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 September 30, 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                              November 5, 1998
                                     
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 -
          September 30, 1998 and June 30, 1998                    1

          Consolidated Statements of Operations - For the
          three months ended September 30, 1998
          and 1997                                                2

          Consolidated Statement of Changes in Stockholders'
          Equity - For the three months ended
          September 30, 1998                                      3

          Condensed Consolidated Statements of Cash Flows - 
          For the three months ended September 30, 1998 and 1997  4

          Notes to Consolidated Financial Statements            5-8


Item 2.   Management's Discussion and Analysis of Results of
          Operations and Financial Condition                   9-10


PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings                                      11

Item 5.   Other Events                                           11

Item 6.   Exhibits and Reports on Form 8-K                       11


Signatures                                                       12



           SMITH CORONA CORPORATION AND SUBSIDIARIES
           CONDENSED CONSOLIDATED BALANCE SHEETS
                     ($ in thousands)
<TABLE>
<S>                                          <C>             <C>
                                    									September 30,   June 30,
                                    									    1998          1998   
ASSETS								                               (unaudited)   (audited)
  Current assets:
    Cash and cash equivalents              	  $ 6,257       $15,293
    Accounts receivable (net of allowance
      for doubtful accounts of $654 and
      $638, respectively)                  	    9,301         9,492
    Inventories                            	   17,979        15,399
    Prepaid expenses and other current
      assets                               	    3,636         3,090
    Total current assets                   	   37,173        43,274

  Property, plant and equipment, net       	    4,328         6,511
  Other assets                             	    2,188           302

    TOTAL                                  	  $43,689       $50,087

LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
    Trade payables                         	  $ 5,269       $ 6,025
    Accrued liabilities                    	    8,814         8,204
    Taxes payable                          	    3,033         3,138
    Total current liabilities              	   17,116        17,367

  Pension liability	                				   	    4,807	        4,827
  Postretirement benefits			   	                3,383	        3,846
  Other long-term liabilities			   	            3,782	        4,007
    Total liabilities                      	   29,088        30,047
  Stockholders' equity:
    Common stock-3,141,654 shares
        issued and outstanding             	        3             3
    Additional paid-in capital             	   55,510        55,512
    Deferred compensation                  	      (92)         (326)
    Accumulated deficit                    	  (40,820)      (35,149)
    Total stockholders' equity             	   14,601        20,040
 
    TOTAL                                  	  $43,689       $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>
                       									Three months ended
                       									   September 30,
                        									 1998       1997
                        									   (unaudited)

Net sales                			    $11,114   $14,792
Cost of goods sold       			     10,049    11,541
  Gross margin           			      1,065     3,251
Selling, general and
  administrative expenses         5,523     4,792
Restructuring expense				         1,183         -
Reorganization costs         			      -        61
Other income 						                   -      (100)
Operating loss		      			        (5,641)   (1,502)
Interest income 					                (7)     (194)


Loss before income taxes 			     (5,634)   (1,308)
Income taxes 		       			            37       151
Net loss		            			       $(5,671)  $(1,459)

Net loss per common share - 
  basic and diluted             $ (1.90)  $  (.55)
</TABLE>
See accompanying notes to consolidated financial statements.
        
            SMITH CORONA CORPORATION AND SUBSIDIARIES
       CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                            
                          For the three months ended September 30, 1998
                                      ($ in thousands)
<TABLE>
<S>                       <C>     <C>        <C>         <C>        <C>
                                  Additional
                          Common  Paid-In    Deferred     Accumulated
(unaudited)                Stock  Capital    Compensation Deficit     Total

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

Net loss                      -         -          -       (5,671)   (5,671)

Deferred compensation         -        (2)         2            -         -

Amortization of deferred
  compensation                -         -        232            -       232
Balance September 30, 1998 $  3   $55,510      $ (92)    $(40,820)  $14,601
</TABLE>
See accompanying notes to consolidated financial statements.

               SMITH CORONA CORPORATION AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                           ($ in thousands)
<TABLE>
<S>                                               <C>       <C>
                           
                                                  Three months ended
                                                    September 30,  
                                                   1998     1997  
  CASH FLOWS FROM OPERATING ACTIVITIES:             (unaudited)
  Net loss                                      $(5,671) $(1,459)
  Adjustments to reconcile net 
    loss to net cash used in
    operating activities:
      Depreciation and amortization                 682      785
      Gain on disposition of
        property, plant and equipment                 -      (97)
      Other noncash items                             -        4
      Changes in assets and liabilities:
          Accounts receivable                       191        5
          Inventories                            (2,578)   1,419
          Prepaid expenses and
            other current assets                   (546)  (2,016)
          Other assets                               81      (94)
          Trade payables                           (756)     533
          Accrued liabilities and taxes
           payable						                            505     (855)
          Postretirement benefits and pension
		         liability	                    				      (483)    (463)
		        Other long-term liabilities		            (225)       -
  Net cash used in
    operating activities                         (8,800)  (2,238)
  CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from the sale of property,
    plant and equipment                               -      100
  Capital expenditures                             (236)    (831)
  Net cash used in          
   investing activities                            (236)    (731)
  Decrease in cash
    and cash equivalents                         (9,036)  (2,969)
  Cash and cash equivalents:
    Beginning of period                          15,293   21,985
    End of period                               $ 6,257  $19,016
</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.

In the second quarter of the year ended June 30, 1998, the Company adopted 
Statement of Financial Accounting Standards No. 128, "Earnings Per Share" 
("SFAS 128").  Accordingly, the three months ended September 30, 1997 has 
been restated to reflect basic and diluted loss per share.  (See Note 4).

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 September 30, 1998 and June 30, 
1998, the Company had recorded liabilities of approximately $1,876 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 operation.

The ultimate determination of taxes payable is pending the outcome of 
certain legal entity reconfigurations within the Company's worldwide 
structure.  Management believes that the amount accrued is sufficient to 
cover any liability which may be determined.

NOTE 3 - INVENTORIES

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

Raw materials and work-in-process	   $     -		$    91
Finished goods			               		    17,979 	 15,308
	Total					                          $17,979		$15,399
</TABLE>

NOTE 4 - LOSS PER SHARE

The following tables reconcile the numerators and denominators of the basic 
and diluted loss per share for the net loss presented in the Consolidated 
Statements of Operations:
<TABLE>
<S>                                <C>       <C>       <C>
                    							  Three months ended September 30, 1998	
                         								Loss	  	   Shares	     	Per-Share
                          				  (Numerator) (Denominator)   Amount

Basic Loss per Share
  Net loss				                    		$(5,671)		2,983	   $(1.90)

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

Diluted Loss per Share
  Net loss						                    $(5,671)		2,983	   $(1.90)

                   							   Three months ended September 30, 1997
								                         Loss	  	   Shares	      	Per-Share
                       							  (Numerator)	(Denominator)	   Amount

Basic Loss per Share
  Net loss						                   $(1,459)		 2,677	    $(.55)

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

Diluted Loss per Share
  Net loss						                   $(1,459)		2,677	    $(.55)
</TABLE>

(a) Warrants to purchase 1,512,073 shares at September 30, 1998 and 
1,512,423 at September 30, 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.

(b) Options to purchase 142,735 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.

(c) Restricted Stock of 158,282 shares at September 30, 1998 and 95,143 
shares at September 30, 1997 would have anti-dilutive effect in the 
computation.  Subsequent to September 30, 1998 restricted stock of 167,549 
shares were issued.


NOTE 5 - RESTRUCTURING

The Company continues to evaluate its strategy and focus and the 
deployment of its resources to profitably take advantage of 
opportunities.  As a result of this evaluation, management believes, 
among other things, that the Company needs to continue transitioning 
its administrative cost structure from that of a manufacturing company 
to one of a sales and marketing based distributor.

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 $1,183 in the quarter ended September 30, 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 relocate its corporate headquarters to 
more efficient facilities.  The Cortland headquarters building is being 
actively marketed and management believes the remaining 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 September 30, 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.

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

Net sales of $11.1 million for the quarter ended September 30, 1998 
decreased 24.9 percent from last year's first quarter net sales of $14.8 
million, primarily due to lower volumes.  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 $1.7 million.

The Company's plan to diversify and expand its product line continues.  
Efforts are focused on forging new and expanding existing alliances with 
companies that provide technologically advanced products for the small 
office and home office environment but presently do not have a substantial 
United States market penetration, and are intent on building or increasing 
market penetration by selling their products under the well-known "Smith 
Corona" name.  Management believes that the Company is positioned to 
leverage the strength of its brand name with business products that combine 
functionality and contemporary design.  The Company intends to rely on its 
existing distribution network to become a vendor of technologically 
advanced products for the small office and home office.  Additionally, the 
Company is exploring synergistic opportunities in related markets that will 
provide new and expand existing channels of distribution including non-
retail channels.  The Company believes that the small office and home 
office market, globally, represents growth opportunities.  The Company 
intends to maintain its core business of distributing its current product 
line of typewriters and related supplies and accessories to satisfy 
continuing worldwide demand for the products.  The success of the Company 
depends, in part, on its ability to source, market and sell new products.  

Gross margin, as a percentage of net sales, was 9.6 percent for the first 
quarter ended September 30, 1998, as compared to 22.0 percent for the 
comparable period last year.  Sales in the three months ended September 30, 
1998 included the clearing out of low-end telephony products 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 first quarter ended September 30, 1998 was adversely 
impacted by a charge of approximately $.6 million for inventory related 
provisions.

Selling, general and administrative expenses for the three months ended 
September 30, 1998 were $5.5 million compared to $4.8 million last year.  
The increase in spending over the prior year was primarily associated with 
employee-related costs.


The Company continues to evaluate its strategy and focus and the 
deployment of its resources to profitably take advantage of 
opportunities.  As a result of this evaluation, management believes, 
among other things, that the Company needs to continue transitioning 
its administrative cost structure from that of a manufacturing company 
to one of a sales and marketing based distributor.

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 $1.2 million in the quarter ended September 30 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 relocate its corporate headquarters to 
more efficient facilities.  The Cortland headquarters building is being 
actively marketed and management believes the remaining 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 September 30, 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's 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, is cash balances and available borrowing 
capacity.

During the three months ended September 30, 1998, the Company's operating 
activities used $8.8 million of cash, primarily as a result of the net loss 
for the first quarter and the increase in inventories.  Inventories 
increased $2.6 million primarily as a result of sourcing constraints 
related to typewriters and supplies and accessories.

Capital expenditures for the three months ended September 30, 1998 were $.2 
million and are primarily related to new product tooling.  The Company had 
no material commitments for additional capital expenditures at September 
30, 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" and in the Notes to the Consolidated Financial Statements 
appearing in this Form 10-Q Quarterly Report.

Item 5.   Other Events

On November 4, 1998, the Company announced the appointment of John A. 
Bermingham to the post of President and Chief Executive Officer.  Mr. 
Bermingham will also serve as a Director of the Company.  Mr. Bermingham, 
54, replaced Peter N. Parts, who assumed the senior management post in 
July.  Mr. Parts will retain his position as Chairman of the Board.

Mr. Bermingham has a 25-year career in consumer electronics management and 
corporate revitalization.  He served as president and chief executive of 
Rolodex Corporation and achieved that company's turnaround.  He also served 
as chief executive of AT&T Smart Cards Systems and Solutions and as a 
senior officer for AT&T's New Business Ventures division.  Mr. Bermingham 
was a long standing officer of Sony Corporation of America, rising from 
vice president of sales and marketing to executive vice president of Sony's 
Electronics Group.

Item 6.   Exhibits and Reports on Form 8-K

          (a)  Exhibits

               27	Financial Data Schedule

          (b)  Reports on Form 8-K

            		Two Current Reports on Form 8-K were filed with the Commission 
              during the first quarter of the Company's 1999 fiscal year.

1.) The July 20, 1998 Form 8-K Current Report disclosed under Item 5 that 
Peter Parts Chairman of the Board of Directors assumed the post of President
and Chief Executive Officer replacing W. Michael Driscoll who retired as the 
Company's President and Chief Executive Officer.  Additionally, effective 
July 22, 1998 Ronald F. Stengel resigned as Director of the Company.

2.)	The September 30, 1998 Form 8-K Current Report disclosed under Item 5 a 
change in the Company's certifying accountant to KPMG Peat Marwick LLP from 
Deloitte & Touche LLP.



                    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




November 13, 1998

                              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