Quarterly Report under Section 13 or 15(d) of the Securities
Exchange Act of 1934.

For the quarterly period ended:  December 31, 1995               

Commission file number:  33-15682-LA                        

Exact name of small business issuer as specified in its charter:
Systems West, Inc.

State or other jurisdiction of incorporation or organization:
Colorado

IRS Employer Identification No.:  94-3026545            

Address of principal executive offices:
27880 Dorris Drive, Carmel, CA 93923
                                    
Issuer's telephone number:  (408) 625-6911

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  

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
February 1, 1996:    1,066,749               

This Form 10-QSB is not covered by an accountant's report

                         Page 1 of 10
<PAGE>
INDEX
PART I.   FINANCIAL INFORMATION
Item 1.   Financial Statements
            Balance Sheets
              December 31, 1995 (unaudited)
              and June 30, 1995                        Page 3
            Statements of Operations
              Three months and six months ended
              December 31, 1995 and 1994 (unaudited)   Page 5
            Statements of Cash Flows
              Six months ended December 31,
              1995 and 1994 (unaudited)                Page 6
            Notes to Financial Statements
              (unaudited)                              Page 8
Item 2.   Management's Discussion and Analysis
          of Financial Condition and Results of
          Operations                                   Page 9
PART II.  OTHER INFORMATION                            Page 10
SIGNATURES                                             Page 10

EXHIBITS:  Exhibit 27 - Financial Data Schedule

                         Page 2 of 10
<PAGE>
<TABLE>
<CAPTION>
                           BALANCE SHEETS

                               ASSETS

                                     December 31,      June 30,
                                        1995             1995
                                     (unaudited)
                           ______________________________________
<S>                                     <C>             <C>
CURRENT ASSETS
  Cash                                  136,040           3,215
  Receivables, net of allowance for
    doubtful accounts                    70,029         299,493
  Inventory
    Costs & estimated earnings on
      long-term contracts               132,397           6,109
    Work-in-process                      13,912          29,204
    Computer parts                       85,661          49,285
  Prepaid expenses                           --           8,023
                                        _______         _______
        Total current assets            438,039         395,329 

FURNITURE AND EQUIPMENT, net of
  $52,514 and $48,878 of
  accumulated depreciation               14,954          22,769 

PROTOTYPE EQUIPMENT, net of
  $70,653 and $64,305 of
  accumulated depreciation               49,302          40,009

Deposits                                  1,474           1,474
                                        _______         _______
                                        503,769         459,581

                         Page 3 of 10
<PAGE>

<CAPTION>
                         BALANCE SHEETS (CONTINUED)
                   LIABILITIES AND STOCKHOLDERS' EQUITY

                                       December 31,     June 30,
                                          1995           1995
                                       (unaudited)
                                ________________________________

CURRENT LIABILITIES
  Deposits                                   80              --
  Note payable                               --         130,000
  Accounts Payable                       58,033          98,685
  Accrued Liabilities                   190,377         147,248
  Payables - officers/directors         140,882         140,626
  Current portion of capitalized
    lease obligation                      8,268           1,738
  Deferred Revenue/LT Contracts          13,160          20,300
    Total current liabilities           410,800         538,597 

Capitalized lease obligation             11,712           7,107 

STOCKHOLDERS' EQUITY
  Preferred stock, $.01 par value;
    1,000,000 shares authorized,
    Series A, 812.5 shares issued
    and outstanding (liquidation
    preference of $32,500)                    8               8
  Common stock, no par value;
    5,000,000 shares authorized,
    1,066,749 shares issued and
    outstanding                       1,703,746       1,703,746
  Additional paid-in capital            160,435         160,435
  Accumulated deficit                (1,782,932)     (1,950,312)
    Total stockholders' equity           81,257         (86,123)

                                        503,769         459,581
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>

                         Page 4 of 10
<PAGE>
<TABLE>
<CAPTION>
                         STATEMENTS OF OPERATIONS
                                (unaudited)



                         Three Months Ended    Six Months Ended
                             December 31          December 31
                          1995       1994       1995       1994
                      ___________________________________________
                      <C>        <C>        <C>        <C>

Revenues
  Sales                 373,642    142,336    763,873    257,593

Costs and expenses
  Cost of sales         145,177    104,836    336,596    212,368
  Marketing              90,492     10,610    106,571     26,603
  Research and
    development           8,325        464     11,432        765
  General and
    administrative       67,839     46,028    141,893    111,448
                        _______    _______    _______    _______
                        311,833    161,938    596,492    351,984

Net income (loss)        61,809    (19,602)   167,381    (94,391)

Net income (loss)
  per common share          .06      (.018)       .16      (.087)
               
Weighted average
  common shares       1,066,749  1,095,320  1,066,749  1,095,320

<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>

                         Page 5 of 10
<PAGE>
<TABLE>
<CAPTION>
                  STATEMENTS OF CASH FLOWS (unaudited)

                                     Six Months Ended December 31
                                            1995          1994
                                     ____________________________
<S>                                        <C>         <C>
Cash flows from operating activities:
  Net income <loss>                         167,381     (94,391)
  Adjustments to reconcile net income
    to net cash provided by (used in)
    operating activities:                 
      Depreciation and amortization           9,984       9,918
      (Increase) decrease in receivables    229,464     (37,690) 
      (Increase) decrease in costs and
        estimated earnings on long-term
        contracts                          (126,288)    306,487
      (Increase) decrease in inventories    (21,084)    (22,751) 
      (Increase) decrease in prepaid
        expenses/deposits                     8,023      13,265  
      Increase (decrease) in accounts
        payable                             (40,652)     19,264  
      Increase (decrease) in accrued
        liabilities and customer deposits    58,628      26,885 
      Increase (decrease) in payables--
        officers/directors                      256       3,489
      Increase (decrease) in deferred
        revenue                             <22,560>        -0-
                                            ________    ________
           Net cash provided by (used in)
           operating activities             263,152     224,476  
 
Cash flows from investing activities
  Acquisition of furniture & equipment        4,179         -0-
  Acquisition of prototype equipment        (15,641)     (1,076)
                                            ________    ________
           Net cash used in investing
           activities                       (11,462)     (1,076)
                                            ________    ________
    
Cash flows from financing activities
  Proceeds from line of credit                  -0-      28,321
  Payments on line of credit               (130,000)   (334,688)
  Payments on capital lease                  11,135        (719)
                                           _________   _________
           Net cash used in financing
           activities:                     (118,865)   (307,086) 


                         Page 6 of 10
<PAGE>


Net increase (decrease) in cash and
  cash equivalents                          132,825     (83,686) 

Cash and cash equivalents at beginning
  of period                                   3,215      87,442
                                            _______     _______ 

Cash and cash equivalents at end of
  period                                    136,040       3,756 

Supplemental disclosures of cash flow
  information
Cash paid during the period for
  interest                                    5,482       5,302   

<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>

                         Page 7 of 10
<PAGE>


                       NOTES TO FINANCIAL STATEMENTS


1.   BASIS OF PRESENTATION

The accompanying financial statements have been prepared by
the Company without audit.  In the opinion of management, the
accompanying unaudited financial statements contain all
adjustments (consisting of only normal recurring accruals)
necessary for a fair presentation of the Company's financial
position as at December 31, 1995 and 1994 and the results of its
operations, changes in its stockholders' equity and cash flows
for the respective periods then ended. Management has elected to
omit certain disclosure required by generally accepted accounting
principles.  The Company's Form 10-KSB for fiscal year ended June
30, 1995 includes audited financial statements as of June 30,
1995 and 1994, complete with the auditors' report and footnotes
to the financial statements, and should be read in conjunction
with this Form 10-QSB.

2.  STOCKHOLDERS' EQUITY

On May 25, 1993, the Company's shareholders approved a 1 for 400
reverse split of the Company's common stock and preferred stock,
and increased the authorized capital stock of the Company to
5,000,000 shares of no par value common stock and 1,000,000
shares of $.01 par value preferred stock.  Retroactive effect has
been given to all share and per share data in the accompanying
financial statements.

The Series A preferred stock has a $40.00 per share liquidation
preference and is convertible to common stock on an eighteen for
one basis at the option of the holders.  The preferred stock may
be redeemed at any time at $40.00 per share, at the election of
the Board of Directors of the Company.

The Company has authorized but unissued shares of preferred stock
which may be issued in such series and preferences as determined
by the Board of Directors.


                         Page 8 of 10
<PAGE>


Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

Systems West, Inc. posted net income of $61,809 on gross sales
of $373,642 in the second quarter of fiscal year 1996.  This
successful quarter resulted from healthy revenue increases and
repeat project business with strong margins.  The Company has a
firm backlog in excess of $121,000 as of 12/31/95, most of which
is deliverable in quarter three of 1996.  Management remains
optimistic about the fiscal year sales projections and overall
performance.  In February 1996, the Company booked a defense
subcontract order for $725,000.  For fiscal year 1996, management
anticipates revenues of approximately $1,400,000 and pretax
profitability of $200,000.

The Company continues to be constrained by insufficient working
capital to support effective levels of production and sales
activity.  Current working capital is supplemented by export
loans guaranteed by the California Export Finance Office on
international business.

Additional investors and/or partners are currently actively being
sought, to enable the Company to capitalize on the significant
worldwide opportunities available with the current products.

FINANCIAL CONDITION

At December 31, 1995, the Company had a working capital surplus
of $27,239 as compared to a working capital (deficiency) of
$(38,285) at December 31, 1994.

Currently, Systems West, Inc. does not require an extended line
of credit guaranteed by the California Export Finance Office.
This directed line of credit, along with the Company's
limited working capital, supports Systems West's short-term
working capital requirements.


                         Page 9 of 10
<PAGE>

PART II. OTHER INFORMATION

No information is included in answer to Items 1, 2, 3, 4, 5, or 6
under Part II as the Items are either not applicable or, if
applicable, the answer is negative.


                                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.

                                  SYSTEMS WEST, INC.
                                     (Registrant)


                      2/14/96     Kenneth W. Ruggles
                      (Date)          (Signature)

                      2/14/96     Douglas S. Timms
                      (Date)          (Signature)


                         Page 10 of 10