SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB

               Quarterly Report Pursuant to Section 13 or 15(d) of
                       The Securities Exchange Act of 1934

                For the quarterly period ended: December 31, 1996

                  TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)



    Colorado                       0-13313                        36-3296861
---------------                  ------------                -------------------
(State or other                  (Commission                    (IRS Employer
jurisdiction of                  File Number)                Identification No.)
incorporation)



P.O. Box 4197, Englewood, CO                                          80155-4197
--------------------------------------------------------------------------------
(Address of principal executive offices)                              (Zip Code)

Registrant's telephone number, including area code 303-761-8829
                                                   ------------

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 Exchange 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 the  filing
requirements for at least the past 90 days.

                           Yes  X        No   
                              -----        -----

As of December 31, 1996,  there were  41,733,000  shares of common stock, no par
value, outstanding.



<PAGE>



PART 1. FINANCIAL INFORMATION

     ITEM 1. Financial Statements

TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Condensed Consolidated Balance Sheet

                                                   December 31,
                                                       1996          June 30,
                                                   (Unaudited)         1996
--------------------------------------------------------------------------------
ASSETS

CURRENT ASSETS
         Cash                                    $          96    $         840
         Accounts receivable                             2,550              576
         Inventories                                     4,247            5,851
         Prepaid expenses                                   79              196
--------------------------------------------------------------------------------

                  Total current assets           $       6,972    $       7,463
--------------------------------------------------------------------------------


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)


CURRENT LIABILITIES

         Payable to affiliates                   $      25,587    $      20,707
         Accounts payable                              117,986          120,795
--------------------------------------------------------------------------------
                  Total current liabilities            143,573          141,502
--------------------------------------------------------------------------------

STOCKHOLDERS' EQUITY (DEFICIT)

         Common stock, stated no par value
         per share; authorized 100,000,000
         shares; issued and outstanding
         41,733,000 shares                              41,733           41,733
         Additional paid-in capital                    925,124          925,124
         Accumulated deficit                        (1,103,458)      (1,100,896)
--------------------------------------------------------------------------------
                  Total stockholders' (deficit)       (136,601)        (134,039)
--------------------------------------------------------------------------------

                                                 $       6,972    $       7,463
================================================================================


                    The accompanying notes are considered an
                  integral part of thesefinancial statements.

                                        2

<PAGE>
<TABLE>
<CAPTION>



TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Condensed Consolidated Statement of Operations
(Unaudited)


                                             Three Months Ended                       Six Months Ended
                                                 December 31,                            December 31,
                                            --------------------                    --------------------
                                          1996                1995                1996                1995
----------------------------------------------------------------------------------------------------------------

<S>                                  <C>                  <C>                  <C>                  <C>         
NET SALES                            $        781         $        930         $      5,779         $     15,256

COST OF SALES                                --                  5,441                 --                 17,142
----------------------------------------------------------------------------------------------------------------

GROSS PROFIT                                  781               (4,511)               5,779               (1,886)

SELLING, GENERAL AND
ADMINISTRATIVE                             10,079                 (504)              10,271               11,028
----------------------------------------------------------------------------------------------------------------

OPERATING LOSS                             (9,298)              (4,007)              (4,492)             (12,914)

OTHER INCOME (EXPENSE)                       --                  3,225                 --                  8,005
----------------------------------------------------------------------------------------------------------------

LOSS BEFORE EXTRAORDINARY
ITEM                                       (9,298)                (782)              (4,492)              (4,909)
----------------------------------------------------------------------------------------------------------------

EXTRAORDINARY ITEM -
SETTLEMENT AND EXTINGUISHMENT
OF TRADE PAYABLES                             (60)                --                  1,930                 --
----------------------------------------------------------------------------------------------------------------

NET LOSS                             $     (9,358)        $       (782)        $     (2,562)        $     (4,909)
================================================================================================================

INCOME (LOSS) PER SHARE:

BEFORE EXTRAORDINARY ITEM            $       --           $       --           $       --           $       --
----------------------------------------------------------------------------------------------------------------

EXTRAORDINARY ITEM                           --                   --                   --                   --
----------------------------------------------------------------------------------------------------------------

NET INCOME (LOSS)                    $       --           $       --           $       --           $       --
================================================================================================================

WEIGHTED AVERAGE SHARES
OUTSTANDING                            41,733,000           41,733,000           41,733,000           41,733,000
================================================================================================================









              The accompanying notes are considered an integral part of these financial statements.

                                                    3
</TABLE>

<PAGE>



TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Consolidated Statement of Cash Flows
(Unaudited)


                                                             Six Months Ended
                                                               December 31,
                                                            -----------------
                                                            1996         1995
--------------------------------------------------------------------------------

CASH FLOWS FROM OPERATING ACTIVITIES
    Net loss                                             $  (2,562)   $  (4,909)
    Adjustments to reconcile net income (loss)
    to net cash provided by operating activities:
          Changes in operating assets and liabilities:
          Accounts receivable                               (1,974)      33,326
                   Inventories                               1,604       21,877
                   Prepaid expenses                            117        2,754
                   Payable to affiliates                     4,880       30,500
                   Accounts payable                         (2,809)     (12,998)
--------------------------------------------------------------------------------

                                                              (744)      70,550
--------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES

    Principal payments to financial institution               --       (116,033)

                                                              --       (116,033)
--------------------------------------------------------------------------------

NET INCREASE (DECREASE) IN CASH                               (744)     (45,483)

CASH - BEGINNING OF PERIOD                                     840       47,671
--------------------------------------------------------------------------------

CASH - END OF PERIOD                                     $      96    $   2,188
================================================================================

















                    The accompanying notes are considered an
                  integral part of these financial statements.

                                        4

<PAGE>
<TABLE>
<CAPTION>



TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit)

                                                                       Additional
                                           Common Stock                 Paid-in         Accumulated
                                     Shares            Amount           Capital           Deficit             Total
----------------------------------------------------------------------------------------------------------------------


<S>                                <C>              <C>               <C>               <C>                <C>         
Balances, July 1, 1996             41,733,000       $    41,733       $   925,124       $(1,100,896)       $  (134,039)

     Net loss (unaudited)                --                --                --              (2,562)            (2,562)
----------------------------------------------------------------------------------------------------------------------

Balances, December 31,
1996 (unaudited)                   41,733,000       $    41,733       $   925,124       $(1,103,458)       $  (136,601)
======================================================================================================================







                                                          5
</TABLE>

<PAGE>



TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

Note A - General

Teleconferencing Systems International, Inc. (the "Company") was incorporated in
Colorado on December 19,  1983.  Activities  of the Company  since June 30, 1995
have  been  primarily   liquidation  of  operating   assets  and  settlement  of
obligations  to creditors  and  employees as  previously  reported in its Annual
Report filed on Form 10-KSB for the year ended June 30, 1995 and 1996.

The accompanying  unaudited condensed financial statements have been prepared in
accordance  with the  instructions  to Form 10-QSB and do not include all of the
information and notes required by generally accepted  accounting  principles for
complete  financial  statements.  In the  opinion of  management,  all  material
adjustments,   consisting  of  only  normal  recurring  adjustments   considered
necessary for a fair presentation,  have been included.  These statements should
be read in conjunction with the financial  statements and notes thereto included
in the Company's Form 10-KSB for the year ended June 30, 1996.

The results of operations  for the three months ended December 31, 1996, are not
necessarily indicative of the results for the remainder of fiscal 1997.

Note B - Earnings (Loss) Per Share

Earnings  (loss)  per share of  common  stock are  computed  using the  weighted
average number of shares outstanding during each period.

ITEM 2.

Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations.

Results of Operations
---------------------

     The Company's active  operations had ceased on June 30, 1995,  however some
minimal  activity  continued in collecting  accounts  receivable and making some
creditors payments.

     For the quarter ended  December 31, 1996, the Company had net sales of $781
with a cost of sales of $ 0, and gross  profit of $781.  For the same  period in
1995,  the net sales were $930 with a cost of sales of $5,441 for a gross profit
(loss) of ($4,511).

     In quarter ended December 31, 1996, the Company incurred $10,079 in general
and administrative expenses for an operating loss of ($9,298). The Company had a


                                        6

<PAGE>

net loss of ($9,358) for the period.  The operating  results for the same period
in 1995 were ($504) in  selling,  general,  and  administrative  expenses  which
produced an operating loss of ($4,007).  Additional other income of $3,225, when
combined with the operating  loss totalled a net loss of ($782) for the December
31, 1995 quarter.

Liquidity and Capital Resources
-------------------------------

     The  Company  had  nominal  cash  capital at the end of the period and only
$6,972 in assets. The Company had current liabilities of $143,573 at period end.
The  Company  will be forced to either  borrow  against  or sell  assets or make
private placements of stock in order to fund any operations. No assurance exists
as to the ability to make private placements of stock.

PART II
                                OTHER INFORMATION

Item 1.  Legal Proceedings - None.
Item 2.  Changes in securities - None.
Item 3.  Defaults upon senior securities - None.
Item 4.  Submission of matters to a vote of security holders - None.
Item 5.  Other information - None.
Item 6.  Exhibits and reports on Form 8-K

          (a)  The following are filed as Exhibits to this Quarterly Report. The
               numbers refer to the Exhibit Table of Item 601 of Regulation S-K:
               None.

          (b)  Reports on Form 8-K filed during the three months ended  December
               31, 1996. (incorporated by reference): None.

                                   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 of the
undersigned thereunto duly authorized.

Dated:   October 20, 1997

                                   TELECONFERENCING SYSTEMS INTERNATIONAL, INC.


                                   by:/s/ Keith Shwayder
                                   ---------------------------------------------
                                          President


                                        7