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

                                  FORM 10-Q

(MARK ONE)

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

      FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1998

                                      OR

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

COMMISSION FILE NUMBER 33-44510

                     COMPUTER TECHNOLOGY ASSOCIATES, INC.
            (Exact name of registrant as specified in its charter)

      COLORADO                                 84-0797618
(State or other jurisdiction of              (I.R.S. Employer
incorporation or organization)               Identification No.)

6903 ROCKLEDGE DRIVE, BETHESDA, MARYLAND              20817
(Address of principal executive offices)            (Zip Code)

                                (301) 581-3200
             (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 [ ]

Indicate the number of shares outstanding of each  of  the issuer's classes of
common stock as of JUNE 30, 1998.

COMMON STOCK, $.01 PAR VALUE                            8,704,933
         (Class)                                  (Number of Shares)
<PAGE>
                     COMPUTER TECHNOLOGY ASSOCIATES, INC.
                                  FORM 10-Q
                     FOR THE QUARTER ENDED JUNE 30, 1998

                                    INDEX

                       PART I. -- FINANCIAL INFORMATION

Item 1. Financial Statements:

        Condensed Consolidated Balance Sheets
        June 30, 1998 and December 31, 1997

        Consolidated Statements of Operations
        Three months and six months ended June 30, 1998 and 1997

        Condensed Consolidated Statements of Cash Flows
        Six months ended June 30, 1998 and 1997

        Notes to Condensed Consolidated Financial Statements

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


                        PART II. -- OTHER INFORMATION

Item 1. Legal Proceedings

Item 2. Changes in Securities

Item 3. Defaults Upon Senior Securities

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

Item 5. Other Information

Item 6. Exhibits and Reports on Form 8-K


                    *    *    *    *    *    *

        Signature

<PAGE>
                       PART I. -- FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS


<TABLE>
<CAPTION>
                      COMPUTER TECHNOLOGY ASSOCIATES, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                       ($000's except for share amounts)

                                DECEMBER 31, 1997              JUNE 30, 1998
                                                               (UNAUDITED)   
<S>                                    <C>                         <C>
ASSETS
Current assets:
   Cash and cash equivalents           $     -                     $     -
   Accounts receivable, net             33,300                      39,080
   Other current assets                  1,222                         328
   Recoverable income taxes              3,576                         215
                                       -------                      ------
Total current assets                    38,098                      39,623

Furniture and equipment, net             3,044                       3,556

Other assets, net                        4,146                       3,616
                                       -------                     -------
                                       $45,288                     $46,795
                                       =======                     =======
</TABLE>


See accompanying notes to the unaudited condensed consolidated financial
statements.
<PAGE>

<TABLE>
<CAPTION>
                    COMPUTER TECHNOLOGY ASSOCIATES, INC.
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                     ($000's except for share amounts)

                                     DECEMBER 31, 1997          JUNE 30, 1998
                                                                  (Unaudited)

<S>                                       <C>                        <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
    Notes payable--line of credit         $7,445                     $10,822
    Current portion of long-term debt      1,667                       1,667
    Accounts payable                       5,788                       6,988
    Accrued expenses                       3,156                       3,062
    Excess of billings over costs and 
      contract prepayments                 2,738                       3,309
    Other current liabilities                270                         270
    Accrued tender offer                   2,019                           -
    Deferred income taxes                  2,427                       2,800
                                          ------                      ------
    Total current liabilities             25,510                      28,918

Long-term debt, less current portion       3,333                       2,500
Other long-term liabilities                  635                         500

Stockholders' equity:
    Preferred stock, $1.00 par value 
      1,000,000 shares authorized and none 
      issued                                   -                           -
    Common Stock, $.01 par value, 
      20,000,000 shares autorized and        100                         100
      10,000,000 shares issued
    Capital in excess of par value         7,869                       7,879
    Retained earnings                     14,528                      13,828
                                          ------                      ------
                                          22,497                      21,807
    Notes receivable from employees         (698)                       (698)
    Treasury stock, at cost
      (1,248,980 shares in 1997 and 
      1,295,067 shares in
      1998)                               (5,989)                     (6,232)
                                          ------                      ------
   Total stockholders' equity             15,810                      14,877
                                         -------                     -------
                                         $45,288                     $46,795
                                         =======                     =======
</TABLE>

See accompanying notes to the unaudited condensed consolidated financial
statements.
<PAGE>
<TABLE>
<CAPTION>
                        COMPUTER TECHNOLOGY ASSOCIATES, INC.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                       ($000's Except for Per Share Amounts)
                                    (Unaudited)

                                Three Months Ended  Six Months Ended
                                    JUNE 30,           JUNE 30,
                                    --------           -------- 
                                  1997     1998     1997      1998
                                  ----     ----     ----      ---- 
<S>                             <C>       <C>      <C>       <C>
Contract revenues               $23,144   $27,415  $43,560   $52,733
Cost of contract revenues        19,348    21,713   36,401    41,689
Selling, general and
      administrative expenses     2,192     3,620    4,003     6,858
Other expenses                      261       161      338       769
                                    ---       ---      ---       ---
Operating profit                  1,343     1,921    2,818     3,417
Interest expense                    267       294      543       565
                                    ---       ---      ---       ---
Income before income taxes        1,076     1,627    2,275     2,852
Income taxes                        402       611      853     1,070
                                    ---       ---      ---       ---
INCOME FROM CONTINUING
  OPERATIONS                        674     1,016    1,422     1,782
Loss from discontinued operations
  net of income taxes              (689)   (1,388)  (1,399)   (2,482)
                                   -----   -------  -------   -------
Net income (loss)               $ (  15)  $  (372)  $   23   $  (700)
                                ========  ========  =======  ========
Earnings (loss) per share:
  CONTINUING OPERATIONS          $ 0.07    $ 0.12   $ 0.15    $ 0.20
  DISCONTINUED OPERATIONS         (0.07)    (0.16)   (0.15)    (0.28)
                                 -------   -------  -------   -------    
                                 $ 0.00    $(0.04)  $ 0.00    $(0.08)
Earnings (loss) per share        ======    =======  ======    =======
-assuming dilution:
  CONTINUING OPERATIONS          $ 0.07    $ 0.12   $ 0.15    $ 0.20
  DISCONTINUED OPERATIONS         (0.07)    (0.16)   (0.15)    (0.28)
                                 -------   -------  -------   -------
                                 $ 0.00    $(0.04)  $ 0.00    $(0.08)
                                 ======    =======  ======    =======
</TABLE>

See accompanying notes to the unaudited condensed consolidated financial
statements.
<PAGE>

<TABLE>
<CAPTION>
                         COMPUTER TECHNOLOGY ASSOCIATES, INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                        ($000's)
                                      (Unaudited)

                                                   SIX MONTHS ENDED
                                                        JUNE 30,
                                                   ----------------
                                             1997                      1998
                                           -------                   -------
<S>                                        <C>                       <C>
Operating activities:
  Net income (loss)                        $    23                   $ (700)
  Non-cash expenses, net                     2,679                      860
  Changes in assets and liabilities, net
                                             8,920                      576
                                             -----                      ---
  Net cash provided by operating            11,622                      736


Investing activities:

  Investments in furniture and 
    equipment                               (1,492)                    (965)


Financing activities:

   Net borrowings (repayments) under bank
   line of credit agreement                 (7,821)                   3,377
   Purchases of treasury stock                    -                  (2,315)
   Repayment of long-term debt                    -                    (833)
   Other financing activities, net             <90>                       -
                                               ----                  -------
   Net cash provided by (used in)
   financing activities                     (7,911)                     229
                                            -------                  -------
Net increase (decrease) in cash and cash
equivalents                                 $2,219                    $   -
                                            ======                   =======
</TABLE>

See accompanying notes to the unaudited condensed consolidated financial
statements.
<PAGE>
                     COMPUTER TECHNOLOGY ASSOCIATES, INC.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)

NOTE 1.   Basis of Presentation

     In  the  opinion  of  management,  the  accompanying unaudited  condensed
consolidated financial statements contain all  adjustments, consisting only of
normal  recurring  adjustments,  necessary  to present  fairly  the  Company's
financial position as of June 30, 1998 and the  results  of its operations and
its cash flows for the periods ended June 30, 1997 and 1998.  The  results  of
operations presented are not necessarily indicative of the results that may be
expected for the year ending December 31, 1998.

     The  accompanying financial statements should be read in conjunction with
the audited  financial  statements  for the year ended December 31, 1997 which
are contained in the Company's Annual  Report  on  Form  10-K  filed  with the
Securities and Exchange Commission.

     The  provision for income taxes in the statements of operations has  been
computed using  the  estimated  annual  effective  tax  rate  expected  to  be
applicable for the full year.

     Certain  prior  year  balances  have  been  reclassed to conform with the
current period presentation.

     The loss from discontinued operations for 1998  reflects an adjustment of
$2.1  million  for the final settlement of the sales price  of  the  Company's
Space and Telecommunications  business, which was sold in the third quarter of
1997, and a binding arbitration  award of $2.0 million to a former employee of
that business. The amounts are presented  net  of  income  tax  benefit in the
Condensed   Statements   of   Operations.   Net  revenues  of  the  Space  and
Telecommunications business for the three months and six months ended June 30,
1997 were $16.0 million and $36.4 million, respectively.
<PAGE>

NOTE 2.   EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings
per share:


<TABLE>
<CAPTION>
                                                       THREE MONTHS ENDED
                                                             JUNE 30,
                                                             --------
                                                       1997            1998
                                                     ------------------------
                                                     (IN THOUSANDS, EXCEPT
                                                         FOR SHARE DATA)
Numerator:
<S>                                                <C>             <C>
 Income from continuing operations                   $   674         $  1,016
 Loss from discontinued operations                      (689)          (1,388)
                                                     -------------------------
Net income (loss) for both basic and diluted
earnings per share                                   $  (15)         $   (372)
                                                     =========================
Denominator:
 Denominator for basic earnings per share ---
 Weighted average shares outstanding
                                                   9,234,410        8,705,611
 Dilutive potential common shares:
     Employee stock options                          391,022          228,775
                                                   ---------        ---------
Denominator for diluted earnings per share ---
Adjusted weighted average shares and assumed
conversions                                        9,625,432        8,934,386
                                                   =========        =========
</TABLE>

<TABLE>
<CAPTION>
                                                          SIX MONTHS ENDED
                                                               JUNE 30,
                                                               --------
                                                      1997          1998
                                                   --------------------------
                                                      (IN THOUSANDS, EXCEPT 
                                                          FOR SHARE DATA)
Numerator:
<S>                                                <C>              <C>
 Income from continuing operations                 $   1,422        $  1,782
 Loss from discontinued operations                    (1,399)         (2,482)
                                                   --------------------------
Net income (loss) for both basic and diluted
earnings per share                                 $      23        $   (700)
                                                   ==========================
Denominator:
 Denominator for basic earnings per share ---
 Weighted average shares outstanding
                                                   9,234,410       8,711,883
 Dilutive potential common shares:
     Employee stock options                          391,022         340,225
                                                   -------------------------
Denominator for diluted earnings per share ---
Adjusted weighted average shares and assumed
conversions                                        9,625,432       9,052,108
                                                   =========================
</TABLE>
<PAGE>
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
          and Results of Operations

FORWARD-LOOKING STATEMENTS

In addition to historical information, this Quarterly Report contains forward-
looking  statements  relating  to  such  matters  as   anticipated   financial
performance,  business  prospects  and similar matters. The Private Securities
Litigation  Reform Act of 1995 provides  a  safe  harbor  for  forward-looking
statements. In  order to comply with the terms of the safe harbor, the Company
notes that a variety  of  factors could cause the Company's actual results and
experience  to  differ  materially  from  the  anticipated  results  or  other
expectations expressed in  the Company's forward-looking statements. The risks
and uncertainties that may affect  the operation, performance, development and
results of the Company's business include,  but  are  not  limited  to,  those
matters discussed herein in the section entitled "Management's Discussion  and
Analysis  of  Financial  Condition  and  Results  of  Operations."  The  words
"believe,"  "expect," "anticipate," "project" and similar expressions identify
forward-looking  statements. Readers are cautioned not to place undue reliance
on these forward-looking  statements, which reflect management's analysis only
as of the date hereof. The Company undertakes no obligation to publicly revise
these forward-looking statements to reflect events or circumstances that arise
after the date hereof.

RESULTS OF OPERATIONS

     The  following  tables  set   forth   certain   items  in  the  Company's
Consolidated Statements of Operations as a percentage of contract revenues:
<TABLE>
<CAPTION>
                                          Three months       Six months
                                              ended             ended
                                             JUNE 30,          JUNE 30,
                                          -------------     -------------
                                          1997     1998     1997     1998
                                          ----     ----     ----     ----
  <S>                                    <C>      <C>      <C>      <C>
  Contract revenues                      100.0%   100.0%   100.0%   100.0%
  Cost of contract revenues               83.6     79.2     83.6     79.1
  Selling, general and administrative 
    expenses                               9.5     13.2      9.2     13.0
  Other expenses                           1.1      0.6      0.8      1.4
                                           ---      ---      ---      ---
  Operating profit                         5.8      7.0      6.4      6.5
  Interest expense                         1.1      1.1      1.2      1.1
                                           ---      ---      ---      ---
  Income before income taxes               4.7      5.9      5.2      5.4
  Provision for income taxes               1.8      2.2      2.0      2.0
                                           ---      ---      ---      ---
  Income from continuing operations        2.9      3.7      3.2      3.4
  Loss from discontinued operations       (3.0)    (5.1)    (3.2)    (4.7)
                                          -----    -----    -----    -----
   Net income (loss)                      (0.1)    (1.4)    (0.0)    (1.3)
                                          =====    =====    =====    =====
</TABLE>

The  following tables set forth certain items in the Company's  Statements  of
Operations by operating segment:

<TABLE>
<CAPTION>
                                Three Months Ended       Six months ended
                                     JUNE 30,                  JUNE 30,
(In thousands of dollars)
                                     --------                  --------
                                  1997       1998         1997        1998
                                  ----       ----         ----        ---- 
<S>                             <C>         <C>         <C>         <C>
  Contract revenues:
   Federal                      $19,280     $16,015     $36,790     $33,554
   Commercial                     3,864      11,400       6,770      19,179
                                -------     -------     -------     -------
                                $23,144     $27,415     $43,560     $52,733
  Operating profit (loss):
   Federal                       $1,013      $  393      $2,119      $1,647
   Commercial                       591       1,689       1,037       2,539
                                 ------      ------      ------      ------
                                  1,604       2,082       3,156       4,186
   Other expenses                  (261)       (161)       (338)       (769)
                                 ------      ------      ------      ------
                                 $1,343      $1,921      $2,818      $3,417
                                 ======      ======      ======      ======
</TABLE>


THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 1998 COMPARED TO
     THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 1997

     CONTRACT  REVENUES.  Contract revenues increased 19% to $27.4 million for
the three months ended June  30,  1998 from $23.1 million for the three months
ended June 30, 1997, as a result of  a  295%  increase  in commercial contract
revenues. Contract revenues increased 21% to $52.7 million  for the six months
ended June 30, 1998 from $43.6 million for the six months ended June 30, 1997,
as a result of a 283% increase in commercial contract revenues.

     Federal contract revenues decreased 17% for the three months  ended  June
30,  1998  and  9%  for the six months ended June 30, 1998 from the comparable
periods in 1997. Decreases in revenues on the GSA Eastern Zone contract, which
ended in the third quarter  of  1997,  and  on  the  Technical Engineering and
Management Support IV (TEMS IV) program at Hanscom Air  Force  Base,  which is
winding  down, and smaller decreases in other Federal programs, were partially
offset by  increases  in  contract  revenues  on a medical information systems
contract for the Department of Defense and on General  Services Administration
(GSA) Schedule contracts.

     Commercial contract revenues increased to $11.4 million,  or 42% of total
contract revenues, for the three months ended June 30, 1998 from $3.9 million,
or 17% of total contract revenues, for the three months ended June  30,  1997.
Commercial  contract  revenues  increased  to  $19.2  million, or 36% of total
contract revenues, for the six months ended June 30, 1998  from  $6.8 million,
or 16% of total contract revenues, for the six months ended June 30, 1997. The
increase is primarily attributable to new Year 2000 conversion contracts  with
the States of Iowa, Kansas, Texas and others and commercial companies such  as
Cessna Aircraft and Wells Fargo Bank.

      COST OF CONTRACT REVENUES.  Cost of contract revenues increased to $21.7
million,  or  79.2%  of contract revenues, for the three months ended June 30,
1998, from $19.3 million,  or  83.6%  of contract revenues, for the comparable
period in 1997. Cost of contract revenues increased to $41.7 million, or 79.1%
of contract revenues, for the six months  ended  June  30,  1998,  from  $36.4
million,  or  83.6%  of  contract revenues, for the comparable period in 1997.
This  decrease  in cost of contract  revenues  as  a  percentage  of  contract
revenues resulted  primarily  from  the  increase  of higher margin commercial
contracts as a percentage of overall contract revenues.

     SG&A. Selling, general and administrative expenses  (SG&A)  increased  to
$3.6  million,  or 13.2% of contract revenues, for the three months ended June
30, 1998, from $2.2  million, or 9.5% of contract revenues, for the comparable
period in 1997. SG&A increased to $6.9 million, or 13.0% of contract revenues,
for the six months ended June 30, 1998, from $4.0 million, or 9.2% of contract
revenues, for the comparable period in 1997. The increase in SG&A reflects the
Company's  continued investment  in  infrastructure  and  in  the  initiatives
required to  implement  the Company's marketing strategies and increased focus
on commercial markets.

     OTHER EXPENSES.  Other  expenses  increased  to $0.8 million in 1998 from
$0.3  million in 1997 due to additional reserves and  write-downs  of  certain
contract receivables.

     OPERATING  PROFIT.   As  a  result  of  the foregoing, the Company had an
operating profit of $1.9 million and $3.4 million for the three and six months
ended June 30, 1998 and an operating profit of  $1.3  million and $2.8 million
for the comparable periods in 1997.

     LOSS FROM DISCONTINUED OPERATIONS. The loss from discontinued  operations
for  1998  reflects an adjustment of $2.1 million for the final settlement  of
the sales price  of the Company's Space and Telecommunications business, which
was sold in the third quarter of 1997, and a binding arbitration award of $2.0
million to a former  employee  of that business. The amounts are presented net
of income tax benefit in the Condensed Statements of Operations.

LIQUIDITY AND CAPITAL RESOURCES

     Operations provided $0.7 million  of  cash during the first six months of
1998, primarily from the net income after adjustment  for non-cash expenses of
$0.2  million  income  tax refunds of $4.2 million and other  working  capital
changes of $1.9 million  offset by the increase in accounts receivable of $5.6
million. Cash used in investing  activities  was $1.0 million for purchases of
furniture  and  equipment.  Cash  provided by financing  activities  was  $0.2
million, primarily from net borrowings under the bank line of credit agreement
of $3.4 million offset by $2.3 million  for  purchases  of  treasury stock and
$0.8 million for repayments of long-term debt.

     The Company has a credit facility with a bank providing  the  ability  to
borrow  up to $20 million, including a revolving facility of $15 million and a
$5  million  term  facility.  At  June  30,  1998,  there  was  $10.8  million
outstanding on the revolving facility and $4.2 million outstanding on the term
facility.

     The  Company  believes  that cash flow from operations and available bank
borrowings will provide adequate  funds  for continued operations for the next
twelve months.

OTHER MATTERS

     The "Year 2000" issue concerns the potential exposures related to
existing computer programs that use only two digits to identify a year in the
date field. These programs were designed and developed without considering the
impact of the upcoming change in the century. If not corrected, many computer
applications could fail or create erroneous results by or at the Year 2000.
The Company has evaluated, and continues to evaluate, the potential cost
associated with becoming Year 2000 compliant. The Company believes that its
principal payroll and human resources related systems, which are licensed from
and maintained by third party software development companies, are Year 2000
compliant. The Company is in the process of selecting new financial systems
which management expects to be Year 2000 compliant. Management does not
anticipate that the remaining costs associated with assuring that its internal
systems will be Year 2000 compliant will be material to its business,
operations or financial condition.
<PAGE>
PART II. -- OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

        The Company was formally notified  of the binding arbitration award of
        $2.0  million  regarding  a profit sharing  agreement  with  a  former
        employee during the quarterly  period ending June 30, 1998. There were
        no other material developments during  the quarterly period ended June
        30, 1998. See Item 3 of the registrant's  Annual  Report  on Form 10-K
        for the year ended December 31, 1997 for further discussion  of  legal
        proceedings.

ITEM 2.   CHANGES IN SECURITIES

        None

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

        None

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

        None

ITEM 5. OTHER INFORMATION

        At a meeting of the Company's Board of Directors on August 3, 1998, he
        name of the Company was formally changed back to Computer Technology
        Associates, Inc., the Company's original name, from CTA Incorporated.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

(a)          Exhibits

        NUMBER      DOCUMENT            LOCATION
         3.1        Certificate of      Incorporated by reference
                     Incorporation from Exhibit 3.1 to Amendment
                                        No. 4 to Form S-1 filed on April 3,
                                        1992

         3.2        By-laws             Incorporated by reference
                                        from Exhibit 3.2 to Amendment
                                        No. 4 to Form S-1 filed on April 3,
                                        1992

          27        Financial Data      Electronic Filing Only
                    Schedule

        (b) No reports on Form 8-K were filed during the quarter ended
            June 30, 1998.


                                  SIGNATURE


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.


                                   COMPUTER TECHNOLOGY ASSOCIATES, INC.



AUGUST 14, 1998                    /S/ GREGORY H. WAGNER
                                   Gregory H. Wagner
                                   Executive Vice President,
                                    Chief Financial Officer,
                                    Principal Accounting Officer
                                    and Treasurer