FORM 10-Q

                   SECURITIES AND EXCHANGE COMMISSION
                       WASHINGTON, D.C.  20549

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

                 For Quarter Ended March 31, 1998

                  Commission File Number 0-13898

                         MOSCOM Corporation       

     (Exact name of registrant as specified in its charter)

       Delaware                                        16-1192368   
(State or other jurisdiction of Incorporation 		(IRS Employer 
or Organization)                                     Identification Number)


    3750 Monroe Avenue, Pittsford, NY                       14534            
(Address of principal executive offices)                  (Zip Code)

                               (716) 381-6000                           
           (Registrants telephone number, including area code)

                                     N.A.                                     
(Former name, former address and former fiscal year, if changed since last 
report)

     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 Act 
of 1934 during the preceding 12 months (or for such shorter period that the 
Registrant was required to file such reports) and (2) has been subject to 
such filing requirement for the past 90 days.

		YES   	  XX			NO		

     Indicate the number of shares outstanding of each of the issuers 
classes of common stock, as of March 31, 1998.

        Common stock, par value $.10               7,554,703 shares

	This report consists of 14 pages.
<PAGE>


INDEX



                                                                  Page

PART I	FINANCIAL INFORMATION

Item 1	Financial Statements

        Condensed Balance Sheets -                                3 -  4
        March 31, 1998 and December 31, 1997
		
        Condensed Statements of Operations -                      5        
        Three Months Ended March 31, 1998 and 1997

        Condensed Statements of Cash Flows -                      6
        Three Months Ended March 31, 1998 and 1997

        Notes To Condensed Financial Statements                   7 -  8

Item 2  Managements Discussion and Analysis of                    9 - 11
        Financial Condition and Results of Operations


PART II	OTHER INFORMATION

Item 6  Exhibits and Reports on Form 8-K                         12 - 14
		
<PAGE>
PART  I -  FINANCIAL INFORMATION

                              MOSCOM CORPORATION

                            CONDENSED BALANCE SHEETS


                                           March 31,          December 31,
                                             1998                1997*
                                          (Unaudited)
ASSETS
 
CURRENT ASSETS:
 Cash and Cash Equivalents
  (Including short-term investments
   of $1,195,366 and $757,076
   respectively)                          $ 1,140,449          $ 1,106,944
 Investments                                1,728,958            2,355,781
 Accounts Receivable, trade (net of 
  allowance for doubtful accounts of
  $83,000 and $75,000,respectively)         2,449,514            1,724,047
 Inventories                                  919,679            1,164,797
 Prepaid Expenses                              38,415               30,582
                                          -----------          -----------
  Total Current Assets                      6,277,015            6,382,151


PROPERTY AND EQUIPMENT                      5,470,849            5,293,751
 Less Accumulated Depreciation             (4,400,255)          (4,334,164)
                                          -----------          -----------
  Property and Equipment (Net)              1,070,594              959,587


OTHER ASSETS:
 Purchased Software (Net
  of accumulated amortization
  of $70,561 and $62,876    
  respectively)                                20,692               28,612
 Software Development Costs
  (Net of accumulated 
   amortization of 
   $976,666 and  $767,537 
   respectively)                            3,130,120            3,108,468
 Pension Assets                             1,158,092            1,158,092
 Deposits and Other Assets                    280,499              272,617
                                          -----------          -----------
Total Other Assets                          4,589,403            4,567,789
                                          -----------          -----------

TOTAL ASSETS                              $11,937,012          $11,909,527
                                          ===========          ===========

See notes to Condensed Financial Statements.

*  Derived from Audited Financial Statement
<PAGE>

                               MOSCOM CORPORATION

                             CONDENSED BALANCE SHEETS


                                           March 31,          December 31,
                                             1998                 1997*
                                          (Unaudited)


LIABILITIES AND STOCKHOLDERS EQUITY

CURRENT LIABILITIES:
 Accounts Payable                         $   540,830          $   746,229
 Accrued Compensation and Related Taxes       418,084              348,602
 Deferred Revenue                           1,870,416            1,703,803
 Other Accrued Expenses                       306,710              425,393
                                          -----------          -----------
   Total Current Liabilities                3,136,040            3,224,027

Pension Obligation                          1,982,898            1,983,348
                                          -----------          -----------

Total Liabilities                           5,118,938            5,207,375


STOCKHOLDERS EQUITY:
 Common Stock, par value $.10, 
  20,000,000 shares authorized; issued 
  and outstanding, 7,554,703 and
  7,549,703, respectively                     755,470              754,970
 Additional Paid-in Capital                18,713,390           18,701,040
 Retained Earnings                        (12,650,786)         (12,753,858)
                                          -----------          -----------

Total Stockholders Equity                   6,818,074            6,702,152
                                          -----------          -----------

TOTAL LIABILITIES AND STOCKHOLDERS
 EQUITY                                   $11,937,012          $11,909,527
                                          ===========          ===========


See notes to Condensed Financial Statements.

*  Derived from Audited Financial Statements
<PAGE>

                                 MOSCOM CORPORATION

                        CONDENSED STATEMENTS OF OPERATIONS
	
                                                 Three Months Ended
                                                      March 31,
                                                     (Unaudited)

                                              1998                 1997

SALES                                     $ 3,604,377          $ 2,771,059

COSTS AND OPERATING EXPENSES:
 Cost of Sales                                764,305              812,791
 Engineering & Software Development           630,145              730,393
 Selling, General and Administrative        2,145,390            2,598,239
                                          -----------          -----------
   Total Costs and Operating Expenses       3,539,840            4,141,423
                                          -----------          -----------

INCOME (LOSS) FROM OPERATIONS                  64,537           (1,370,364)

INTEREST INCOME                                38,535               29,675
                                          -----------          -----------

INCOME (LOSS) BEFORE INCOME TAXES             103,072           (1,340,689)

INCOME TAXES                                        -                    -
                                          -----------          -----------

NET INCOME (LOSS)                         $   103,072          $(1,340,689)
                                          ===========          ===========

INCOME (LOSS) PER SHARE
    Basic                                        $.01                $(.19)
                                                 ====                =====
    Diluted                                      $.01                $(.19)
                                                 ====                =====



See notes to Condensed Financial Statements.
<PAGE>

                                 MOSCOM CORPORATION
                         CONDENSED STATEMENTS OF CASH FLOWS

                                                        Three Months Ended
                                                             March 31, 
                                                      1998               1997
CASH FLOWS FROM OPERATING ACTIVITIES:

Net Income (Loss)                                $  103,072       $(1,340,689)
Adjustments to Reconcile Loss to Net 
 Cash Provided by Operating Activities
  Depreciation and Amortization                     283,139           384,517
  Provision for Losses on Accounts Receivable        12,501             3,750
  Provision for Inventory Obsolescence               24,999            25,000
 Changes in Assets and Liabilities
  Investments                                       626,823        (1,657,217)
  Accounts Receivable                              (737,968)          570,386
  Inventories                                       220,119           119,359
  Prepaid Expenses                                   (7,833)          (96,727)
  Purchased Software                                      -            (1,078)
  Deposits and Other Assets                          (7,882)           12,060
  Accounts Payable                                 (205,399)         (481,780)
  Accrued Compensation Related Taxes                 69,482            75,000
  Other Current Liabilities                          47,930          (331,996)
  Long Term Liabilities                                (450)           55,000
                                                 ----------       -----------

  Net Adjustments                                   325,461        (1,323,726)
                                                 ----------       -----------
  Net Cash Provided (Used) by Operating
   Activities                                       428,533        (2,664,415)
                                                 ----------        -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
 Additions to Property and Equipment               (177,098)          (43,164)
 Software Development Costs                        (230,780)         (293,258)
                                                 ----------       -----------

Net Cash Flows Used by Investing Activities:       (407,878)         (336,422)
                                                 ----------       -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from Sales of Stock                             -         1,540,768
 Exercise of Stock Options and Warrants              12,850            39,310
 Stock Retirements                                        -           (21,498)
                                                 ----------       -----------
 Net Cash Flows from Financing Activities            12,850         1,558,580
                                                 ----------       -----------
NET INCREASE (DECREASE) IN CASH AND
 CASH EQUIVALENTS                                    33,505        (1,442,257)

CASH AND CASH EQUIVALENTS, BEGINNING OF 
 PERIOD                                           1,106,944         2,025,535
                                                 ----------       -----------

CASH AND CASH EQUIVALENTS, END OF PERIOD         $1,140,449       $   583,278
                                                 ==========       ===========
<PAGE>

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

(1)  GENERAL

     The accompanying unaudited financial statements include all 
adjustments of a normal and recurring nature which are, in the opinion of 
Registrants management, necessary to present fairly the Registrants 
financial position as of March 31, 1998 and the results of its operations 
and cash flows for the three months ended March 31, 1998 and 1997.  

     Certain information and footnote disclosures normally included in 
financial statements prepared in accordance with generally accepted 
accounting principles have been omitted pursuant to the rules and 
regulations of the Securities and Exchange Commission.  These condensed 
financial statements should be read in conjunction with the financial 
statements and related notes contained in the Annual Report for the fiscal 
year ended December 31, 1997.

     The results of operations for the three months ended March 31, 1998 
are not necessarily indicative of the results to be expected for a full 
years operation.

     Except for the historical information contained herein, the matters 
discussed in this report are forward-looking statements which involve risks 
and uncertainties, including but not limited to economic, competitive, 
governmental and technological factors affecting the Companys operations, 
markets, products, services and prices, and other factors discussed in the 
Companys filings with the Securities and Exchange Commission.

(2)  INVENTORIES

     The composition of inventories at March 31, 1998 and December 31, 1997 
was as follows:


                                       March 31,        December 31,
                                         1998              1997

Purchased parts and components        $  347,270         $  454,617
Work in process                          105,243            120,566
Finished goods                           467,166            589,614
                                      ----------         ----------
                                      $  919,679         $1,164,797
                                      ==========         ==========

<PAGE>

(3)  PROPERTY AND EQUIPMENT

     The major classifications of property and equipment at March 31, 1998, 
and December 31, 1997 are:


                                       March 31,         December 31,
                                         1998               1997

Machinery and equipment               $1,460,479         $1,460,479
Computer hardware and software         2,751,853          2,627,442
Furniture and fixtures                   947,921            914,085
Leasehold improvements                   310,596            291,745
                                      ----------         ----------

                                      $5,470,849         $5,293,751

(4)  EARNINGS PER SHARE

     Earnings per share has been calculated under SFAS 128, Earnings Per 
Share.  Weighted average shares outstanding for the three months ended 
March 31, 1997 do not include common stock equivalents, as their 
effect on earnings per share would be antidilutive.

<PAGE> 

Item 2	Managements Discussion and Analysis of Financial Condition and 
        Results of Operations

Results of Operations
	
     Sales for the first quarter ended March 31, 1998 of $3,604,377 
represented an increase of 30% from the sales of $2,771,059 for the three 
months ended March 31, 1997.  The increased sales were primarily the result 
of strong demand for the Companys core call accounting products which grew 
by 27% over the sales realized during the first quarter of 1997.  Sales of 
the Companys INFO/MDR product were also strong during the first quarter of 
1998 with 11 new systems being shipped.  

     In addition, sales to international markets by U.S. based personnel 
increased five-fold over prior year levels, largely offsetting the negative 
impact on sales resulting from the closure of the Companys European based 
subsidiaries during the second quarter of 1997.

     The Companys newest network product, TMS, was released in late January 
of 1998 for distribution by Lucent Technologies.  Though first quarter 
sales of TMS were relatively modest, the order rate and quote activity have 
been encouraging and TMS is expected to begin to contribute significantly 
to revenues in subsequent quarters.

     The gross margin of 79% achieved for the first three months of 1998 
represents a significant increase from the gross margin of 71% attained for 
the three months ended March 31, 1997.  The increased gross margin 
percentage arises from the higher sales volume achieved during the first 
three months of 1998 versus the same period of 1997, thereby reducing costs 
as a percentage of sales, and the high content of software based call 
accounting products in the sales mix, which typically carry favorable 
margins.

     Engineering and developments costs, net of capitalized software costs 
decreased from $730,393 for the three months ended March 31, 1997 to 
$630,145 for the same three month period of 1998.  The following table 
summarizes gross expenditures for engineering and development expenses, 
amounts capitalized, and net engineering expenses incurred for the three 
months ended March 31, 1998 and 1997.

                                                Three Months Ended

                                            March 31,          March 31,
                                              1998               1997

Gross Expenditures for Engineering &
 Software Development                       $  860,925        $1,023,651

Less:  Costs Capitalized                      (230,780)         (293,258)
                                            ----------        ----------

Net Engineering & Software 
 Development Expense                        $  630,145        $  730,393
                                            ==========        ==========
<PAGE>

     The reduction in gross spending for engineering and development 
reflects the absence of engineering effort formerly devoted to voice 
recognition products marketed and sold by the Companys former Votan 
subsidiary, closed during the second quarter of 1997.  Engineering and 
development expenditures on continuing product lines were similar to the 
levels experienced during the first three months of 1997.

     Selling, general and administrative expenses of $2,145,390 incurred 
for the quarter ended March 31, 1998 decreased 17% from the $2,598,239 of 
selling, general and administrative expense incurred for the quarter ended 
March 31, 1997.  The reduced expense level reflects the savings associated 
with the closing of the Companys European and Votan subsidiaries closed in 
conjunction with the Companys second quarter 1997 restructuring plan.  
During the first quarter of 1997 the Company incurred approximately 
$884,000 of selling, general and administrative expense at those former 
locations.  Beginning in the third quarter of 1997 and continuing through 
the first quarter of 1998 the Company has redirected a portion of those 
savings to strengthen its marketing, sales, and support staffs, 
particularly in the area of network product support and implementation.  
The Company expects to continue this process throughout the balance of 
1998.

     For the three months ended March 31, 1998 the Company earned a profit 
of $103,072 or $.01 per share.  This compared with a net loss incurred of 
$1,340,689 or $.19 per share for the three months ended March 31, 1997.

Liquidity and Capital Resources

     The Companys total cash position (cash on hand plus investments) at 
March 31, 1998 was $2,869,407.  This compares with total cash positions of 
$3,462,725 at December 31, 1997 and $2,490,675 at March 31, 1997.

     Accounts receivable increased from $1,724,047 at December 31, 1997 to 
$2,449,514 at March 31, 1998 largely due to higher sales volumes and the 
timing of the receipt of certain receivables expected in March, 
subsequently received in April.

     Inventories continued to decline as expected, from $1,164,797 at 
December 31, 1997 to $919,679 at March 31, 1998.  This decline in 
inventories, which has been long term in nature, continues to reflect the 
increasingly higher percentage of software based products in the total 
sales mix, thereby reducing the requirement to carry large levels of 
hardware components and supplies.

     Capital expenditures during the first quarter of 1998 were $177,098 
versus $43,164 during the first quarter of 1998, and were largely related 
to the implementation of a company-wide integrated Management Information 
System currently in the installation phase.  The addition of this system 
will allow the Company to phase out a number of stand alone operating 
systems utilized throughout the Company thereby increasing efficiency and 
productivity.  
<PAGE>
     Other assets, consisting primarily of the unamortized value of 
capitalized software costs remained relatively unchanged from year end 
figures growing by less than 1% to $4,589,403.

     Total current liabilities declined from $3,224,027 at December 31, 
1997 to $3,136,040 at March 31, 1998, a decrease of 3%, with trade accounts 
payable declining by just over $205,000.  This reduction was partially 
offset by an approximate $167,000 increase in deferred revenues 
representing the value of services to be provided to customers in future 
quarters.  These deferred revenues consist primarily of installation, 
training and maintenance charges.

     During 1997, the Company entered into a private equity line of credit 
agreement with a single institutional investor.  Under the equity line for 
a period of two years, the Company has the right to sell to the investor 
shares of the Companys Common Stock at a price equal to 88% of the average 
bid price of the stock for the subsequent ten trading days.  During the two 
year period the Company may sell up to $6 million of common stock to the 
investor with no more than $500,000 in any single month.  There were no 
transactions under this equity line of credit agreement during the first 
quarter of 1998.  During 1997 the Company sold 501,934 shares of common 
stock to this investor yielding net proceeds of $2,480,017.  This agreement 
expires June 2, 1999.

     The Company continues to maintain an agreement with a major commercial 
bank for a secured line of credit agreement for up to $500,000.  There have 
been no borrowings against this agreement.

     The Company believes that it has sufficient working capital and access 
to alternative financing, if required, to meet its financial commitments 
and support anticipated growth over the next twelve months.

<PAGE>

PART II - OTHER INFORMATION

Item 6:  Exhibits and Reports on Form 8-K

(1)  Registrants Condensed Financial Statements for the three months ended 
     March 31, 1998 and 1997 are set forth in Part I, Item 1 of this
     Quarterly Report on Form 10-Q.

(2)  Calculation of earnings per share.

<PAGE>

						Exhibit A:	(2)

                             MOSCOM CORPORATION

                    Calculations of Earnings Per Share


                                               Three Months Ended
                                                    March 31, 
  
                                                1998          1997
Basic

Net Income (Loss)                            $  103,072    $(1,340,689)
                                             ==========    ===========
Weighted Common Shares Outstanding            7,550,870      7,089,101
                                             ==========    ===========

Income (Loss) Per Common Share                     $.01          $(.19)
                                                   ====          =====

Diluted

Net Income (Loss)                            $  103,072    $(1,340,689)
                                             ==========    ===========

Weighted Average Shares Outstanding           7,550,870      7,089,101

Additional Dilutive Effect of Stock
 Options and Warrants after Application
 of Treasury Stock Method                       410,935              -
                                             ----------    -----------

Weighted Average Shares Outstanding           7,961,805      7,089,101
                                             ==========    ===========

Income (Loss) per Common Share
 and Common Equivalent Share                       $.01          $(.19)
                                                   ====          =====

<PAGE>

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.



MOSCOM CORPORATION

REGISTRANT

Date:  May 12, 1998
        _________________________



_____________________________________
David G. Mazzella
President and CEO




Date:  May 12, 1998
        _________________________



_____________________________________
Ronald C. Lundy
Treasurer (Chief Accounting Officer)

<PAGE>