<PAGE> 1
                       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 period ended September 27, 1997
                 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          0-16088

           CERAMICS PROCESS SYSTEMS CORPORATION                      
       (Exact Name of Registrant as Specified in its Charter)

        Delaware                                   04-2832509          
(State or Other Jurisdiction                    (I.R.S. Employer
of Incorporation or Organization)               Identification No.)

111 South Worcester Street, P.O. Box 338, 
Chartley, Massachusetts                            02712  
(Address of Principal Executive Offices)         (Zip Code)                  
       
Registrant's Telephone Number, including Area Code: (508) 222-0614
Facsimile Number: 508-222-0220, E-Mail Address: info@alsic.com.

Former Name, Former Address and Former Fiscal Year if Changed
since Last Report:
Not Applicable.

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 than the registrant was required
to file such reports), and (2) has been subject to the filing 
requirements for the past 90 days.  
      [X] Yes             [ ]  No

             APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.  Number of shares of common stock outstanding as of 
October 22, 1997: 7,802,582



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               CERAMICS PROCESS SYSTEMS CORPORATION

                           Form 10-Q                                    

           For The Fiscal Quarter Ended September 27, 1997

                             Index



PART I:  FINANCIAL INFORMATION                               Page

         Item 1:  Consolidated Financial Statements          3-8
      
                  Consolidated Balance Sheets as of        
                  September 27, 1997 and December 28, 1996   3-4

                  Consolidated Statements of Operations
                  for the fiscal quarters and nine-month
                  periods ended September 27, 1997 and 
                  September 28, 1996                           5

                  Consolidated Statements of Cash Flows 
                  for the nine-month periods ended September
                  27, 1997 and September 28, 1996              6
                                                                
                  Notes to Consolidated Financial 
                  Statements                                 7-8
                          

         Item 2:  Management's Discussion and Analysis
                  of Financial Condition and Results of
                  Operations                                 8-9


PART II: OTHER INFORMATION         

         Items 1-6                                            10


Signatures                                                    10





<PAGE> 3
PART I  FINANCIAL INFORMATION

                   ITEM 1  FINANCIAL STATEMENTS

                CERAMICS PROCESS SYSTEMS CORPORATION
                    Consolidated Balance Sheets
                                                                        
  
                                 September 27,       December 28,
                                         1997               1996

ASSETS 

Current Assets:
  Cash                               $464,038         $  113,331
  Accounts receivable                 356,990            141,035
  Inventories                         146,921            156,445
  Prepaid expenses                      7,442              1,340
  Other current assets                      -                  -
                                   ----------         ----------
     Total current assets             975,391            412,151
                                   ----------         ----------

Property and equipment:
  Production equipment              1,333,441          1,145,003
  Furniture and office equipment       67,906             60,403
                                   ----------         ----------
                                    1,401,348          1,205,406
  Less accumulated depreciation
     and amortization                (922,909)          (824,667)
                                   ----------         ----------
     Net property and equipment       478,439            380,739
                                   ----------         ----------
Deposits                                6,843              2,337
                                   ----------         ----------
Total Assets                       $1,460,673         $  795,227
                                   ==========         ==========



See accompanying notes to consolidated financial statements.
<PAGE> 4
                 CERAMICS PROCESS SYSTEMS CORPORATION
                Consolidated Balance Sheets (continued)
                                                                            
                                   September 27,          December 28, 
                                           1997                  1996
       
LIABILITIES AND STOCKHOLDERS'
 EQUITY (DEFICIT)

Current liabilities:
 Accounts payable                  $    235,946          $    128,762
 Accrued expenses                       571,336               789,766
 Deferred revenue                       270,333               355,987
 Notes payable                          309,225               450,000
 Current portion of convertible 
   notes payable:
          Related parties               260,000               260,000
          Other                       1,610,000             1,610,000
 Current portion of obligations
   under capital leases                  29,296                17,383
                                   ------------          ------------
Total current liabilities             3,286,136             3,611,898

Notes payable, less current portion      86,111                     -
Obligations under capital
  leases less current portion           123,285                87,999
                                   ------------          ------------
Total Liabilities                     3,495,532             3,699,897
                                   ------------          ------------

Stockholders' Equity (Deficit)
Common stock, $0.01 par value.
  Authorized 15,000,000 shares;
  issued 7,802,582 shares at September
  27, 1997 and 7,780,766 shares
  at December 28, 1996                   78,026                77,808
                                                                     
Additional paid-in capital           30,461,093            30,457,384

Accumulated deficit                 (32,513,143)          (33,379,027)
                                   ------------          ------------
                                     (1,974,024)           (2,843,835)
Less treasury stock, at cost, 
  22,883 common shares at September
  27, 1997 and December 28, 1996        (60,835)              (60,835)
                                   ------------          ------------
Total shareholders' equity
  (deficit)                          (2,034,859)           (2,904,670)
                                   ------------          ------------
Total Liabilities and                                               
  Stockholders' Equity
  (Deficit)                        $  1,460,673          $    795,227
                                   ============          ============

See accompanying notes to consolidated financial statements.
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                CERAMICS PROCESS SYSTEMS CORPORATION
                Consolidated Statements of Operations
 
 
                             Fiscal Quarters Ended  Nine Month Periods Ended
                           Sept. 27,      Sept. 28,      Sept. 28,  Sept. 29,
                               1997           1996           1997       1996
Revenue:

Product sales           $ 1,084,960    $   581,109  $ 2,852,046  $ 1,294,317
License agreements          130,333              -      285,667       85,000
                         ----------    -----------   ----------    ---------

Total revenue             1,215,293        581,109    3,137,713    1,379,317
                         ==========    ===========   ==========   ==========

Operating expenses:
  Cost of sales             607,137        554,218    1,707,839    1,333,294
  Selling, general, and
   administrative           121,287        103,853      387,865      339,266
                         ----------    -----------   ----------   ----------
Total operating expenses    728,424        658,071    2,095,704    1,672,560
                         ----------    -----------   ----------    ---------
Operating income (loss)     486,869        (76,962)   1,042,009     (293,243)

Other income (exp.), net    (52,328)       (54,017)    (176,125)    (148,258)

   Net income (loss)     $  434,541    $  (130,979)     865,884    (441,501)
                         ==========    ===========   ==========  ==========
Net income (loss)
   per share             $     0.05    $     (0.02)   $    0.11   $   (0.06)
                         ----------    -----------   ----------  ----------

Weighted average number of
  common and common 
  equivalent shares 
  outstanding             8,079,585      7,917,504    8,084,907    7,853,656
                         ==========    ===========   ==========  ==========


See accompanying notes to consolidated financial statements.
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                CERAMICS PROCESS SYSTEMS CORPORATION
                Consolidated Statements of Cash Flows
                                             
                                               Nine-Month Periods Ended
                                               Sept. 27,      Sept. 27,
                                                   1997           1996 
Cash flows from operating activities:
  Net income (loss)                           $ 865,884      $(441,501)
  Adjustments to reconcile net income 
   (loss) to cash provided by (used in)
   operating activities:          
     Depreciation and Amortization               98,242         79,200
     Settlement of Interest Obligation                -         25,068
     Loss (gain) on disposal of equipment        (1,610)       (27,500)
     Loss on investment                               -              -
   Changes in assets and liabilities:
     Accounts receivable, trade                (215,955)      (108,577)
     Inventories                                  9,524              -
     Prepaid expenses                            (6,102)          (959)
     Other current assets                             -         (4,641)
     Accounts payable                           107,184        (12,664)
     Accrued expenses                          (218,430)       164,531
     Deferred revenue                           (85,654)       426,802
                                              ---------     ----------
       Net cash used in  
        operating activities                    553,083         99,759
                                              ---------     ----------
Cash flows from investing activities:
  Additions to property and equipment          (195,942)      (107,178)
  Disposal of property and equipment              1,610         27,500
  Deposits                                       (4,506)          (375)
                                               ---------    ----------
    Net cash used in investing 
     activities                                (198,838)       (80,053)
                                              ---------     ----------
Cash flows from financing activities:
  Proceeds from capital lease obligations        47,199              -
  Principal payments of Notes Payable           (54,664)
  Proceeds from issuance of common stock          3,927              -
                                              ---------     ----------
    Net cash provided by (used in)
      financing activities                       (3,538)             -
                                              ---------     ----------

Net increase (decrease) in cash                 350,707         19,706
Cash at beginning of quarter                    113,331         32,127
                                              ---------     ----------
Cash at end of quarter                        $ 464,038    $    51,833
                                              =========     ==========

See accompanying notes to consolidated financial statements.
<PAGE> 7
               CERAMICS PROCESS SYSTEMS CORPORATION
            Notes to Consolidated Financial Statement
                          (Unaudited)


(1)  Nature of Business
     Ceramics Process Systems Corporation ("CPS" or "the Company"), 
incorporated on June 19, 1984, develops, manufactures and markets 
advanced metal-matrix composite and ceramic products for packaging
and interconnecting high-density, high-performance microelectronics
for microwave, telecommunications and other applications.  The
Company's products are used in applications where thermal management
and/or lightweight are important factors in total system design.

(2)  Interim Consolidated Financial Statements
     As permitted by the rules of the Securities and Exchange
Commission applicable to quarterly reports on Form 10-Q, these
notes are condensed and do not contain all disclosures required
by generally accepted accounting principles.

      The accompanying financial statements for the fiscal quarters
ended September 27, 1997 and September 28, 1996 are unaudited.  In the
opinion of management, the unaudited consolidated financial statements
of CPS reflect all adjustments necessary to present fairly the 
financial position and results of operations for such periods.

      The consolidated financial statements include the accounts
of CPS and its wholly-owned subsidiary, CPS Superconductor
Corporation.  All significant intercompany balances and
transactions have been eliminated.

      The results of operations for interim periods are not
necessarily indicative of the results to be expected for the full
year.
      
(3)  Net Income Per Share and Net Loss Per Share
     Net income per share was computed based on the weighted average
number of common shares outstanding during the period plus common stock 
equivalents which consist of options with exercise prices less than the 
average market price of the Company's common stock during the period.
  
     Net loss per share is computed based on the weighted average number 
of common shares outstanding during the period.  Common stock equivalents 
pertaining to stock options and convertible notes payable were not 
considered in the calculations of net loss per share since 
their effect would be antidilutive.

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(4)   Inventory
      Inventories consist of the following:
                          September 27,        December 28,
                                  1997                1996 

 Raw Materials               $  37,424          $   39,412 
 Work in process               109,497              85,933 
 Finished goods                      -              31,100 
                             ---------          ---------- 
                             $ 146,921          $  156,445 
                             =========          ========== 


(5)   Accrued Expenses
      Accrued expenses consist of the following:

                          September 27,        December 28,
                                  1997                1996 
Accrued legal and 
 accounting                  $  18,500          $  161,267
Accrued interest               599,535             445,450
Accrued payroll                 65,609              79,170
Accrued rent and utilities       8,992              24,694
Accrued other                 (121,300)             79,185
                             ---------          ----------
                              $571,336             789,766
                             =========          ==========
  

ITEM 2       MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
             CONDITION AND RESULTS OF OPERATIONS
     
     This Quarterly Report on Form 10-Q contains forward-looking
statements that involve a number of risks and uncertainties.
There are a number of factors that could cause the Company's actual
results to differ materially from those forecasted or projected
in such forward-looking statements.  Readers are cautioned not to
place undue reliance on these forward-looking statements which
speak only as of the date hereof.  The Company undertakes no
obligation to publicly release the results of any revisions to
these forward-looking statements which may be made to reflect
events or changed circumstances after the date hereof or to reflect
the occurrence of unanticipated events.

Financial Condition
-------------------
     The Company earned net income of $435 thousand in the third
fiscal quarter of 1997 compared with a net loss of $131 thousand
in the third fiscal quarter of 1996.  The Company's cash balance 
at September 27, 1997 and at December 28, 1996 was $464 thousand and 
$113 thousand, respectively.

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     The improvement in the Company's overall financial 
performance in the third fiscal quarter of 1997 versus the third
fiscal quarter of 1996 was primarily attributable to 1) increased 
shipments of the Company's metal-matrix composites for use in 
wireless telecommunication applications, and 2) licensing revenues 
of $130 thousand.

     Through the first nine months of 1997, the Company financed its 
working capital requirements through operations.  The Company expects
it will continue to be able to fund its recurring working capital
requirements for the remainder of 1997 through operations.

     In 1996 certain notes payable matured.  Although the Company
seeks to modify the original terms of these notes, it is unable to
repay the matured balances at this time and there is no assurance
that the notes will be modified on terms acceptable to the Company.

     As of September 27, 1997, the principal amount of convertible 
notes payable was $1,870,000, and accrued interest on these convertible 
notes payable was $420,097.  The principal and accrued interest of 
convertible notes payable are convertible into the Company's common
stock at $0.50 per share at the option of the note holders.  The interest
rate on the convertible notes payable is 10% per annum. As of
September 27, 1997, the total principal and accrued interest for
convertible notes payable was convertible into 4,580,194 shares of the
Company's common stock at the option of note holders. 

     The Company's entire operations are currently housed in a leased 
facility in Chartley, Massachusetts.

Results of Operations
---------------------
     The growth in revenue from the third fiscal quarter of 1996 to
the third fiscal quarter of 1997 was primarily due to 1) increased 
shipments of the Company's metal-matrix composites for use in 
wireless telecommunication applications, and 2) licensing revenues 
of $130 thousand. Unit shipments in the third fiscal quarter of 1997
were 240% higher than unit shipments in the third fiscal quarter of 
1996, and 43% higher than unit shipments in the second fiscal quarter
of 1997.

     In the third fiscal quarter of 1997 revenue from licensing 
agreements was $130 thousand compared with no revenue from licensing
agreements in the third fiscal quarter of 1996.

     The Company's total revenue in the third fiscal quarter of 1997
was $1.2 million, a 109% increase over third fiscal quarter 1996 revenue
of $581 thousand.  Total operating expenses in the third fiscal 
quarter of 1997 were $728 thousand, a 11% increase over third fiscal
quarter 1996 operating expenses of $658 thousand.

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     Of the $70 thousand increase in operating expenses between the 
third fiscal quarter of 1996 and the third fiscal quarter of 1997,
$53 thousand related to cost of sales and $17 thousand related to 
selling, general and administrative expenses.  The increase in cost 
of sales related to the significant increase in unit volume.  Cost per
unit shipped declined from the third fiscal quarter of 1996 to the third 
fiscal quarter of 1997 due to the change in product mix from prototype
shipments to production shipments, as well as fixed costs being spread
over a larger base.  Other expense during the quarter consisted almost
exclusively of interest expense.     

     The cumulative effect of these revenues and costs resulted
in net income of $487 thousand, or $0.05 per share, in the
third fiscal quarter of 1997, versus a net loss of $131 thousand,
or $0.02 loss per share, in the third fiscal quarter of 1996.


                              PART II OTHER INFORMATION


Item 1 through Item 5:         None


Item 6:                 Exhibits and Reports on Form 8-K

                        (a)    Exhibits:  None

                        (b)    Reports on Form 8-K:   None




                            SIGNATURES


      Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.


                            Ceramics Process Systems Corporation
                                          (Registrant)
                                                      
                          
Date:      October 27, 1997               /s/Grant C. Bennett  
                                          Grant C. Bennett
                                          President and Treasurer
                                         (Principal Executive
                                          Officer)