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, 1998

                        Commission File Number 0-13898

               VERAMARK TECHNOLOGIES, INC., (FORMERLY MOSCOM CORPORATION)

            (Exact name of registrant as specified in its charter)

          DELAWARE                             16-1192368
(State or other jurisdiction of         (IRS Employer Identification
Incorporation or Organization)            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 30,1998.

     Common stock, par value $.10            7,567,248 shares

     This report consists of 14 pages.




<PAGE>
                                     INDEX



                                                            PAGE

PART I    FINANCIAL INFORMATION

   Item 1 Financial Statements

          Condensed Balance Sheets -                        3 -  4
          September 30, 1998 and December 31, 1997

          Condensed Statements of Operations -              5
          Three and Nine Months Ended
          September 30, 1998 and 1997

          Condensed Statements of Cash Flows -              6
          Nine Months Ended September 30, 1998 and 1997

          Notes To Condensed 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

                          VERAMARK TECHNOLOGIES, INC.

                           CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                           SEPTEMBER 30,                   DECEMBER 31,
ASSETS                                                              1998                          1997*
<S>                                      <C>                             <C>
CURRENT ASSETS:                                              (Unaudited)
   Cash and Cash Equivalents
     (Including short-term investments
     of  $614,562 and $757,076
     respectively)                                            $1,083,658                     $1,106,944
     Investments                                               4,002,200                      2,355,781
     Accounts Receivable, trade (net of
     allowance for doubtful accounts of
     $99,000 and $75,000, respectively)                        1,901,276                      1,724,047
   Inventories                                                   707,116                      1,164,797
   Prepaid Expenses                                              101,833                         30,582
                                                            ------------                   ------------       
        Total Current Assets                                   7,796,083                      6,382,151

PROPERTY AND EQUIPMENT                                         5,811,675                      5,293,751
   Less Accumulated Depreciation                              (4,428,687)                    (4,334,164)
                                                             -----------                    -----------
        Property and Equipment (Net)                           1,382,988                        959,587

OTHER ASSETS:
   Purchased Software (Net of
    accumulated amortization of $86,572
    and $62,876 respectively)                                     35,240                         28,612
                                                                                           
   Software Development Costs
    (Net of accumulated amortization of
    $1,478,630 and $767,537 respectively)                      3,151,357                      3,108,468
   Pension Assets                                              1,158,092                      1,158,092
   Deposits and Other Assets                                     342,723                        272,617
                                                             -----------                    -----------
   Total Other Assets                                          4,687,412                      4,567,789
                                                             -----------                    -----------
                                                             $13,866,483                    $11,909,527
TOTAL ASSETS                                                 ===========                    ===========
</TABLE>
See notes to Condensed Financial Statements.

                 *  DERIVED FROM AUDITED FINANCIAL STATEMENTS


<PAGE>

                          VERAMARK TECHNOLOGIES, INC.

                           CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                     September 30,          December 31,
                                                                             1998                  1997*
                                                                      (Unaudited)

<S>                                                    <C>                       <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts Payable                                                      $718,403                $746,229
  Accrued Compensation and Related Taxes                                 864,928                 348,602
  Deferred Revenue                                                     2,279,918               1,703,803
  Other Accrued Expenses                                                 577,726                 425,393
                                                                     -----------             -----------
     Total Current Liabilities                                         4,440,975               3,224,027

  Pension Obligation                                                   2,055,329               1,983,348
                                                                     -----------             -----------
Total Liabilities                                                      6,496,304               5,207,375

STOCKHOLDERS' EQUITY:
   Common Stock, par value $.10,
    Authorized 20,000,000 shares; issued
    7,567,248 and 7,549,703, respectively                                759,725                 754,970
   Additional Paid-in Capital                                         18,904,243              18,701,040
   Retained Earnings                                                 (12,167,275)            (12,753,858)
   Less cost of Treasury Stock (30,000 shares)                          (126,514)                      -
                                                                     -----------             -----------
Total Stockholders Equity                                              7,370,179               6,702,152
                                                                     -----------             -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $13,866,483             $11,909,527
                                                                     ===========             ===========
</TABLE>

See notes to Condensed Financial Statements.

                 *  DERIVED FROM AUDITED FINANCIAL STATEMENTS


<PAGE>

                          VERAMARK TECHNOLOGIES, INC.

                      CONDENSED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                      THREE MONTHS ENDED                     Nine Months Ended
                                                          SEPTEMBER 30,                         September 30,
                                                   1998                 1997               1998              1997
                                                           (Unaudited)                          (Unaudited)

<S>                                     <C>                 <C>                <C>                <C>
SALES                                            $4,693,706         $3,204,875        $12,280,856        $9,104,797
                                                 ----------         ----------        -----------       -----------
COSTS AND OPERATING EXPENSES:
  Cost of Sales                                     784,957            692,319          2,328,014         2,680,519
  Engineering & Software Development                672,092            418,625          2,054,088         1,873,365
  Selling, General and Administrative             2,992,890          2,079,310          7,450,443         7,357,295
  Other Non-recurring Costs                               -                  -                  -         2,377,869
                                                 ----------         ----------        -----------       -----------
     Total Costs and Operating Expenses           4,449,939          3,190,254         11,832,545        14,289,048
                                                 ----------         ----------        -----------       -----------

INCOME (LOSS) FROM OPERATIONS                       243,767             14,621            448,311        (5,184,251)
                                                 
INTEREST INCOME                                      59,404             12,625            138,272            65,972
                                                 ----------         ----------        -----------       -----------

INCOME (LOSS) BEFORE INCOME TAXES                   303,171             27,246            586,583        (5,118,279)

INCOME TAXES                                              -                  -                  -                 -
                                                 ----------         ----------        -----------       -----------
NET INCOME (LOSS)                                  $303,171            $27,246           $586,583       $(5,118,279)
INCOME (LOSS) PER SHARE                          ==========         ==========        ===========       ===========

    Basic                                              $.04               $.00               $.07            $(.71)
                                                       ====               ====               ====            =====
    Diluted                                            $.04               $.00               $.07            $(.71)
                                                       ====               ====               ====            =====
</TABLE>


SEE NOTES TO CONDENSED FINANCIAL STATEMENTS.



<PAGE>
                          VERAMARK TECHNOLOGIES, INC.
                      CONDENSED STATEMENTS OF CASH FLOWS

                                                
<TABLE>
<CAPTION>

                                                                       Nine Months Ended September 30,
                                                                       1998                        1997
                                                                                 (Unaudited)


<S>                                                           <C>                          <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)                                                     $586,583                  $(5,118,279)
Adjustments to Reconcile Net Income (Loss)to Net                    ----------                  -----------
 Cash Provided by Operating Activities
  Depreciation and Amortization                                        967,593                    1,525,285
  Provision for Losses on Accounts Receivable                           14,503                      211,250
  Provision for Inventory Obsolescence                                 224,997                      306,412

  Changes in Assets and Liabilities
     Investments                                                    (1,646,419)                  (1,083,090)
     Accounts Receivable                                              (191,732)                     868,633
     Inventories                                                       232,684                      357,851
     Prepaid Expenses                                                  (71,251)                       7,072
     Purchased Software                                                (30,405)                      (1,858)
     Deposits and Other Assets                                         (70,106)                      84,769
     Accounts Payable                                                  (27,826)                    (484,968)
     Accrued Compensation Related Taxes                                516,326                     (205,864)
     Other Current Liabilities                                         728,448                       78,832
     Long Term Liabilities                                              71,981                      653,130
                                                                    ----------                  -----------
  Net Adjustments                                                      718,793                    2,317,454
                                                                    ----------                  -----------
  Net Cash Provided by (Used In) Operating                                            
     Activities                                                      1,305,376                   (2,800,825)
                                                                    ----------                  -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Loss on Disposal of Fixed Assets                                       2,719                      301,919
  Additions to Property and Equipment                                 (658,843)                    (103,160)
  Software Development Costs                                          (753,982)                    (979,107)
                                                                    ----------                  -----------
Net Cash Flows Used by Investing Activities:                        (1,410,106)                    (780,348)
                                                                    ----------                  -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from Sales of Stock                                         143,384                    2,278,267
  Exercise of Stock Options and Warrants                                73,326                      167,061
  Stock Retirements                                                     (8,752)                     (76,500)
  Treasury Stock Purchases                                            (126,514)                           -
                                                                    ----------                  -----------
  Net Cash Flows from Financing Activities                              81,444                    2,368,828
                                                                    ----------                  -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS                              (23,286)                  (1,212,345)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                       1,106,944                    2,025,535
                                                                    ----------                  -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                            $1,083,658                  $   813,190
                                                                    ==========                  ===========    
</TABLE>


<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
Registrant's management,  necessary  to  present  fairly  the  Registrant's
financial  position  as  of  September  30,  1998  and  the  results of its
operations and cash flows for the three and nine months ended September 30,
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  and  nine  months ended
September  30,  1998  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 Company's operations,
markets, products, services and prices, and  other factors discussed in the
Company's filings with the Securities and Exchange Commission.

(2)  INVENTORIES

     The composition of inventories at September  30, 1998 and December 31,
1997 was as follows:

<TABLE>
<CAPTION>
                                                   SEPTEMBER 30,              DECEMBER 31,
                                                           1998                      1997
<S>                                  <C>                              <C>
                                                                                            
Purchased parts and components                         $356,903                $  454,617
Work in process                                         173,646                   120,566
Finished goods                                          176,567                   589,614
                                                       --------                ----------
                                                       $707,116                $1,164,797
                                                       ========                ==========
</TABLE>

<PAGE>
(3)  PROPERTY AND EQUIPMENT

     The  major  classifications of property and equipment at September 30,
     1998, and December 31, 1997 are:

<TABLE>
<CAPTION>
                                                     SEPTEMBER 30,                DECEMBER 31,
                                                              1998                        1997
<S>                                   <C>                           <C>
Machinery and equipment                                 $1,427,065                  $1,460,479
Computer hardware and software                           3,003,854                   2,627,442
Furniture and fixtures                                   1,064,117                     914,085
Leasehold improvements                                     316,639                     291,745
                                                        ----------                  ----------
                                                        $5,811,675                  $5,293,751
                                                        ==========                  ==========
</TABLE>

 (4) EARNINGS PER SHARE

     Earnings per  share  has been calculated under SFAS 128, "Earnings Per
     Share."  Weighted average shares outstanding for the nine months ended
     September 30, 1997 do  not  include common stock equivalents, as their
     effect on earnings per share would be antidilutive.








<PAGE>
     Item 2 Management's Discussion and Analysis of Financial Condition and
            Results of Operations

     Sales  for  the  three months ended  September  30,  1998  of  $4,693,706
represented a 46% increase from the $3,204,875 of sales realized for the three
months ended September 30, 1997.   Sales for the nine months ended September
30, 1998 of $12,280,856 were 35% higher  than  the sales of $9,104,797 for the
same  nine  month period of 1997.  The growth in sales  for  the  first  three
quarters of 1998  is  attributable  mainly  to  a 28% increase in sales of the
Company's core call accounting products and a 111%  increase  in  sales of the
Company's INFO/MDR, its central office telemanagement product, as compared  to
the  prior  year.  The  Company  is  also  optimistic about the future revenue
contribution expected to be made from its Verabill  customer  care and billing
product based on current order activity.  During the third quarter the Company
received  three  new  Verabill  orders,  the most significant being  from  the
Antigua  Public Utilities Authority ("APUA").   This  order  is  significantly
larger than the average Verabill order received by the Company to date because
the Company  is  providing  all  installation,  training,  and  implementation
services, in addition to licensing the Verabill software.  Revenues  from this
contract   will  be  recognized  over  the  next  two  to  three  quarters  as
implementation  progresses.   No  revenue  was  recognized  during  the  third
quarter.

     For  both  the  three  and  nine  months ended September 30, 1998, 27% of
Company revenues were derived from orders  previously  billed,  the  value  of
which  had  been  deferred  pending the performance of certain services. These
services typically include training,  installation,  custom  rate updates, and
maintenance  and  support,  which  ultimately  may  or may not be utilized  by
customers.   For  the  same  three and nine month periods  of  1997,  deferred
billings accounted for 17% and  21% of sales, respectively.  For the three and
nine month periods ended September  30,  1998, 6% and 7% of sales respectively
were from previously deferred billings for  services which are not expected to
be utilized based on historical experience.   The  value  of  the unrecognized
revenues related to these services is carried on the Company's  balance  sheet
under Liabilities as "deferred revenue".

     Gross  margins of $3,908,749 and $9,952,842 for the three and nine months
ended September  30,  1998  were  56%  and  55%  higher than the gross margins
realized  for  the  same three and nine month periods  of  1997.   The  higher
margins, while primarily  the result of the increased sales volumes, also were
positively impacted by lower  direct  product costs due to a higher content of
software based product in the sales mix,  and  lower  amortization costs, as a
percentage  of  sales,  associated  with  previously  capitalized  development
expenses.

     Net engineering and development costs of $672,092  for  the  three months
ended  September 30, 1998 compared with an expense level of $418,625  for  the
same quarter of 1997.  Net Engineering and development costs of $2,054,088 for
the nine  month  period ended September 30, 1998 were 10% higher than the 1997
net expense of $1,873,365  for  the same nine month period of 1997.  The chart
below  summarizes gross expenses,  amounts  capitalized  and  net  engineering
expense  for  the  three  and  nine month periods ended September 30, 1998 and
1997.



<PAGE>

<TABLE>
<CAPTION>

                                            Three Months Ended          Nine Months Ended
                                               September 30                September 30
                                          1998           1997           1998            1997
<S>                                    <C>            <C>          <C>             <C>
Gross Expenditures for Engineering
 & Software Development                 $988,463       $739,310      $2,808,070      $2,852,472
Less Cost Capitalized                   (316,371)      (320,685)       (753,982)       (979,107)
                                        --------       --------      ----------      ----------
Net Engineering & Software
 Development Expense                    $672,092       $418,625      $2,054,088      $1,873,365
                                        ========       ========      ==========      ==========
</TABLE>

     Selling general and administrative expenses of $2,992,890 for the quarter
ended September 30, 1998 increased  44%  from  the  third quarter 1997 expense
level  of  $2,079,310.  This  increase  reflects the Company's  investment  in
strengthening its sales, sales support, customer support and product marketing
staffs as planned subsequent to the corporate  restructuring undertaken during
the  second quarter of 1997.  For the nine months  ended  September  30,  1998
expenses for selling, general and administrative functions were only 1% higher
than the costs for the first nine months of 1997 due to the absence of current
spending for the subsidiaries closed as part of the referenced restructuring.

     For  the quarter ended September 30, 1998 the Company earned a net profit
of $303,171, or $.04 per share. This compared with a net profit of $27,246 for
the quarter  ended  September  30,  1997.   For  the  nine  month period ended
September  30, 1998 the Company has earned a net profit of $586,583,  or  $.07
per fully diluted  share.   This  compared with a net loss of $5,118,279, or a
loss of $.71 per share for the first nine months of 1997.

LIQUIDITY AND CAPITAL RESOURCES

     The Company's total cash position  (cash  on  hand  plus  investments) at
September 30, 1998 of $5,085,858 increased by 53% from the end of  the  second
quarter  of  1998.  Inventories of $707,116 are 39% lower than the balance  at
December 31, 1997.   Accounts  receivable  of $1,901,276 at September 30, 1998
are 10% higher than the receivables of $1,724,047 at December 31, 1997.  Total
assets of $13,866,483 at September 30, 1998  are  16% higher than the December
31, 1997 figure of $11,909,527.  Total current liabilities  have increased 38%
from December 31, 1997 to $4,440,975 at September 30, 1998, with  the increase
primarily  due  to  additions  to  deferred revenue and an increase in accrued
compensation related to higher employment.

     Through the first nine months of  1998  the Company has invested $658,843
in  capital  assets  primarily  for  upgrading its  development  capabilities,
strengthening its customer support and  service groups, and the implementation
of integrated management information system.

     During the third quarter of 1998 the Company repurchased 30,000 shares of
its common stock on the open market at a total cost of $126,514.

<PAGE>
     The Company maintains a private equity  line  of  credit agreement with a
single  institutional investor.  Under the equity line, the  Company  has  the
right to  sell to the investor shares of the Company's common stock at a price
equal to 88%  of  the  average  bid  price of the stock for the subsequent ten
trading days.  During the agreement term the Company may sell up to $6 million
of common stock to the investor with no  more  than  $500,000  in  any  single
month.  During the first three quarters of 1998 the Company sold 24,700 shares
of common stock to this investor yielding proceeds of $143,384.  Subsequent to
the  end  of  the  quarter, the expiration date of this agreement was extended
from June 2, 1999 to August 30, 2000.

     The Company also  maintains an agreement with a major commercial bank for
a secured demand line of  credit  agreement for up to $500,000.  Subsequent to
the end of the quarter, the bank has agreed to increase this line of credit to
$3,000,000.   There have been no borrowings  against  either  the  current  or
proposed new agreement.

     The Company believes that it has sufficient working capital and access to
alternative forms  of  financing 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)  Registrant's Condensed Financial Statements for the three and nine months
ended September 30, 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)

                          VERAMARK TECHNOLOGIES, INC.

                      CALCULATIONS OF EARNINGS PER SHARE

<TABLE>
<CAPTION>
                                                Three Months Ended                 Nine Months Ended
                                                   September 30,                     September 30,

                                             1998              1997             1998              1997
<S>                                 <C>                <C>               <C>              <C>
BASIC
Net Income (Loss)                             $303,171           $27,246         $586,583      $(5,118,279)
                                             =========         =========        =========      ===========
Weighted Common Shares Outstanding           7,589,698         7,423,011        7,572,004        7,264,348
                                             =========         =========        =========      ===========
Income (Loss) Per Common Share                    $.04              $.00             $.07            $(.71)
                                                  ====              ====             ====            =====
DILUTED
Net Income (Loss)                             $303,171           $27,246         $586,583      $(5,118,279)
                                             =========         =========        =========      ===========
Weighted Average Shares Outstanding          7,589,698         7,423,011        7,572,004        7,264,348

Additional Dilutive Effect of Stock
 Options and Warrants after
 Application of Treasury Stock               
 Method                                        379,958           156,200          393,546                -
                                             =========         =========        =========      ===========
Weighted Average Shares Outstanding          7,969,656         7,579,211        7,965,550        7,264,348
                                             =========         =========        =========      ===========
Income (Loss) per Common Share and
Common Equivalent Share                           $.04              $.00             $.07            $(.71)
                                                  ====              ====             ====            =====
</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.



                          VERAMARK TECHNOLOGIES, INC.

                                  REGISTRANT

Date:     _________________________



_____________________________________
David G. Mazzella
President and CEO




Date:     _________________________



_____________________________________
Ronald C. Lundy
Treasurer (Chief Accounting Officer)

<PAGE>