11,415          $ 17,279
                                                                                             ========          ========

Liabilities and Stockholders' Equity
Current Liabilities:
     Notes payable                                                                           $     53          $     58
     Accounts payable                                                                           1,077             2,242
     Accrued liabilities                                                                        1,825             1,455
     Deferred revenue                                                                             183               528
                                                                                             --------          --------
Total Current Liabilities                                                                       3,138             4,283

Note payable - noncurrent                                                                        --                  24
Deferred tax liabilities                                                                           20                20

Commitments
Stockholders' Equity:
     Preferred stock, $0.001 par value; 2,000,000 shares authorized;                             --                --
         no shares issued and outstanding
     Common stock, $0.001 par value; 20,233,497 shares authorized;
         6,586,158 and 6,493,734 shares issued and outstanding on March 29, 1997                    7                 7
         and September 30, 1996, respectively
     Additional paid-in capital                                                                21,377            21,317
     Retained earnings (accumulated deficit)                                                  (13,127)           (8,372)
                                                                                             --------          --------
Total Stockholders' Equity                                                                      8,257            12,952
                                                                                             --------          --------
                                                                                             $ 11,415          $ 17,279
                                                                                             ========          ========

<FN>
Note:  The balance  sheet at September  30, 1996 has been derived from the audited  financial  statements  at that date but does not
include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

                                      See notes to condensed consolidated financial statements.

</FN>
</TABLE>
                                                                -3-
<PAGE>
<TABLE>

                                                   ACCOM, INC.
                                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                      (In thousands, except per share data)
                                                   Unaudited
<CAPTION>

                                                        Three months ended                 Six months ended
                                                      March 29      March 31,          March 29,      March 31,
                                                        1997           1996               1997            1996
                                                      --------      ---------          ---------      ---------
<S>                                                   <C>            <C>                <C>             <C>    
Net sales                                              $4,234         $5,191             $8,450         $10,734

Cost of sales                                           2,193          2,453              6,869           5,064
                                               ------------------------------------------------------------------
Gross margin                                            2,041          2,738              1,581           5,670

Operating expenses:
     Research and development                             839          1,072              1,637           2,015
     Marketing and sales                                1,175          1,623              3,441           3,165
     General and administrative                           334            382              1,330             671
                                               ------------------------------------------------------------------

Total operating expenses                                2,348          3,077              6,408           5,851
                                               ------------------------------------------------------------------

Operating loss                                           (307)          (339)            (4,827)           (181)

Interest income                                            38             59                 74             135

Interest expense                                           (2)            (3)                (4)             (6)

Other expense                                              13             (6)                 2             (19)
                                               ------------------------------------------------------------------
Loss before income taxes                                 (258)          (289)            (4,755)            (71)

Provision for income taxes                                 --           (102)                               (25)
                                               ------------------------------------------------------------------
Net loss                                                $(258)         $(187)           ($4,755)           ($46)
                                               ==================================================================

Net loss per share                                     $(0.04)        $(0.03)            ($0.72)         ($0.01)

Shares used in computation of net loss  per             6,579          6,419              6,570           6,412
share

<FN>

                      See notes to condensed consolidated financial statements.
</FN>
</TABLE>
                                                          -4-

<PAGE>

<TABLE>

                                                       ACCOM, INC.
                                     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                     (In thousands)
                                                        Unaudited
<CAPTION>
                                                                                                 Six months ended
                                                                                          -----------------------------
                                                                                          March 29,           March 31,
                                                                                            1997                 1996
                                                                                          --------            --------
<S>                                                                                       <C>                 <C>      
Cash flows from operating activities:
Net loss                                                                                  $ (4,755)           $    (46)
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
         Depreciation                                                                          330                 354
             Change in valuation reserve for fixed assets                                    2,433                  --
         Changes in operating assets and liabilities
                  Accounts receivable                                                        1,127              (1,015)
                  Inventories                                                                1,295                (409)
                  Write-off of inventories reserved in Q1 1997                                 772                  --
                  Prepaid expenses and other current assets                                     40                 (31)
                  Note payable                                                                  (5)
                  Accounts payable                                                          (1,164)                515
                  Accrued compensation                                                          92                  (2)
                  Other accrued liabilities                                                   (175)               (504)
                  Accrual for streamlining operations in Q1 1997                                39                  --
                  Income taxes payable                                                          --                 (25)
                  Customer deposits                                                            (42)                  7
                  Deferred revenue                                                            (345)                (96)
                                                                                          --------            --------
Net cash used in operating activities                                                         (358)             (1,252)
                                                                                          --------            --------

Cash flows from investing activities:
Expenditures for property and equipment                                                       (161)               (339)
Write-off of property and equipment reserved in Q1 1997                                        751
Purchase of short-term investments                                                            --               (27,853)
Sale of short-term investments                                                                --                22,745
Increase (decrease) in other assets                                                             (6)                (88)
                                                                                          --------            --------
Net cash used in investing activities                                                          584              (5,535)
                                                                                          --------            --------

Cash flows from financing activities:
Repayments on notes payable                                                                    (24)                (30)
Issuance of common stock                                                                        61                 104
Payment of accrued initial public offering costs                                              --                  (821)
                                                                                          --------            --------
Net cash provided by (used in) financing activities                                             36                (747)
                                                                                          --------            --------

                                                                                          --------            --------
Net increase (decrease) in cash and cash equivalents                                           262              (7,534)
Cash and cash equivalents at beginning of period                                             4,221               8,769
                                                                                          --------            --------
Cash and cash equivalents at end of period                                                $  4,483            $  1,235
                                                                                          ========            ========

Supplemental disclosure of cash flow information
Interest paid                                                                             $      1            $      6
                                                                                          ========            ========

Income taxes paid                                                                         $   --              $      1
                                                                                          ========            ========

Supplemental disclosure of noncash investing and financing activities
Accrued acquisition costs                                                                 $      2            $     66
                                                                                          ========            ========
<FN>

                                                 See accompanying notes.
</FN>
</TABLE>

                                                                -5-
<PAGE>


              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                    Unaudited

Note 1.  Summary of Significant Accounting Policies

Basis of Preparation

         The condensed  consolidated balance sheet as of March 29, 1997, and the
condensed  consolidated  statements  of income  and cash flows for the three and
six-month periods ended March 29, 1997, and March 31, 1996 have been prepared by
the  Company,  and have not been  audited.  In the  opinion of  management,  all
adjustments  (consisting  of normal  accruals)  necessary to present  fairly the
financial position, results of operations, and cash flows at March 29, 1997, and
for all periods presented, have been made. The financial data should be reviewed
in conjunction with the audited financial  statements and notes thereto included
in the Company's  Annual Report on Form 10-K for the fiscal year ended September
30, 1996.  The results of operations  for the three month period ended March 29,
1997, are not necessarily  indicative of the operating results for the full 1997
fiscal year.

Note 2.  Short-Term Investments

         The Company  accounts for  short-term  investments  in accordance  with
Statement of Financial Accounting  Standards No. 115 (FAS 115),  "Accounting for
Certain Investments in Debt and Equity Securities."

         All  of  the  Company's   short-term   investments  are  designated  as
available-for-sale  and are carried at fair  value,  with  unrealized  gains and
losses reported as a separate component of stockholders' equity.  Realized gains
and  losses  and  declines  in  value  judged  to be  other  than  temporary  on
available-for-sale  securities  are  included in interest  income.  Interest and
dividends on all securities are included in interest income.


Note 3.  Inventories

         Inventories consist of the following (In thousands):

                                        March 29,             September 30,
                                           1997                    1996
                                 ----------------------- -----------------------
Purchased parts and materials            $  202                  $ 1,105
Work-in-progress                            536                    1,842
Finished goods                              241                      440
Demonstration inventory                     672                    2,060
                                 ----------------------- -----------------------
                                         $1,651                  $ 5,447


                                       -6-

<PAGE>


Note 4.  Earnings Per Share

         In February  1997,  the  Financial  Accounting  Standards  Board issued
Statement  No.  128,  Earnings  Per Share,  which is  required  to be adopted on
December  31,  1997.  At that time,  the Company  will be required to change the
method  currently  used to  compute  loss per  share  and to  restate  all prior
periods.  Under the new requirements for calculating primary earnings per share,
the dilutive effect of common stock equivalents will be excluded. As a result of
the  antidilutive  effect of common stock equivalent  shares,  the impact on the
calculation  of primary and fully diluted  earnings per share is not expected to
be material.



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

        The  following  discussion  should  be  read  in  conjunction  with  the
unaudited  consolidated  financial statements and notes thereto included in Part
I--Item 1 of this Quarterly Report.  Except for that disclosure that reports the
Company's  historical  results,  the  statements  set forth in this  section are
forward looking  statements.  Actual results could differ  materially from those
projected  in the  forward  looking  statements  due  to a  number  of  factors,
including  uncertainty as to development and market  acceptance of the Company's
ELSET Virtual Set product and other  products;  dependence on Silicon  Graphics,
Inc.; rapid technological change in the Company's industry; and the need for new
product development.  Additional  information concerning these and other factors
that could cause actual results to differ  materially  from those in the forward
looking statements is contained under the heading "Other Factors That May Affect
Future  Results"  commencing on page 16 of the  Company's  Annual Report on Form
10-K for the Fiscal Year Ended September 30, 1996.

Overview
         Accom designs, manufactures, markets and supports digital video systems
for the high-end production,  post-production and broadcast markets. The Company
was  incorporated  in December  1987 and began  shipments of its digital  signal
processing  products in fiscal 1989. In November  1991,  the Company merged with
Axial Systems  Corporation  ("Axial"),  a developer of digital  on-line  editing
systems.  The first  shipments of the  Company's  Axial(R)  2020 Visual  On-Line
Editing  System  ("Axial  2020") and RTD 4224 digital  video disk  recorder (the
"RTD")   occurred  in  fiscal  1992.  The  first   shipments  of  the  Company's
Brontostore(TM)  news  graphics  and clip  server  (the  "Brontostore",  renamed
"Axess" in April 1996) and the Company's  lower cost Axial 2010 On-Line  Editing
System ("Axial 2010") and WSD(R) Work Station Disk Recorder (the "WSD") occurred
in fiscal 1994. In January 1995,  the Company began  shipping the WSD(R)/XL Work
Station Disk Recorder ("WSD/XL") and in June 1996 began shipping the WSD(R)/XLS.
In September  1996 the Company began shipping the  WSD(R)/Xtreme,  a replacement
for the  WSD(R)/XLS  which has  eight  minutes  of  uncompressed  digital  video
storage.
         In September  1995,  the Company  increased its  ownership  interest in
ELSET Electronic-Set GmbH, a German limited liability company ("ELSET GmbH"), to
100% for  approximately  $7.6  million  in cash,  funded  with a portion  of the
proceeds of the Company's initial public offering (the "ELSET Acquisition").  At
the April 1995 National  Association of  Broadcasters  ("NAB")  convention,  the
Company  introduced a prototype of the ELSET(TM)  virtual set system (the "ELSET
Virtual  Set"),  which operates on a Silicon  Graphics,  Inc.  ("SGI")  Onyx(TM)
Reality Engine2 or OnyxTM Infinite Reality workstation (an "Onyx").  The Company
shipped its first ELSET Virtual Set in the second quarter of fiscal 1996.
         The Company's gross margin has historically  fluctuated from quarter to
quarter and  declined on an annual  basis.  As the Company  begins to resell the
Onyx as part of the ELSET Virtual Set, gross margins may decline. In the future,
gross margins will be dependent on the mix of higher and  lower-priced  products
and the  percentage  of sales  made  through  direct and  indirect  distribution
channels.
            The Company's  revenues are currently derived primarily from product
sales.  The Company  generally  recognizes  revenue  upon product  shipment.  If
significant  obligations exist at the time of 

                                      -7-
<PAGE>

shipment,  revenue  recognition is deferred until obligations are met. Beginning
in the second quarter of fiscal 1996 the Company's  revenues  included  revenues
from licensing of ELSET software.  In connection with sales of the ELSET Virtual
Set,  revenues in the future may also  include  revenues  from the resale of the
Onyx and revenues from  maintenance  and other  services.  Software  development
costs  are  recorded  in  accordance  with  Statement  of  Financial  Accounting
Standards  No.  86.  To date,  the  Company  has  expensed  all of its  software
development costs.
         In the first  quarter  of fiscal  1997,  the  Company  took a charge of
$3,995,000  to reserve  for a  reduction  in value of certain  inventory  items,
accounts  receivable  and certain fixed assets as well as to accrue for expenses
to be  incurred  in  streamlining  operations.  The  charge was taken to reflect
changes  in  the  support  of  existing  products  as  well  as  future  product
development.

Results of Operations
Quarters ended March 29, 1997 and March 31, 1996

         Net Sales.  The Company's net sales decreased by 18.4% to $4.23 million
in the second quarter of fiscal 1997 from $5.19 million in the second quarter of
fiscal  1996.  The  decrease  in  fiscal  1997 was  primarily  due to  decreased
shipments of products sold into the post-production  market.  Shipments into the
post-production  market decreased by $984,000. The decrease was partially offset
by slight  increases  in the  shipment of other  products.  International  sales
represented  approximately  48.1% and 40.4% of the  Company's  sales  during the
second  quarter  of fiscal  1997 and 1996,  respectively.  The  increase  in the
percentage  of  international  sales  resulted  from a  significant  decrease in
domestic sales.

         Cost of Sales.  Gross margin was 48.2% and 52.7% in the second  quarter
of fiscal 1997 and 1996,  respectively.  Gross  margin  decreased  in the second
quarter of fiscal 1997 as a result of increased costs of  manufacturing  certain
disk based  products as well as lower  average  selling  price on certain  older
products.

         Research and Development.  Research and development  expenses decreased
by 21.7% to $839,000 in the second  quarter of fiscal 1997 from $1.07 million in
the second  quarter  of fiscal  1996.  The  decrease  in fiscal  1997 was due to
decreases  in  salaries  and related  overhead  expenses,  consultant  expenses,
recruiting   expenses,   and  expenses  relating  to  certifying  equipment  for
regulatory compliance.  Research and development expenses as a percentage of net
sales  were  19.8%  and 20.7% in the  second  quarter  of fiscal  1997 and 1996,
respectively.

         Marketing and Sales. Marketing and sales expenses decreased by 27.6% to
$1.18  million in the second  quarter of fiscal  1997 from $1.62  million in the
second  quarter of fiscal 1996. The decrease in fiscal 1997 was primarily due to
decreases in salaries and related overhead  expenses,  depreciation,  trade show
and promotional expenses,  the closing of one field sales office and a reduction
in  staffing  in  another  sales  office.  Marketing  and  sales  expenses  as a
percentage  of net sales were  27.8% and 31.3% in the  second  quarter of fiscal
1997 and 1996, respectively.

         General  and  Administrative.   General  and  administrative   expenses
decreased  by 12.5% to  $334,000  in the  second  quarter  of  fiscal  1997 from
$382,000 in the second  quarter of fiscal 1996.  The decrease in fiscal 1997 was
primarily  due to decreases in salaries and payroll  taxes and the provision for
bad debt. The decrease was partially offset by increases in legal and accounting
fees. General and administrative expenses as a percentage of net sales were 7.9%
and 7.4% in the second quarter of fiscal 1997 and 1996, respectively.

        Interest Income, Interest Expense, and Other (Expense).  Interest income
decreased  to $38,000 in the second  quarter of fiscal 1997 from  $59,000 in the
second  quarter of fiscal 1996.  The decrease was primarily due to a decrease in
cash and cash  equivalents.  Interest  expense was  essentially  unchanged  from
fiscal 1997 to fiscal 1996.

                                      -8-
<PAGE>


         Provision for Income Taxes. In accordance with FAS 109, the Company has
recognized no tax benefit from its loss for the period ended March 29, 1997. The
Company  believes  its  existing  deferred  tax  asset  is  realizable  based on
recoverability  of taxes previously  paid. The Company's  effective tax rate for
fiscal  year 1996 was 35%,  which was less than the  applicable  statutory  rate
primarily due to benefits derived from the Company's foreign sales subsidiary.

         Net Loss.  The net loss  increased to $258,000 in the second quarter of
fiscal 1997 on reduced  sales and reduced  spending  from $187,000 in the second
quarter of fiscal 1996.  The increase in the net loss was  primarily  due to the
absence of the  income tax  benefit  that was  present in the second  quarter of
fiscal 1996.  The net loss as a percentage of net sales was 6.1% and 3.6% in the
second quarters of fiscal 1997 and 1996, respectively.

Six Months ended March 29, 1997 and March 31, 1996

         Net Sales.  The Company's net sales decreased by 21.3% to $8.45 million
in the six months  ended March 29, 1997 from $10.73  million for the same period
in fiscal 1996.  The decrease in fiscal 1997 was  primarily  due to decreases in
shipments into the post-production  and production  markets.  Shipments into the
post-production market decreased by $1.8 million;  shipments into the production
market  decreased by $718,000.  International  sales  represented  approximately
46.9% and 43.5% of the  Company's  sales  during  the first six months of fiscal
1997 and 1996,  respectively.  The increase in the  percentage of  international
sales in the first six months of fiscal 1997 was  primarily due to a decrease in
domestic sales.

         Cost of Sales. Gross margin was 18.7% and 52.8% in the first six months
of  fiscal  1997 and  1996,  respectively.  During  January  1997,  the  Company
developed plans with respect to future development,  support and introduction of
certain  products.  As a result  of these  plans,  reserves  were  provided  for
inventory,  accounts  receivable  and property and  equipment.  As part of these
reserves,  inventory reserves totaling $2.5 million were included in the cost of
sales for the first  quarter of fiscal 1997.  Without this charge,  gross margin
would have been 48.3% for the first six months of fiscal 1997; the decrease from
the first six months of fiscal 1996 was due to increased costs of  manufacturing
certain disk based  products and a lower average  selling price on certain older
products..

         Research and Development.  Research and development  expenses decreased
by 18.7% to $1.64  million  in the  first six  months  of fiscal  1997 from $2.0
million in the first six months of fiscal 1996.  The decrease in fiscal 1997 was
primarily  due to decreases in salaries and related  overhead  expenses,  patent
legal  fees,  and  consultant  fees.  Research  and  development  expenses  as a
percentage  of net sales  were 19.4% and 18.8% in the first six months of fiscal
1997 and 1996, respectively.

         Marketing and Sales. Marketing and sales expenses increased by 8.72% to
$3.44  million in the first six months of fiscal 1997 from $3.17  million in the
first six months of fiscal 1996.  As a result of the Company's  decisions  noted
above,  a charge of $845,000  was  incurred in the first  quarter of fiscal 1997
related  primarily to reserves against certain marketing and sales fixed assets.
Without this charge, marketing and sales expenses would have decreased by 18% to
$2.6  million.  The  decrease in fiscal 1997 was due  primarily  to decreases in
salaries and related  overhead  expenses,  trade show and promotional  expenses,
expenses related to refurbishment of demonstration  equipment,  and depreciation
expense.  Marketing  and sales  expenses as a percentage of net sales were 40.7%
(30.7%  without the  charge) and 29.5% in the second  quarter of fiscal 1997 and
1996, respectively.

         General  and  Administrative.   General  and  administrative   expenses
increased  by $660,000  to $1.33  million in the first six months of fiscal 1997
from  $670,000  in the  first  six  months of fiscal  1996.  A  $650,000  charge
primarily for  streamlining  operations,  to reduce  overhead and other costs as
well as to 

                                       -9-
<PAGE>

increase the reserve for bad debt,  was recorded in the first  quarter of fiscal
1997.  Without  this  charge,  general and  administrative  expenses  would have
increased by 1.47% to $680,000. The increase in fiscal 1997 was primarily due to
an increase in legal,  accounting,  and investor-related  expenses. The increase
was  partially  offset by decreases  in salaries  and payroll  taxes and license
fees.  General and  administrative  expenses as a  percentage  of net sales were
15.7% (8.1%  without  the charge) and 6.3% in the second  quarter of fiscal 1997
and 1996, respectively.

         Interest Income, Interest Expense and Other (Expense).  Interest income
decreased to $74,000 in the first six months of fiscal 1997 from $135,000 in the
first six months of fiscal 1996. The decrease was primarily due to a decrease in
cash and cash equivalents.  Interest expense decreased slightly to $4,000 in the
first six  months of fiscal  1997 from  $6,000 in the first six months of fiscal
1996. The decrease was due to a decrease in debt.

         Provision for Income Taxes. In accordance with FAS 109, the Company has
recognized no tax benefit from its loss for the period ended March 29, 1997. The
Company  believes  its  existing  deferred  tax  asset  is  realizable  based on
recoverability  of taxes previously  paid. The Company's  effective tax rate for
fiscal  year 1996 was 35%,  which was less than the  applicable  statutory  rate
primarily due to benefits derived from the Company's foreign sales subsidiary.

         Net Loss.  The net loss  increased  to $4.75  million  in the first six
months of fiscal 1997 on reduced sales and reduced  spending from $46,000 in the
first six months of fiscal 1996.  As a result of the Company's  decisions  noted
above, charges were incurred and reserves were provided totaling $4.0 million in
the first  quarter  of fiscal  1997.  These  charges  and  reserves  related  to
streamlining  operations,   reducing  overhead,  and  setting  up  reserves  for
inventory,  accounts  receivable,  and fixed  assets.  Without these charges and
reserves,  the net loss in the first six  months of fiscal  1997 would have been
$760,000.  The increase in the net loss was  primarily  due to a decrease in net
sales ($2.28  million),  lower gross margins,  and a decrease in interest income
($61,000) partially offset by a decrease in operating expenses  ($938,000).  The
net loss as a percentage  of net sales was (56.3%),  (9.0% without the charges),
and (0.4%) in the first six months of fiscal 1997 and 1996, respectively.


Liquidity and Capital Resources

     As of  March  29,  1997  the  Company  had  $4.5  million  of cash and cash
equivalents.

     Operating  activities  used $358,000 in the first six months of fiscal 1997
and used $1,252,000 in the first six months of fiscal 1996. Net cash used in the
first  six  months  of  fiscal  1997  was due  primarily  to the net loss and to
decreases in accounts  payable  partially  offset by decreases in inventory  and
accounts receivable.

     The Company has a revolving  line of credit with  Comerica Bank that allows
for  borrowings  of up to  $4.0  million,  subject  to  the  level  of  accounts
receivable.  As of March 29, 1997,  the Company had no  borrowings  outstanding.
Indebtedness  under the line of credit accrues  interest at Comerica's base rate
and is secured by substantially all of the Company's assets.  The line of credit
may be  terminated by either party upon 30 days'  notice.  Borrowings  under the
line of credit are subject to certain  financial  covenants.  The Company is not
currently in compliance with these covenants and is in discussions with Comerica
to review the terms of the facility.

     The Company  believes that its existing  cash,  cash  equivalents,  will be
sufficient to meet its cash  requirements  for at least the next twelve  months.
Although operating activities may provide cash in certain periods, to the extent
the Company grows in the future, its operating and investing  

                                      -10-
<PAGE>

activities may use cash and,  consequently,  such growth may require the Company
to obtain  additional  sources of financing.  There can be no assurance that any
necessary financing will be available to the Company on commercially  reasonable
terms, or at all.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.
Not Applicable



                                      -11-

<PAGE>


                           PART II. OTHER INFORMATION

Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders

         On  February  18,  1997,   the  Company  held  its  annual  meeting  of
stockholders. At such meeting, the Company's stockholders approved the following
items by the following votes:

     1.   The Election of the following directors of the Company:

                 Nominee                      For                   Withheld
                 -------                      ---                   --------

            Junaid Sheikh                   5,856,291                6,203
            Robert L. Wilson                5,856,491                6,003
            Lionel M. Allan                 5,856,491                6,003
            Gary W. Kalbach                 5,856,491                6,003

     2.   The  ratification  of the  appointment of Ernst & Young LLP as
          the Company's  independent auditors for the fiscal year ending
          September 30, 1997.

          For    5,858,491         Against     4,000        Abstain      2,003


        Note:  Subsequent to the annual meeting,  Gary W. Kalbach  resigned from
the board of directors. To replace Mr. Kalbach as a director, on March 14, 1997,
the Company  appointed Thomas E. Fanella to the Board of Directors.  Mr. Fanella
is the President of KTEH Public Television Channel 54 in San Jose, California.

Item 5. Other Information
None.

Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits.

11.1 Computation of net loss per share

27.1 Financial Data Schedule (EDGAR version only)

(b) Reports on Form 8-K. 
None.


                                      -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.

ACCOM, INC.



By: /s/ Junaid Sheikh
    ---------------------------------------
Chief Executive Officer
Principal Financial Officer

By: /s/ James Cunniffe
    ---------------------------------------
Principal Accounting Officer

Date:    May 12, 1997


                                      -13-