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 September 30, 1996
                                   
                    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
(Registrant's 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 issuer's
classes of common stock, as of September 30, 1996.

     Common stock, par value $.10                 6,881,680 shares

     This report consists of 13 pages.

<PAGE>
                                 INDEX
                                   
                                   

                                                                     Page

PART I    FINANCIAL INFORMATION

  Item 1    Financial Statements
  
            Consolidated Balance Sheets -                            3 -  4
            September 30, 1996 and December 31, 1995
  
            Consolidated Statements of Operations -                  5
            Three and Nine Months Ended September 30, 1996 and 1995
  
            Consolidated Statements of Cash Flows -                  6
            Nine Months Ended September 30, 1996 and 1995
  
            Notes To Consolidated Financial Statements               7 -  8
  
  Item 2    Management's 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
                           And Subsidiaries
                                   
                      CONSOLIDATED BALANCE SHEETS
                                   
                                    September 30,        December 31,
ASSETS                                       1996               1995*
CURRENT ASSETS:                       (Unaudited)                    
Cash and Cash Equivalents                                          
  (Including Short-term investments  
  of $765,398 and $2,632,286                      
  respectively)                       $   692,620         $ 2,727,340
Short-term Investments                  1,918,777           2,967,809
Accounts Receivable, trade                                           
  (net of allowance for doubtful
  accounts of $86,000 and $71,000                   
  respectively)                         3,898,173           4,158,378
Inventories (Note 2)                    1,743,483           1,646,941
Prepaid Expenses                          135,269             132,205
                                      -----------         -----------
     Total Current Assets               8,388,322          11,632,673
                                                                   
PLANT AND EQUIPMENT (Note 3):           5,550,470           5,372,451
Less Accumulated Depreciation          (4,400,553)         (4,174,126)
                                      -----------         -----------
  Plant and Equipment (Net)             1,149,917           1,198,325

                                      
OTHER ASSETS:
License Fees and Purchased Software    
  (Net of accumulated
  amortization of $211,485 and
  $357,077 respectively)                   90,575             431,148
Capitalized Software                                                 
  Development Costs (Net of
  accumulated amortization of
  $1,224,315 and $2,417,094
  respectively)                         3,123,522           3,239,112
Deposits and Other Assets               1,481,918           1,513,136
                                      -----------         -----------
Total Other Assets                      4,696,015           5,183,396
                                      -----------         -----------
TOTAL ASSETS                          $14,234,254         $18,014,394
                                      ===========         ===========
                                                                   
See notes to Consolidated Financial Statements.
                                   
             *  Derived from Audited Financial Statements

<PAGE>

                          MOSCOM CORPORATION
                           And Subsidiaries
                                   
                      CONSOLIDATED BALANCE SHEETS
                                          September 30,    December 31,
                                                   1996           1995*
                                            (Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY                                

CURRENT LIABILITIES:                                                
  Accounts Payable                          $ 1,228,782     $   615,136
  Accrued Compensation and Related Taxes      1,231,322       1,019,234
  Other Accrued Expenses                      1,035,758         918,653
                                            -----------     -----------
     Total Current Liabilities                3,495,862       2,553,023

  Other Long-Term Liabilities                 1,303,033       1,126,786
                                            -----------     -----------
                                              4,798,895       3,679,809
                                                                    
STOCKHOLDERS' EQUITY:                                               
Common Stock, par value $.10,                                        
  20,000,000 shares authorized;                           
  issued and outstanding,                       
  6,881,680 and  6,818,654, respectively        688,168         681,865
Additional Paid-in Capital                   15,556,495      15,294,653
Retained Earnings                            (6,742,122)     (1,650,778)
Cumulative Translation Adjustment               (67,182)          8,845
                                            -----------     -----------
                                              9,435,359      14,334,585
                                            -----------     -----------
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY   $14,234,254     $18,014,394
                                            ===========     ===========
                                                                    

See notes to Consolidated Financial Statements.

             *  Derived from Audited Financial Statements

<PAGE>
<TABLE>
                          MOSCOM CORPORATION
                           And Subsidiaries
                                   
                 CONSOLIDATED STATEMENTS OF OPERATIONS
<CAPTION>                                   
                                        Three Months Ended            Nine Months Ended
                                           September 30,                 September 30,
                                            (Unaudited)
                                        1996            1995           1996           1995
<S>                              <C>            <C>            <C>            <C>
SALES                            $  4,055,118   $  3,834,017   $ 10,207,257   $ 12,568,309
                                 ------------   ------------   ------------   ------------
COSTS AND OPERATING EXPENSES:                                                            
  Cost of Sales                     1,313,685        938,655      3,172,550      3,535,468
  Engineering & Software            1,251,126        409,835      2,418,952      1,285,647
Development
  Selling, General and              3,099,727      2,586,083      8,273,805      7,303,206
Administrative                   ------------   ------------   ------------   ------------
                                                                                         
                                                                                         
  Total Costs and Operating         5,664,538      3,934,573     13,865,307     12,124,321
   Expenses                      ------------   ------------   ------------   ------------

 INCOME (LOSS) FROM OPERATIONS     (1,609,420)      (100,556)    (3,658,050)       443,988

INTEREST INCOME                        52,766         82,548        179,590        186,694
                                                                                         
OTHER EXPENSES  (Note 5)            1,560,407              -      1,560,407              -
                                 ------------   ------------   ------------   ------------
INCOME (LOSS) BEFORE INCOME        
TAXES                              (3,117,061)       (18,008)    (5,038,867)       630,682
INCOME TAXES                                -              -        (84,000)        99,000
                                 ------------   ------------   ------------   ------------
NET INCOME (LOSS)                $ (3,117,061)  $    (18,008)  $ (4,954,867)  $    531,682
                                 ============   ============   ============   ============
NET INCOME (LOSS) PER SHARE      $       (.45)  $        .00   $       (.72)  $        .08
                                 ============   ============   ============   ============
</TABLE>

See notes to Consolidated Financial Statements.

<PAGE>                             

                          MOSCOM CORPORATION
                           And Subsidiaries
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   
                                                  Nine Months Ended
                                                    September 30,
                                                 1996           1995
                                                     (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:                         
Net Income  (Loss)                        $(4,954,867)   $   531,682
                                          -----------    -----------
Adjustments to Reconcile Income  (Loss)                              
to   Net  Cash  Provided  by  Operating
Activities
  Depreciation and Amortization             2,254,841      1,514,037
  Provision  for  Losses  on  Accounts        
  Receivable                                   18,000         18,000
  Provision for Inventory Obsolescence        225,003        133,500
                                                                     
  Changes in Assets and Liabilities                                  
    Short Term Investments                  1,049,032       (102,513)
    Accounts Receivable                       242,205       (339,774)
    Inventories                              (321,545)       356,317
    Prepaid Expenses                           (3,064)        39,362
    License Fees                              (32,809)      (239,605)
    Software Development Costs             (1,371,724)      (961,408)
    Other Assets                               31,218       (106,483)
    Accounts Payable                          613,646       (115,952)
    Other Liabilities                         176,247        157,500
    Other Current Liabilities                 253,164        798,158
                                          -----------    -----------
  Net Adjustments                           3,134,214      1,151,139
                                          -----------    -----------
  Net Cash Provided (Used) by Operating   
  Activities                               (1,820,653)     1,682,821
                                          -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES:                                
                                                                     
  Additions to Property and Equipment        (345,735)      (558,039)
                                          -----------    -----------        
CASH FLOWS FROM FINANCING ACTIVITIES:                                
Dividends Paid                               (136,477)      (270,877)
Exercise of Stock Options and Warrants        275,771        375,122
Stock Retirements                              (7,626)       (57,920)
                                          -----------    -----------
Net Cash Flows from Financing Activities      131,668         46,325
                                          -----------    -----------         
NET  INCREASE (DECREASE)  IN  CASH  AND   
CASH EQUIVALENTS                           (2,034,720)     1,171,107
                                                                     
CASH AND CASH EQUIVALENTS, BEGINNING OF    
PERIOD                                      2,727,340      2,152,377            
                                          -----------    -----------
CASH  AND  CASH  EQUIVALENTS,  END   OF   
PERIOD                                    $   692,620    $ 3,323,484
                                          ===========    ===========
<PAGE>

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(1)  GENERAL

      The  accompanying  unaudited consolidated  financial  statements
include all adjustments of a normal and recurring nature which are, in
the  opinion  of Registrant's management, necessary to present  fairly
Registrant's financial position as of September 30, 1996, the  results
of  its  operations for the three and nine months ended September  30,
1996  and 1995 and cash flows for the nine months ended September  30,
1996 and 1995.  All significant intercompany accounts and transactions
have been eliminated.

     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
consolidated  financial statements should be read in conjunction  with
the  consolidated financial statements and related notes contained  in
the Annual Report for the fiscal year ended December 31, 1995.

      Management  believes that the procedures followed  in  preparing
these  consolidated  financial statements  are  reasonable  under  the
circumstances,  but  the  accuracy of the  amounts  in  the  financial
statements  are in some respect dependent upon facts that will  exist,
and  procedures that will be accomplished by Registrant later  in  the
fiscal year.

      The  results  of operations for the three and nine months  ended
September 30, 1996 are not necessarily indicative of the results to be
expected for a full year's 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 September 30, 1996 and December
31, 1995 was as follows:

                                September 30,        December 31,
                                         1996                1995

Purchased parts and components     $  612,584          $1,186,513
Work in process                       333,959             324,980
Finished goods                        796,940             135,448
                                   ----------          ----------
                                   $1,743,483          $1,646,941
                                   ==========          ==========

<PAGE>

(3)  PLANT AND EQUIPMENT

     The major classifications of plant and equipment at September 30,
     1996, and December 31, 1995 are:

                                    September 30,      December 31,
                                             1996              1995

     Machinery and equipment           $1,526,413        $1,551,899
     Computer hardware and software     2,678,085         2,497,945
     Furniture and fixtures             1,025,914         1,008,926
     Leasehold improvements               320,058           313,681
                                       ----------        ----------
                                       $5,550,470        $5,372,451
                                       ==========        ==========

(4) CALCULATION OF WEIGHTED AVERAGE SHARES

    Weighted average shares outstanding for the three and nine  months
     ended September 30, 1996 and the three months ended September 30,
     1995 do not include common stock equivalents, as their effect  on
     earnings per share would be anti-dilutive.

(5) OTHER EXPENSES

    The  Company  recorded Other Expenses for the three  months  ended
    September 30, 1996 in the amount of $1,560,407, consisting of one
    time charges for the following:

      (a) Expenses of $724,825 related to the withdrawn initial public
          offering of Votan stock.

      (b) A  charge  of $835,582 for the write-off of certain licensed
          and  capitalized software.  The charges relate primarily  to
          older  software  products that have been replaced  by  newer
          products.   By taking this charge, the Companys capitalized
          software  as  it appears on the balance sheet will  be  more
          closely related to projected revenues.

<PAGE>

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

Results of Operations
      Sales  for  the  third  quarter  ended  September  30,  1996  of
$4,055,118 were 6% higher than the sales of $3,834,017 for  the  third
quarter of 1995, and 21% higher than the sales of $3,347,859 generated
during the second quarter of 1996 and represented the highest level of
sales  for  any  third quarter in the Companys  history, traditionally
the weakest quarter of the year.

      The  increased  sales  result from  strong  gains  in  the  call
accounting  market,  particularly  with  Lucent  Technologies,  and  a
significant  increase in shipment of the Companys  INFO/MDR  products,
to both the domestic and international market.

      While  not  yet  contributing significantly to revenues,  market
reaction  to  the Companys  Verabill IS product released late  in  the
second  quarter  has  been  extremely encouraging.   MOSCOM  has  been
approached  by  three  leading  switch vendors  regarding  cooperative
marketing agreements for Verabill, which are currently being  actively
pursued.   These  potential partnerships would  augment  our  existing
relationships on Verabill, with Alcatel  SEL, Lucent Technologies, and
ORGA Kartensysteme, GmbH.

      The gross margin percentage for the three months ended September
30,  1996 of 68% was significantly lower than the 76% gross margin for
the  three  months  ended September 30, 1995,  which  represented  the
highest quarterly margin realized in the Companys  history.  The  drop
in  margin was due to the combination of a less favorable product mix,
as  well as higher amortization costs related to capitalized software.
The  gross margin for the nine months ended September 30, 1996 of  69%
compared  with  a gross margin percentage of 72% for the  nine  months
ended  September  30,  1995.   This  decrease  was  entirely  due   to
amortization costs increasing to 12% of sales during the  1996  versus
9%  of  sales for the first nine months of 1995, largely  due  to  the
lower sales volume.

     As expected and highlighted in earlier reports, 1996 expenditures
for  engineering  and development costs on both a  gross  and  net  of
capitalization  basis  continued to  far  exceed  the  expense  levels
realized  for  the  same  three and nine month  periods  of  1995,  as
illustrated by the following table:

                                 Three Months Ended        Nine Months Ended
                                    September 30              September 30
                                  1996         1995         1996         1995
Gross Expenditures for         
 Engineering & Software
 Development                $1,436,028   $  807,252   $3,790,676   $2,247,055
                               
Less:  Costs Capitalized      (184,902)    (397,417)  (1,371,724)    (961,408)
                            ----------   ----------   ----------   ----------
Net Engineering & Software  
Development Expense         $1,251,126   $  409,835   $2,418,952   $1,285,647
                            ==========   ==========   ==========   ==========
<PAGE>

      The  single  largest component of the increased engineering  and
development costs relate to Verabill IS, the Companys  new billing and
operations  support  system  for  telephone  and  wireless  companies.
During  the  first six months of 1996 the Company invested heavily  in
the  products  final development phase leading to product release  and
initial shipment of the base product in June of this year.  During the
third  quarter  of  1996 additional effort has been  invested  in  the
completion of additional Verabill models and enhancements.

     The Company expects that the gross expense levels for engineering
and development will begin to decline beginning  in the fourth quarter
of 1996.

      Selling,  general and administrative expenses of $3,099,727  for
the  three  months ended September 30, 1996 were 20% higher  than  the
$2,586,083  of  selling, general and administrative expenses  incurred
during  the  three months ended September 30, 1995.  Selling,  general
and  administrative  costs of $8,273,805 for  the  nine  months  ended
September  30,  1996 compared with similar expenses of $7,303,206  for
the  same  nine month period of 1995, an increase of 13%.   While  the
Company  has experienced increased sales and administrative  costs  at
its  foreign  subsidiaries, MOSCOM Ltd, Global Billing  Services,  and
MOSCOM  GmbH,  during the first nine months of 1996 versus  the  first
nine months of 1995, the increase for the three months ended September
30,  1996 was attributable to the expenses associated with the planned
expansion  of  the  Votan  division from a  research  and  development
facility to an independent entity, with sales and marketing capability
, including non recurring  charges  for  the  recruitment of the Votan
management team.

      The Company recorded a one time expense of $1,560,407 during the
quarter ended September 30, 1996 consisting of the following items:

1.   Costs associated with the withdrawn Votan initial public offering
  of  $724,845,  consisting primarily of legal  and  accounting  fees,
  printing costs, and financial advisor fees.

2.    A  writedown  of  capitalized  software  and  certain  purchased
  software of $835,562.  The charges relate primarily to older software
  products  that have been or will be replaced by newer products.   By
  taking  this  charge the Companys  balance sheet will  more  closely
  correlate   with  projected  future  revenues,  and  reduce   future
  amortization expenses.

      After  the  effect of the other expenses referred to above,  the
Company recognized a net loss of $3,117,061 or $0.45 per share for the
quarter ended September 30, 1996.  For the nine months ended September
30,  1996  the Company has realized a net loss of $4,954,867 or  $0.72
per  share.  For the respective three and nine month periods  of  1995
the  Company  had  a net loss of $18,008 ($.00 per share)  and  a  net
profit of $531,682 ($.08 per share).

Liquidity and Capital Resources

      As  of  September  30,  1996  the Company  had  total  cash  and
investment  resources of $2,611,397, which compared with cash  and  an
investment balance of $5,695,149 at December 31, 1995.

<PAGE>

      Working capital ratios at September 30, 1996, December 31,  1995
and September 30, 1995 were 2.4, 4.6 and 4.8 respectively.

      The  charge taken to purchased software and capitalized software
reduced  those balances from $350,784 and $3,896,879 at June 30,  1996
to $90,575 and $3,123,522 respectively at September 30, 1996.

     Current liabilities increased from $2,056,478 at June 30, 1996 to
$3,495,862 at September 30, 1996 largely due to the costs incurred  in
connection with the withdrawn Votan initial public offering.   Current
liabilities at December 31, 1995 were $2,553,023.

      Through   September  30, 1996  the  Company  had  maintained  an
unsecured revolving line of credit arrangement  with a commercial bank
for a maximum of $3,000,000.  As  a  result  of the  loss incurred for
the three  months  ended September  30,  1996  a financial covenant in
the  Companys  line  of credit  agreement was violated.  Subsequently,
effective November 14, 1996 the agreement was terminated.

      Given the Companys  strong working capital position at September
30,  1996, the Company believes that it will have sufficient resources
from  existing  cash  reserves and other current assets  to  meet  its
financial needs over the next twelve months.

<PAGE>

                       PART II - OTHER INFORMATION
                                    
Item 6:             Exhibits and Reports on Form 8-K

(1)  Registrants  Consolidated Financial Statements for the three and
nine months ended September 30, 1996 and 1995 are set forth in Part I,
Item 1 of this Quarterly Report on Form 10-Q.

(2)  Calculation of earnings per share.

(3)  Reports on Form 8-K

     (a) Registrant filed a form 8K/A with the Securities and Exchange
         Commission on March 5, 1996, the purpose of which was to change
         the registrants  certifying accountants from Deloitte and Touche
         LLP to Arthur Andersen LLP effective March 29, 1996.

     (b) Registrant filed a form 8-K with the Securities and Exchange
         Commission on June 28, 1996 announcing that its Votan Corporation
         subsidiary filed a Registration Statement on Form S-1 relating to
         the initial public offering of 2,750,000 shares of common stock.
  
<PAGE>
<TABLE>
                                                 Exhibit A:     (2)
                           MOSCOM CORPORATION
                             and Subsidiary
               
                   Calculations of Earnings Per Share
<CAPTION>                                    
                                   Three Months Ended          Nine Months Ended
                                      September 30                September 30
                                     1996          1995          1996          1995
<S>                           <C>           <C>           <C>           <C>
Primary
Net Income (Loss)             $(3,117,061)  $   (18,008)  $(4,954,867)  $   531,682
                              ===========   ===========   ===========   ===========
Weighted Common Shares        
Outstanding                     6,873,584     6,809,706     6,855,383     6,787,219
                                                                             
Dilutive Effect of Stock                                                     
Options After Application     
of Treasury Stock Method                -             -             -       121,195
                              -----------   -----------   -----------   -----------
Weighted Average Shares       
Outstanding                     6,873,584     6,809,706     6,855,383     6,908,414
                              ===========   ===========   ===========   ===========
Income (Loss) Per Common                                                     
and Common Equivalent Share   $      (.45)  $       .00   $      (.72)  $       .08
                              -----------   -----------   -----------   -----------
Assuming Full Dilution
Net Income (Loss)             $(3,117,061)  $   (18,008)  $(4,954,867)  $   531,682
                              ===========   ===========   ===========   ===========
Weighted Average Shares                                                      
Outstanding                     6,873,584     6,809,706     6,855,383     6,908,414
                                                                             
Additional Dilutive Effect                                                   
of Stock Options and                                                         
Warrants after Application   
of Treasury Stock Method                -             -             -             -
                              -----------   -----------   -----------   -----------
Weighted Average Shares       
Outstanding                     6,873,584     6,809,706     6,855,383     6,908,414
                              ===========   ===========   ===========   ===========
Income (Loss) per Common                                                     
Share Assuming Full Dilution  $      (.45)  $       .00   $      (.72)  $       .08
                              ===========   ===========   ===========   ===========
</TABLE>
<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:          November 14, 1996_____________

/Signature/_________________________________
Albert J. Montevecchio, Chairman of the Board
President and CEO



Date:          November 14, 1996_____________

/Signature/_________________________________
Ronald C. Lundy
Treasurer (Chief Accounting Officer)