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 EXCHANGE ACT OF 1934 

          For the quarterly period ended July 5, 1998

                                          OR 

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

            For the transition period from              to
          Commission file number 0-20022

                           POMEROY COMPUTER RESOURCES, INC.
                           ________________________________
                (Exact name of registrant as specified in its charter)

           DELAWARE                                     31-1227808
           ________                                     __________
            (State or jurisdiction of incorporation       (I.R.S. Employer
           or organization)                              Identification No.)

                       1020 Petersburg Road, Hebron, KY 41048
                       ______________________________________
                      (Address of principal executive offices)

                                    (606) 586-0600
                                   ______________

                (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 requirements
          for the past 90 days.

          YES ___X___NO___  

          The number of shares of common stock outstanding as of July 31,
          1998 was 11,526,245.
<PAGE>
                           POMEROY COMPUTER RESOURCES, INC. 
                                  TABLE OF CONTENTS 
          Part I.     Financial
                      Information


                      Item 1.           Financial Statements:       Page
                                                                    ____ 


                                        Consolidated Balance          3
                                        Sheets as of January 5,
                                        1998 and July 5, 1998

                                        Consolidated Statements of    4
                                        Income for the Quarters
                                        Ended July 5, 1998 and
                                        1997

                                        Consolidated Statements of    5
                                        Income for the Six Months
                                        Ended July 5, 1998 and
                                        1997
 
                                        Consolidated Statements of    6
                                        Cash Flows for the Six
                                        Months Ended July 5, 1998
                                        and 1997

                                        Notes to Consolidated         7
                                        Financial Statements

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

          Part II.    Other Information                               12

          SIGNATURE                                                   13

<PAGE>

<TABLE>


                           POMEROY COMPUTER  RESOURCES, INC.

                              CONSOLIDATED BALANCE SHEETS
                                     ( In thousands)


<CAPTION>
                                                        January 5,      July 5,
                                                          1998           1998
                                                       _________      _________
       <S>                                             <C>            <C>
       ASSETS        Current assets:
          Cash                                         $     380      $   2,018
           Accounts and note receivable, less
            allowance of $578 and $787 at January 5,
            and July 5, 1998, respectively                99,707        132,329
          Inventories                                     39,160         33,941
          Other                                              816          2,283
                                                       _________      _________
                           Total current assets          140,063        170,571
                                                       _________      _________

       Equipment and leasehold improvements               17,316         21,108
       Less accumulated depreciation                       6,770          8,562
                                                       _________      _________
             Net equipment and leasehold improvements     10,546         12,546

       Other assets                                       16,655         25,559
                                                       _________      _________
                           Total assets                $ 167,264      $ 208,676
                                                       =========      =========

       LIABILITIES AND EQUITY
       Current liabilities:
          Notes payable                                $   2,077      $   2,456
          Accounts payable                                40,038         53,327
          Bank notes payable                              22,611         41,333
          Other current liabilities                       12,309          7,873
                                                       _________      _________
                           Total current liabilities      77,035        104,989

       Notes payable                                       1,434          3,780
       Deferred income taxes                                  18            450

       Equity:
          Preferred stock (no shares 
          issued or outstanding)                              -              -
          Common stock (11,402 and 11,507 shares 
          issued and outstanding at January 5 
          and July 5, 1998, respectively)                    114            115
          Paid-in capital                                 60,226         61,620
          Retained Earnings                               28,641         37,926
                                                       _________      _________
                                                          88,981         99,661

          Less treasury stock, at cost (21 shares 
          at January 5 and July 5, 1998, respectively)       204            204
                                                       _________      _________
                         Total equity                     88,777         99,457

                         Total liabilities and equity  $ 167,246      $ 208,676
                                                       =========      =========
<FN>
                          See notes to consolidated financial statements.

</TABLE>
<PAGE>
<TABLE>

                     POMEROY COMPUTER RESOURCES, INC.

                     CONSOLIDATED STATEMENTS OF INCOME
                      ( In thousands, except per share amounts)

<CAPTION>
                                                  Quarter Ended
                                              ________________________
                                                July 5,       July 5,
                                                 1997          1998
                                              __________    __________
          <S>                                 <C>           <C>
          Net sales and revenues              $  118,218    $  158,843
           Cost of sales and service               99,083       131,573
                                              __________    __________
                    Gross profit                  19,135        27,270

          Operating expenses:
             Selling, general 
             and administrative                   11,297        16,445
             Rent expense                            446           626
             Depreciation                            700           954
             Amortization                            223           453
                                              __________    __________
                    Total operating expenses      12,666        18,478
                                              __________    __________

          Income from operations                   6,469         8,792

          Interest expense                            99           877
          Other expense (income)                     169           (33)
                                              __________    __________
          Income before income tax                 6,201         7,948

          Income tax expense                       2,232         2,940
                                              __________    __________
          Net income                          $    3,969    $    5,008
                                              ==========    ==========

          Weighted average shares outstanding:
                Basic                             11,231        11,450
                Diluted                           11,521        11,804


          Earnings per common share:
                Basic                         $     0.35    $     0.44
                Diluted                       $     0.34    $     0.42

<FN>
                     See notes to consolidated financial statements.
</TABLE> <PAGE>
<TABLE>

                     POMEROY COMPUTER RESOURCES, INC.

                     CONSOLIDATED STATEMENTS OF INCOME
                      ( In thousands, except per share amounts)

<CAPTION>
                                                  Six Months Ended
                                              ________________________
                                                July 5,       July 5,
                                                 1997          1998
                                              __________    __________
          <S>                                 <C>           <C>

          Net sales and revenues              $  218,584    $  294,041
          Cost of sales and service              182,545       243,538
                                              __________    __________
                    Gross profit                  36,039        50,503

          Operating expenses:
             Selling, general 
             and administrative                   21,772        30,765
             Rent expense                            919         1,188
             Depreciation                          1,503         1,806
             Amortization                            435           762
                                              __________    __________
                    Total operating expenses      24,629        34,521
                                              __________    __________

          Income from operations                  11,410        15,982

          Interest expense                           466         1,301
          Other income                               121           (56)
                                              __________    __________
          Income before income tax                10,823        14,737

          Income tax expense                       3,896         5,452
                                              __________    __________
          Net income                          $    6,927    $    9,285
                                              ==========    ==========

          Weighted average shares outstanding:
                Basic                             10,783        11,421
                Diluted                           11,085        11,758


          Earnings per common share:
                Basic                         $     0.64    $     0.81
                Diluted                       $     0.62    $     0.79

<FN>
                     See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>

                               POMEROY COMPUTER RESOURCES, INC.

                             CONSOLIDATED STATEMENTS OF CASH FLOWS
                                         (In thousands)
<CAPTION>
                                                          Six Months Ended
                                                      ________________________
                                                        July 5,       July 5,
                                                         1997          1998
                                                      __________    __________
          <S>                                         <C>           <C>


          Net cash flows used in operating activities $  (14,711)   $   (4,622)
                                                       __________    __________
                                                                             
          Cash flows used in investing activities:
             Capital expenditures                         (1,180)       (1,932)
             Acquisition of resellers                     (1,958)      (11,229)
                                                      __________    __________
          Net investing activities                        (3,138)      (13,161)
                                                      __________    __________

          Cash flows provided by (used in) 
          financing activities:
             Net borrowings (payments) on bank note      (11,832)       18,722
             Payment of note payable                        (425)         (696)
             Proceeds from secondary offering             23,262            -
             Proceeds from exercise of stock options         130         1,395
                                                      __________    __________
          Net financing activities                        11,135        19,421
                                                      __________    __________

          Increase (decrease) in cash                     (6,714)         1,638

          Cash:
             Beginning of period                           6,809           380
                                                      __________    __________
             End of period                            $       95    $    2,018
                                                      ==========    ==========
<FN>
                               See notes to consolidated financial statements.
</TABLE> <PAGE>
                           POMEROY COMPUTER RESOURCES, INC. 

                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
          1.  Basis of Presentation 
            The consolidated  financial statements  have been  prepared in
            accordance with generally  accepted accounting  principles for
            interim financial  information and  with  the instructions  to
            Form  10-Q  and  Rule  10-01  of  Regulation  S-X.  Except  as
            disclosed herein,  there has  been no  material change  in the
            information disclosed in  the notes to  consolidated financial
            statements included in the Company's Annual Report on Form 10-
            K for  the  year ended  January  5, 1998.  In  the opinion  of
            management, all  adjustments (consisting  of normal  recurring
            accruals) necessary  for a  fair presentation  of the  interim
            period have  been  made. The  results  of  operations for  the
            six-month  period  ended July  5, 1998  are  not   necessarily
            indicative of  the results  that may  be  expected for  future
            interim periods or for the year ending January 5, 1999.

          2.   Borrowing Arrangements

            At January  5 and  July 5,  1998, bank  notes payable  include
            $6.5 million and $12.1 million, respectively, of overdrafts in
            accounts with the Company's primary lender. These amounts were
            subsequently funded through the normal course of business.


          3.   Earnings per Common Share

            The following is a reconciliation of the number of shares used
            in the basic EPS and diluted EPS computations:
                 (in thousands, except per share data)

                                       Quarter ended July 5,
                           ______________________________________  
                                  1997                1998
                           __________________  __________________ 
                                    Per Share           Per Share
                             Shares  Amount      Shares  Amount
                           ________ _________  ________ _________
       Basic EPS             11,231   $  0.35    11,450   $  0.44

       Effect of dilutive
        stock options           290     (0.01)      354     (0.02)
                           ________ _________  ________ _________
       Diluted EPS           11,521  $   0.34    11,804  $   0.42
                           ======== =========  ======== =========



                                    Six Months ended July 5,
                           ______________________________________  
                                  1997                1998
                           __________________  __________________ 
                                    Per Share           Per Share
                             Shares  Amount      Shares  Amount
                           ________ _________  ________ _________
       Basic EPS             10,783   $  0.64    11,421   $  0.81

       Effect of dilutive
        stock options           302     (0.02)      337     (0.02)
                           ________ _________  ________ _________
       Diluted EPS           11,085  $   0.62    11,758  $   0.79
                           ======== =========  ======== =========

<PAGE>






          4.  Supplemental Cash Flow Disclosures


            Supplemental disclosures with respect to cash flow information
            and  non-cash  investing  and  financing   activities  are  as
            follows:


                                                  Six Months Ended
                                        ____________________________________
                                            July 5, 1997       July 5, 1998
                                           ____________       ____________  
               Interest paid                   $470             $1,045
                                               ====             ======

               Income taxes paid               $251             $9,353
                                               ====             ======
                                                                    
               Business combinations
               accounted for as purchases:

                   Assets acquired                             $31,734
                   Liabilities assumed                          18,505
                   Notes payable                                 2,000
                                                               _______
                   Net cash paid                               $11,229

                                                                     
        5.  Litigation 
            There are various legal  actions arising in the  normal course
            of business  that  have  been  brought  against  the  Company.
            Management believes  these matters  will not  have a  material
            adverse effect on the Company's financial  position or results
            of operations.

         6.   Subsequent Event

             On July 14, 1998 the Company  finalized a $120 million credit
             facility with Deutsche Financial Services Corp (" DFS"). This
             credit facility provides a  credit line of  $60.0 million for
             inventory financing and $60.0 million for accounts receivable
             financing. The  inventory  financing  portion  of  the credit
             facility will  continue  to  utilize  thirty  day  notes  and
             provide     interest free      financing   due  to  subsidies
             by manufacturers. The  credit facility  can be  amended, with
             proper notification,if the thirty day interest free subsidies 
             provided by manufacturers are revised. The accounts receivable
             portion of the  credit facility  carries a  variable interest
             rate based  on  the prime  rate  less 125  basis  points. The
             credit facility will  be collateralized  by substantially all
             of the  assets  of  the  Company,  except  those  assets that
             collateralize certain other financing arrangements. Under the
             terms of the credit facility, the  Company will be subject to
             various financial covenants.

<PAGE>
              Special Cautionary Notice Regarding Forward-Looking Statements
              ______________________________________________________________ 

            Certain  of   the   matters   discussed  under   the   caption
            "Management's Discussion and  Analysis of  Financial Condition
            and Results  of  Operations"  may  constitute  forward-looking
            statements for purposes of the Securities Act  of 1933 and the
            Securities Exchange Act of  1934, as amended, and  as such may
            involve known  and  unknown  risks,  uncertainties  and  other
            factors which  may cause  the actual  results, performance  or
            achievements of the  Company to  be materially  different from
            future  results,  performance  or  achievements  expressed  or
            implied by such forward-looking  statements. Important factors
            that  could   cause  the   actual   results,  performance   or
            achievements of  the  Company to  differ  materially from  the
            Company's  expectations   are  disclosed   in  this   document
            including,  without  limitation,  those   statements  made  in
            conjunction  with   the   forward-looking   statements   under
            "Management's Discussion and  Analysis of  Financial Condition
            and Results  of  Operations".  All  written or  oral  forward-
            looking statements attributable  to the Company  are expressly
            qualified in their entirety by such factors.

                           POMEROY COMPUTER RESOURCES, INC.
                        MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                     FINANCIAL CONDITION AND RESULTS OF OPERATIONS 

            TOTAL NET  SALES AND  REVENUES. Total  net sales  and revenues
            increased $40.6 million,  or 34.4%, to  $158.8 million  in the
            second quarter  of  1998 from  $118.2  million  in the  second
            quarter  of   1997.   This   increase  was   attributable   to
            acquisitions completed in  fiscal years 1998  and 1997  and an
            increase in  sales to  existing and  new customers.  Excluding
            acquisitions completed in  fiscal years  1998 and  1997, total
            net sales and revenues increased 12.7%. Sales of equipment and
            supplies increased $33.5 million, or 31.4%,  to $140.1 million
            in the  second quarter  of  1998 from  $106.6  million in  the
            second quarter  of 1997.  Excluding acquisitions  completed in
            fiscal years 1998  and 1997, sales  of equipment  and supplies
            increased 9.3%.  Service revenues  increased $7.1  million, or
            61.2%, to $18.7  million in  the second  quarter of  1998 from
            $11.6  million  in  the  second  quarter  of  1997.  Excluding
            acquisitions completed in fiscal years 1998  and 1997, service
            revenues increased 43.9%.

            Total net  sales  and  revenues  increased $75.4  million,  or
            34.5%, to $294.0 million in the first half of 1998 from $218.6
            million in  the  first half  of  1997. Excluding  acquisitions
            completed in fiscal years  1998 and 1997, total  net sales and
            revenues increased  19.2%.  Sales  of equipment  and  supplies
            increased $61.7 million,  or 31.3%, to  $258.6 million  in the
            first half of 1998  from $196.9 million  in the first  half of
            1997. Excluding  acquisitions completed  in fiscal  years 1998
            and 1997,  sales of  equipment and  supplies increased  16.1%.
            Service and other revenues increased $13.7  million, or 63.1%,
            to $35.4 million in the first half of  1998 from $21.7 million
            in the first half of 1997. Excluding acquisitions completed in
            fiscal  years  1998  and  1997,  service  and  other  revenues
            increased 48.0%.


            GROSS MARGIN. Gross margin was 17.2 % in the second quarter of
            1998 compared to  16.2% in  the second  quarter of  1997. This
            improved gross margin  in the  second quarter  of 1998  can be
            attributed to an increase  in the percentage  of higher-margin
            service revenues. Service  revenues as  a percentage  of total
            net sales increased to  11.8% in the second  quarter of fiscal
            1998 compared to  9.8% in the  second quarter of  fiscal 1997.
            Factors that may have an impact on gross  margin in the future
            include the  percentage of  equipment sales  with lower-margin
            customers and the ratio of service revenues to total net sales
            and revenues.

            Gross profit as a percentage  of sales was 17.2%  in the first
            half of fiscal  1998 compared  to 16.5% in  the first  half of
            fiscal 1997. This improved  gross margin in the  first half of
            fiscal 1998 can be attributed to  an increase in higher-margin
            service revenues as a  percentage of total net  sales. Service
            revenues as a percentage of total net sales increased to 12.0%
            in the first half of fiscal 1998 compared to 9.9% in the first
            half of fiscal 1997.

            OPERATING  EXPENSES.   Selling,  general   and  administrative
            expenses (including rent expense) expressed as a percentage of
            total net sales and revenues increased to  10.8% and 10.9% for
<PAGE>

            the  second   quarter   and  first   half   of  fiscal   1998,
            respectively, from 9.9%  and 10.4% in  the second  quarter and
            first   half   of   fiscal   1997,   respectively.   Excluding
            acquisitions completed in fiscal years 1998 and 1997, selling,
            general and administrative expenses expressed  as a percentage
            of total  net sales  and revenues  would have  been 10.2%  and
            10.4% in the  second quarter  and first  half of  fiscal 1998,
            respectively.  Total   operating  expenses   expressed  as   a
            percentage of total net sales and  revenues increased to 11.6%
            and 11.7%  in  the  second quarter  and  first  half of  1998,
            respectively, from 10.7% and  11.3% in the second  quarter and
            first  half  of  1997,  respectively.  Excluding  acquisitions
            completed in  fiscal  years  1998  and 1997,  total  operating
            expenses expressed  as a  percentage of  total  net sales  and
            revenues would have been 11.0% and 11.2% in the second quarter
            and first half of fiscal 1998, respectively.

            INCOME FROM OPERATIONS. Income from  operations increased $2.3
            million, or 35.4%,  to $8.8 million  in the second  quarter of
            fiscal 1998 from $6.5 million in the  second quarter of fiscal
            1997. The Company's operating  margin remained at 5.5%  in the
            second quarter of fiscal  1998 as compared to  the same period
            in fiscal 1997.





            Income from operations  increased $4.6  million, or  40.4%, to
            $16.0 million  in the  first half  of fiscal  1998 from  $11.4
            million in  the first  half of  fiscal 1997.  Operating margin
            increased to 5.4% in the first half of fiscal 1998 as compared
            to 5.2% in fiscal 1997 as the increase  in gross margin offset
            the increase in operating  expenses as a percent  of net sales
            and revenues.

            INTEREST EXPENSE. Interest expense  was $0.9 million  and $1.3
            million in the  second quarter and  first half of  fiscal 1998
            compared with $0.1  million   and $0.5  million in  the second
            quarter and first  half of fiscal  1997. This increase  in the
            second quarter  and first  half of  1998  from the  comparable
            periods  in  fiscal  1997  is  due   to  higher  average  debt
            outstanding primarily as a result of increased cash needs  for
            acquisitions.

            INCOME TAXES. The  Company's effective tax  rate was  37.0% in
            the second quarter and  first half of fiscal  1998 compared to
            36.0% in the second quarter and first half of fiscal 1997.

            NET INCOME. Net  income increased $1.0  million, or  25.0%, to
            $5.0 million in  the second quarter  of fiscal 1998  from $4.0
            million in the  second quarter of  fiscal 1997.  This increase
            was a result of  the factors described previously.  Net income
            increased $2.4 million, or 34.8%, to $9.3 million in the first
            half of fiscal  1998 from  $6.9 million in  the first  half of
            fiscal 1997.  This  increase  was  a  result  of  the  factors
            described previously.

                            LIQUIDITY AND CAPITAL RESOURCES

            Cash used  in operating  activities was  $4.6  million in  the
            first half of fiscal  1998. Cash used in  investing activities
            included $11.2 million for   acquisitions and $1.9 million for
            capital expenditures.  Cash provided  by financing  activities
            included $18.7 million of net borrowings on bank notes payable
            and $1.4 million from the exercise of  stock options less $0.7
            million of repayments on various notes payable.

            A significant part of the Company's inventories is ffiinnanced by
            floor plan arrangements with  third parties. At July  5, 1998,
            these lines of credit  totaled  $37.0 million,  including $12.0
            million with IBM Credit Corporation (" ICC") and $25.0 million
            with Deutsche  Financial Services  (" DFS"). Borrowings  under
            the ICC floor  plan arrangement are  made on sixty  day notes,
            with  one-half  of  the  note  amount   due  in  thirty  days.
            Borrowings under the  DFS floor plan  arrangement are  made on
            thirty day  notes.  All such  borrowings  are  secured by  the
            related inventory.  Financing  on  substantially  all  of  the
            arrangements  is   interest   free   due   to   subsidies   by
            manufacturers. The average interest rate on  the plans overall
            is less than  1.0% per annum.  The Company  classifies amounts
            outstanding under  the  floor  plan arrangements  as  accounts
            payable.




            On July 14, 1998, the Company finalized  a $120.0 million line
            of credit  with DFS.  This credit  facility provides  a credit
            line of  $60.0  million  for  inventory  financing  and  $60.0
            million  for  accounts  receivable  financing.  The  inventory
            financing portion  of  the credit  facility  will continue  to
            utilize   thirty   day  notes    and  provide  interest   free
            financing  due  to  subsidies  by  manufacturers.  The  credit
            facility can  be  amended, with  proper  notification, if  the
            thirty day interest  free subsidies provided  by manufacturers
            are  revised.  Any  change   in  the  subsidies   provided  by

<PAGE>
            manufacturers  could  increase  the  financing  costs  of  the
            Company.  The  accounts  receivable  portion   of  the  credit
            facility carries a variable  interest rate based on  the prime
            rate less  125  basis  points.  The  credit facility  will  be
            collateralized by  substantially  all  of  the assets  of  the
            Company, except those assets that  collateralize certain other
            financing  arrangements.  Under   the  terms  of   the  credit
            facility, the  Company will  be subject  to various  financial
            covenants.
            The Company  believes  that  the  anticipated cash  flow  from
            operations  and   current  financing   arrangements  will   be
            sufficient to satisfy  the Company's capital  requirements for
            the next 12 months.

                                        OTHER

            The Company is heavily dependent upon complex computer systems
            for all  phases of  its operations,  which  include sales  and
            distribution. The Company began  addressing the affect  of the
            Year 2000 compliance  issue in 1996. The Year 2000  date issue
            arises from the fact that many computer  programs use only two
            digits to identify  a year  in a date  field. The  Company has
            completed an assessment of its own systems and determined that
            its principle systems are Year 2000 compliant. Management does

            not expect that any costs associated with the Company becoming
            Year 2000 compliant will have a material adverse impact on the
            Company's financial  position, results  of operations  or cash
            flows. The Company is continuing to assess the Year 2000 issue
            with respect to its customers and suppliers. The Company could
            be adversely  impacted by  the  Year 2000  date  issue if  its
            suppliers, customers and other businesses do  not address this
            issue successfully. Management continues to assess these risks
            in order to be able to respond in a  manner which would reduce
            any impact on the Company.

<PAGE>



                              PART II - OTHER INFORMATION


          Items 1 to 5 None

          Item 6 Exhibits and Reports on Form 8-K
           (a) Exhibits
          ____________  
           11                   Computation of Per       
                                Share Earnings

           27                   Financial Data Schedule 

          (b) Reports
           on Form 8-K   None

<PAGE>
                                        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.
                                         POMEROY COMPUTER RESOURCES, INC.
                                         ________________________________
                                                     (Registrant)

            Date: August 11, 1998       By: /s/ Stephen E. Pomeroy
                                        Stephen E. Pomeroy
                                        Chief Financial Officer and
                                        Chief Accounting Officer
<PAGE>