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

                                   FORM 10-QSB

(Mark One)

         /X/      QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
                  EXCHANGE ACT OF 1934

                                   For the quarterly period ended March 31, 1998

         / /      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
                  ACT

                               SIMTEK CORPORATION
--------------------------------------------------------------------------------
         (Exact name small business issuer as specified in its charter)

Colorado                                                         84-1057605
--------------------------------------------------------------------------------
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                              Identification No.)

      1465 Kelly Johnson Blvd. Suite 301; Colorado Springs, Colorado 80920
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (719) 531-9444
--------------------------------------------------------------------------------
                           (issuer's telephone number)

--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 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 the latest practicable date.

Class                                              Outstanding at April 30, 1998
--------------------------------------------------------------------------------

(Common Stock, $.01 par value)                              28,702,226



<PAGE>


                               SIMTEK CORPORATION



                                      INDEX

                        For Quarter Ended March 31, 1998

PART 1. FINANCIAL INFORMATION

         ITEM 1                                                             Page
                                                                            ----

                    Balance Sheets as of March 31, 1998 and
                    December 31, 1997                                         3

                    Statements of Income for the three months ended
                    March 31, 1998 and 1997                                   4

                    Statements of Cash Flows for the three months ended
                    March 31, 1998 and 1997                                   5

                    Notes to Financial Statements                             6

         ITEM 2

                    Management's Discussion and Analysis of Results of
                    Operations and Financial Condition                      7-8

PART II. OTHER INFORMATION

         ITEM 1     Legal Proceedings                                         9

         ITEM 2     Changes in Securities                                     9

         ITEM 3     Defaults upon Senior Securities                           9

         ITEM 4     Matters Submitted to a Vote of Securities Holders         9

         ITEM 5     Other Information                                         9

         ITEM 6     Exhibits and Reports on Form 8-K                          9

SIGNATURES                                                                   10



<PAGE>
<TABLE>
<CAPTION>
                                                SIMTEK CORPORATION

                                                  BALANCE SHEETS

              ASSETS
              ------
                                                                                March 31, 1998         December 31, 1997
                                                                                --------------         -----------------
<S>                                                                          <C>                       <C>
CURRENT ASSETS:
   Cash and cash equivalents...............................................  $          887,045        $      1,475,599
   Certificate of deposit..................................................             100,000                      -
   Accounts receivable - trade, net........................................           1,076,144                 921,798
   Inventory, net .........................................................             903,082                 641,264
   Prepaid expenses and other..............................................             210,122                  17,960
                                                                             ------------------------------------------

       Total current assets................................................           3,176,393               3,056,621

EQUIPMENT AND FURNITURE, net...............................................             252,961                 177,821
                                                                             ------------------------------------------

TOTAL ASSETS...............................................................  $        3,429,354        $      3,234,442
                                                                             ==========================================

       LIABILITIES AND SHAREHOLDERS'EQUITY
       -----------------------------------

CURRENT LIABILITIES:
   Accounts payable:
       ZMD.................................................................  $          488,989        $        716,716
       Other...............................................................             351,169                 173,325
   Accrued expenses........................................................             382,546                 269,592
   Accrued wages...........................................................             221,475                 222,022
   Accrued vacation payable................................................              66,595                  62,401
   Payable to ZMD..........................................................             130,153                 130,153
                                                                             ------------------------------------------
       Total current liabilities...........................................           1,640,927               1,574,209

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
   Preferred stock, $1.00 par value, 2,000,000 shares
       authorized and none issued and outstanding .........................                  -                       -
   Common stock, $.01 par value, 80,000,000 shares authorized,
       28,702,226 and 28,679,185 shares issued and outstanding at
       March 31, 1998 and December 31, 1997, respectively..................            287,022                 286,792
   Additional paid-in capital..............................................         29,755,271              29,752,328
   Accumulated deficit.....................................................        (28,253,866)            (28,378,887)
                                                                             -----------------------------------------
   Shareholder's equity....................................................          1,788,427               1,660,233
                                                                             -----------------------------------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY.................................  $       3,429,354         $     3,234,442
                                                                             =========================================

                    The accompanying notes are an integral part of these financial statements.
</TABLE>
                                                      -3-

<PAGE>
<TABLE>
<CAPTION>

                                                SIMTEK CORPORATION

                                               STATEMENTS OF INCOME

                                                                                      For the quarters ended March 31,
                                                                                      --------------------------------
                                                                                        1998                   1997
                                                                                        ----                   ----
<S>                                                                             <C>                  <C>
NET SALES..................................................................     $      1,539,331     $       1,765,518

     Cost of  sales........................................................              809,211             1,088,231
                                                                                --------------------------------------

GROSS MARGIN...............................................................              730,120               677,287

SELLING, GENERAL AND ADMINISTRATIVE EXPENSE:
     Design, research and development......................................              299,400               329,109
     Administrative........................................................              115,162                83,279
     Marketing.............................................................              192,564               184,866
                                                                                --------------------------------------

         Total selling, general and administrative expenses................              607,126               597,254

INCOME FROM OPERATIONS.....................................................              122,994                80,033
                                                                                --------------------------------------

OTHER INCOME (EXPENSE):
     Interest income, net..................................................               14,417                12,244
     Other income (expense), net...........................................               (2,030)                5,503
                                                                                --------------------------------------

         Total other income (expense)......................................               12,387                17,747
                                                                                --------------------------------------

NET INCOME BEFORE TAXES....................................................              135,381                97,780

     Provision for income taxes............................................               10,360                     -
                                                                                --------------------------------------

NET INCOME ................................................................     $        125,021     $          97,780
                                                                                ======================================

BASIC AND DILUTED EPS......................................................     $           0.00     $            0.00
                                                                                ======================================

BASIC WEIGHTED AVERAGE SHARES OUTSTANDING..................................           28,695,916            28,506,685

EFFECTIVE OF DILUTIVE OPTIONS..............................................            2,142,302             1,287,256
                                                                                --------------------------------------

DILUTIVE SHARES OUTSTANDING................................................           30,838,218            29,793,941
                                                                                ======================================


                    The accompanying notes are an integral part of these financial statements.
</TABLE>

                                                      -4-

<PAGE>
<TABLE>
<CAPTION>
                                                SIMTEK CORPORATION

                                             STATEMENTS OF CASH FLOWS


                                                                                  Three Months Ended March 31,
                                                                                  ----------------------------
                                                                                  1998                    1997
                                                                                  ----                    ----
<S>                                                                        <C>                    <C> 
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net income ......................................................     $        125,021       $         97,780
     Adjustments to reconcile net income to net cash from
        operating activities:
           Depreciation and amortization..............................              34,736                  29,985
           Changes in assets and liabilities:
           (Increase) decrease in:
               Accounts receivable....................................            (154,346)                (19,368)
               Inventory..............................................            (261,818)               (162,492)
               Prepaid expenses and other ............................            (192,162)                  2,578
           Increase (decrease) in:
               Accounts payable.......................................             (49,883)                425,870
               Accrued expenses.......................................             116,601                  14,084
                                                                           ---------------------------------------

        Net cash provided by (used in) operating activities...........            (381,851)                388,437
                                                                           ---------------------------------------

CASH FLOWS USED IN INVESTING ACTIVITIES:
     Purchase of certificate of deposit...............................            (100,000)                      -
     Purchase of equipment and furniture..............................            (109,876)                   (844)
                                                                           ----------------------------------------

     Net cash provided by investing activities........................            (209,876)                   (844)

CASH FLOWS FROM FINANCING ACTIVITIES:
     Exercise of stock options........................................               3,173                       -
                                                                           ---------------------------------------

        Net cash provided by financing activities.....................               3,173                       -
                                                                           ---------------------------------------

NET INCREASE (DECREASE) IN CASH AND CASH
        EQUIVALENTS...................................................            (588,554)                387,593
                                                                           ---------------------------------------

CASH AND CASH EQUIVALENTS, beginning of period........................           1,475,599                 964,456
                                                                           ---------------------------------------

CASH AND CASH EQUIVALENTS, end of period..............................     $       887,045        $      1,352,049
                                                                           =======================================


                    The accompanying notes are an integral part of these financial statements.
</TABLE>
                                                      -5-

<PAGE>



                               SIMTEK CORPORATION

                          NOTES TO FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES:

           The financial  statements included herein are presented in accordance
with the  requirements of Form 10-QSB and consequently do not include all of the
disclosures  normally made in the registrant's annual Form 10-KSB filing.  These
financial statements should be read in conjunction with the financial statements
and notes thereto included in Simtek Corporation's Annual Report and Form 10-KSB
filed on March 24, 1998 for fiscal year 1997.

           In the opinion of  management,  the  unaudited  financial  statements
reflect all adjustments of a normal recurring nature necessary to present a fair
statement of the results of operations for the respective  interim periods.  The
year-end balance sheet data was derived from audited financial  statements,  but
does not  include all  disclosures  required by  generally  accepted  accounting
principles.


                                       -6-

<PAGE>


                               SIMTEK CORPORATION



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

RESULTS OF OPERATIONS:

           Simtek Corporation  ("Simtek" or the "Company")  recorded net product
sales of  $1,539,331  for the first  quarter  of 1998  down from the  $1,765,518
recorded for the first quarter 1997. The product sales were from the Company's 4
kilobit,  16 kilobit,  64 kilobit and 256 kilobit nvSRAM product  families.  The
decrease was expected by management and was due primarily to market  conditions,
however,  the Company  recorded a record bookings  quarter of  approximately  $2
million of which approximately  $925,000 shipped in the first quarter 1998. This
record bookings  showed  continued  customer  acceptance of nvSRAM products from
various markets including  telecommunications,  industrial control, military and
office automation and reflects improved product  availability.  Two distributors
and one direct customer of the Company's  nvSRAM products  account for more than
55% of the  Company's  net sales for the first  quarter  1998.  Products sold to
distributors are re-sold to various end customers.

           In the first quarter 1998, the Company  purchased wafers built on 1.2
micron technology from Chartered  Semiconductor  Manufacturing Plc. of Singapore
("Chartered")  to  support  sales  of its  high end 64  kilobit  industrial  and
military devices and 16 kilobit commercial  devices.  The Company also purchased
wafers built on 0.8 micron  technology  from  Chartered.  Sales of devices built
with both types of wafers purchased from Chartered  accounted for  approximately
46% of the  Company's  revenue for the first  quarter  1998.  The balance of the
Company's  revenue for the first quarter 1998,  was primarily  from the sales of
commercial  64 kilobit and 256 kilobit  finished  units  purchased  from Zentrum
Mikroelektronik Dresden GmbH ("ZMD").

           The Company saw an increase of  approximately  9% in gross margins in
the first quarter 1998 as compared to the first  quarter  1997.  The increase in
gross  margin was due  primarily  to the  Company  shipping  64 kilobit  and 256
kilobit  commercial  product  based on 0.8 micron  technology  and the Company's
ability to maintain the yields and costs  associated  with  building its product
from wafers purchased from Chartered.

           Selling,  general and administrative  expenses saw a minimal increase
of  approximately  $10,000 for the first  quarter  1998 as compared to the first
quarter 1997.  Research and  Development  saw an  approximate  $29,000  decrease
primarily due to the expiration of certain leases and a decrease in depreciation
expense attributable to research and development. Administration saw the largest
increase of  approximately  $32,000  which was due to headcount  increases.  The
approximate  $8,000  increase  in  Sales  and  Marketing  was  primarily  due to
advertising.

           The Company recorded a net income of $125,021 in the first quarter of
1998 as compared to a net income of $97,780 for the first  quarter of 1997.  The
increase in net income was due to increased gross margins.

           The change in cash flows from  operating  activities  was primarily a
result of an increase in accounts  receivable,  inventory and prepaid  expenses.
The change in cash flows from  investing  activities was due to the purchases of
equipment  related to the testing of the Company's 256 kilobit  product built on
0.8 micron technology from wafers purchased from Chartered.

FUTURE RESULTS OF OPERATIONS

           The Company's  ability to remain  profitable will depend primarily on
its ability to continue  reducing  manufacturing  costs and increase net product
sales  by  increasing  the   availability  of  existing   products  and  by  the
introduction  of new products.  In the first quarter 1998,  the Company began to
ship production orders of its 256 kilobit product based on 0.8 micron technology
to certain  customers  along  with  shipping  smaller  quantities  to  customers
interested  in  designing  this product  into its  applications.  The Company is
currently deciding which new or derivative product it will develop next.

                                       -7-

<PAGE>
                               SIMTEK CORPORATION


           As of March 31, 1998,  the  Company's  backlog of unshipped  customer
orders  expected  to be filled  within  the next six  months  was  approximately
$1,074,000. Orders are cancelable prior to 30 days before the scheduled shipping
date and, therefore, should not be used as a measure of future product sales.

LIQUIDITY AND CAPITAL RESOURCES

           ZMD continues to own  approximately 30% of the Company's Common Stock
and may not exceed 30% without approval of Simtek's Board of Directors.

           The Company may require  additional  capital to fund  production  and
marketing of its 0.8 micron 256 kilobit nvSRAM and the  development of other new
products.  The Company does not have any commitments for such additional capital
as of the date of this report.


                                       -8-

<PAGE>


                               SIMTEK CORPORATION


                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings - None

Item 2.  Changes in Securities - None

Item 3.  Defaults upon Senior Securities - None

Item 4.  Matters Submitted to a Vote of Securities Holders - None

Item 5.  Other Information - None

Item 6.  Exhibits and Reports on Form 8-K

         (a) Exhibits
             --------

           Exhibit 27 - Financial Data Schedule

         (b) Reports on Form 8-K
             -------------------

           Form 8-K filed  January 21, 1998;  press release  announcing  "Simtek
           Corporation Appoints Chief Executive Officer"

           Form 8-K filed  March 12,  1998;  press  release  announcing  "Simtek
           Announces  Financial  Results for 1997;  Shows  Improved  Profits and
           Revenue Growth"

                                       -9-

<PAGE>


                               SIMTEK CORPORATION


                                   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.



                                            SIMTEK CORPORATION
                                            (Registrant)



May 11, 1998                                By  /s/ Douglas Mitchell
                                               ---------------------
                                                DOUGLAS MITCHELL
                                                Chief Executive Officer and
                                                  President






May 11, 1998                                By /s/ Richard L. Petritz
                                               ----------------------
                                               RICHARD L. PETRITZ
                                               Chief Financial Officer (acting)


















                                      -10-