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

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

		For the Quarterly Period Ended December 31, 1998

or

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

Commission file number 1-10281

Smith Corona Corporation
(Exact name of registrant as specified in its charter)

             Delaware                               51-0286862      
(State or other jurisdiction of                 (I.R.S. Employer
 incorporation or organization)                  Identification No.)

839 Route 13 South, Cortland, New York  13045
(Address of principal executive offices)  (Zip Code)

(607) 753-6011
(Registrant's telephone number, including area code)


	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      

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

	Indicate by check mark whether the registrant has filed all documents and 
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a 
plan confirmed by a court.
Yes   X  		No      

	Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.

                                             Outstanding at
   Class                                February 8, 1999
Common Stock, par value $.001             2,983,372
per share

SMITH CORONA CORPORATION AND SUBSIDIARIES

INDEX


                                                              Page

PART I.   FINANCIAL INFORMATION

Item 1.   Consolidated Financial Statements

          Condensed Consolidated Balance Sheets - 
          December 31, 1998 and June 30, 1998                    1

          Consolidated Statements of Operations - For the
          three and six months ended December 31, 1998
          and 1997                                               2

          Consolidated Statement of Changes in Stockholders'
          Equity - For the six months ended 
          December 31, 1998                                      3

          Consolidated Statements of Cash Flows - For the
          six months ended December 31, 1998 and 1997            4

          Notes to Consolidated Financial Statements           5-9


Item 2.   Management's Discussion and Analysis of Results of
          Operations and Financial Condition                 10-13


PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings                                     13

Item 4.   Submission of Matters to a Vote of Security Holders   13

Item 6.   Exhibits and Reports on Form 8-K                      13


Signatures                                                      14

Exhibit Index                                                   15


          SMITH CORONA CORPORATION AND SUBSIDIARIES
           CONDENSED CONSOLIDATED BALANCE SHEETS
                    ($ in thousands)
<TABLE>
<S>                                           <C>            <C>
                                              December 31,   June 30,
                                               1998            1998  
ASSETS                                       (unaudited)   (audited)
  Current assets:
    Cash and cash equivalents                $ 3,095        $15,293
    Accounts receivable (net of allowance
      for doubtful accounts of $462 and
      $638, respectively)                     10,460          9,492
    Inventories                               13,857         15,399
    Prepaid expenses and other current
      Assets                                   3,312          3,090
    Total current assets                      30,724         43,274

  Property, plant and equipment, net           3,589          6,511
  Other assets                                 2,098            302

    TOTAL                                    $36,411        $50,087

LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
    Trade payables                           $ 4,044        $ 6,025
    Accrued liabilities                        9,443          8,204
    Taxes payable                              3,163          3,138
    Total current liabilities                 16,650         17,367

  Pension liability                            4,788          4,827
  Postretirement benefits                      2,963          3,846
  Other long-term liabilities                  3,568          4,007
    Total liabilities                         27,969         30,047
  Stockholders' equity:
    Common stock-3,313,401 shares
       and 3,141,654 shares issued 
       and outstanding, respectively               3              3
    Additional paid-in capital                55,781         55,512
    Deferred compensation                       (270)          (326)
    Accumulated deficit                      (47,072)       (35,149)
    Total stockholders' equity                 8,442         20,040
 
    TOTAL                                    $36,411        $50,087
</TABLE>
See accompanying notes to consolidated financial statements. 


         SMITH CORONA CORPORATION AND SUBSIDIARIES
            CONSOLIDATED STATEMENTS OF OPERATIONS
         ($ in thousands, except per share amounts)

<TABLE>
<S>                           <C>       <C>            <C>       <C>         
                              Three months ended       Six months ended
                                 December 31,             December 31,
                               1998       1997          1998       1997
                                 (unaudited)              (unaudited)

Net sales                     $12,768   $17,005        $ 23,882  $31,797
Cost of goods sold             13,548    12,219          23,597   23,760
  Gross margin                   (780)    4,786             285    8,037
Selling, general and
  administrative expenses       5,269     7,244          10,792   12,036
Restructuring expense             141         -           1,324        -
Reorganization income              -       (310)              -     (249)
Gain on sale of 
  manufacturing operations          -    (3,700)              -   (3,700)
Other income                        -         -               -     (100)
Operating income (loss)        (6,190)    1,552         (11,831)      50
Interest (income) expense           4      (245)           (  3)    (439)


Income (loss) before income
  taxes and extraordinary 
  gain                         (6,194)    1,797         (11,828)     489
Income taxes                       58        72              95      223
Income (loss) before
  extraordinary gain           (6,252)    1,725         (11,923)     266
Extraordinary gain-net              -       460               -      460
Net income (loss)             $(6,252)  $ 2,185        $(11,923) $   726


Earnings (loss) per common 
  share-basic:
Income (loss) before 
  extraordinary gain          $ (2.10)  $   .63        $  (4.00) $   .10
Extraordinary gain-net              -       .17               -      .17
Net income (loss)             $ (2.10)  $   .80        $  (4.00) $   .27

Earnings (loss) per common
  share-diluted:
Income (loss) before 
  extraordinary gain          $ (2.10)  $   .61        $  (4.00) $   .09
Extraordinary gain-net              -       .17               -      .17
Net income (loss)             $ (2.10)  $   .78        $  (4.00) $   .26

</TABLE>
See accompanying notes to consolidated financial statements.

        				SMITH CORONA CORPORATION AND SUBSIDIARIES
      CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
         For the six months ended December 31, 1998
                     ($ in thousands)
(unaudited)
<TABLE>
<S>                        <C>    <C>          <C>       <C>        <C>    
                                  Additional
                          Common  Paid-In    Deferred     Accumulated
                           Stock  Capital    Compensation Deficit     Total

Balance June 30, 1998      $  3   $55,512      $(326)    $(35,149)  $ 20,040

Net loss                      -         -          -      (11,923)   (11,923)

Deferred compensation         -       269       (269)           -          -

Amortization of deferred
  compensation                -         -        325            -        325
Balance December 31, 1998  $  3   $55,781      $(270)    $(47,072)   $ 8,442
</TABLE>
See accompanying notes to consolidated financial statements.

             SMITH CORONA CORPORATION AND SUBSIDIARIES
             CONSOLIDATED STATEMENTS OF CASH FLOWS
                       ($ in thousands)
<TABLE>
<S>                                                <C>       <C> 
                                                   Six months ended
                                                     December 31,  
                                                    1998      1997  
                                                     (unaudited)

  CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                               $(11,923)  $   726
  Adjustments to reconcile net income
    (loss)  to net cash provided by (used in)
    operating activities:
      Depreciation and amortization                  1,402     1,419
      Gain on sale of manufacturing operations           -    (3,700)
      Gain on disposition of
        property, plant and equipment                  (62)      (24)
      Inventory provisions                           1,897      (107)
      Extraordinary gain                                 -      (460)
      Other noncash items                                -        16
      Changes in assets and liabilities:
          Accounts receivable                         (968)   (1,534)
          Inventories                                 (355)      559
          Prepaid expenses and
            other current assets                      (192)   (1,314)
          Other assets                                 116       (55)
          Trade payables                            (1,981)    1,571
          Accrued liabilities and income taxes
           Payable                                   1,442    (1,676)
          Postretirement benefits and pension
           Liability                                  (922)   (1,065)
          Other long-term liabilities                 (438)        -
  Net cash used in
    operating activities                           (11,984)   (5,644)
  CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from the sale of property,
    plant and equipment                                 62       100
  Proceeds from the sale of 
    manufacturing operations                             -    13,672
  Capital expenditures                                (276)   (1,344)
  Net cash provided by (used in)
    investing activities                              (214)   12,428
  Increase (decrease) in 
    cash and cash equivalents                      (12,198)    6,784
  Cash and cash equivalents:
    Beginning of period                             15,293    21,985
    End of period                                 $  3,095   $28,769
</TABLE>
See accompanying notes to consolidated financial statements.

                 SMITH CORONA CORPORATION AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
              ($ and shares in thousands, except per share amounts)


NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

The accompanying interim consolidated financial statements, although not 
necessarily indicative of results of operations for the entire fiscal year, 
include all adjustments of a normal recurring nature which are, in the 
opinion of management, necessary for a fair presentation of the results for 
the periods covered.  They have been prepared by Smith Corona Corporation 
(the "Company") without audit in accordance with the instructions to Form 
10-Q and should be read in conjunction with the consolidated financial 
statements and the notes thereto for the fiscal year ended June 30, 1998 as 
contained in the Company's Annual Report on Form 10-K.

The preparation of financial statements in conformity with generally 
accepted accounting principles requires management to make estimates and 
assumptions that affect the reported amounts of assets and liabilities and 
the disclosure of contingent assets and liabilities at the date of the 
financial statements and the reported amounts of revenue and expenses 
during the reporting periods.  Actual results could differ from those 
estimates.

NOTE 2 - CONTINGENCIES

Certain aspects of the Company's past handling and/or disposal of hazardous 
substances have been the subject of investigation by federal and state 
regulatory authorities, or have been the subject of lawsuits filed by such 
authorities or by private parties.  At December 31, 1998 and June 30, 1998, 
the Company had recorded liabilities of approximately $1,865 and $1,889, 
respectively, related primarily to remediation and monitoring of 
environmental sites.  Because of the uncertainties associated with 
assessing environmental matters, the related ultimate liabilities are not 
presently determinable.  However, based on facts presently known, 
management does not believe that these investigations, if resolved 
adversely to the Company, would individually or in the aggregate have a 
material adverse effect on the Company's financial position or results of 
operations.

The Company was the owner and operator of manufacturing facilities in 
Groton, New York (the "Groton Site") and Cortlandville, New York (the 
"Cortlandville Site") and together,  (the "Owner/Operator Sites").  The 
Company's liability, if any, at the Owner/Operator Sites stems from 
groundwater contamination at the Cortlandville Site and soil contamination 
at the Groton Site.  The remediation program at the Cortlandville Site 
consists of round-the-clock pumping and filtering.  The soil venting with a 
soil infiltration injection system for the Groton Site remediation is now 
reduced to periodic soil and water sampling.  A decommissioning plan for 
the Groton Site has been approved and decommissioning activities have 
commenced. To the Company's knowledge, the only future costs that will be 
associated with remediation of those sites are for operation, maintenance, 
monitoring, shutdown, and post-shutdown of the systems.  The Company 
believes that it has set aside adequate reserves for the payment of 
expenses for the ongoing remediation programs at the Groton and 
Cortlandville Sites.  

The Company is also a defendant or plaintiff in various other legal actions 
that have arisen in the ordinary course of its business.  It is the opinion 
of management that the ultimate resolution of these matters and the 
environmental matters discussed above will not have a material adverse 
effect on the Company's financial position or results of operations.

The ultimate determination of taxes payable is pending the outcome of 
certain legal entity reconfigurations within the Company's worldwide 
structure.  The reconfigurations are expected to be finalized prior to June 
30, 1999.  Based on the status of the related actions, management believes 
that the amount recorded as taxes payable will exceed the amounts 
ultimately due.  The company will await final resolution of this matter 
before making any adjustment required to taxes payable.

The Company's current procurement contract for typewriters and related 
supplies and accessories provides for retroactive price increases in 
certain circumstances including shortfalls in actual purchases versus those 
forecasted.  Due to shortfalls from forecasted purchases the Company has 
incurred approximately $870 in retroactive price increases for the six 
months ending December 31, 1998.  The Company has begun discussions with 
its supplier to eliminate along with other contractual items, the 
retroactive price increase provisions of the contract particularly for the 
remainder of this fiscal year.  The ultimate retroactive price increase for 
the six months ending June 30, 1999 is presently not determinable.  
However, management estimates that the retroactive price increase could be 
as high as $2,100 pending the actual level of purchases, the outcome of 
discussions with its supplier and the outcome of certain other contract 
provisions.

NOTE 3 - INVENTORIES

A summary of inventories, by major classification and net of reserves, is 
as follows:
<TABLE>
<S>                                   <C>              <C>
                                     December 31,      June 30,
                                       1998               1998  

Raw materials and work-in-process     $   122          $    91
Finished goods                         13,735           15,308
	Total                                $13,857          $15,399
</TABLE>

During the six months ended December 31, 1998 the Company recorded 
inventory writedowns of approximately $1,897.  These writedowns were 
primarily related to sharp market price declines in telephony products, 
facsimile machines and certain typewriters and the Company's strategic 
decision to de-emphasize certain telephony and facsimile products which 
face heavy competition and increasing price constraints that contribute to 
continuing gross margin decline.


NOTE 4 - LOSS PER SHARE

The following tables reconcile the numerators and denominators of the basic 
and diluted income (loss) per share for the income (loss) before 
extraordinary gain presented in the Consolidated Statements of Operations:
<TABLE>
<S>                                     <C>            <C>         <C>
                                      Three months ended December 31, 1998
                                        Loss         Shares      Per-Share
                                     (Numerator)  (Denominator)    Amount

Basic Loss per Share
  Net loss                              $(6,252)       2,983       $(2.10)

Effect of dilutive securities
  Warrants                                   (a)          (a)
  Stock Options                              (b)          (b)
  Restricted Stock                            -           (c)	

Diluted Loss per Share
  Net loss                              $(6,252)       2,983       $(2.10)

                                       Three months ended December 31, 1997
                                         Loss         Shares      Per-Share
                                      (Numerator)  (Denominator)    Amount

Basic Income per Share
  Net income before 
   extraordinary gain                   $ 1,725        2,728        $(.63)

Effect of dilutive securities
  Warrants                                   (a)          (a)
  Restricted Stock                            -           85

Diluted Income per Share
  Net income before
   extraordinary gain                   $ 1,725        2,813        $(.61)

                                        Six months ended December 31, 1998
                                        Loss         Shares      Per-Share
                                     (Numerator)  (Denominator)    Amount

Basic Loss per Share
  Net loss                              $(11,923)      2,983       $(4.00)

Effect of dilutive securities
  Warrants                                    (a)         (a)
  Stock Options                               (b)         (b)
  Restricted Stock                             -          (c)

Diluted Loss per Share
  Net loss                              $(11,923)      2,983       $(4.00)

Note 4 - LOSS PER SHARE (cont.)
                                        Six months ended December 31, 1997
                                        Loss         Shares      Per-Share
                                     (Numerator)  (Denominator)    Amount

Basic Income per Share
  Net income before
   extraordinary gain                   $   266        2,693        $ .10

Effect of dilutive securities
  Warrants                                   (a)         (a)
  Restricted Stock                            -          81

Diluted Income per Share
  Net income before
   extraordinary gain                   $   266       2,774        $ .09
</TABLE>

(a) Warrants to purchase 1,512,073 shares at December 31, 1998 and 
    1,512,423 at December 31, 1997 of common stock at $8.50 per share were 
    outstanding but were not included in the computation of diluted 
    earnings per share because the exercise price was greater than the 
    market price of the common shares and, accordingly they would have an 
    anti-dilutive effect.

(b) Options to purchase 147,738 shares of common stock at $6.13 per share 
    were outstanding but were not included in the computation of diluted 
    earnings per share because the option price was greater than the 
    average market price of the common shares and, accordingly they would 
    have an anti-dilutive effect.

(c) Restricted Stock of 330,029 shares at December 31, 1998 and 96,274 
    shares at December 31, 1997 would have an anti-dilutive effect in the 
    computation.


NOTE 5 - RESTRUCTURING

In the first quarter ended September 30, 1998, the Company reevaluated 
its strategy and focus and deployment of its resources to take 
advantage of new and existing opportunities.  As a result, management 
determined, among other things, that the Company needed to continue 
transitioning its administrative cost structure from that of a 
manufacturing company to one of a sales and marketing company.

In connection with this strategic initiative, the Company announced a 
restructuring plan on September 28, 1998 and recorded a related 
pre-tax and post-tax charge of $1,324 in the six months ended December 
31, 1998.  The substantial portion of this charge relates to the 
severance cost associated with the termination of approximately 130 
positions, primarily at the Company's Cortland, New York corporate 
headquarters.  The affected employees have been identified and notified.  
To a much lesser extent the restructuring charge also includes provisions 
related to a planned sale of the furnishings and equipment located at the 
corporate headquarters.  

In connection with the restructuring, the Company plans to sell the 
building in Cortland, New York and to relocate its corporate headquarters 
to more efficient facilities.  The Cortland headquarters building is 
being actively marketed and management believes the net book value of the 
building will be fully recovered upon the sale.  The related net book 
value has been reclassified to other assets on the December 31, 1998 
balance sheet.

Management believes that the workforce reductions, relocation to more 
efficient facilities and the continued efforts to reduce certain targeted 
costs such as advertising and new product development will reduce expenses 
by approximately $9,000 annually.

NOTE 6 - Loan and Security Agreement

As of December 31, 1998, the Company was in default of the adjusted net 
worth covenant provision of its loan and security agreement (the "Loan and 
Security Agreement").  There were no borrowings outstanding under this 
facility at December 31, 1998.  The Company and its lender have executed a 
waiver and amendment to the Loan and Security Agreement.  Pursuant to the 
provisions of the waiver and amendment, the Company must maintain an 
adjusted net worth, as defined, of not less than one dollar through June 
29, 1999 and $2,000 thereafter.  Management believes that it will have 
adequate financing flexibility under the Loan and Security Agreement, as 
amended.

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

The forward-looking comments in this Management's Discussion and Analysis 
of Results of Operations and Financial Condition are estimates by the 
Company's management of future performance and are subject to a variety of 
risks and uncertainties that could cause actual results to differ from 
management's current expectations.

Results of Operations


A number of significant events occurred during the second quarter ended 
December 31, 1998, as Smith Corona continued its transition from a 
manufacturing company to a sales and marketing organization. In October 
1998, Martin D. Wilson began serving as senior vice president and chief 
financial officer of the Company.  In November, the Company appointed 
John A. Bermingham, an executive experienced in consumer electronics and 
office product management, to the position of president and chief executive 
officer.  In December, Vincent T. Abbatiello was named as vice president of 
sales.

During the second quarter, the management team began implementing the 
restructuring plan announced in late September.  Staff streamlining in 
conjunction with the 60-day notice period began in late November and will 
continue through the third quarter, resulting in the elimination of 
approximately 130 positions.  During the second quarter, the Company also 
executed a lease for a 30,000 square-foot office site located in Cortland, 
New York.  The relocation of headquarters, which is expected to occur in 
the third quarter, will result in a $1.6 million annual savings assuming 
the sale of the current owned facility which is now being negotiated. 

The Company continues to refine its business plan which calls for the 
expansion and diversification of its product lines with a renewed emphasis 
on building on the market's recognition of the Smith Corona brand in 
printed document and data transmission.  The Company believes it can 
strengthen its global core business in typewriter and related accessories 
and supplies by expanding its sales capabilities and by marketing more 
visually appealing models.

In keeping with its history of marketing products related to printed 
document production, the Company is also negotiating with numerous 
suppliers to expand product lines and develop new product lines in inkjet 
printer supplies, labeling devices and supplies, and digital photo printers 
and supplies. As a result the Company is de-emphasizing its telephony and 
facsimile products, which face heavy competition and decreasing prices that 
contribute to lower margins.

The Company anticipates introducing the first of these newly sourced 
products in the third quarter with the first impact on revenues expected to 
occur in the fourth quarter.  The Company intends to rely on its existing 
distribution network to market its products to the small office/home office 
(SOHO) market, as well as expand to new channels of distribution and to 
increase its emphasis on international markets.  The Company's success 
depends on its ability to successfully source, market and sell its products 
while continuing to implement cost controls to keep expenses in line with 
revenues.

Net sales of $12.8 million for the quarter ended December 31, 1998 
decreased 24.9 percent from last year's second quarter net sales of $17.0 
million.  For the six month period ended December 31, 1998, net sales were 
$23.9 million, a 24.8 percent decrease from last year's comparable period 
of $31.8 million.  Unit sales of typewriters and related accessories and 
supplies are lower than a year ago, both domestically and internationally, 
as a result of a shrinking market and a continuing difficult and 
competitive environment.  The lower volumes are partially offset by newly 
sourced product net sales of $1.9 million for the three months ended 
December 31, 1998 and $3.5 million for the six months ended December 31, 
1998. The prior year comparable three and six month periods ended 
December 31, 1997 included $.4 million in newly sourced product sales.

Gross margin, as a percentage of net sales, was (6.1) percent for the 
second quarter ended December 31, 1998, as compared to 28.1 percent for the 
comparable period last year.  For the six months ended December 31, 1998 
the gross margin as a percentage of net sales was 1.2 percent as compared 
to 25.3 percent last year.  Sales in the three and six months ended 
December 31, 1998 included the clearing out of low-end telephony products 
and facsimile inventory that resulted in a negative impact on gross 
margins.  In the fourth quarter of the Company's 1998 fiscal year 
competitors began reducing market prices for the low-end telephony and 
facsimile products.  These sharp price declines resulted in the Company 
having to reduce its low-end telephony and facsimile product pricing and 
record related inventory writedowns.  Additionally, the six months ended 
December 31, 1998 was adversely impacted by a charge of approximately $1.9 
million for additional inventory related provisions.

The Company's current procurement contract for typewriters and related 
supplies and accessories provides for retroactive price increases in 
certain circumstances including shortfalls in actual purchases versus those 
forecasted.  Due to shortfalls from forecasted purchases, the Company has 
incurred approximately $.9 million in retroactive price increases for the 
six months ending December 31, 1998.  The Company has begun discussions 
with its supplier to eliminate, along with other contractual items, the 
retroactive price increase provisions of the contract particularly for the 
remainder of this fiscal year.  The ultimate retroactive price increase for 
the six months ending June 30, 1999 is presently not determinable.  
However, management estimates that the retroactive price increase could be 
as high as $2.1 million pending the actual level of purchases, the outcome 
of discussions with its supplier and the outcome of certain other contract 
provisions.

Selling, general and administrative expenses for the three and six months 
ended December 31, 1998 were $5.3 million and $10.8 million as compared to 
$7.2 million and $12.0 million last year.  The decrease in spending from 
the prior year was primarily associated with sharp declines in spending to 
support development and advertising of newly sourced products.

In the first quarter ended September 30, 1998, the Company reevaluated 
its strategy and focus and the deployment of its resources to take 
advantage of new and existing opportunities.  As a result of this 
evaluation, management determined, among other things, that the 
Company needed to continue transitioning its administrative cost 
structure from that of a manufacturing company to one of a sales and 
marketing company.

In connection with this strategic initiative, the Company announced a 
restructuring plan on September 28, 1998 and recorded a related 
pre-tax and post-tax charge of $1.3 million in the six months ended 
December 31, 1998.  The substantial portion of this charge relates to the 
severance cost associated with the termination of approximately 130 
positions, primarily at the Company's Cortland, New York corporate 
headquarters.  The affected employees have been identified and notified.  
To a much lesser extent the restructuring charge also includes provisions 
related to a planned sale of the furnishings and equipment located at the 
corporate headquarters.  

In connection with the restructuring, the Company plans to sell the 
building in Cortland, New York and to relocate its corporate headquarters 
to more efficient facilities.  The Cortland headquarters building is 
being actively marketed and management believes the net book value of the 
building will be fully recovered upon the sale.  The related net book 
value has been reclassified to other assets on the December 31, 1998 
balance sheet.

Management believes that the workforce reductions, relocation to more 
efficient facilities and the continued efforts to reduce certain targeted 
costs such as advertising and new product development will reduce expenses 
by approximately $9.0 million annually.

The Company believes its products and major operating systems are year 2000 
compliant.  The Company is in the process of gathering information 
concerning the year 2000-compliance status of its suppliers.  In the event 
that any of the Company's significant suppliers do not successfully and 
timely achieve year 2000 compliance, the Company's business could be 
adversely affected.  Any significant disruption of the Company's ability to 
communicate electronically with its business partners could negatively 
impact the Company's business.

Financial Condition

The Company's primary source of liquidity and capital resources, on both a 
short- and long-term basis, are cash balances and available borrowing 
capacity.

As of December 31, 1998, the Company was in default of the adjusted net 
worth covenant provision of its loan and security agreement ("Loan and 
Security Agreement").  There were no borrowings outstanding under this 
facility at December 31, 1998.  The Company and its lender have executed a 
waiver and amendment to the Loan and Security Agreement.  Pursuant to the 
provisions of the waiver and amendment, the Company must maintain an 
adjusted net worth of not less than one dollar through June 29, 1999 and 
$2.0 million thereafter.  Management believes that it will have adequate 
financing flexibility under the Loan and Security Agreement, as amended.

During the six months ended December 31, 1998, the Company's operating 
activities used $12.0 million of cash, primarily as a result of the net 
loss.  Capital expenditures for the six months ended December 31, 1998 were 
$.3 million and are primarily related to new product tooling.  The Company 
had no material commitments for additional capital expenditures at December 
31, 1998.

The Company believes that its cash and borrowing capabilities will be 
sufficient to meet its operating cash and capital expenditure requirements 
in the foreseeable future.


PART II - Other Information

Item 1.	Legal Proceedings.

Information required by this item is incorporated by reference from "Note 2 
- Contingencies" in the Notes to the Consolidated Financial Statements 
appearing in this Form 10-Q Quarterly Report.

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

At the Annual Meeting of Stockholders of the Company held on November 23, 
1998, the following individuals were elected directors of the Company:

                                   Total Votes        Total Votes
          Directors                    For              Against	

          Michael J. Murray         2,247,087             12,413
          Dr. Richard N. Rosett     2,246,576             12,924


At the same meeting, the appointment of KPMG LLP as independent certified 
public accountants for the Company for the fiscal year ending June 30, 1999 
was ratified by a vote of 2,338,569 for, 54,831 against, and 6,195 
abstaining.


Item 6.	Exhibits and Reports on Form 8-K

  (a)  Exhibits

       27   Financial Data Schedule

  (b) Reports on Form 8-K

      None



                                                      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.









SMITH CORONA CORPORATION




February 12, 1999

                                By: /s/ Martin D. Wilson
                                     Martin D. Wilson
                                     Senior Vice President &
                                     Chief Financial Officer
                                     (Principal Financial and 
                                      Accounting Officer) 
EXHIBIT INDEX

Exhibit No.		Description


EX-27		Financial Data Schedule