SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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


(X)   Quarterly report for the quarterly period ended March 31, 1997

                                 OR

( )   Transition Report Pursuant To Section 13 Or 15(d) of The Securities 
      Exchange Act of 1934

Commission file number 1-3952

                               SIBONEY CORPORATION
             (Exact name of registrant as specified in its charter)

             Maryland                                     73-0629975
 (State or other jurisdiction of                  (I.R.S. Employer I.D. No.)
 incorporation or organization)

       8000 Maryland Ave., Ste 1040, P.O. Box 16184, St. Louis, MO 63105
                    (Address of principal executive offices)
                                   (Zip Code)

                                  314-725-6141
              (Registrant's telephone number, including area code)


              (Former name, former address and former fiscal year,
                          if changed since last report)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or such shorter period that the registrant was required
to file such reports) and (2) has been subject to such filing  requirements  for
the past 90 days: YES [X] NO [ ]

    Title of class of                            Number of Shares
      common stock                       outstanding as of this Report Date
      ------------                       ----------------------------------

Common stock, par value                             15,766,694
$.10 per share

<PAGE>
                                      INDEX


PART I  FINANCIAL INFORMATION

 ITEM 1.  Financial Statements

      Condensed Consolidated Balance Sheet March 31,                       3
        1997 and December 31, 1996

      Condensed Consolidated Statement Of Operations                       5
        Three Months Ended March 31, 1997 and March
          31, 1996

      Condensed Consolidated Statement Of Cash Flows                       6
        Three Months Ended March 31,1997 and March
          31, 1996

      Notes To Condensed Consolidated Financial                            7
        Statements

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


PART II  OTHER INFORMATION

 ITEM 6.  Exhibits And Reports On Form 8-K                                10
 
 SIGNATURES                                                               10

 EXHIBIT INDEX                                                            11



                                       2
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                      SIBONEY CORPORATION AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET

                      MARCH 31, 1997 AND DECEMBER 31, 1996


                                     ASSETS


                                                                  DECEMBER 31,
                                                MARCH 31,         1996 (SEE
                                                  1997            NOTE BELOW)


CURRENT ASSETS                               $   432,688         $    775,830
         Cash and cash equivalents               277,153              152,437
         Accounts and notes receivable           182,127              174,939
         Inventories (Note 3)                    216,547              160,033
                                             -----------         ------------
         Prepaid expenses and deposits         1,108,515            1,263,239
                  TOTAL CURRENT ASSETS

PROPERTY, PLANT AND EQUIPMENT (NET OF 
ACCUMULATED DEPRECIATION OF $467,708 AT
MARCH 31, 1997 AND $451,942 AT DECEMBER 
31, 1996)                                        163,745              172,553

INVESTMENTS IN NATURAL RESOURCES                   5,101                5,101
                                             -----------         ------------

                                             $ 1,277,361         $  1,440,893
                                             ===========         ============




 NOTE:    The balance sheet at December 31, 1996 has been taken from the audited
          financial statements at that date and condensed.

          See accompanying notes to condensed consolidated financial statements.

                                       3
<PAGE>
                      SIBONEY CORPORATION AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET

                                   (CONTINUED)

                      MARCH 31, 1997 AND DECEMBER 31, 1996

                      LIABILITIES AND STOCKHOLDERS' EQUITY


                                                                 DECEMBER 31,
                                              MARCH 31,          1996 (SEE
                                                1997             NOTE BELOW)
                                                ----             -----------

CURRENT LIABILITIES
         Accounts payable                   $    93,453          $    75,280
         Accrued expenses                        64,050               91,191
                                            ------------         -----------
            TOTAL CURRENT LIABILITIES           157,503              166,471
                                      


STOCKHOLDERS' EQUITY
         Common stock:
           Authorized 20,000,000 shares
            at $.10 par value; issued
            and outstanding 15,766,694
            shares                            1,576,670            1,576,670
         Additional paid-in capital              13,028               13,028
         Retained earnings (deficit)           (469,840)            (315,276)
                                            ------------         ------------
            TOTAL STOCKHOLDERS' EQUITY        1,119,858            1,274,422
                                            ------------          -----------

                                            $ 1,277,361          $ 1,440,893
                                            ============         ============



 NOTE:    The balance sheet at December 31, 1996 has been taken from the audited
          financial statements at that date and condensed.

          See accompanying notes to condensed consolidated financial statements.

                                       4
<PAGE>
                      SIBONEY CORPORATION AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS



                                                  THREE MONTHS ENDED
                                                        MARCH 31,
                                               1997                 1996
                                               ----                 ----


REVENUES                                  $  530,623               546,202

COST OF PRODUCT SALES                         89,203               121,989

SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES                      592,187               520,804
                                          -----------           -----------
INCOME (LOSS) FROM OPERATIONS               (150,767)              (96,591)
                                          -----------           -----------
OTHER INCOME (EXPENSE)
 Interest Income                               4,796                 6,008
 Miscellaneous                                (8,593)              (10,837)
                                          -----------           -----------
TOTAL OTHER INCOME (EXPENSE)                  (3,797)               (4,829)
                                          -----------           -----------
NET INCOME (LOSS)                         $ (154,564)           $ (101,420)
                                          ===========           ===========
WEIGHTED AVERAGE SHARES OUTSTANDING       15,766,694            15,566,694
                                          ===========           ===========
INCOME (LOSS) PER SHARE                   $    (.010)              $ (.007)
                                          ===========           ===========



See accompanying notes to condensed consolidated financial statements.

                                       5
<PAGE>
                      SIBONEY CORPORATION AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

               FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996



                                                         1997            1996
                                                         ----            ----

CASH FLOWS FROM OPERATING ACTIVITIES
    Net loss from continuing operations               $(154,564)      $(101,420)
    Adjustments to reconcile net loss
      from continuing operations to net
      cash provided by operating activities:
        Depreciation                                     15,766          31,368
        Change in assets and liabilities:
          Increase in accounts and notes               (124,716)       (102,392)
             receivable
          (Increase) decrease in inventory               (7,188)         55,005
          Increase in prepaid expenses
             and deposits                               (56,514)        (17,127)
           Increase (decrease) in accounts
             payable and accrued expenses                (8,968)         31,180
                                                      ----------      ---------
NET CASH USED IN OPERATIONS                            (336,184)       (103,386)
                                                      ----------      ----------
CASH FLOWS FROM INVESTING ACTIVITIES
 Payments for equipment                                  (6,958)         (9,416)
                                                      ----------      ----------
NET CASH USED IN INVESTING ACTIVITIES                    (6,958)         (9,416)
                                                      ----------      ----------
NET DECREASE IN CASH AND CASH EQUIVALENTS              (343,142)       (112,802)

CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD         775,830         599,924
                                                      ----------      ---------
CASH AND CASH EQUIVALENTS - END OF PERIOD             $ 432,688       $ 487,122
                                                      ==========      =========

See accompanying notes to condensed consolidated financial statements.

                                       6
<PAGE>
                      SIBONEY CORPORATION AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                             MARCH 31, 1997 AND 1996


1.   CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

     The  condensed  consolidated  balance  sheet  as of  March  31,  1997,  the
     condensed  consolidated statement of operations for the three-month periods
     ended March 31, 1997 and 1996 and the condensed  consolidated  statement of
     cash flows for the three-month periods then ended have been prepared by the
     Company,  without  audit.  In the opinion of  management,  all  adjustments
     (which include only recurring  adjustments) necessary to present fairly the
     financial  position and results of operations at March 31, 1997 and for all
     periods have been made.

     Certain information and footnote disclosures normally included in financial
     statements  prepared  in  accordance  with  generally  accepted  accounting
     principles  have been condensed or omitted.  These  condensed  consolidated
     financial  statements  should  be read in  conjunction  with the  financial
     statements and notes thereto included in the Registrant's  Annual Report on
     Form 10-K for the year ended  December 31, 1996.  The results of operations
     for the period ended March 31, 1997 are not  necessarily  indicative of the
     operating results for the full year.

2.   STOCKHOLDERS' EQUITY

     During the three  months  ended March 31,  1997,  stockholders'  equity was
     changed solely by the net loss for the period.

3.   INVENTORIES

     Inventories consist of the following:


                                 MARCH 31, 1997            DECEMBER 31, 1996
                                 --------------            -----------------

     Raw materials                  $ 81,943                   $135,710

     Finished goods                  100,184                     39,229
                                    --------                   --------
                                    $182,127                   $174,939
                                    ========                   ========


                                       7
<PAGE>
                      SIBONEY CORPORATION AND SUBSIDIARIES

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

The Company's  continuing  operations for the periods  presented  consist of the
following two segments:

1)      The Company is engaged,  through its Siboney Learning Group Division and
        Gamco Industries,  Inc.  ("Gamco"),  a wholly-owned  subsidiary,  in the
        publishing and  distribution of educational  software and teaching aids.
        The Company has been  serving  the  educational  market for more than 35
        years. The Company's  proprietary  educational  software is produced for
        use on Macintosh, Apple II, IBM and IBM compatible computers. Of Gamco's
        total sales for the quarter ended March 31, 1997,  approximately 94% was
        generated by proprietary software,  and the remainder was represented by
        nonproprietary  educational  software and other related products.  Sales
        are made to private and public  schools,  grades 1 through 12, through a
        network of independent distributors throughout the United States as well
        as through its own catalogs. Popular Gamco software titles include Money
        Challenge, Discover Time, Undersea Reading for Meaning and the Touchdown
        Math series.
2)      The  holding of interests in  certain natural resources, including coal,
        oil and gas, through several subsidiaries.

In September 1996,  Siboney Learning Group entered into a software licensing and
distribution  agreement with Merit Audio Visual of New York, New York. Under the
license  agreement,  Siboney Learning Group received a license to use and market
21 software  programs  which teach skills for reading and writing to  elementary
through  high school  students.  During the first  quarter of 1997,  the Company
released 21 DOS versions and 12 Macintosh  versions of these software  programs.
It is anticipated that the remaining Macintosh versions and all Windows versions
of the  programs  will be released  during  1997.  Gamco has  historically  been
strongest in areas relating to  mathematics.  Consequently,  the  acquisition of
these  products  and their  addition  to the  Company's  product  line  added an
important dimension to the products offered by the Company.

The Company is in the process of  converting  its  existing 106 Apple II and DOS
products to Macintosh and Windows  platforms,  which have become the predominant
computer  systems used in schools.  During the first quarter of 1997,  three new
Macintosh  products  were released  along with the Company's  first nine Windows
products.  The Company expects to produce an additional 20 Macintosh  titles and
15 Windows  titles  along with its first five  hybrid  Macintosh/Windows  CD-ROM
products during the current year.

As a result, the Company's total educational  software product offerings and the
breadth of its educational  coverage have expanded  significantly in the current
school year and will  continue to do so in the  1997-1998  school year.  Siboney
Learning Group will use Gamco's established  distribution  channels,  as well as
new distribution programs, to sell these new and improved software programs.

The following is  management's  discussion  and analysis of certain  significant
factors  which have  affected the  Company's  financial  position and  operating
results during the periods covered by the  accompanying  condensed  consolidated
financial statements.  


                                       8
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Continued)

              THREE MONTHS ENDED MARCH 31, 1997 vs. MARCH 31, 1996

Revenues decreased during the three month period ended March 31,1997 compared to
the same period in 1996.  Sales at Gamco for the three month  period were lower,
as was the trend in the educational  software industry.  Gamco is releasing more
new products on current  platforms  (Macintosh,  Windows and  CD-ROM),  which is
expected to result in increased sales in the future.

Royalties  earned by Siboney  Coal Company  increased  slightly for the quarter.
Revenues  from its coal lease are  dependent on third party  mining  operations,
which are temporarily suspended from time to time.

Cost of product  sales  decreased  during the quarter  compared to the  previous
year's quarter as a result of the  successful  effort to increase the percentage
of proprietary sales versus non-proprietary  product sales. As a result, cost of
product sales as a percentage of revenue was reduced to 18.9%  compared to 24.6%
in the prior year.

Selling,  general  and  administrative  expenses  increased  during the  quarter
compared to the same  period in 1996 due to higher  employment  expenses,  costs
associated  with  outsourcing  product  conversion to new  platforms,  increased
advertising  costs,  higher legal fees and the expense of printing the Company's
Annual Report at an outside printer.

As a result of the above mentioned factors, net income decreased for the quarter
ended March 31, 1997 compared to the same period in 1996.

                         LIQUIDITY AND CAPITAL RESOURCES

Cash decreased at March 31, 1997 compared to December 31, 1996 due to the impact
of expenses  exceeding  income and due to higher levels of accounts  receivable,
prepaid expenses and inventories.

The increase in accounts  receivable at the end of the first quarter of 1997 was
due to larger sales volume at Gamco during  March 1997  compared  with  December
1996,  which was  consistent  with Gamco's  experience in the previous  year. In
addition,  Siboney Coal had a receivable for the annual minimum royalty payment,
which  was  received  after  the close of the  first  quarter  of  fiscal  1997,
consistent with the terms of the coal lease.

Prepaid  expenses  increased at March 31, 1997,  primarily  due to the cost of a
catalog mailing during January 1997.

Accounts  payable  increased at March 31,  1997,  primarily  due to  outstanding
invoices for the printing of the Company's Annual Report and legal expenses.

Accrued expenses decreased at March 31, 1997,  compared to December 31, 1996. At
the fiscal  year end,  amounts had been  accrued  for  payment to the  Company's
auditors and for  executive  compensation.  These  payments were made during the
first quarter of 1997.


                                       9
<PAGE>
                           PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K


     a)  Exhibits: See Exhibit Index on page 11 hereof.

     b)  Reports on Form 8-K: No reports on Form 8-K were filed by the 
         Registrant during the quarter ended March 31, 1997.


                                   SIGNATURES


Pursuant to the  requirements of Section 13 or 15(d) 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.


                                      SIBONEY CORPORATION



Date: May 15,1997                     By: /s/ Timothy J. Tegeler
                                          ----------------------------
                                          Timothy J. Tegeler
                                          President, Chief Executive
                                          Officer and Chief Financial
                                          Officer

                                       10
<PAGE>
                                  EXHIBIT INDEX



    Exhibit Number                 Description                          Page
    --------------                 -----------                          ----

        27(a)                Financial Data Schedule                     12
                             (Filed in EDGAR version
                             only