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 June 28, 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:
                                 (650) 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 July 31, 1997, 6,622,965 shares of the Registrant's common stock,
which have a $0.001 per share par value, were outstanding.


<PAGE>


                                   ACCOM, INC.

                  FORM 10-Q For the Quarter Ended June 28,1997

                                      INDEX

                                                                            Page

         Facing sheet                                                          1

         Index                                                                 2

Part I.  Financial Information

Item 1.  a) Condensed  consolidated  balance  sheets at June 28, 1997 and      
         September 30, 1996                                                    3

         b) Condensed  consolidated  statements of operations for the three
         and nine months ended June 28, 1997 and June 30, 1996                 4


         c) Condensed  consolidated  statements  of cash flows for the nine
         months  ended  June  28, 1997  and  June  30, 1996                    5

         d) Notes to condensed consolidated financial statements               6

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

Part II. Other Information                                                    13

         Signature                                                            14

         Exhibit 11.1 - Statement re  computation  of net income (loss) per   15
         share

         Exhibit 27.1 - Financial Data Schedule                               16

                                    -2-

<PAGE>


                          PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements
<TABLE>

                                   ACCOM, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                      (In thousands, except per share data)
<CAPTION>

                                                                                          June 28,      September 30,
                                                                                            1997             1996
                                                                                      --------------- -----------------
                                                                                         (Unaudited)     (Note A)
<S>                                                                                      <C>            <C>                 
Assets
Current assets
     Cash and cash equivalents                                                           $   5,667      $   4,221
     Accounts receivable, net                                                                3,198          4,714
     Inventories                                                                             1,235          5,447
     Deferred tax assets                                                                       695            695
     Prepaid expenses and other current assets                                                 212            377
                                                                                        ------------- --------------

Total current assets                                                                        11,007         15,454

Property and equipment, net                                                                    803          1,683
Other assets                                                                                   149            142
                                                                                        ------------- --------------
                                                                                           $11,959        $17,279
                                                                                        ============= ==============

Liabilities and Stockholders' Equity
Current Liabilities:
     Notes payable                                                                        $     39       $     58
     Accounts payable                                                                        1,193          2,242
     Accrued liabilities                                                                     2,076          1,455
     Deferred revenue                                                                          287            528
                                                                                        ------------- --------------
Total Current Liabilities                                                                    3,595          4,283

Note payable - noncurrent                                                                     --               24
Deferred tax liabilities                                                                        20             20
                                                                                        ------------- --------------
Total liabilities                                                                            3,615          4,327
                                                                                        ------------- --------------

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;
         6,591,774 and 6,493,734 shares issued and outstanding on
         June 28, 1997 and September 30, 1996, respectively                                      7              7
     Additional paid-in capital                                                             21,387         21,317
     Accumulated deficit                                                                   (13,050)        (8,372)
                                                                                        ------------- --------------
Total Stockholders' Equity                                                                   8,344         12,952
                                                                                        ------------- --------------

                                                                                           $11,959        $17,279
                                                                                        ============= ==============
<FN>

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

         The  accompanying  notes  are  an  integral  part  of  these  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                         Nine months ended
                                                             ------------------                         -----------------
                                                          June 28,           June 30,               June 28,          June 30
                                                            1997               1996                   1997              1996
                                                   ---------------------------------------------------------------------------
<S>                                                        <C>               <C>                     <C>             <C>
Net sales                                                  $4,466            $4,824                  $12,916         $15,557

Cost of sales                                               2,027             2,334                    8,896           7,398
                                                   ---------------------------------------------------------------------------

Gross margin                                                2,439             2,490                    4,020           8,159
                                                   ---------------------------------------------------------------------------

Operating expenses:
     Research and development                                 893             1,065                    2,530           3,080
     Marketing and sales                                    1,220             2,436                    4,662           5,601
     General and administrative                               292               382                    1,622           1,052
                                                   ---------------------------------------------------------------------------

Total operating expenses                                    2,405             3,883                    8,814           9,733
                                                   ---------------------------------------------------------------------------

Operating income (loss)                                        34            (1,393)                  (4,794)         (1,574)

Interest income                                                47                59                      121             194

Interest expense                                               (1)               (3)                      (5)             (8)

Other expense                                                  (3)              (10)                       --            (29)
                                                   ---------------------------------------------------------------------------

Income (loss) before income taxes                              77            (1,347)                  (4,678)         (1,417)

Provision for income taxes                                     --              (471)                       --           (496)
                                                   ---------------------------------------------------------------------------

Net income (loss)                                             $77             $(876)                 ($4,678)          ($921)
                                                   ===========================================================================

Net income (loss) per share                                 $0.01            $(0.14)                  ($0.71)         ($0.14)
                                                   ==================================       ==================================

Shares used in computation of net income (loss)
per share                                                   6,865             6,453                    6,577           6,431
                                                   ==================================       ==================================

<FN>

         The  accompanying  notes  are  an  integral  part  of  these  condensed
consolidated financial statements.
</FN>
</TABLE>

                                      -4-
<PAGE>
<TABLE>
                                                    ACCOM, INC.
                                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                  (In thousands)
                                                    (Unaudited)
<CAPTION>

                                                                                       Nine months ended
                                                                                       -----------------
                                                                                     June 28,          June 30,
                                                                                       1997              1996
                                                                                ------------------ -----------------
<S>                                                                               <C>                  <C>

Cash flows from operating activities:
Net loss                                                                          $      (4,678)       $      (921)
Adjustments to reconcile net loss  to net cash provided by (used in)
operating activities:
     Depreciation                                                                           439                554
     Establishment of reserves against accounts receivable, inventories,
         and property and equipment, and accruals for streamlining
         operations in January 1997                                                       3,995                 --
     Changes in operating assets and liabilities:
         Accounts receivable                                                              1,266             (1,922)
         Inventories                                                                      1,712               (697)
         Prepaid expenses and other current assets                                          165               (774)
         Accounts payable                                                                (1,049)               775
         Accrued liabilities                                                                126               (387)
         Deferred revenues                                                                 (241)               466
                                                                                ------------------ ------------------
              Net cash provided by (used in) operating activities                         1,735             (2,906)
                                                                                ------------------ ------------------

Cash flows from investing activities:
Expenditures for property and equipment                                                    (311)              (504)
Purchase of short-term investments                                                           --            (33,553)
Sale of short-term investments                                                               --             30,549
Decrease in other assets                                                                     (6)               (88)
                                                                                ------------------ ------------------
              Net cash used in investing activities                                        (317)            (3,596)
                                                                                ------------------ ------------------

Cash flows from financing activities:
Repayments on notes payable                                                                 (43)               (44)
Issuance of common stock                                                                     71                111
Payment of accrued initial public offering costs                                             --               (819)
                                                                                ------------------ ------------------
              Net cash provided by (used in) financing activities                            28               (752)
                                                                                ------------------ ------------------

Net increase (decrease) in cash and cash equivalents                                      1,446             (7,254)
Cash and cash equivalents at beginning of period                                          4,221              8,768
                                                                                ------------------ ------------------
Cash and cash equivalents at end of period                                            $   5,667        $     1,514
                                                                                ================== ==================


Supplemental disclosure of cash flow information:
Interest paid                                                                     $          5       $           8
                                                                                ================== ==================

Income taxes paid                                                                 $          2         $         1
                                                                                ================== ==================


Supplemental disclosure of noncash investing and financing activities:
Reduction in accrued acquisition costs                                            $         45       $          91
                                                                                ================== ==================
<FN>

         The  accompanying  notes  are  an  integral  part  of  these  condensed
consolidated financial statements.
</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 June 28, 1997, and the
condensed consolidated statements of operations and cash flows for the three and
nine month  periods  ended June 28, 1997 and June 30, 1996 have been prepared by
the Company and are  unaudited.  In the opinion of management,  all  adjustments
(consisting of normal recurring accruals) considered necessary to present fairly
the financial position,  results of operations, and cash flows at June 28, 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 and nine month  periods ended
June 28, 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):

                                        June 28,               September 30,
                                          1997                     1996
                                  ----------------------------------------------
Purchased parts and materials            $ 142                   $ 1,105
Work-in-progress                           471                     1,842
Finished goods                             226                       440
Demonstration inventory                    396                     2,060
                                  ----------------------------------------------
                                        $ 1,235                  $ 5,447
                                  ==============================================

                                      -6-

<PAGE>


              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 4.  Bank Information

         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 June 28 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.  Although the Company
was not in compliance with some of these covenants as of June 28, 1997, Comerica
has waived  non-compliance.  As a result,  the Company is able to borrow against
the line of credit.

Note 5.  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 net income (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.

                                      -7-

<PAGE>


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(TM)"  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  of  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 Onyx(TM)  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 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.

                                      -8-

<PAGE>

         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 June 28, 1997 and June 30, 1996

         Net Sales.  The Company's net sales  decreased by 7.4% to $4.47 million
in the third  quarter of fiscal 1997 from $4.82  million in the third 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 from 61.2% of total sales in the third quarter
of fiscal 1996 to 24.4% of total sales for the third quarter of fiscal 1997. The
decrease was partially offset by increases in the shipments of the WSD and Axess
products.  International sales represented  approximately 37.2% and 36.9% of the
Company's sales during the third quarter of fiscal 1997 and 1996, respectively.

         Cost of Sales.  Gross margins were 54.6% and 51.6% in the third quarter
of fiscal  1997 and 1996,  respectively.  Gross  margin  increased  in the third
quarter  of  fiscal  1997  primarily  as a result  of  increased  sales of ELSET
software partially offset by increased costs of manufacturing certain disk-based
products as well as lower average selling prices on certain older products.

         Research and Development.  Research and development  expenses decreased
by 16.1% to $893,000 in the third  quarter of fiscal 1997 from $1.07  million in
the third  quarter  of  fiscal  1996.  The  decrease  in fiscal  1997 was due to
decreases in headcount and related overhead  expenses.  Research and development
expenses as a percentage  of net sales were 20.0% and 22.1% in the third quarter
of fiscal 1997 and 1996, respectively.

         Marketing and Sales. Marketing and sales expenses decreased by 49.9% to
$1.22  million  in the third  quarter of fiscal  1997 from $2.44  million in the
third  quarter of fiscal 1996.  The decrease in fiscal 1997 was due primarily to
decreases  in  headcount,  sales  commissions,  and trade  show and  promotional
expenses. In addition, in the third quarter of fiscal 1996, a charge of $594,000
was incurred in writing down demonstration inventory used for marketing purposes
and  in  reducing  headcount  as  part  of a  plan  to  refocus  and  streamline
operations. Marketing and sales expenses as a percentage of net sales were 27.3%
and 50.5% in the third quarter of fiscal 1997 and 1996, respectively.

         General  and  Administrative.   General  and  administrative   expenses
decreased by 23.5% to $292,000 in the third quarter of fiscal 1997 from $382,000
in the third  quarter of fiscal 1996.  The decrease in fiscal 1997 was primarily
due to decreases in headcount,  payroll taxes,  and related  overhead  expenses.
General and  administrative  expenses as a percentage of net sales were 6.5% and
7.9% in the third quarter of fiscal 1997 and 1996, respectively.

         Interest Income, Interest Expense, and Other (Expense). Interest income
decreased  to $47,000 in the third  quarter of fiscal  1997 from  $59,000 in the
third  quarter of fiscal 1996.  The decrease was  primarily due to a decrease in
short-term investments. Interest expense decreased to $1,000 in third quarter of
fiscal 1997 from $3,000 in the third  quarter of fiscal  1996.  The decrease was
primarily due to a decrease in debt.

                                      -9-

<PAGE>

         Provision for Income Taxes. In accordance with FAS 109, the Company has
provided no income tax on its profit for the three  months  ended June 28, 1997,
since the Company has recognized no tax benefit for the cumulative  loss for the
nine months ended June 28, 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 Income. Net income in the third quarter of fiscal 1997 was $77,000,
an increase  from the net loss of $876,000 in the third  quarter of fiscal 1996.
There was a charge of $594,000 in 1996 for writing down demonstration  inventory
and reducing  staff.  Without this charge,  the net loss in the third quarter of
fiscal 1996 would have been  $282,000.  The  increase in net income is primarily
due to a decrease in operating expenses. Net income as a percentage of net sales
was 1.7% in the third  quarter of fiscal 1997 while the net loss as a percentage
of sales in the third quarter of fiscal 1996 was 18.1%

Nine Months ended June 28, 1997 and June 30, 1996

         Net Sales. The Company's net sales decreased by 17.0% to $12.92 million
in the nine months  ended June 28, 1997 from $15.56  million for the same period
in fiscal 1996.  The decrease in fiscal 1997 was  primarily  due to decreases in
shipments into the  post-production  markets  partially offset by an increase in
shipments of Axess.  Shipments into the  post-production  market  decreased from
58.4% of total  sales for the first nine months of fiscal 1996 to 42.0% of total
sales for the first nine months of fiscal  1997.  Shipments  of Axess  increased
from 4.1% to 11.3% of total  sales for the first nine  months of fiscal 1996 and
1997,  respectively.  International  sales represented  approximately  43.5% and
41.5% of the  Company's  sales  during the first nine  months of fiscal 1997 and
1996, respectively. The increase in the percentage of international sales in the
first nine  months of fiscal  1997 was  primarily  due to a decrease in domestic
sales volume.

         Cost of Sales.  Gross  margin  was  31.1%  and 52.4% in the first  nine
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 50.5% for the first nine  months of fiscal  1997.  The  decrease
from the first nine  months of fiscal  1996,  without  this  charge,  was due to
increased costs of manufacturing  certain disk-based  products and lower average
selling prices on certain older products.

         Research and Development.  Research and development  expenses decreased
by 17.8% to $2.53  million  in the first nine  months of fiscal  1997 from $3.08
million in the first nine months of fiscal 1996. The decrease in fiscal 1997 was
primarily due to decreases in headcount and related overhead expenses.  Research
and  development  expenses as a percentage  of net sales were 19.6% and 19.8% in
the first nine months of fiscal 1997 and 1996, respectively.

         Marketing and Sales. Marketing and sales expenses decreased by 16.8% to
$4.66  million in the first nine months of fiscal 1997 from $5.60 million in the
first nine months of fiscal 1996.

                                      -10-

<PAGE>

         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.
In addition,  in the third quarter of fiscal year 1996, a charge of $594,000 was
taken to write-down demonstration inventory and reduce staff.

         Exclusive of the above noted  charges,  the decrease in fiscal 1997 was
due primarily to decreases in headcount  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 36.1%
(29.6%  without the fiscal 1997 charge) and 36.0% (32.2% without the fiscal 1996
charge) in the first nine months of fiscal 1997 and 1996, respectively.

         General  and  Administrative.   General  and  administrative   expenses
increased  by $570,000 to $1.62  million in the first nine months of fiscal 1997
from $1.05 million in the first nine months of fiscal 1996.

         A $650,000  charge  primarily for  streamlining  operations,  to reduce
overhead and other costs as well as to increase  the reserve for bad debts,  was
recorded in the first quarter of fiscal 1997.  Without this charge,  general and
administrative  expenses  would have  decreased  by 7.6% to  $972,000.  That was
primarily due to a decrease in headcount and related overhead expenses partially
offset by an increase in legal and  accounting  professional  fees.  General and
administrative  expenses as a percentage  of net sales were 12.6% (7.5%  without
the  charge)  and  6.8%  in  the  third   quarters  of  fiscal  1997  and  1996,
respectively.

         Interest Income, Interest Expense and Other (Expense).  Interest income
decreased  to $121,000 in the first nine months of fiscal 1997 from  $194,000 in
the first nine  months of fiscal  1996.  The  decrease  was  primarily  due to a
decrease in cash and cash equivalents.  Interest expense  decreased  slightly to
$5,000 in the first  nine  months of fiscal  1997 from  $8,000 in the first nine
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 June 28, 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.  Net loss increased to $4.68 million in the first nine months
of fiscal 1997 from $921,000 in the first nine months of fiscal 1996.

         As 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 nine months of fiscal 1997 would
have been $683,000.

         Additional  factors  contributing  to the increase in the net loss were
primarily a decrease in net sales ($2.64  million),  lower gross margins,  and a
decrease in interest income ($73,000), which were partially offset by a decrease
in operating expenses ($919,000).

                                      -11-

<PAGE>

         Net loss as a  percentage  of net  sales was 36.2%  (5.3%  without  the
fiscal 1997  charges),  and 5.9% (2.1%  without the fiscal 1996  charges) in the
first nine months of fiscal 1997 and 1996, respectively.


Liquidity and Capital Resources

         As of June 28,  1997 the  Company  had $5.67  million  of cash and cash
equivalents.

         Operating activities provided $1.74 million in the first nine months of
fiscal 1997 and used $2.91 million in the first nine months of fiscal 1996.  Net
cash  provided  in the first nine  months of fiscal  1997 was due  primarily  to
decreases in accounts  receivable and inventory,  partially offset by a decrease
in accounts payable.

         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 June 28 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.  Although the Company
was not in compliance with some of these covenants as of June 28, 1997, Comerica
has waived  non-compliance.  As a result,  the Company is able to borrow against
the line of credit.

         The Company  believes that its existing cash and 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  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.

                                      -12-

<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
         None.

         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.

         (b)      Reports on Form 8-K:

                  The Company filed a current report on Form 8-K dated April 28,
                  1997  reporting  the  resignation  of  Gary  W.  Kalback  as a
                  Director  of the  Company  and the  appointment  of  Thomas E.
                  Fanella as a Director.  No financial information or statements
                  were filed with the report.

                                      -13-

<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:                                                   August 10, 1997

                                      -14-