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: March 31, 1997

                  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 March 31,  1997,  there were  41,733,000  shares of common  stock,  no par
value, outstanding.


<PAGE>



TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Condensed Consolidated Balance Sheet

                                                   March 31,
                                                     1997          June 30,
                                                  (Unaudited)       1996

ASSETS

CURRENT ASSETS

         Cash                                      $       248    $       840
         Accounts receivable                                45            576
         Inventories                                     4,247          5,851

         Prepaid expenses                                   79            196
--------------------------------------------------------------------------------

                  Total current assets             $     4,619    $     7,463
--------------------------------------------------------------------------------

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES

         Payable to affiliates                     $    32,503    $    20,707
         Accounts payable                              112,996        120,795
--------------------------------------------------------------------------------

                  Total current liabilities            145,499        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                        (1,107,737)    (1,100,896)
--------------------------------------------------------------------------------
                  Total stockholders' (deficit)     (1,400,880)      (134,039)
--------------------------------------------------------------------------------

                                                   $     4,619    $     7,463
================================================================================


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

                                        2

<PAGE>


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

<TABLE>
<CAPTION>


                                     Three Months Ended            Nine Months Ended
                                         March 31,                      March 31,
                                  --------------------------     ----------------------
                                    1997          1996           1997              1996
                                                                                
-------------------------------------------------------------------------------------------

<S>                               <C>         <C>             <C>              <C>         
NET SALES                         $    --     $     28,589    $      5,779     $     43,845

COST OF SALES                          --           29,092             --            46,234
-------------------------------------------------------------------------------------------

GROSS PROFIT                           --              (503)          5,779          (2,389)

SELLING, GENERAL
AND ADMINISTRATIVE                    4,279           3,441          14,550          14,469
-------------------------------------------------------------------------------------------

OPERATING LOSS                       (4,279)         (3,944)         (8,771)        (16,858)

OTHER INCOME (EXPENSE)                 --              (721)           --             7,284
-------------------------------------------------------------------------------------------

LOSS BEFORE
EXTRAORDINARY ITEM                   (4,279)         (4,665)         (8,771)         (9,574)
-------------------------------------------------------------------------------------------

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

NET INCOME (LOSS)                    (4,279)   $     (4,665)   $     (6,841)   $     (9,574)
===========================================================================================

LOSS PER SHARE:

BEFORE EXTRAORDINARY
ITEMS                               $  --      $      --        $      --      $       --
-------------------------------------------------------------------------------------------

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)

                                                          Nine Months Ended
                                                               March 31,
                                                          ------------------
                                                          1997          1996
--------------------------------------------------------------------------------

CASH FLOWS FROM OPERATING ACTIVITIES

  Net income (loss)                                     $ 104,544     $  (9,574)
  Adjustments to reconcile net income (loss)
  to net cash provided by operating activities:
  Changes in operating assets and liabilities:
           Accounts receivable                                531        33,990
           Inventories                                      1,604        35,195
           Prepaid expenses                                   117         2,754
           Payable to affiliates                           11,796        30,500
           Accounts payable                              (119,184)      (23,332)
--------------------------------------------------------------------------------

                                                             (592)       69,533
--------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Principal payments to financial institution                --        (116,033)
--------------------------------------------------------------------------------
                                                             --        (116,033)
--------------------------------------------------------------------------------

NET INCREASE (DECREASE) IN CASH                              (592)      (46,500)

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

CASH - END OF PERIOD                                    $     248     $   1,171
================================================================================












                      The accompanying notes are considered
                 an integral part of thesefinancial 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>              <C>       
Balances, July 1, 1996              41,733,000        $41,733           $925,124         $(1,100,896)     $(134,039)

Net loss (unaudited)                       --             --                --                (6,841)        (6,841)
-------------------------------------------------------------------------------------------------------------------

Balances, March 31, 1997
(unaudited)                         41,733,000        $41,733           $925,124          $1,107,737      $(140,880)
-------------------------------------------------------------------------------------------------------------------

                                                          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 years 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 March 31, 1997,  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 March 31, 1997,  the Company had no net sales or cost
of sales,  and no gross profit.  For the same period in 1996, the net sales were
$28,589 with a cost of sales of $29,092 for a gross profit (loss) of ($503).

     In quarter ended March 31, 1997, the Company incurred $4,279 in general and
administrative for an operating loss of ($4,279).  The operating results for the


                                        6

<PAGE>



same period in 1996 were $3,441 in selling, general, and administrative expenses
which produced an operating loss of ($3,944). An additional ($721) expense, when
combined with the  operating  loss totalled a net loss of ($4,665) for the March
31, 1996 quarter.


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

     The  Company had  nominal  cash  capital at the end of the period and total
assets of $4,619. The Company had $34,114 in current  liabilities 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 March 31,
               1997. (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




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