UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

      |X|   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 1998

            TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

                 For the transition period from ______ to ______

                             LARK TECHNOLOGIES, INC.
       (Exact name of small business issuer as specified in its charter)


            DELAWARE                                   73-1461841
      (State or other jurisdiction of                 (IRS Employer
      Incorporation or organization)                  Identification No.)

                          9545 KATY FREEWAY, SUITE 465
                                HOUSTON, TX 77024
                    (Address of principal executive offices)

                                (713) 464-7488
                           (Issuer's telephone number)


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 [ ]

                APPLICABLE ONLY TO ISSUER INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by a court.      Yes   No


                      APPLICABLE ONLY TO CORPORATE ISSUERS

As of October 31, 1998, there were 3,319,546 shares of Common Stock, par value
$0.001 per share, outstanding.

Transitional Small Business Disclosure Format (Check one): Yes [ ] No  |X|
<PAGE>
                             LARK TECHNOLOGIES, INC.

                              INDEX TO FORM 10-QSB
                  FOR THE QUARTER ENDED SEPTEMBER 30, 1998.





Part I      Financial Information (unaudited)
                                                                            PAGE
   Item 1.  Financial Statements

                  Balance Sheet ...........................................    1

                  Statements of Income ....................................    2

                  Statements of Cash Flows ................................    3

                  Notes to Financial Statements ...........................    4

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

Part II  Other Information ................................................    9

   Item 1.  Legal Proceedings .............................................    9

   Item 2.  Changes in Securities .........................................    9

   Item 3.  Defaults Upon Senior Securities ...............................    9

   Item 4.  Submission of Matters to a Vote of Security Holders ...........    9

   Item 5.  Other Information .............................................    9

   Item 6.  Exhibits and Reports on Form 8-K ..............................    9

Signatures ................................................................   10

                                       i
<PAGE>
                         PART I - FINANCIAL INFORMATION
                          ITEM 1. FINANCIAL STATEMENTS

                             LARK TECHNOLOGIES, INC.
                                  BALANCE SHEET
                            AS OF SEPTEMBER 30, 1998
              (UNAUDITED INTERIM FINANCIAL STATEMENTS-CONFIDENTIAL)
<TABLE>
<CAPTION>
                                                                         September 30,
                                                                             1998
                                                                          -----------
                                                                          (Unaudited)
<S>                                                                       <C>        
ASSETS
Current assets:
          Cash and cash equivalents ...................................   $   589,822
          Accounts receivable .........................................       699,081
          Due from related parties ....................................         1,525
          Work-in-process .............................................        59,353
          Prepaid expenses ............................................        93,584
                                                                          -----------
Total current assets ..................................................     1,443,365

Property and equipment, net ...........................................     1,055,401
Other assets, net .....................................................        16,750
                                                                          ===========
Total assets ..........................................................   $ 2,515,516
                                                                          ===========

LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
          Accounts payable ............................................   $   327,182
          Notes payable ...............................................       237,776
          Capital lease obligations-current portion ...................       288,323
          Accrued expenses ............................................       176,123
          Customer deposits ...........................................       119,884
          Deposits from related parties ...............................        94,159
                                                                          -----------
Total current liabilities .............................................     1,243,447

Capital lease obligations-long term portion ...........................       203,503
                                                                          -----------
Total Liabilities: ....................................................     1,446,950

Stockholders' equity
          Preferred stock, $0.001 par value:
               Authorized shares - 2,000,000
               None issued and outstanding
          Common stock, $0.001 par value:
               Authorized shares - 8,000,000
               Issued shares:3,324,046 and outstanding shares:3,319,546         3,324
          Additional paid-in capital ..................................     2,450,754
          Treasury Stock @ Cost .......................................        (4,946)
          Amounts due from shareholders ...............................       (15,045)
          Accumulated deficit .........................................    (1,365,521)
                                                                          -----------
Total stockholders' equity ............................................     1,068,566
                                                                          -----------
Total liabilities and stockholders' equity ............................   $ 2,515,516
                                                                          ===========
</TABLE>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
                                       1
<PAGE>
                         PART I - FINANCIAL INFORMATION
                          ITEM 1. FINANCIAL STATEMENTS

                             LARK TECHNOLOGIES, INC.
                            STATEMENTS OF OPERATIONS
              (UNAUDITED INTERIM FINANCIAL STATEMENTS-CONFIDENTIAL)
<TABLE>
<CAPTION>
                                                                             Three months ended              Nine months ended
                                                                                September 30,                  September 30,
                                                                         --------------------------    --------------------------
                                                                            1997           1998           1997           1998
                                                                         -----------    -----------    -----------    -----------
                                                                                (Unaudited)                 (Unaudited)
<S>                                                                      <C>            <C>            <C>            <C>        
REVENUE:
           Laboratory Services .......................................   $ 1,006,421    $   678,333    $ 3,307,589    $ 3,054,924

COSTS AND EXPENSES:
           Costs of services .........................................       431,645        417,876      1,353,135      1,430,709
           Sales, general and administrative .........................       527,021        643,282      1,555,425      1,732,691
           Research and Development ..................................        51,200         29,595        190,864         80,338
                                                                         -----------    -----------    -----------    -----------
Total costs and expenses .............................................     1,009,866      1,090,753      3,099,424      3,243,738
                                                                         -----------    -----------    -----------    -----------
Operating income (Loss) ..............................................        (3,445)      (412,420)       208,165       (188,814)

OTHER INCOME AND (EXPENSE):
           Interest expense ..........................................       (11,028)       (14,266)       (24,704)       (29,446)
           Interest income ...........................................         7,457          6,765         22,631         18,444
                                                                         -----------    -----------    -----------    -----------
Total other income (expense), net ....................................        (3,571)        (7,501)        (2,073)       (11,002)
                                                                         -----------    -----------    -----------    -----------
Income (Loss) before income taxes ....................................        (7,016)      (419,921)       206,092       (199,816)

Income taxes .........................................................        21,127         (9,470)        21,127              0
                                                                         -----------    -----------    -----------    -----------
NET INCOME (LOSS): ...................................................   $   (28,143)   $  (410,451)   $   184,965    ($  199,816)
                                                                         ===========    ===========    ===========    ===========
Net Income (Loss) per common share-
           Basic & diluted: ..........................................   $     (0.01)   $     (0.12)   $      0.06    ($     0.06)
                                                                         ===========    ===========    ===========    ===========
Weighted average number of common
           or equivalent shares outstanding ..........................     3,346,391      3,340,075      3,347,391      3,342,892
                                                                         ===========    ===========    ===========    ===========
</TABLE>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
                                       2
<PAGE>
                         PART I - FINANCIAL INFORMATION
                          ITEM 1. FINANCIAL STATEMENTS

                             LARK TECHNOLOGIES, INC.
                            STATEMENTS OF CASH FLOWS
              (Unaudited Interim Financial Statements-Confidential)
<TABLE>
<CAPTION>
                                                                                            Nine months ended
                                                                                                September 30,
                                                                                         ----------------------
                                                                                           1997          1998
                                                                                         ---------    ---------
                                                                                         (Unaudited)
<S>                                                                                      <C>          <C>       
OPERATING ACTIVITIES
Net income (Loss) ....................................................................   $ 184,965    ($199,816)
Adjustments to reconcile net income
   to net cash provided by operating activities
          Depreciation and amortization ..............................................     127,167      177,462
          Changes in operating assets and liabilities:
               Accounts receivable ...................................................    (217,796)     278,820
               Work-in-process .......................................................     (69,368)     (35,346)
               Prepaid expenses ......................................................     (13,725)       8,552
               Other assets ..........................................................      (1,023)           0
               Due to/from related parties ...........................................     (11,902)      55,369
               Accounts payable ......................................................     (52,341)     107,288
               Accrued expenses ......................................................      49,913       (2,067)
               Deposits ..............................................................     156,550     (132,615)
                                                                                         ---------    ---------
Net cash provided by operating activities ............................................     152,440      257,647

INVESTING ACTIVITIES
Purchases of property and equipment ..................................................    (209,967)    (169,475)
                                                                                         ---------    ---------
Net cash used in investing activities ................................................    (209,967)    (169,475)

FINANCING ACTIVITIES
Proceeds from issuance of notes payable ..............................................      27,424         --
Principal payments on notes payable ..................................................     (60,377)     (24,947)
Principal payments on capital leases .................................................        --        (94,462)
Repayment of debentures payable ......................................................     (35,000)        --
Purchase Treasury shares of common ...................................................      (4,621)      (4,945)
Proceeds from repayments of stockholder loans ........................................      30,000         --
                                                                                         ---------    ---------
Net cash used in financing activities ................................................     (42,574)    (124,354)
                                                                                         ---------    ---------
Net decrease in cash and cash equivalents ............................................    (100,101)     (36,182)
Cash and cash equivalents at beginning of period .....................................     734,248      626,003
                                                                                         ---------    ---------

Cash and cash equivalents at end of period ...........................................   $ 634,147    $ 589,821
                                                                                         =========    =========

NONCASH FINANCING ACTIVITIES:
          Capital leases to acquire equipment ........................................        --      $ 463,183
          Insurance Note Payable .....................................................        --         43,620
</TABLE>
SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS
                                       3
<PAGE>
                             LARK TECHNOLOGIES, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.    ORGANIZATION

      Lark Technologies, Inc., a Delaware corporation (the "Company"), was
formed on November 16, 1994, as a wholly-owned subsidiary of SuperCorp Inc.
("SuperCorp"), for the purpose of merging with Lark Sequencing Technologies,
Inc., a Delaware corporation ("Sequencing"), as outlined in a merger agreement
("Merger Agreement") entered into by SuperCorp and Sequencing on October 28,
1994. SuperCorp approved the Merger Agreement on September 5, 1995 and by the
stockholders of Sequencing on September 12, 1995. As a consequence of the
merger, all of the shares of common and preferred stock of Sequencing were
exchanged for 1,800,000 shares of Common Stock of the Company with a par value
of $0.001 per share and the 200,000 shares of Common Stock of the Company held
by SuperCorp were distributed to the shareholders of SuperCorp. The Company has
succeeded to all of the business previously undertaken by Sequencing. Lark
provides specialized molecular biology contract research services to
pharmaceutical and biotechnology researchers.

2.    BASIS OF PRESENTATION

      The accompanying unaudited interim financial statements have been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain information in footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to these rules and regulations. The
accompanying unaudited interim financial statements reflect all adjustments
which the Company considers necessary for a fair presentation of the results of
operations for the interim periods covered and for the financial condition of
the Company at the date of the interim balance sheet. All such adjustments are
of a recurring nature. Results for the interim periods are not necessarily
indicative of results for the year.

      For financial reporting purposes, the merger of the Company and Sequencing
has been accounted for as a recapitalization of Sequencing, and the historical
financial statements of Sequencing prior to the merger became the financial
statements of the Company.

3.    DEBENTURES AND NOTES PAYABLE

      On March 13, 1998, the Company refinanced its revolving line of credit
with a new bank and extended the maturity to May 31, 1999. Under the terms of
its revolving line, the company may borrow up to $600,000 at the bank's prime
rate (8.25% at September 30, 1998) plus 1%. The borrowing base of this line of
credit is equal to 80% of certain accounts receivable that are no more than 90
days old. On September 30, 1998 the Company had a borrowing base of $363,614
against which $199,000 was outstanding. Under the terms of the revolving line of
credit agreement, the Company is required to maintain certain financial ratios
and a specific level of net worth.

      At September 30, 1998, the Company was not in compliance with certain
financial ratios required by the terms of the revolving line of credit. The
Company requested and was granted by the bank a waiver to the required financial
ratios through December 31, 1998.

      Also on March 13, 1998, the Company arranged an advised discretionary
credit line for the financing of equipment with the same bank used for the line
of credit described above. Under the terms of this discretionary credit, the
Company may borrow up to $600,000 secured by the equipment purchased with the
proceeds of the borrowings. This discretionary credit line provides for the
borrowings of up to 75% of the purchase price of equipment at the bank's prime
plus 1.5%. This credit line provides for repayment terms up to 36 months and
matures on May 31, 1999.

                                       4
<PAGE>
4.    EARNINGS PER SHARE

      The following table sets forth the weighted average shares outstanding for
the computation of basic and diluted earnings per share:

                                                           FOR THE NINE MONTHS 
                                                           ENDING SEPTEMBER 30,
                                                         -----------------------
                                                            1997          1998
                                                         ---------     ---------
Weighted average common shares outstanding: ........     3,326,363     3,323,755
Dilutive securities - employee stock options: ......        22,250        19,137
                                                         ---------     ---------
Weighted average common shares outstanding
 assuming full dilution: ...........................     3,348,613     3,342,892
                                                         =========     =========

      Options to purchase 211,500 shares of common stock at $2.00 per share were
outstanding during 1997 and 1998. However they were not included in the
computation of diluted earnings per share because the options' exercise price
was greater than the average market price of the common shares and, therefore,
the effect would be antidilutive.

5.    DISTRIBUTION AGREEMENT

      Effective January 1, 1996, the Company announced a new service,
Differential Display ("DD"). The Company entered into a distribution agreement
with a third party, which provided the Company with a significant amount of
specialized training and scientific know-how relating to the DD services. The
Company agreed to purchase supplies and equipment related to this service
exclusively from the third party. The DD services will be sold on an exclusive
basis by the third party and its distributor, but Lark can sell the DD services
through its own sales force worldwide. The third party will pay the Company an
agreed upon transfer price for DD services that the third party or its
distributor sells. The Company will pay the third party an agreed upon royalty
for DD services that the Company sells. This agreement expires December 31,
1998.

      On October 22, 1998, the Company announced the initiation of a sales
agreement with Sanbio b.v. of The Netherlands. The agreement establishes Sanbio
as sales representative for The Netherlands, Belgium, and Luxembourg on an
exclusive basis and Germany on a non-exclusive basis. Sanbio will represent all
of the Company's molecular biology services in these territories.

6.    COMMITMENTS AND CONTINGENCIES

STOCK OPTIONS

      On September 16, 1997, the Company issued stock options to certain members
of management for 200,000 shares under the company's Incentive Stock Option Plan
with an exercise price of $2.00 per share. These options vest in four and one
half years and contain provisions for earlier vesting if certain performance
goals are met.

      During September 1997, the company set up a nonqualified stock option plan
for its non-employee directors. On September 16, 1997, the Company issued stock
options to its non-employee directors, which totaled 10,000 shares with an
exercise price of $1.51 per share. These options vest twenty five percent per
year such that they are fully vested in four years. On July 20, 1998, the
Company issued stock options to its non-employee directors, which totaled 5,000
shares with an exercise price of $1.55 per share.

PATENT LICENSE AGREEMENT

      Effective June 15, 1995, the Company entered into an exclusive patent
sub-license agreement with another biotech company. The agreement grants to the
Company an exclusive license to certain "Licensed Patent Rights" of this third
party and requires the Company to perform research and development efforts as
defined in the 

                                       5
<PAGE>
agreement. The Company is required to pay the third party a royalty of 25% to
50% of all consideration the Company receives as a result of sales of licensed
products and licensed processes or a sub-license or assignment of the Company's
rights under the agreement. If the Company does not meet the research and
development milestones as defined in the agreement, or is unable to successfully
commercialize the results of the research and development efforts, the agreement
will terminate. Otherwise, the agreement will terminate upon the dissolution of
the Company or the expiration of the "Licensed Patent Rights". The Company may
also terminate the agreement with 60 days written notice to the third party.

      On October 6, 1998, the Company announced the restructuring of its
senescence technology development program. Sennes Drug Innovations, Inc., the
Company's licensor for the senescence technology, which originated with a third
party, recently appointed a new president. This appointment was allowed by the
settlement of various technology transfer issues between the third party and
Sennes. This new president will represent the Sennes technologies, including the
senescence gene technology licensed to the Company, to third parties. The
Company's license for senescence technologies remains intact.


      The senescence technology includes genes involved in regulating the four
senescence gene pathways. Senescence is the normal physiological process that
controls cellular immortality. Immortal cells are closely related to cancer and
can add insights into aging and abnormal development.

                                       6
<PAGE>
ITEM 2. MANAGEMENT'S   DISCUSSION  AND  ANALYSIS  OF  FINANCIAL   CONDITION  AND
        RESULTS OF OPERATIONS

      The following discussion and analysis should be read in conjunction with
the Financial Statements and the accompanying Notes herein, and is qualified
entirely by the foregoing and by other more detailed financial information
appearing elsewhere.

GENERAL

      Lark Technologies, Inc. ("Lark" or "the Company") is a successor in
interest, through a merger effected in September 1995, to Lark Sequencing
Technologies, Inc., which was incorporated under the business corporation laws
of the State of Delaware on May 4, 1990.

      Lark is a leading molecular biology CRO providing services to the
pharmaceutical and biotechnology industries worldwide. Lark's service portfolio
consists of various DNA sequencing and molecular biology services as follows:

o     AUTOMATED DNA SEQUENCING SERVICES. Lark applies automated sequencing
      techniques to generate high throughput DNA sequence and fast turnaround
      screening information, including genome-sequencing projects.

o     GENETIC STABILITY TESTING SERVICES. Lark's genetic stability testing
      services are used to characterize Master Cell Banks, Manufacturers'
      Working Cell Banks and PostProduction Cell Samples from bacterial, yeast
      and cell cultures. Genetic stability testing is used to analyze a
      production strain's stability and demonstrate that the expression system
      has not undergone any mutations or rearrangements that would affect the
      integrity of the product. This service assists companies producing
      genetically manufactured products to optimize production yields, determine
      product purity, and support regulatory submissions. This service was
      introduced in late 1996.

o     QUANTITATIVE PCR SERVICES. Lark uses Quantitative PCR techniques to
      measure the distribution and expression of target DNA or RNA in a
      customer's sample from cultured cells, microorganisms, or tissues such as
      brain, lung, liver, and kidneys.

o     MANUAL DNA SEQUENCING SERVICES. Lark uses manual sequencing techniques for
      projects that require greater than 99.9% accuracy. These techniques are
      useful for DNA sequence information that is used for patent applications,
      FDA submissions or the identification of genetic mutations.

o     MOLECULAR BIOLOGY SERVICES. Lark offers a variety of molecular biology
      services including library screening, library prescreening, southern blot
      analysis, subcloning, plasmid preparation and PCR amplification. Lark
      consults with its customers to customize a broad range of molecular
      biology projects.

o     DIFFERENTIAL DISPLAY SERVICE. Lark uses differential display techniques
      for analyzing differences in gene expression caused by the introduction of
      various drug compounds, viruses or stimulatory factors. Differential
      display can be useful in identifying novel genes and gene functions. By
      understanding how and when a gene is expressed or repressed, targeted
      interventions can be developed to maximize results and minimize harmful
      side effects. This service is used to discover novel genes as well as to
      characterize pharmaceutical effects.

      In 1995 Lark undertook a senescence gene discovery program for its own
account. Although several genes were discovered in this program, lack of gene
functionality coupled with license issues caused Lark to reduce its funding for
this program. Lark continues to work towards license issue resolution and
eventual potential sublicense agreements.

                                       7
<PAGE>
RESULTS OF OPERATIONS

      GROSS REVENUES. Gross revenues decreased 33% from $1,006,421 to $678,333
for the three-month periods ended September 30, 1997 and 1998, respectively.
Gross revenues decreased 8% from $3,307,589 to $3,054,924 for the nine-month
periods ended September 30, 1997 and 1998, respectively. This decrease in
revenues for the quarter was attributable to a decrease in new customer accounts
for automated sequencing services provided by the Company. The decrease in
revenues for the nine-month period was attributable to a decrease in project
work for a single large customer. Increases in project work for other customers
for automated sequencing, molecular biology and genetic stability testing
services partially offset the impact of the single customer.

      COSTS OF SERVICES. Costs of services consist primarily of labor and
laboratory supplies. Costs of services decreased 3% from $431,645 to $417,876
for the three month periods ended September 30, 1997 and 1998, respectively, and
increased 6% from $1,353,135 to $1,430,709 for the nine month periods ended
September 30, 1997 and 1998, respectively. Lower volume accounted for the
decrease. However, service costs are not entirely variable and the lower volume
meant a higher percentage cost of sales. Costs of services as a percentage of
revenue were 43% and 62% for the three month periods ending September 30, 1997
and 1998, respectively, and 41% and 47% for the nine month periods ending
September 30, 1997 and 1998, respectively.

      SALES, GENERAL AND ADMINISTRATIVE EXPENSES. Sales, general and
administrative expenses consist primarily of salaries and related costs,
depreciation, amortization, legal and professional costs, rent, travel, and
advertising. Sales, general and administrative expenses increased 20% from
$527,021 to $634,282 for the three month periods ended September 30, 1997 and
1998, respectively, and increased 11% from $1,555,425 to $1,732,691 for the nine
month periods ended September 30, 1997 and 1998, respectively. The increase in
expenses was attributable to costs incurred in the three-month period to open
the new U.K. laboratory. Sales, general and administrative expenses as a
percentage of revenue were 52% and 95% for the three month periods ending
September 30, 1997 and 1998, respectively, and 47% and 57% for the nine month
periods ended September 30, 1997 and 1998, respectively

      RESEARCH AND DEVELOPMENT. Research and development costs decreased 42%
from $51,200 to $29,595 for the three month periods ended September 30, 1997 and
1998, respectively, and 58% from $190,864 to $80,338 for the nine month periods
ended September 30, 1997 and 1998, respectively. The decrease in research and
development costs was attributable to decreases in expenditures for the gene
senescence project. Research and development costs as a percentage of revenue
were 5% and 4% for the three month periods ended September 30, 1997 and 1998,
respectively, and 6% and 3% for the nine month periods ended September 30, 1997
and 1998, respectively.

      VARIABILITY OF FUTURE OPERATING RESULTS. During the first half of 1997 and
1998, a large portion of the Company's revenue was generated from two different
large customers. In 1997, the decline in revenue from one customer was largely
offset by revenue from a diverse group of other customers. In 1998, the decline
in revenue resulted from a decline in revenue from a different large customer
combined with lower over all sales volumes from all customers. The addition or
completion of any single large contract may have a material impact on the
Company's revenues.

      LIQUIDITY AND CAPITAL RESOURCES. Operating cash flow was $152,440 and
$257,648 for the nine-month periods ended September 30, 1997 and 1998,
respectively. During the first quarter of 1998, the Company paid off the $5,272
balance of its equipment loan.

      On March 13, 1998, the Company refinanced its revolving line of credit
with another bank and extended the maturity to May 31, 1999. Under the terms of
its revolving line, the company may borrow up to $600,000 at the bank's prime
rate (8.25% at September 30, 1998) plus 1%. The borrowing base of this line is
equal to 80% of certain accounts receivable that are no more than 90 days old.
On September 30, 1998 the Company had a borrowing base of $363,614 against which
$199,000 was outstanding. Under the terms of the revolving line of credit
agreement the Company is required to maintain certain financial ratios and a
specific level of net worth.

      On March 13, 1998, the Company arranged an advised discretionary credit
line of the financing of equipment with the same bank used for the new revolving
credit line. Under the terms of this discretionary credit, the company may
borrow up to $600,000 secured by the equipment purchased with the proceeds of
the borrowings. 

                                       8
<PAGE>
This discretionary credit line provides for borrowings of up to
75% of the purchase price of equipment at the bank's prime plus 1.5%. This
credit line provides for repayment terms up to 36 months and matures on May 31,
1999.

      MATERIAL  COMMITMENTS.  The Company currently has no outstanding  material
commitments.

                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS
        Not applicable.

ITEM 2. CHANGES IN SECURITIES
        Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES
        Not applicable.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
        Not applicable

ITEM 5. OTHER INFORMATION
        Not applicable.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

      No reports on Form 8-K were filed during the quarter ending September 30,
1998.

INDEX OF EXHIBITS


      2.1(1)  The  Agreement  of Merger  of  November  18,  1994,  between  Lark
              Technologies,   Inc.  and  Lark  Sequencing   Technologies,   Inc.
              providing  for the merger of Lark  Sequencing  Technologies,  Inc.
              into the Company.

      3.1(1)  Bylaws of Lark Technologies, Inc., as amended.

      3.2(1)  The Certificate of  Incorporation of Lark  Technologies,  Inc., as
              amended.

     10.1(1)  1990 Stock Option Plan adopted by the Company.

    10.13(2)  Agreement entered into by and between the Company and Genomyx
              Corporation.

    10.14(2)  The portion of the Minutes of the Executive Session of the Meeting
              of the Board of Directors of the Company held December 8, 1995,
              establishing and defining the bonus plan for 1996 under which the
              chief executive officer, chief financial officer, and other
              employees may receive cash bonuses as part of their compensation.

(1) INCORPORATED by reference from the Company's Registration Statement on Form
S-4 dated August 14, 1995, Commission File No. 33-90424. The exhibit numbering
system used in Form S-4 differed from that used in this Form 10-QSB (8a, 2d, 2c,
6b, 6c, 6d-1, and 6f, respectively). 

(2) Incorporated by reference from the Company's Form 10-QSB for the quarterly
period ended March 31, 1996.

                                       9
<PAGE>
                                  SIGNATURES


In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                          Lark Technologies, Inc.
                                                (Registrant)



Date November 13, 1998                      /S/ VINCENT P. KAZMER.
                                                Vincent P. Kazmer
                                          President and Chief Executive Officer

Date November 13, 1998                      /S/ DOUGLAS B. WHEELER.
                                                Douglas B. Wheeler
                                                Vice President, Finance