UNITED STATES
                          SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C.  20549
                                ---------------------
                                      Form 10-Q
                                ---------------------

             /X/  Quarter report pursuant to Section 13 or 15(d) of the
                  Securities Exchange Act of 1934 

                  For the quarterly period ended September 30, 1996 or

             / /  Transition report pursuant to Section 13 or 15(d) of
                  the Securities Exchange Act of 1934

                  For the period from __________ to ___________

                            Commission file number 0-10541
                                _____________________

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

                  New York                                13-3055012
                  (State or other jurisdiction of       (I.R.S. Employer
                  incorporation or organization)      Identification No.)

                                  4900 Seminary Road
                                      Suite 800
                             Alexandria, Virginia  22311
                       (Address of principal executive offices)

                  Registrant's Telephone number including area code
                                    (703) 820-2000

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

             As of November 11, 1996, 7,857,667 shares of the Common
             Stock of the registrant were outstanding.<PAGE>





                            COMTEX SCIENTIFIC CORPORATION
                                  TABLE OF CONTENTS



             Part I     Financial Information:                   Page No.


                  Item 1.   Financial Statements

                            Balance Sheets at                       1
                             September 30, 1996 and June 30, 1996

                            Statements of Operations                2
                             for the Three Months Ended 
                             September 30, 1996 and 1995

                            Statements of Cash Flows                3
                             for the Three Months Ended
                             September 30, 1996 and 1995

                            Notes to Financial Statements           4


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

             Part II        Other Information:

                  Item 1.   Legal Proceedings                       11

                  Item 6.   Exhibits                                11

             SIGNATURES                                             12
                                     <PAGE>



COMTEX SCIENTIFIC CORPORATION
BALANCE SHEETS AT SEPTEMBER 30, 1996 AND JUNE 30, 1996
<TABLE>
<CAPTION>
                                                                             September 30,      June 30,
                                                                                 1996             1996
                                                                             (Unaudited)
<S>                                                                          <C>              <C>
ASSETS                                                                       

  CURRENT ASSETS
    Cash                                                                      $     127,544    $     57,644
    Accounts Receivable, Net of Allowance of $96,000 and $108,000
        at September 30, 1996 and June 30, 1996, respectively                        601,866        582,318
    Advances to TII, a related party                                                 329,533        360,573
    Prepaid Expenses and Other Current Assets                                         48,751         49,133

              TOTAL CURRENT ASSETS                                                 1,107,694      1,049,668

  PROPERTY AND EQUIPMENT, NET                                                        238,392        267,028

  DEPOSITS AND OTHER ASSETS                                                           65,127         65,315

TOTAL ASSETS                                                                  $    1,411,213     $1,382,011


LIABILITIES AND STOCKHOLDERS' DEFICIT

  CURRENT LIABILITIES:
    Accounts Payable                                                          $     521,112    $   502,962
    Accrued Expenses                                                                271,097        238,451  
    Amounts due to Related Parties                                                  247,689        231,714
    Notes Payable                                                                   361,797        418,178

              TOTAL CURRENT LIABILITIES                                           1,401,695      1,391,305

  LONG-TERM LIABILITIES:
    Long-Term Notes Payable - Affiliate                                              857,785     1,008,831
    Other Long-Term Notes Payable                                                     64,380        74,050

              TOTAL LONG-TERM LIABILITIES                                            922,165     1,082,881

TOTAL LIABILITIES                                                                  2,323,860     2,474,186

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIT

    Common Stock, $0.01 Par Value - Shares Authorized: 18,000,000;
         Shares issued and outstanding: 7,857,667                                     78,577         78,547
    Additional Capital                                                             9,980,575      9,830,010
    Accumulated Deficit                                                          (10,971,799)   (11,000,732)

              TOTAL STOCKHOLDERS' DEFICIT                                           (912,647)    (1,092,175)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                   $    1,411,213     $1,382,011

</TABLE>
<PAGE>1




COMTEX SCIENTIFIC CORPORATION
STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(UNAUDITED)
<TABLE>
<CAPTION>


                                                                         Three months ended
                                                                             September 30,

                                                                         1996             1995
<S>                                                                    <C>             <C>              

REVENUES

      Information Services Revenues                                       $   910,006    $  755,187
      Data Communications Revenues                                            130,282        58,954

           Total Revenues                                                   1,040,288       814,141

COSTS AND EXPENSES
      Costs of Information Services                                           391,654       383,554
      Costs of Data Communications                                            169,511       168,841
      Product Development                                                      54,409        66,448
      Sales and Marketing                                                     110,089        92,214
      General and Administrative                                              215,502       212,626
      Depreciation and Amortization                                            36,992        37,552

           Total Costs and Expenses                                           978,157       961,235

INCOME (LOSS) FROM OPERATIONS                                                  62,131      (147,094)

OTHER INCOME (EXPENSE)
      Interest Expense                                                        (32,863)      (26,000)
      Interest Income/Other                                                        11        (1,315)

           Other Expense, Net                                                 (32,852)      (27,315)


INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES                              29,279      (174,409)

INCOME TAXES                                                                      346           489

NET INCOME (LOSS)                                                            $ 28,933    $ (174,898)



NET INCOME (LOSS) PER COMMON SHARE                                         $     0.00    $    (0.02)


WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                        7,858,667     7,854,667


</TABLE>














<PAGE> 2
COMTEX SCIENTIFIC CORPORATION
STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>



                                                             Three Months Ended
                                                                September 30,

                                                               1996          1995
<S>                                                        <C>        <C>
Cash Flows from Operating Activities:
  Net Income (Loss)                                         $ 28,933      $ (174,896)
  Adjustments to reconcile net income (loss) to net cash
             provided by (used in ) operating activities:
   Depreciation and Amortization Expense                      36,992          37,552
   Bad Debt Expense                                            9,000           8,000
   Loss on Disposal of Fixed Assets                               68           1,346
  Changes in Assets and Liabilities:
      Accounts Receivable                                    (28,548)       (134,240)
      Prepaid Expenses and Other Current Assets                  382          (5,261)
      Deposits and Other Assets                                   -             -
      Accounts Payable                                        18,150         172,695
      Accrued Expenses                                        32,646          79,083
      Amounts due to Related Parties                          15,975          32,609
      Other Liabilities                                           -             (925)
    Net Cash provided by Operating Activities                113,628          15,961

Cash Flows from Investing Activities:
  Purchases of Property and Equipment                        (10,607)        (55,800)
  Proceeds from Sale of Fixed Assets                           2,401           8,185
  Advances to TII                                                 -         (481,354)
  Repayments of Advances                                      31,040         929,298

    Net Cash provided by Investing Activities                 22,804         400,329

Cash Flows from Financing Activities:
  Notes Payable, Net                                         (47,178)         (4,550)
  Notes Payable to Related Parties, Net                         (481)           -
  Proceeds from PrinCap Financing Agreement                       -          440,749
  Repayments against PrinCap Financing Agreement             (18,873)       (852,971)
    Net Cash used in Financing Activities                    (66,532)       (416,772)

Net Increase (Decrease) in Cash and Cash Equivalents          69,900            (482)

Cash and Cash Equivalents Balance at Beginning of Period      57,644          15,163

Cash and Cash Equivalents Balance at End of Period        $  127,544         $14,681


Supplemental disclosure of cash flow information:
        Cash paid for interest                            $   10,064         $    -
        Cash paid for income taxes                        $      346         $   489

Supplemental disclosure of noncash financing activities:
        During the three months ended September 30, 1996,
        the Amended Infotech Note was reduced by
        $150,565 in connection with the MRI Acquisition.
        See Note 2 to the Financial Statements.


</TABLE>


The accompany "Notes to Financial Statements" are an integral part of these
financial statements.

<PAGE>3

                            COMTEX SCIENTIFIC CORPORATION
                            NOTES TO FINANCIAL STATEMENTS


             1.   Basis of Presentation

                  The accompanying interim financial statements of Comtex
             Scientific Corporation (the "Company" or "Comtex") are
             unaudited, but in the opinion of management reflect all
             adjustments (consisting only of normal recurring accruals)
             necessary for a fair presentation of results for such
             periods.  The results of operations for any interim period
             are not necessarily indicative of results for the full year. 
             These financial statements should be read in conjunction
             with the financial statements and notes thereto included in
             the Company's Annual Report on Form 10-K for the fiscal year
             ended June 30, 1996 ("1996 Form 10-K"), filed with the
             Securities and Exchange Commission.

                  Gain or loss per common share is based upon the
             weighted average number of shares outstanding during each
             quarter and common stock equivalents, if dilutive.  The
             effect of outstanding common stock equivalents on net 
             loss per common share is not included because it would be
             antidilutive.


             2.   Related Party Transactions 

                  Acquisition and Divestiture of Micro Research
             Industries :   During fiscal 1995, the Company acquired
             certain assets and assumed certain liabilities of
             Telecommunications Industries, Inc. ("TII") representing
             substantially all the assets of TII's sole operating
             division, Micro Research Industries ("MRI") (the
             "Acquisition").  MRI provided sales, leasing and maintenance
             support of computer hardware and software primarily to the
             U.S. House of Representatives.  At the time of the
             Acquisition, Infotechnology, Inc. ("Infotech") owned 60% and
             82% of the Company and TII, respectively, and Dr. Gilluly,
             Chairman of the Board and Chief Executive Officer of the
             Company and of Infotech also served as Chairman of the Board
             and Chief Executive Officer of TII.  In return for closing
             the Acquisition prior to satisfaction of all conditions to
             closing, the Asset Purchase Agreement and related Put
             Agreement permitted the Company, upon the failure of certain
             conditions, to require TII to repurchase all or any portion
             of the assets acquired by the Company and to assume the
             liabilities related to MRI (the "Put").

                  The Acquisition resulted in the restructuring of the
             Company's previously matured promissory notes to Infotech. 

                                        Page 6<PAGE>





             As of October 11, 1996, Infotech ratified the reduction of 
             $150,565 of the principal of the Company's restructured
             $1,040,000 promissory notes due Infotech and rolled the
             remaining $889,435 principal into a 10% Senior Subordinated
             and Secured Note due July 1, 2002 (the "Amended Infotech
             Note").  Principal amounts due under the Amended Infotech
             Note are subject to reduction or increase under certain
             circumstances.  The Amended Infotech Note is collateralized
             by a continuing interest in all receivables, products and
             proceeds thereof, all purchase orders and all patents and
             technology then or in the future received or held by the
             Company.  The Amended Infotech Note is subordinated in right
             of payment to all Senior indebtedness of the Company,
             including indebtedness arising from the Princeton Capital
             Financing Agreement (see below).

                  In connection with the Acquisition, the Company entered
             into a $1 million secured credit facility with Princeton
             Capital Finance Company, L.L.P. ("PrinCap") (the "PrinCap
             Financing Agreement") in February 1995.  After the Company
             exercised the Put, TII sold such assets to a third party,
             which PrinCap claimed represented an event of default under
             the credit facility.  On July 24, 1996, the Company and
             PrinCap agreed to consolidate all indebtedness of the
             Company under the PrinCap Financing Agreement ($244,449 at
             July 24, 1996) into a single Note collateralized by MRI
             receivables from the U.S. House of Representatives retained
             by TII.  The Note was due October 22, 1996, demand has been
             made, and the Note is in default.  The Company is currently
             in discussions regarding payment of the Note.  Management of
             the Company believes the Company's indemnification under the
             terms of the Amended Infotech Note will apply to any amounts
             due PrinCap (or separately to the Company from TII) not
             ultimately recovered through the MRI receivables held by
             TII, and that any such amounts will reduce the principal of
             the Amended Infotech Note.

                  Infotech has agreed with the Company that in the event
             the Company incurs any cost or liability arising out of or
             relating to the MRI business, which the Company "put" back
             to TII (then 82% owned by Infotech) as of March 25, 1996,
             the Company may either seek indemnification for such
             liability from TII or reduce the principal amount of its
             indebtedness under the Amended Infotech Note by the amount
             of such liability.  In April, 1996, the Company reduced the
             Amended Infotech Note by approximately $31,000, the costs
             incurred by the Company for rent due to the landlord from
             TII.





                                        Page 7<PAGE>





                  Services Provided by/to Hadron, Inc.:  The Company
             contracts with Hadron, Inc. (13.5% owned by Infotech) for
             corporate and shareholder services.  Charges for such
             services are based on time and material expended by Hadron
             personnel in providing such services.  The Company accrued
             approximately $4,000 for services provided during the three
             months ended September 30, 1996, which had not been billed. 
             Hadron, Inc. subleases office space from the Company at the
             rental rate paid by the Company to its landlord and also
             shares certain office related expenses.  Total charges to
             Hadron, Inc. during the three months ended September 30,
             1996, amounted to approximately $4,800.


             3.   Notes Payable

                  On July 1, 1996, the Company agreed with Wavephore
             Networks, Inc. to convert a net amount of accounts payable
             to the vendor and royalties receivable by the Company from
             the vendor to a note payable in the amount of $173,712.  At
             September 30, 1996, $40,875 was classified as long-term. 
             The note bears interest at 10%, with principal and interest
             payments in the aggregate amount of $10,433 due monthly
             through December, 1997.


             4.   Income Taxes

                  The Company has recorded net income for the three
             months ended September 30, 1996; however, no tax provision
             has been recorded as the Company's net operating loss (NOL)
             and investment tax credit (ITC) carryforwards are sufficient
             to offset this income for federal and state tax purposes.




















                                        Page 8<PAGE>





                       MANAGEMENT'S DISCUSSION AND ANALYSIS OF 
                    FINANCIAL CONDITION AND RESULTS OF OPERATIONS

             THE COMPANY

                  Comtex Scientific Corporation (the "Company" or
             "Comtex") is a value-added real-time distributor of
             customized newswire information products aggregated on a
             real-time basis from thousands of news stories drawn from
             hundreds of broad and specialized news sources.  The
             Company's products are marketed to information distributors
             ranging from online services and World Wide Web sites to
             proprietary networks utilized by financial traders and
             corporate electronic news clipping services.  Consistent
             with standard practice in the information aggregation
             industry, the Company generally has renewable long-term
             contractual relationships with those information providers
             and information distributors with whom it does business. 
             These contracts typically provide for both minimum fees and
             for royalties based upon expected and achieved volumes of
             usage.  Fees and royalties from information distributors
             comprise the majority of the Company's revenues.  Fees and
             royalties due to information providers, along with
             telecommunications costs and employee payroll costs,
             comprise the majority of the Company's costs and expenses.


             RESULTS OF OPERATIONS

             Comparison of the three months ended September 30, 1996, to
             the three months ended September 30, 1995

                  During the three months ended September 30, 1996, the
             Company s total revenues were approximately $1,040,000, or
             approximately $226,000 (28%) greater than the total revenues
             for the three months ended September 30, 1995.  The increase
             of approximately $155,000 in information services revenues
             reflects revenues from new customers, certain price
             increases and royalties derived from the sale of Comtex'
             news to information distributors who pay the Company a
             royalty based upon usage.  These revenue increases were
             partially offset by customer losses and revenue decreases
             due to pricing and usage factors. The increase of
             approximately $71,000 in data communications revenues
             reflects the Company's billing of communications charges to
             its' customers.  As more customers are added utilizing
             satellite and Internet delivery methods, the data
             communications revenue will increase with a minimal increase
             in data communications costs.




                                        Page 9<PAGE>





                  Total costs and expenses for the three months ended
             September 30, 1996, were approximately $978,000,
             representing an approximately $17,000 (2%) increase in
             operating expenses from the three months ended September 30,
             1995.  This increase in operating expenses is principally
             due to an increase in information services costs and sales
             and marketing expenses offset by a decrease in product
             development expenses.

                  Information services costs during the quarter ended
             September 30, 1996, increased approximately $8,000 over
             these costs in the quarter ended September 30, 1995,
             primarily due to additional personnel in Client Services in
             order to manage the increasing customer base as well as
             increased expenses for computer equipment maintenance. 
             These increases were reduced by a decrease in expenses
             related to the absence of a Director of Content Development
             during the three months ended September 30, 1996.  This
             position was filled at the end of September, 1996.

                  Data communications costs remained constant since two
             of the Company's primary delivery methods, satellite and
             Internet, do not incur variable costs with the addition of
             new customers.  Therefore, as Comtex adds new customers
             utilizing these delivery methods, data communications
             revenue will increase without a corresponding increase in
             communications expenses.

                  Sales and marketing expenses increased by approximately
             $18,000 in the three months ended September 30, 1996, over
             the three months ended September 30, 1995, due to increased
             compensation arising from the addition of sales support
             staff and more experienced sales personnel to the Company's
             workforce and additional commissions related to the increase
             in information services revenue during these three months. 

                  Product development expenses for the three months ended
             September 30, 1996, were $12,000 lower than for the same
             period ended September 30, 1995.  This decrease was
             principally due to the timing of personnel turnover in this
             department.

                  The Company reported operating income of approximately
             $62,000 during the quarter ended September 30, 1996, as
             compared with an operating loss of $147,000 for the quarter
             ended September 30, 1995.  The Company recorded net income
             of  approximately $29,000 for the three months ended
             September 30, 1996, as compared with a net loss for the
             three months ended September 30, 1995, of approximately
             $174,000.  The increase in operating income reflects
             increased revenues with a minimal increase in total
             expenses.  The increase in net income was partially offset

                                       Page 10<PAGE>





             by an increase in interest expense related to notes payable
             in the quarter ended September 30, 1996. 



















































                                       Page 11<PAGE>





             FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

                  For the three months ended September 30, 1996, the
             Company's operations produced operating income of
             approximately $62,000 and net income of approximately
             $29,000.  At September 30, 1996, the Company had negative
             working capital of approximately $294,000 as compared with
             negative working capital of approximately $342,000 at June
             30, 1996.  This increase in working capital is a result of
             operational income and the conversion of approximately
             $174,000 net accounts payable to the Company's primary
             telecommunications vendor into a note payable.  The Company
             also had a net stockholders' deficit of  approximately
             $913,000 at September 30, 1996, as compared to a net
             stockholders' deficit at June 30,1996, of approximately
             $1,092,000.

                  As of October 11, 1996, Infotechnology, Inc.
             ("Infotech"), the Company's majority stockholder
             (approximately 60%) ratified the reduction of $150,565 of
             the principal of the Company's restructured $1,040,000
             promissory notes due Infotech and rolled the remaining
             $889,435 principal into a 10% Senior Subordinated and
             Secured Note due July 1, 2002 (the "Amended Infotech Note").

                  For the three months ended September 30, 1996, the
             Company's operating activities generated approximately
             $114,000 in cash.  The Company had cash and cash equivalents
             of approximately $128,000 at September 30, 1996, as compared
             to approximately $58,000 at June 30, 1996.  Currently, the
             Company's operations generate cash flow sufficient to cover
             its monthly expenses and management believes that cash from
             operations will provide the Company with adequate cash
             resources to meet its obligations on a short-term basis.

                  The Company's ability to meet its liquidity needs on a
             long-term basis is dependent on its ability to generate
             sufficient revenues and cash to cover its current
             obligations and to pay down its current and long-term debt
             obligations.  No assurance may be given that the Company
             will be able to maintain the revenue base or the size of
             profitable operations that would be necessary to achieve its
             liquidity needs.  If the Company is not successful in its
             efforts, it may undertake other actions as may be
             appropriate to preserve asset values.

                  As disclosed previously, during fiscal year 1995, the
             Company negotiated and consummated the acquisition (the "MRI
             Acquisition") of certain assets of Telecommunications
             Industries, Inc. ("TII") which included substantially all of
             the assets of TII's sole operating division, Micro Research
             Industries ("MRI").  MRI's business consisted of providing

                                       Page 12<PAGE>





             sales, leasing and maintenance support of integrated
             information systems, computer hardware and software
             primarily to the U.S. House of Representatives.  On March
             25, 1996, the Company exercised its right to require TII to
             take back the TII assets acquired by the Company and the TII
             liabilities assumed by the Company, and TII agreed to retain
             all liabilities and obligations of every kind and nature,
             contingent, matured or otherwise, of the MRI business.  TII
             and Infotech (also the majority stockholder of TII,
             approximately 82%) have agreed with the Company that, in the
             event the Company incurs any damage, loss, judgment, fine,
             penalty, assessment, settlement, cost or expense resulting
             in a liability to the Company, in whole or in any part
             arising out of or relating to the MRI business, the Company
             may either seek indemnification for such liability from TII
             or may reduce the principal amount of its $889,435
             indebtedness to Infotech (the "Amended Infotech Note") by
             the amount of such liability.

                  In connection with the MRI Acquisition, the Company
             entered into a Contracts Financing Agreement with Princeton
             Capital Finance Company, L.L.C. ("PrinCap") (the "PrinCap
             Financing Agreement").  The PrinCap Financing Agreement
             provided a $1 million credit facility secured by approved
             inventory, unbilled accounts receivable and billed accounts
             receivable to support both the MRI business and the
             Company's other business.  All borrowings under the PrinCap
             Financing Agreement were made for the benefit of the MRI
             business.  On March 30, 1996, TII sold the assets related to
             the MRI business to an unrelated third party, net of
             accounts receivable and sales orders and related liabilities
             through that date which were retained by TII.

                  PrinCap, on April 30, 1996, claimed that TII's sale of
             the assets of MRI subsequent to exercise of the Put Right
             constituted an event of default under the terms of the
             PrinCap Financing Agreement.  On July 24, 1996, the Company
             and PrinCap agreed to consolidate all indebtedness of the
             Company under the PrinCap Financing Agreement ($244,449 at
             July 24, 1996) into a single Note collateralized by MRI
             receivables from the U.S. House of Representatives retained
             by TII.  The Note was due October 22, 1996, demand has been
             made, and the Note is in default.  The Company is currently
             in discussions regarding payment of the Note.  Management of
             the Company believes the Company's indemnification under the
             terms of the Amended Infotech Note will apply to any amounts
             due PrinCap (or separately to the Company) not ultimately
             recovered through the MRI receivables held by TII, and that
             any such amounts will reduce the principal of the Amended
             Infotech Note.



                                       Page 13<PAGE>





                  The Company's management continues to monitor the
             ongoing reorganization of Infotech under Chapter 11 of the
             U.S. Bankruptcy Code, since events in that regard may
             adversely affect the Company's financial position and
             ability to conduct operations.  In addition, the ability of
             TII to collect outstanding MRI receivables from the U.S.
             House of Representatives and repay the Company's outstanding
             note under the PrinCap Financing Agreement may also have a
             significant effect on the Company's overall liquidity and
             ability to conduct operations.











































                                       Page 14<PAGE>





             Part II.  Other Information

             Item 1.   Legal Proceedings

                  None.


             Item 6.   Exhibits and Reports.

                  None.











































                                       Page 15<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.

                                           COMTEX SCIENTIFIC CORPORATION
                                           (Registrant)


             Dated:  November 14, 1996     By:    /s/ C.W. Gilluly
                                                C.W. Gilluly
                                                Chairman of the Board and
                                                Chief Executive Officer

                                           By:  /s/   C.W. Gilluly
                                                C.W. Gilluly
                                                Chief Financial Officer
                                                (Principal Financial and 
                                                  Accounting Officer)
































                                       Page 16<PAGE>