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

                                   Form 10-Q/A
                                 Amendment no. 1

|X|   Quarterly report pursuant to Section 13 or 15(d) of the Securities
      Exchange Act of 1934.

      For the quarterly period ended June 30, 1998.

|_|   Transition period pursuant to Section 13 or 15(d) of the Securities
      Exchange Act of 1934.

      For the transition period from _____________ to ______________.

                                     0-20727
                                     -------
                            (Commission File Number)

                               Novoste Corporation
                               -------------------
             (Exact Name of Registrant as Specified in Its Charter)

                Florida                                      59-2787476
                -------                                      ----------
      (State or Other Jurisdiction of                        (I.R.S. Employer
      Incorporation or Organization)                         Identification No.)

      4350-C International Blvd., Norcross, GA               30093
      ----------------------------------------               -----
      (Address of Principal Executive Offices)               (Zip Code)

      Registrant's telephone, including area code: (770) 717-0904

Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
requirements for the past 90 days.

      (Item 1)    Yes |X|     No |_|

      (Item 2)    Yes |X|     No |_|

As of July 31, 1998, there were 10,569,312 shares of the Registrant's Common
Stock outstanding.
<PAGE>

Information note:

This Form 10-Q/A is being filed to amend the totals of Shareholders' Equity, and
Liabilities and Shareholders' Equity, on the Condensed Balance Sheets for the
six months ended June 30, 1998. The Condensed Balance Sheets reported in this
Form 10-Q/A have been restated to reflect the above-mentioned changes.

PART I - ITEM 1. - FINANCIAL INFORMATION

NOVOSTE CORPORATION

Condensed Balance Sheets

Condensed Statements of Operations

Condensed Statements of Cash Flows

Notes to Condensed Financial Statements


                                       2
<PAGE>

                               NOVOSTE CORPORATION
                          (A Development Stage Company)

                            CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                      June 30,      December 31,
                                                                        1998             1997
                                                                    ------------    ------------
                                                                     (unaudited)
<S>                                                                 <C>             <C>         
Assets
Current assets:
    Cash and cash equivalents                                       $ 32,842,206    $ 35,993,933
    Short-term investments                                             7,247,546      12,408,785
    Prepaid expenses                                                     246,409          88,099
                                                                    ------------    ------------
Total current assets                                                  40,336,161      48,490,817
Property and equipment, net                                            1,804,807       1,061,526
License agreements, net                                                  132,940         139,758
Other assets                                                             299,188         103,855
                                                                    ------------    ------------
                                                                    $ 42,573,096    $ 49,795,956
                                                                    ============    ============


Liabilities and Shareholders' Equity
Current liabilities:
    Accounts payable                                                $     21,686    $    523,678
    Accrued expenses and taxes withheld                                2,420,945       1,903,276
                                                                    ------------    ------------
Total current liabilities                                              2,442,631       2,426,954
                                                                    ------------    ------------

Shareholders' equity:
    Preferred stock, $.01 par value, 5,000,000 shares authorized;
       no shares issued and outstanding                                       --              --
    Common stock, $.01 par value, 25,000,000 shares authorized;
       10,571,617 and 10,332,042 shares issued, respectively             105,716         103,320
    Additional paid-in capital                                        76,644,528      74,908,631
    Deficit accumulated during the development stage                 (36,242,950)    (27,619,109)
                                                                    ------------    ------------
                                                                      40,507,295      47,392,842
    Less treasury stock, 5,780 shares of common stock at cost            (23,840)        (23,840)
    Unearned compensation                                               (352,990)             --
                                                                    ------------    ------------
Total shareholders' equity                                            40,130,465      47,369,002
                                                                    ------------    ------------
                                                                    $ 42,573,096    $ 49,795,956
                                                                    ============    ============
</TABLE>

See accompanying notes.


                                       3
<PAGE>

                               NOVOSTE CORPORATION
                          (A Development Stage Company)

                  UNAUDITED CONDENSED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                                                  From inception
                                        Three months ended               Six months ended         (May 22, 1992)
                                             June 30,                         June 30,           through June 30,
                                       1998            1997            1998            1997            1998
                                 -----------------------------   -----------------------------   ----------------
<S>                              <C>              <C>            <C>             <C>             <C>       

Miscellaneous revenues           $          --    $     29,313   $          --   $      29,313   $     320,200
Costs and expenses:
     Research and development        3,984,103       3,157,439       7,912,637       5,481,277      29,672,536
     General and administrative        541,548         443,023       1,052,866         960,121       6,876,741
     Marketing                         505,468         152,137         871,426         290,667       3,425,527
                                 -------------    ------------   -------------   -------------   -------------
                                     5,031,119       3,752,599       9,836,929       6,732,065      39,974,804
                                 -------------    ------------   -------------   -------------   -------------
Loss from operations                (5,031,119)     (3,723,286)     (9,836,929)     (6,702,752)  $ (39,654,604)
                                 -------------    ------------   -------------   -------------   -------------

Interest income                        585,209         317,964       1,213,088         655,024       3,593,413
Interest expense                            --              --              --              --        (181,759)
                                 -------------    ------------   -------------   -------------   -------------
Net loss                            (4,445,910)   $ (3,405,322)  $  (8,623,841)  $  (6,047,728)  $ (36,242,950)
                                 =============    ============   =============   =============   =============
Net loss per share, 
  basic and diluted              $       (0.43)   $      (0.40)  $       (0.83)  $       (0.72)
                                 =============    ============   =============   =============
Weighted average 
  shares outstanding                10,464,573       8,453,621      10,424,013       8,393,106
                                 =============    ============   =============   =============
</TABLE>

See accompanying notes.


                                       4
<PAGE>

                               NOVOSTE CORPORATION
                          (A Development Stage Company)

                  UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                        From inception
                                                             For the six months         (May 22, 1992)
                                                               ended June 30,          through June 30,
                                                            1998            1997             1998
                                                        ------------    ------------   ----------------
<S>                                                     <C>             <C>             <C>          
Cash flows from operating activities
Net loss                                                $ (8,623,841)   $ (6,047,728)   $(36,242,950)
Adjustments to reconcile net loss to 
  net cash used by operating activities:
     Depreciation and amortization                           219,343         199,717       1,520,081
     Issuance of stock for services or compensation          593,060         135,000       1,810,378
     Changes in assets and liabilities:
       Prepaid expenses                                     (158,310)        (58,738)       (253,868)
       Accounts payable                                     (501,992)       (132,091)         21,686
       Accrued expenses and taxes withheld                   517,669          34,844       2,815,452
       Other                                                (188,515)        130,719        (323,833)
                                                        ------------    ------------    ------------
Net cash used by operations                               (8,142,586)     (5,738,277)    (30,653,054)
                                                        ------------    ------------    ------------

Cash flows from investing activities
Maturity (purchase) of short-term investments              5,161,239       2,036,335      (7,247,546)
Purchase of property and equipment, net                     (962,624)        (53,365)     (2,988,077)
                                                        ------------    ------------    ------------
Net cash provided (used) by investing activities           4,198,615       1,982,970     (10,235,623)
                                                        ------------    ------------    ------------

Cash flows from financing activities
Proceeds from issuance of notes payable                           --              --       4,770,150
Repayment of notes payable                                        --              --      (2,970,150)
Proceeds from issuance of common stock                       792,244         230,794      71,930,883
                                                        ------------    ------------    ------------
Net cash provided by financing activities                    792,244         230,794      73,730,883
                                                        ------------    ------------    ------------
Net increase (decrease) in cash and cash equivalents      (3,151,727)     (3,524,513)     32,842,206
Cash and cash equivalents at beginning of period          35,993,933      19,954,827              --
                                                        ------------    ------------    ------------
Cash and cash equivalents at end of period              $ 32,842,206    $ 16,430,314    $ 32,842,206
                                                        ============    ============    ============

Supplemental disclosures of cash flow information
Cash paid for interest                                            --              --    $    165,137
                                                        ============    ============    ============
</TABLE>

See accompanying notes.


                                        5
<PAGE>

                          (A Development Stage Company)

                NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
                                  June 30, 1998

Note 1. Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and in accordance with instructions to Article 10 of Regulation S-X.
Accordingly, such financial statements do not include all of the information and
disclosures required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included.

The operating results of the interim periods presented are not necessarily
indicative of the results to be achieved for the year ending December 31, 1998.
The accompanying financial statements should be read in conjunction with the
audited financial statements and notes thereto for the year ended December 31,
1997 and for the cumulative period from May 22, 1992 (inception) through
December 31, 1997, included in the Company's 1997 Annual Report on Form 10-K
filed with the Securities and Exchange Commission ("SEC").

Note 2. Net Loss Per Share

The basic and diluted loss per share is computed based on the weighted average
number of common shares outstanding. Common equivalent shares are not included
in the per share calculations where the effect of their inclusion would be
antidilutive.

Note 3. Cash Equivalents and Investments

Cash equivalents are comprised of certain highly liquid investments with
maturities of less than three months at the time of their acquisition. In
addition to cash equivalents, the Company has investments in commercial paper
that are classified as short-term (mature in more than 90 days but less than one
year). Such investments are classified as held-to-maturity, as the Company has
the ability and intent to hold them until maturity. Investments held-to-maturity
are carried at amortized cost, adjusted for the amortization or accretion of
premiums or discounts without recognition of gains or losses that are deemed to
be temporary. Premiums and discounts are amortized or accreted over the life of
the related instrument as an adjustment to yield using the straight-line method,
which approximates the effective interest method. Interest income is recognized
when earned. Fair value approximates carrying value for all cash equivalents and
investments.


                                       6
<PAGE>

                                    SIGNATURE

                               NOVOSTE CORPORATION

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 hereunto duly authorized.


/s/ David N. Gill             Vice President-Finance and Chief Financial Officer
----------------------        (Principal Financial and Accounting Officer)
David N. Gill