FORM 10-K

                     SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.  20549


(Mark One)

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

             For the fiscal year ended December 31, 1996

OR

[      ]TRANSITION   REPORT   PURSUANT   TO   SECTION   13   OR  15(d)   OF   
       THE   SECURITIES   EXCHANGE   ACT   OF   1934   (NO  FEE REQUIRED)

             For the transition perio                 to                      


             Commission file number 0-6933
             
                                 CAMBEX CORPORATION
             (Exact name of registrant as specified in its charter)


Massachusetts                                        04 244 2959
(State or other                                      (I.R.S. Employer
jurisdiction of                                      Identification No.)
incorporation or
organization)

360 Second Avenue                                    02154
Waltham, Massachusetts                               (Zip Code)
(Address of principal
executive offices)

Registrant's telephone number, including area code:  617-890-6000

Securities registered pursuant to Section 12(b) of the Act:  None

Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $.10 par value
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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 the past 90 days.  Yes   X        No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 
405 of Regulation S-K is not contained herein, and will not be contained, to 
the best of registrant's knowledge, in definitive proxy or information 
statements incorporated by reference in Part III of this Form 10-K or any 
amendment to this Form 10-K.                     [     ]

An Exhibit Index setting forth the exhibits filed herewith or incorporated by 
reference herein is included herein at Page A-1.

The aggregate market value of the voting stock held by non-affiliates of 
Cambex Corporation as of March 27, 1997 was $10,256,577, based on the closing 
price of the common stock on the Nasdaq National Market reporting system on 
that date.

The number of shares of Cambex Corporation's common stock outstanding as of 
March 27, 1997:  9,080,683.




























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<PAGE>
                                  PART III

                      Item 11.  Executive Compensation


The following table provides certain summary information concerning 
compensation paid or accrued by the Company to or on behalf of the Company's 
Chief Executive Officer and each of the other executive officers of the 
Company (determined as of the end of the last fiscal year) for the fiscal 
years ended December 31, 1996, August 31, 1995 and August 31, 1994.


                         Summary Compensation Table

                                     Annual Compensation

                                                                  Commissions
                                                                  and Incentive
Name and Position                    Year        Salary           Bonuses 

Joseph F. Kruy                       1996        $200,000         $    -
Chairman, President and CEO          1995        $195,385         $ 8,962
                                     1994        $180,000         $46,810

Sheldon M. Schenkler                 1996        $110,000         $    -
Vice President of Finance and        1995        $110,000         $  1,680
Chief Financial Officer              1994        $106,731         $  8,777


                                     Long Term Compensation Awards

                                                          All Other
                                            Options       Compensation (1)
Name and Position                Year        (#)          

Joseph F. Kruy                   1996        -              $3,854
Chairman, President and CEO      1995        -              $2,250
                                 1994        -              $4,943

Sheldon M. Schenkler             1996       10,000          $3,237
Vice President of Finance and    1995        -              $1,832
Chief Financial Officer          1994        5,000          $3,828


(1)    Company contribution in Company Common Stock on officer's behalf to 
       the Company's 401(k) Plan.


Directors who are not employed by the Company receive an annual fee of 
$10,000 and a fee of $1,000 for each meeting of the Board attended.  


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                               STOCK OPTIONS



The following table contains information concerning the grant of stock 
options under the Company's 1987 Combination Stock Option Plan to the 
executive officers named in the Summary Compensation Table.

                     Option Grants in Last Fiscal Year

Individual Grants

                                  % of Total         
                      Options     Options Granted    Exercise
                      Granted     to Employees in    Price       Expiration
Name                  (#)         Fiscal Year        ($/share)   Date

Joseph F. Kruy        ---         ---                ---         ---

Sheldon M. Schenkler  10,000      4.61               $5.10       3/4/2006



                                                     Potential Realizable
                                                     Value at Assumed Annual
                                                     Rates of Stock Price
                                                     Appreciation for Option
Name                                                 Term (1)

                                           0%           5%            10% 

Joseph F. Kruy                             --           --            --

Sheldon M. 
Schenkler                                  $9,000       $46,700       $104,600




(1)  Amounts represent hypothetical gains that could be achieved for the 
     respective options if exercised at the end of the option term.  These 
     gains are based on assumed rates of stock price appreciation of 5% and 
     10% compounded annually from the date the options were granted to their 
     expiration date.  This table does not take into account any appreciation 
     in the price of the Common Stock to date.  Actual gains, if any, on 
     stock option exercises will depend on the future performance of the 
     Common Stock and the date on which the options are exercised.  The 
     Company does not necessarily agree that this procedure fairly values the 
     options involved.



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<PAGE>
               Aggregate Option Exercises in Last Fiscal Year
                      and Fiscal Year End Option Value

                                                         Number of
                                                         Options at
                                                         December 31, 1996
                       Shares Acquired    Value          Exercisable/
Name                   on Exercise (#)    Realized       Unexercisable


Joseph F. Kruy         65,788             $336,177       -

Sheldon M. Schenkler   -                  -              25,100/15,000


                                                         Value of 
                                                         Unexercised
                                                         In-the-money
                                                         Options at
                                                         December 31, 1996 
(1)
                                                         Exercisable/
Name                                                     Unexercisable

Joseph F. Kruy                                           -

Sheldon M. Schenkler                                     14,459/-

(1)  The closing price of the Company's Common Stock on December 31, 1996 on 
     the Nasdaq National Market was $1.81.  The numbers shown reflect the 
     value of options accumulated over all years of employment.



        COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION


The Compensation Committee is presently comprised of the Board of Directors. 
Mr. Kruy, the Company Chairman of the Board of Directors, President and CEO, 
participates as a member of the Board in compensation decisions, excluding 
decisions regarding his own compensation.









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<PAGE>
              EMPLOYMENT CONTRACTS AND TERMINATION AGREEMENTS


Mr. Kruy is employed under an agreement which provides for his full-time 
employment as Chairman of the Board of Directors, President and Chief 
Executive Officer of the Company until December 31, 1998.  Pursuant to an 
employment agreement dated November 18, 1994, the Company has agreed to pay 
Mr. Kruy minimum base compensation of $200,000 per year and an incentive bonus 
pursuant to the Company's Incentive Bonus Plan in an amount equal to 4% of the 
Company's pre-tax profit, as defined, beginning in fiscal year 1995 for each 
fiscal year during the term of the agreement.  If another person is given 
either the title or the powers of Chief Executive Officer, Mr. Kruy will be 
entitled to resign and continue to be paid his fixed and incentive 
compensation, subject to mitigation, through December 31, 1998.



                      REPORT ON EXECUTIVE COMPENSATION

The Company has designed its compensation program to compensate employees, 
including its executives, in a consistent manner to promote a cooperative 
effort toward common goals of quality performance.  Compensation is set at 
levels which the Company believes will attract, motivate and retain employees 
who can achieve these goals.  

Compensation for the Company's executive officers consists of base salary, 
bonus and stock options.  Base salaries and stock options are approved by the 
Compensation Committee presently comprised of the Board of Directors based 
upon a review of the responsibilities of the officer as well as a review of 
the base salaries and stock options of similar positions in other high 
technology companies of comparable revenues.

The Company believes that a substantial portion of an employee's compensation 
should be based on the performance of the Company. Therefore, the Company has 
an Incentive Bonus Plan which provides for annual cash bonuses to certain key 
employees of the Company based on the Company's operating results for the year 
up to an aggregate maximum of 15% of the Company's pre-tax income.  As of 
December 31, 1996, approximately 10 employees were eligible to participate in 
this plan.  Of the executive officers, Messrs. Kruy and Schenkler were 
participants in the plan in 1996.  The amount of each individual bonus is 
determined at the discretion of the Board of Directors.  

The Company also has the Cambex Corporation Employee Stock Purchase Plan 
which is an equity purchase plan designed to attract and retain employees who 
can make significant contributions to the success of the Company.




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<PAGE>
                             BOARD OF DIRECTORS

                               Joseph F. Kruy
                             Philip C. Hankins
                             C. V. Ramammorthy
                              Robert J. Spain


  Item 12.  Security Ownership of Certain Beneficial Owners and Management

                                     (#)Shares of Common       
                                     Stock Beneficially        
                                     Owned as of               Percent
Name                                 December 31, 1996         of Class


Joseph F. Kruy                       1,404,940 (1)             15.43%

Philip C. Hankins                      106,358                  1.17%

C.V. Ramamoorthy                        99,156                  1.09%

Robert Spain                             0                        0%

Sheldon M. Schenkler                   10,900 (2)               0.11%


All directors and
executive officers
as a group
(5) persons                          1,621,354 (3)             17.80%

(1)  Includes 56,250 shares owned by Mr. Kruy as co-trustee for his wife and 
     children.  Excludes 960,194 shares held by CyberFin Corporation, which 
     is owned by Mr. Kruy's son.  Mr. Kruy disclaims any beneficial interest 
     in such shares.

(2)  Excludes 25,100 shares as to which options are exercisable currently or 
     within 60 days, of which 10,100 are in-the-money options.

(3)  Directors and officers have shared investment power with respect to 
     56,250 shares and sole voting power with respect to 1,565,104 shares.


Solely for the purpose of calculating the aggregate market value of voting 
stock held by non-affiliates of the Company as set forth on the Cover Page, it 
was assumed that only directors and executive officers on the calculation date 
together with spouses and dependent children of such persons constituted 
affiliates.


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<PAGE>
                                 SIGNATURES



Pursuant to the requirements of Section 13 of the Securities Exchange Act of 
1934, the Company has duly caused this report to be signed on its behalf by 
the undersigned, thereunto duly authorized.


CAMBEX CORPORATION


By:    /s/ Joseph F. Kruy
       Joseph F. Kruy, President                      March 27, 1997



Pursuant to the requirements of the Securities Exchange Act of 1934, this 
report has been signed below by the following persons on behalf of the Company 
and in the capacities indicated as of March 27, 1997.


By:    /s/ Joseph F. Kruy
       Joseph F. Kruy, Chairman of the Board, President and Director
       (Principal Executive Officer)


By:    /s/ Sheldon M. Schenkler
       Sheldon M. Schenkler, Vice President of Finance
       (Principal Financial and Accounting Officer)


By:    /s/ Robert J. Spain
       Robert J. Spain, Director


By:    /s/ Philip C. Hankins
       Philip C. Hankins, Director


By:    /s/ C. V. Ramamoorthy
       C. V. Ramamoorthy, Director







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