Form 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

             |X| Quarterly Report Pursuant to Section 13 or 15(d) of
                 the Securities Exchange Act of 1934.
                 For the quarterly period ended March 31, 1998

             |_| 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 000-21552

                      ATEL Cash Distribution Fund IV, L.P.
             (Exact name of registrant as specified in its charter)

  California                                                  94-3145429
(State or other jurisdiction of                             (I. R. S. Employer
 incorporation or organization)                             Identification No.)

           235 Pine Street, 6th Floor, San Francisco, California 94104
                    (Address of principal executive offices)

       Registrant's telephone number, including area code: (415) 989-8800



Indicate  by a 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  |_|

                       DOCUMENTS INCORPORATED BY REFERENCE

                                      None


<PAGE>

                          Part I. FINANCIAL INFORMATION

Item 1.  Financial Statements.



<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                                  BALANCE SHEET

                                 MARCH 31, 1998
                                   (Unaudited)


                                     ASSETS


Cash and cash equivalents                                           $2,551,981

Accounts receivable                                                    340,650

Investments in leases                                               26,029,050
                                                                ---------------
Total assets                                                       $28,921,681
                                                                ===============


                        LIABILITIES AND PARTNERS' CAPITAL



Non-recourse debt                                                   $6,378,976
Accounts payable:
     General Partner                                                    91,183
     Other                                                             170,019
Accrued interest payable                                                28,623
Unearned operating lease income                                        439,843
                                                                ---------------
Total liabilities                                                    7,108,644

Partners' capital:
     General Partner                                                   109,324
     Limited Partners                                               21,703,713
                                                                ---------------
Total partners' capital                                             21,813,037
                                                                ---------------
Total liabilities and partners' capital                            $28,921,681
                                                                ===============


                             See accompanying notes.



<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                                INCOME STATEMENTS

                            THREE MONTH PERIODS ENDED
                             MARCH 31, 1998 AND 1997
                                   (Unaudited)

                                                 1998             1997
                                                 ----             ----
Revenues:
Leasing activities:
   Operating leases                               $904,403       $2,295,887
   Direct financing leases                         295,608          292,127
   Leveraged leases                                 46,872           62,013
   Gain on sale of assets                           31,132          527,355
Interest                                            33,439           10,242
Other                                                3,042            1,142
                                            ---------------  ---------------
                                                 1,314,496        3,188,766
                                            ---------------  ---------------
Expenses:
Depreciation and amortization                      613,784        1,748,461
Interest                                           128,412          433,375
Equipment and incentive management fees 
   to General Partner                              110,081          205,025
Administrative cost reimbursements to 
   General Partner                                  78,798           69,901
Other                                               18,094           20,405
Provision for losses                                13,145           31,888
Professional fees                                    3,138            4,871
                                            ---------------  ---------------
                                                   965,452        2,513,926
                                            ---------------  ---------------
Net income                                        $349,044         $674,840
                                            ===============  ===============

Net income:
     General Partner                                $3,490           $6,748
     Limited Partners                              345,554          668,092
                                            ---------------  ---------------
                                                  $349,044         $674,840
                                            ===============  ===============
Net income per Limited Partnership unit              $0.05            $0.09
Weighted average number of units outstanding     7,487,350        7,487,350

                    STATEMENT OF CHANGES IN PARTNERS' CAPITAL

                            THREE MONTH PERIOD ENDED
                                 MARCH 31, 1998
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                   Limited Partners     General
                                       Units            Amount          Partner           Total

<S>                                      <C>            <C>                <C>           <C>        
Balance December 31, 1997                7,487,350      $23,976,764        $105,834      $24,082,598
Distributions to limited partners                        (2,618,605)              -       (2,618,605)
Net income                                                  345,554           3,490          349,044
                                  ----------------- ---------------- ---------------  ---------------
Balance March 31, 1998                   7,487,350      $21,703,713        $109,324      $21,813,037
                                  ================= ================ ===============  ===============
</TABLE>

                             See accompanying notes.

<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                            STATEMENTS OF CASH FLOWS

                            THREE MONTH PERIODS ENDED
                             MARCH 31, 1997 AND 1996
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                            1998             1997
                                                                            ----             ----
<S>                                                                        <C>              <C>       
Operating activities:
Net income                                                                   $349,044         $674,840
Adjustments to reconcile net income to net cash provided by operations:
   Depreciation and amortization                                              613,784        1,748,461
   Leveraged lease revenues                                                         -                -
   Gain on sale of asset                                                      (31,132)        (527,355)
   Provision for losses                                                        13,145           31,888
   Changes in operating assets and liabilities:
     Accounts receivable                                                       79,288          119,005
     Notes receivable                                                               -                -
     Bank overdrafts                                                                -                -
     Accounts payable, General Partner                                         46,323           (7,269)
     Accounts payable, other                                                  (25,808)         (21,176)
     Deposits due to lessees                                                        -          (97,772)
     Accrued interest payable                                                  (3,293)         (31,555)
     Unearned operating lease income                                          (50,480)           6,904
                                                                       ---------------  ---------------
Net cash from operations                                                      990,871        1,895,971
                                                                       ---------------  ---------------

Investing activities:
Reduction in investment in direct financing leases                            666,838          729,869
Proceeds from sales of lease assets                                           130,676        4,763,034
Reduction in investment in leveraged leases                                   (46,872)          95,079
Purchase of equipment on direct financing leases                                    -          (77,518)
Purchase of equipment on operating leases                                           -          (42,227)
                                                                       ---------------  ---------------
Net cash provided by (used in) investing activities                           750,642        5,468,237
                                                                       ---------------  ---------------

Financing activities:
Distributions to limited partners                                          (2,618,605)      (2,620,576)
Repayment of non-recourse debt                                               (561,023)      (3,637,431)
Repayment of line of credit                                                         -         (500,000)
                                                                       ---------------  ---------------
Net cash used in financing activities                                      (3,179,628)      (6,758,007)
                                                                       ---------------  ---------------

Net increase (decrease) in cash and cash equivalents                       (1,438,115)         606,201
Cash and cash equivalents at beginning of period                            3,990,096          696,421
                                                                       ===============  ===============
Cash and cash equivalents at end of period                                 $2,551,981       $1,302,622
                                                                       ===============  ===============

Supplemental disclosures of cash flow information:
Cash paid during period for interest                                         $131,705         $464,930
                                                                       ===============  ===============
</TABLE>



                             See accompanying notes.




<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                 MARCH 31, 1998
                                   (Unaudited)


1.  Summary of significant accounting policies:

Interim financial statements:

The unaudited interim financial statements reflect all adjustments which are, in
the opinion of the general partners,  necessary to a fair statement of financial
position and results of operations for the interim periods  presented.  All such
adjustments are of a normal recurring nature.  These unaudited interim financial
statements  should be read in  conjunction  with the most recent  report on Form
10K.


2. Organization and partnership matters:

ATEL Cash  Distribution  Fund IV, L.P. (the  Partnership),  was formed under the
laws of the State of  California  on  September  19,  1991,  for the  purpose of
acquiring  equipment  to  engage in  equipment  leasing  and  sales  activities.
Contributions in the aggregate of $600 were received as of October 8, 1991, $100
of which  represented the General  Partner's  continuing  interest,  and $500 of
which represented the Initial Limited Partners' capital investment.

Upon the sale of the  minimum  amount of Units of Limited  Partnership  interest
(Units) of $1,200,000 and the receipt of the proceeds  thereof on March 6, 1992,
the Partnership commenced operations.  The Partnership or the General Partner on
behalf of the Partnership, will incur costs in connection with the organization,
registration  and issuance of the Units.  The amount of such costs to be born by
the Partnership is limited by certain provisions in the Partnership Agreement.

As of February 3, 1993, the Partnership had received subscriptions for 7,500,000
Limited  Partnership  Units  ($75,000,000)  in addition  to the Initial  Limited
Partners' 50 Units. Of those  subscriptions,  7,487,350 Units ($74,873,500) were
issued and outstanding as of March 31, 1998.

The Partnership's business consists of leasing various types of equipment. As of
March 31, 1998, the original terms of the Partnership's  leases were from two to
ten years.






<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                 MARCH 31, 1998
                                   (Unaudited)


3. Investment in leases:

The Partnership's investment in leases consists of the following:

<TABLE>
<CAPTION>
                                                                                 Depreciation
                                                                                 Expense or       Reclassi-
                                            December 31,                        Amortization     fications or       March 31,
                                                 1997           Additions         of Leases      Dispositions         1998
                                                 ----           ---------         ---------     --------------        ----

<S>                                             <C>                  <C>           <C>                <C>           <C>        
Net investment in operating leases              $13,166,852                          ($557,452)      ($815,562)     $11,793,838
Net investment in direct financing
   leases                                         8,803,127                           (666,838)        (54,589)       8,081,700
Net investment in leveraged leases                4,722,893                             46,872               -        4,769,765
Residual value interests                            582,057                                  -               -          582,057
Reserve for losses                                 (627,854)                           (13,145)              -         (640,999)
Assets held for sale or lease                       131,158                                  -         770,607          901,765
Initial direct costs, net of
   accumulated amortization of
   $1,304,175 in 1997 and
   $1,304,175 in 1998                               597,256          ($56,332)               -               -          540,924
                                            ---------------- ----------------- ---------------- ---------------  ---------------
                                                $27,375,489          ($56,332)     ($1,190,563)       ($99,544)     $26,029,050
                                            ================ ================= ================ ===============  ===============
</TABLE>


The following  schedule provides an analysis of the Partnership's  investment in
property on operating leases by major  classifications  as of December 31, 1997,
acquisitions and dispositions  during the quarter ended March 31, 1998 and as of
March 31, 1998.
<TABLE>
<CAPTION>

                                  December 31,                    1st Quarter       March 31,
                                    1997         Acquisitions    Dispositions          1998
                                    ----         ------------    ------------          ----
<S>                                <C>                <C>             <C>            <C>        
Transportation                      $5,412,784                      ($1,861,391)      $3,551,393
Corporate aircraft                   2,470,969                                -        2,470,969
Printing                             4,393,249                                -        4,393,249
Construction                         4,985,297                                -        4,985,297
Other                                2,054,576                       (1,495,048)         559,528
Materials handling                   2,389,826                                -        2,389,826
Manufacturing                        1,587,670                                -        1,587,670
Ground support                       1,127,988                                -        1,127,988
Data processing                        851,561                                -          851,561
Office equipment                       216,080                                -          216,080
                              ----------------- ---------------- ---------------  ---------------
                                    25,490,000                       (3,356,439)      22,133,561
Less accumulated depreciation      (12,323,148)       ($557,452)      2,540,877      (10,339,723)
                              ----------------- ---------------- ---------------  ---------------
                                   $13,166,852        ($557,452)      ($815,562)     $11,793,838
                              ================= ================ ===============  ===============
</TABLE>

All of the property on operating  leases was acquired during 1992,  1993,  1994,
1995 and 1996.




<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                 MARCH 31, 1998
                                   (Unaudited)


3. Investment in leases (continued):

At March 31, 1998, the aggregate amounts of future minimum lease payments are as
follows:

      Year ending     Operating       Direct Financing
     December 31,       Leases           Leases           Total

             1998        $2,462,665       $2,573,178      $5,035,843
             1999         2,572,260        2,579,270       5,151,530
             2000         1,750,247        1,652,153       3,402,400
             2001         1,197,605        1,128,109       2,325,714
             2002           859,085          557,077       1,416,162
       Thereafter           627,633           23,660         651,293
                   ----------------- ---------------- ---------------
                         $9,469,495       $8,513,447     $17,982,942
                   ================= ================ ===============


4.  Non-recourse debt:

Notes payable to financial  institutions are due in varying  monthly,  quarterly
and semi-annual installments of principal and interest. The notes are secured by
assignments  of lease  payments and pledges of the assets  which were  purchased
with the proceeds of the particular notes. Interest rates on the notes vary from
6.81% to 11.2%.

Future minimum principal payments of non-recourse debt are as follows:

                Year ending
               December 31,     Principal         Interest          Total

                       1998        $1,744,263         $326,625      $2,070,888
                       1999         2,045,296          287,129       2,332,425
                       2000         1,535,205          151,656       1,686,861
                       2001           697,282           56,062         753,344
                       2002           356,930           22,731         379,661
                             ----------------- ---------------- ---------------
                                   $6,378,976         $844,203      $7,223,179
                             ================= ================ ===============















<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                 MARCH 31, 1998
                                   (Unaudited)


5.  Related party transactions:

The terms of the Limited Partnership  Agreement provide that the General Partner
and/or   Affiliates   are  entitled  to  receive   certain  fees  for  equipment
acquisition, management and resale and for management of the Partnership.

The General Partner and/or Affiliates earned the following fees, commissions and
reimbursements, pursuant to the Limited Partnership Agreement as follows:

<TABLE>
<CAPTION>
                                                                                     1998             1997
                                                                                     ----             ----
<S>                                                                                   <C>              <C>     
Incentive  management  fees  (computed  as  5% of  distributions  of  cash  from
operations,  as defined in the  Limited  Partnership  Agreement)  and  equipment
management  fees  (computed as 5% of gross revenues from  operating  leases,  as
defined in the Limited Partnership Agreement plus 2% of gross revenues from full
payout leases, as defined in the Limited Partnership Agreement).                      $110,081         $205,025

Administrative costs reimbursed to General Partner                                      78,798           69,901
                                                                                ---------------  ---------------
                                                                                      $188,879         $274,926
                                                                                ===============  ===============
</TABLE>


6.  Line of credit:

The  Partnership  participates  with the  General  Partner  and  certain  of its
Affiliates in a $90,000,000 revolving credit agreement with a group of financial
institutions  which  expires on October  28,  1998.  The  agreement  includes an
acquisition  facility to be used by the  Partnership  and  Affiliates to provide
bridge financing for assets on leases.  Draws on the acquisition facility by any
individual  borrower  are  secured  only by that  borrower's  assets,  including
equipment and related leases.

The Partnership had no borrowings under the agreement during 1998.

The credit agreement  includes certain  financial  covenants  applicable to each
borrower.  The  Partnership was in compliance with its covenants as of March 31,
1998.








<PAGE>

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


Capital Resources and Liquidity

During  1998,  the  Partnership's  primary  source of  liquidity  was rents from
operating leases. During 1997, the Partnership's primary source of liquidity was
proceeds from sales of lease assets.  The liquidity of the Partnership will vary
in the future,  increasing to the extent cash flows from leases exceed  expenses
and  proceeds  from  lease  asset  sales,  and  decreasing  as lease  assets are
acquired,  as  distributions  are made to the limited partners and to the extent
expenses exceed cash flows from leases and proceeds from lease asset sales.

As another source of liquidity, the Partnership has contractual obligations with
a diversified group of lessees for fixed lease terms at fixed rental amounts. As
the  initial  lease  terms  expire the  Partnership  will  re-lease  or sell the
equipment.  The future  liquidity  beyond the  contractual  minimum rentals will
depend on the General  Partner's  success in re-leasing or selling the equipment
as it comes off lease.

The  Partnership  participates  with the  General  Partner  and  certain  of its
affiliates  in  a  $90,000,000   revolving  line  of  credit  with  a  financial
institution. The line of credit expires on October 28, 1997.

The Partnership  anticipates reinvesting a portion of lease payments from assets
owned in new leasing  transactions.  Such reinvestment will occur only after the
payment  of  all  obligations,   including  debt  service  (both  principal  and
interest), the payment of management and acquisition fees to the General Partner
and providing for cash distributions to the Limited Partners.

The Partnership currently has available adequate reserves to meet contingencies,
but in the event those  reserves were found to be  inadequate,  the  Partnership
would  likely be in a position to borrow  against its current  portfolio to meet
such  requirements.  The  General  Partners  envision no such  requirements  for
operating purposes.

Through March 31, 1998, the Partnership had borrowed  approximately  $38,342,000
with a remaining unpaid balance of approximately  $6,379,000.  Borrowings are to
be generally non-recourse to the Partnership,  that is, the only recourse of the
lender  for a default  by the  lessee  on the  underlying  lease  will be to the
equipment or  corresponding  lease acquired with the loan proceeds.  The General
Partners  expect that aggregate  borrowings in the future will not exceed 40% of
aggregate  equipment  cost. In any event,  the Agreement of Limited  Partnership
limits such borrowings to 40% of the total cost of equipment, in aggregate.

No  commitments  of capital  have been or are expected to be made other than for
the acquisition of additional  equipment.  At March 31, 1998,  such  commitments
totaled approximately $804,000.

If  inflation  in the general  economy  becomes  significant,  it may affect the
Partnership  inasmuch as the residual  (resale) values and rates on re-leases of
the  Partnership's  leased  assets may  increase as the costs of similar  assets
increase.  However,  the  Partnership's  revenues from existing leases would not
increase,  as such rates are generally fixed for the terms of the leases without
adjustment for inflation.

If interest rates increase  significantly,  the lease rates that the Partnership
can obtain on future  leases will be expected to increase as the cost of capital
is a significant  factor in the pricing of lease  financing.  Leases  already in
place, for the most part, would not be affected by changes in interest rates.

The Partnership made distributions of cash from 1998 first quarter operations in
February, March and April 1998. The amount of the distributions totaled $.35 per
Unit.  This was paid in either  monthly  amounts of  $.11667  per Unit or in one
quarterly payment of $.35 per Unit in April 1998. These  distributions are equal
to an annualized distribution rate of 14%.

Rents  from  operating  leases  were the  primary  sources  of cash  flows  from
operations in the first quarter of both 1998 and 1997. The amounts of such rents
decreased from 1997 to 1998 by $1,391,484.

Sources of cash from investing  activities in 1997 and 1998 consisted  primarily
of the  proceeds  of the  sales  of lease  assets  and cash  flows  from  direct
financing leases. Proceeds from the sales of lease assets are not expected to be
consistent from one period to another.  Cash flows from direct  financing leases
decreased by $63,031.  Lease rents have declined due to lease  terminations  and
sales of assets.

In the first quarter of 1998 and 1997,  there were no financing  sources of cash
flows.  Repayments  of  non-recourse  debt have  decreased due to certain of the
notes  payable  being paid off over the last year.  These note payoffs  resulted
from both scheduled debt payments in 1997 and 1998 and unscheduled debt payments
in 1997.


Results of Operations

Operations  in the first  quarter of 1998  resulted  in net  income of  $349,044
compared to $674,840 in 1997.

Operating lease revenues and the related  depreciation expense have decreased as
a result of asset  sales  over the last  year.  Sales of these  assets  were not
significant  in the first  quarter of 1998,  compared to 1997 and the amounts of
gains recognized on those sales has declined as a consequence.

Some of the assets sold had been financed  with  non-recourse  debt.  Upon those
sales, the Partnership was relieved of the related debt. As a result of this and
scheduled debt payments, interest expense has been reduced compared to 1997.

Management fees are related to the Partnership's revenues and have declined as a
result of the decreases in those revenues.

<PAGE>

                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings.

         Inapplicable.

Item 2. Changes In Securities.

         Inapplicable.

Item 3. Defaults Upon Senior Securities.

         Inapplicable.

Item 4. Submission Of Matters To A Vote Of Security Holders.

         Inapplicable.

Item 5. Other Information.

         Inapplicable.

Item 6. Exhibits And Reports On Form 8-K.

                 (a) Documents filed as a part of this report

                   1. Financial Statements

                      Included in Part I of this report:

                      Balance Sheet, March 31, 1998.

                      Income  statements  for the three  month
                         periods  ended  March  31,  1998  and
                         1997.
                      Statement  of   changes   in   partners'
                         capital  for the three  months  ended
                         March 31, 1998.
                      Statements  of cash  flows for the three
                         month  periods  ended  March 31, 1998
                         and 1997.
                      Notes to the Financial Statements

                   2. Financial Statement Schedules

                      All other  schedules for which provision
                      is  made  in the  applicable  accounting
                      regulations   of  the   Securities   and
                      Exchange  Commission  are  not  required
                      under the  related  instructions  or are
                      inapplicable,  and  therefore  have been
                      omitted.

                 (b)  Report on Form 8-K
                      None

<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.

Date:
May 12, 1998

                                            ATEL CASH DISTRIBUTION FUND IV, L.P.
                                        (Registrant)



                 By: ATEL Financial Corporation
                     General Partner of Registrant




                                   By: /s/ A. J. Batt
                                      ----------------------------------
                                      A. J. Batt
                                      President and Chief Executive Officer
                                      of General Partner




                                   By: /s/ Dean L. Cash
                                      ----------------------------------
                                      Dean L. Cash
                                      Executive Vice President
                                      of General Partner




                 By: /s/ F. Randall Bigony
                     ---------------------------------------------------
                     F. Randall Bigony
                     Principal financial officer
                     of registrant




                 By: /s/ Donald E. Carpenter
                     ---------------------------------------------------
                     Donald E. Carpenter
                     Principal accounting
                     officer of registrant