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: September 30, 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 September 30, 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

                                                    September 30,
                                                        1996           June 30,
                                                     (Unaudited)        1996
--------------------------------------------------------------------------------

ASSETS

CURRENT ASSETS

         Cash                                        $       282    $       840
         Accounts receivable                               5,861            576
         Inventories                                       4,247          5,851
         Prepaid expenses                                    145            196
--------------------------------------------------------------------------------

                  Total current assets               $    10,535    $     7,463
================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
         Payable to affiliates                       $    19,792    $    20,707
         Accounts payable                                117,986        120,795
--------------------------------------------------------------------------------

                  Total current liabilities              137,778        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                          (1,094,100)    (1,100,896)
--------------------------------------------------------------------------------
                  Total stockholders' (deficit)         (127,243)      (134,039)
--------------------------------------------------------------------------------

                                                     $    10,535    $     7,463
================================================================================

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

                                        2

<PAGE>



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

                                                         Three Months Ended
                                                            September 30,
                                                            -------------
                                                         1996         1995
--------------------------------------------------------------------------------
NET SALES                                         $      4,998     $     14,326

COST OF SALES                                             --             11,701
--------------------------------------------------------------------------------

GROSS PROFIT                                             4,998            2,625

SELLING, GENERAL AND ADMINISTRATIVE                        192           11,532
--------------------------------------------------------------------------------

OPERATING INCOME (LOSS)                                  4,806           (8,907)

OTHER INCOME (EXPENSE)                                    --              4,780
--------------------------------------------------------------------------------

LOSS BEFORE EXTRAORDINARY ITEMS                          4,806           (4,127)
--------------------------------------------------------------------------------

EXTRAORDINARY ITEM - SETTLEMENT AND
EXTINGUISHMENT OF TRADE PAYABLES                         1,990             --
--------------------------------------------------------------------------------


NET INCOME (LOSS)                                 $      6,796     $     (4,127)
================================================================================




INCOME (LOSS) PER SHARE:

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

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

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

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



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

                                        3

<PAGE>



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


                                                             Three Months Ended
                                                                September 30,
                                                                -------------
                                                             1996         1995
--------------------------------------------------------------------------------

CASH FLOWS FROM OPERATING ACTIVITIES
    Net Profit or (Loss)                                 $   6,796    $  (4,127)
    Adjustments to reconcile net income (loss)
        to net cash provided by operating activities:
          Changes in operating assets and liabilities:
                     Accounts receivable                    (5,285)      37,123
                     Inventories                             1,604       17,057
                     Prepaid expenses                           51        2,811
                     Payable to affiliates                    (915)      30,500
                     Accounts payable                       (2,809)     (12,416)
--------------------------------------------------------------------------------

                                                              (558)      70,948
--------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
    Principal payments to financial institution               --       (116,033)
--------------------------------------------------------------------------------

NET INCREASE (DECREASE) IN CASH                               (558)     (45,085)

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

CASH - END OF PERIOD                                     $     282    $   2,586
================================================================================













     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)                   --          --           --            6,796          6,796
---------------------------------------------------------------------------------------------------

Balances, September 30, 1996
 (unaudited)                    41,733,000     $41,733     $925,124     $(1,094,100)     $(127,243)
===================================================================================================






                                                 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 September 30, 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  September  30,  1996,  the Company had net sales of
$4,998  with a cost of sales of $0,  and gross  profit of  $4,998.  For the same
period in 1995, the net sales were $14,326 with a cost of sales of $11,701 for a
gross profit of $2,625.

     In quarter ended  September 30, 1996, the Company  incurred $192 in general
and  administrative  for operating income of $4,806. The Company received $1,990


                                        6

<PAGE>


in other income  which  increased  the net income to $6,796 for the period.  The
operating results for the same period in 1995 were $11,532 in selling,  general,
and administrative expenses which produced an operating loss of ($4,127).

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

     The Company had nominal cash capital at the end of the period.  The Company
had $10,535 in current  assets and  $137,778 in current  liabilities  at quarter
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 September
               30, 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