U.S. SECURITIES AND EXCHANGE COMMISSION

                           Washington, DC  20549


                                FORM 10-QSB



             X  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE


                      SECURITIES EXCHANGE ACT OF 1934


              For the quarterly period ended: March  31, 1998



                TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE


                               EXCHANGE ACT

                        Commission file No. 0-13167


                             TM CENTURY, INC.
        (Name of small business issuer as specified in its charter)


     Delaware                                        73-1220394
   (State of incorporation)                  (IRS Employer Identification  No.)


   2002 Academy, Dallas, Texas   
            75234
   (Address of principal executive offices)  
        (Zip Code)

   Issuer's telephone number:    
   (972) 247-8850


   Check whether the issuer (1) filed all reports required  to be filed
   by Section 13 or 15(d) of the Exchange Act during the  past 12 months
   (or for such shorter period that the registrant was required to file
   such reports), and (2) has been subject to such filing requirements
   for the past 90 days. Yes   X   No___

   The number of issuer's shares of Common Stock outstanding as of April
   30, 1998 was 2,483,193.

   Transitional Small Business Disclosure Format (check one): Yes__ No X

   <PAGE>
   <TABLE>
                                    TM Century, Inc.
                                     Balance Sheets
                As of March 31, 1998 (Unaudited) and September 30, 1997

                                         ASSETS
          <S>                                         <C>                 <C>

                                                 March 31, 1998    September 30, 199
   CURRENT ASSETS     
      Cash                                                324,982             294,33 
      Accounts and notes receivable                       883,121             983,76
          less allowance for doubtful accounts           (157,361)           (250,000
      Inventories, net                                    749,357             779,95
      Deferred federal income taxes                       146,630             154,53
      Prepaid expenses and other current                   17,897              25,22
      assets

            TOTAL CURRENT ASSETS                        1,964,626           1,987,80

   PROPERTY AND EQUIPMENT                               2,507,874           2,463,95
       Less accumulated depreciation                   (1,716,617)         (1,548,617
            NET PROPERTY AND EQUIPMENT                    791,257             915,34

   INVENTORIES - NONCURRENT, net                          147,244             143,64
   OTHER ASSETS                                            18,325              18,26

      TOTAL ASSETS                                      2,921,452           3,065,05


                          LIABILITIES AND STOCKHOLDERS' EQUITY

   CURRENT LIABILITIES
      Accounts payable                                     58,705              69,45
      Accrued expenses                                    178,564             205,67
      Current portion of obligation under                 171,570             178,03
      capital lease
      Deferred revenue                                     71,545              56,01
      Customer deposits                                    17,858              26,35

            TOTAL CURRENT LIABILITIES                     498,242             535,52

   OBLIGATIONS UNDER CAPITAL LEASE                         47,593             128,75
   CUSTOMER DEPOSITS - NONCURRENT                         172,102             166,41
   DEFERRED FEDERAL INCOME TAXES                           18,500              26,40

            TOTAL LIABILITIES                             736,437             857,10

   STOCKHOLDERS' EQUITY
      Common stock, $.01 par value; authorized             29,705              29,70
      7,500,000 shares;
         2,970,481 shares issued; and
      2,483,193 shares outstanding
      Paid-in capital                                   2,275,272           2,275,27
      Treasury stock - at cost, 487,288                (1,291,227)         (1,291,227
      Retained earnings                                 1,171,265           1,194,20
            TOTAL STOCKHOLDERS' EQUITY                  2,185,015           2,207,95

      TOTAL LIABILITIES AND STOCKHOLDERS'               2,921,452           3,065,05
      EQUITY

   </TABLE>
   <PAGE>

   <PAGE>
   <TABLE>
                                   TM CENTURY, INC.
              Statements of Operations and Retained Earnings (Unaudited)
                  For the Three Months Ended March 31, 1998 and 1997


                <S>                                          <C>            <C>
                                                             1998          1997

   REVENUES                                                 1,801,556     1,846,758

      Less commissions                                        326,498       332,104

   NET REVENUES                                             1,475,058     1,514,654   COSTS AND EXPENSES:
          Production, programming and technical costs         578,635       744,039
          General and administrative                          491,928       554,665
          Selling costs                                       270,481       244,250
          Depreciation                                         84,000        90,000
          Reduction in carrying value of inventories                0       148,000

          TOTAL                                             1,425,044     1,780,954

   OPERATING INCOME (LOSS)                                     50,014      (266,300)

   OTHER INCOME (EXPENSES)
          Other, net                                            3,297         3,022
          Interest expense                                     (4,243)       (5,503)

          TOTAL                                                  (946)       (2,481)

   INCOME (LOSS) BEFORE INCOME TAXES                           49,068      (268,781)

   INCOME TAX (BENEFIT) PROVISION                                   0             0

   NET INCOME (LOSS)                                           49,068      (268,781)


   RETAINED EARNINGS, BEGINNING OF PERIOD                   1,122,197     1,727,580

   RETAINED EARNINGS, END OF PERIOD                         1,171,265     1,458,799

   BASIC NET INCOME (LOSS) PER SHARE                             0.02        (0.11)

   WEIGHTED AVERAGE NUMBER OF
          COMMON SHARES OUTSTANDING                         2,483,193     2,491,624

   </TABLE>
   <PAGE>

   <PAGE>
   <TABLE>
                                   TM CENTURY, INC.
              Statements of Operations and Retained Earnings (Unaudited)
                   For the Six Months Ended March 31, 1998 and 1997

         <C>                                                   <S>          <S>
                                                             1998          1997

   REVENUES                                                 3,475,643     3,507,398

      Less commissions                                        633,055       642,165
   NET REVENUES                                             2,842,588     2,865,233

   COSTS AND EXPENSES:
          Production, programming and technical costs       1,112,407     1,489,488
          General and administrative                        1,030,936     1,143,011
          Selling costs                                       549,761       459,311
          Depreciation                                        168,000       180,368
          Reduction in carrying value of inventories                0       148,000

          TOTAL                                             2,861,104     3,420,178

   OPERATING INCOME (LOSS)                                    (18,516)     (554,945)

   OTHER INCOME (EXPENSES)
          Other, net                                            4,979         5,374
          Interest expense                                     (9,403)      (13,180)

          TOTAL                                                (4,424)       (7,806)

   INCOME (LOSS) BEFORE INCOME TAXES                          (22,940)     (562,751)
   INCOME TAX (BENEFIT) PROVISION                                   0             0

   NET INCOME (LOSS)                                          (22,940)     (562,751)


   RETAINED EARNINGS, BEGINNING OF PERIOD                   1,194,205     2,021,550

   RETAINED EARNINGS, END OF PERIOD                         1,171,265     1,458,799

   BASIC NET INCOME (LOSS) PER SHARE                           (0.01)        (0.22)

   WEIGHTED AVERAGE NUMBER OF
          COMMON SHARES OUTSTANDING                         2,483,193     2,514,283

</TABLE>
<PAGE>

<PAGE>
<TABLE>

                                   TM Century, Inc.
                         Statement of Cash Flows (Unaudited)
                   For the Six Months Ended March 31, 1998 and 1997
              <C>                                                <S>          <S>
                                                                1998         1997
   CASH FLOWS FROM OPERATING ACTIVITIES
         Net income (loss)                                      (22,940)   (562,751)
         Adjustments to reconcile net income to
         net cash provided by operating activities
            Depreciation                                        168,000     180,368
            Amortization                                        142,800     138,190
            Provision for doubtful accounts                      20,000      40,000
            Reduction in carrying value of inventories                0     148,000
         Change in assets and liabilities
            Increase (Decrease) in cash for changes in:
               Trade accounts receivable                        (11,994)   (112,646)
               Inventories                                     (115,800)    139,307
               Prepaid expenses                                   7,262     (58,705)
               Accounts payable and accrued expenses            (37,857)     55,218
               Deferred revenue                                  15,534       7,160
               Customer deposits                                 (2,815)     16,727
         NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES       162,190      (9,132)

   CASH FLOWS FROM INVESTING ACTIVITIES
         Purchases of property and equipment                    (43,916)    (17,478)
         Acquisition of treasury stock                                0     (40,911)
         NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES       (43,916)    (58,389)

   CASH FLOWS FROM FINANCING ACTIVITIES
         Principal payments on capital lease obligations        (87,625)    (80,611)
         NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES       (87,625)    (80,611)

   NET INCREASE (DECREASE) IN CASH                               30,649    (148,132)

   CASH AT BEGINNING OF PERIOD                                  294,333     377,855

   CASH AND CASH EQUIVALENTS AT END OF PERIOD                   324,982     229,723

</TABLE>
<PAGE>



                              TM CENTURY INC.

                   NOTES TO INTERIM FINANCIAL STATEMENTS

                          MARCH 31, 1998 AND 1997

   1.  BASIS OF PRESENTATION
   The interim financial statements of TM Century, Inc. (the  _Company_)
   at March 31, 1998, and for the  three and six months ended March  31,
   1998 and 1997, are unaudited, but include all adjustments (consisting
   only of  normal recurring  adjustments) which  the Company  considers
   necessary for a fair presentation.   The September 30, 1997,  balance
   sheet was derived from  the balance sheet  included in the  Company's
   audited financial statements  as filed on  Form 10-KSB  for the  year
   ended September 30,  1997.   Certain amounts  previously reported  in
   prior interim financial statements have been reclassified to  conform
   to the 1998 presentation.

   The accompanying  unaudited  interim  financial  statements  are  for
   interim periods and do not include all disclosures normally  provided
   in annual financial  statements, and  should be  read in  conjunction
   with the Company's  audited financial statements.   The  accompanying
   unaudited interim financial statements for  the three and six  months
   ended March 31, 1998, are not  necessarily indicative of the  results
   which can be expected for the entire fiscal year.

   2.  INCOME TAXES

   Deferred income  taxes are  provided, when  applicable, on  temporary
   differences between the recognition of income and expense for tax and
   for financial  accounting purposes  in accordance  with Statement  of
   Financial Accounting  Standards  No.  109 (_SFAS  109_).    Temporary
   differences  which  give  rise   to  deferred  taxes  include   basis
   differences of property and  equipment, accelerated tax  depreciation
   in excess of book depreciation, and valuation allowances provided  in
   excess of amounts deductible for tax purposes.  Under the  provisions
   of SFAS 109, recognition of deferred tax assets is permitted for such
   amounts which can be carried forward to future periods.

   The Company  has net  operating loss  carryforwards of  approximately
   $1.3 million available  to offset future  taxable income expiring  in
   2008 through 2010.  The Company has recorded a deferred tax asset  of
   $155,000 after  deduction of  a valuation  allowance of  $522,000  to
   reduce the  total deferred  tax asset  because it  is likely  that  a
   portion of  the tax  asset  will not  be  realized.   Realization  is
   dependent on generating sufficient taxable income prior to expiration
   of the loss carryforwards. Management believes it is more likely than
   not that the non-reserved portion of  the deferred tax asset will  be
   realized.    The  amount  of   the  deferred  tax  asset   considered
   realizable, however, could be reduced in  the near term if  estimates
   of future taxable income during the carryforward period are  reduced.
   Certain provisions of the tax law  may limit the net operating  loss,
   capital loss and credit carryforwards available for use in any  given
   tax year in the event of a significant change in ownership interest.
<PAGE>

   3.  LONG-TERM DEBT AND LEASE OBLIGATIONS

   The Company's Line of  Credit was renewed  through February 28,  1999
   for $500,000 which  represented a $200,000  increase compared to  the
   prior year.  The Company's $500,000  revolving Line of Credit with  a
   bank grants a first lien and security interest in and upon 80% of the
   Company's domestic  accounts and  chattel paper,  chattel paper  with
   installments or other sums more than  90 days past due, and  accounts
   and chattel paper due from any person or entity not domiciled in  the
   United  States.    Borrowings  under  the  Line  of  Credit  bear   a
   fluctuating interest rate of prime plus  1.5%, payable monthly.   The
   Line of Credit, which bears an  annual commitment fee of 0.5% of  the
   unused amounts, is renewable annually, subject to the consent of both
   parties. No borrowings were drawn under the Line of Credit during the
   quarter.   In  conjunction  with the  Company's  leasing  arrangement
   discussed below, the availability under the Line of Credit is reduced
   from $500,000 to $300,000 due to a $200,000 letter of credit.
   In May, 1996,  the Company  entered into  a lease  agreement for  the
   financing of  an  upgrade  of  its  computer  hardware  and  software
   systems.  During  the quarter ended  December 31,  1997, the  Company
   obtained financing on  the remaining $100,000  of the total  $550,000
   project.  The lease  is backed by a  $200,000 letter of credit  which
   must be renewed annually subject to the renewal of the Company's Line
   of Credit.  The requirement of the letter of credit will be  reviewed
   on an annual  basis.   The lease has  a term  of three  years and  is
   scheduled to expire in November, 1999.  The lease contains an  option
   to purchase the equipment at its fair market value or renew the lease
   at its  fair market  rental value  at the  end of  the initial  term.
   Based on  borrowing  rates  currently available  to  the  Company  on
   similar  arrangements,  the  fair   value  of  the  lease   agreement
   approximates the carrying value.

   4.  Earnings Per Share

   In February, 1997, the Financial Accounting Standards Board  ("FASB")
   issued Statement No. 128, "Earnings per Share", effective for periods
   ending after  December  15,  1997.   Basic  earnings  per  share  are
   calculated  on  the   weighted  average  number   of  common   shares
   outstanding during each period.  All prior period earnings per  share
   amounts have been restated in accordance with FASB No. 128.   Diluted
   earnings per share are not  materially different than basic  earnings
   per share.

<PAGE>

                             TM CENTURY, INC.

                  MANAGEMENT'S DISCUSSION AND ANALYSIS OF

               FINANCIAL CONDITION AND RESULTS OF OPERATION

   TM  Century,  Inc.  (the  "Company")  is  engaged  primarily  in  the
   creation,  production,  marketing,  and  worldwide  distribution   of
   compact disc  music  libraries, production  libraries,  morning  show
   services, and  station  identification jingles,  for  radio  stations
   worldwide.

   Forward-Looking Statements

   This Quarterly Report contains  forward-looking statements about  the
   business, financial  condition  and  prospects of  the  Company  that
   reflect assumptions made by management and management's beliefs based
   on information currently available  to it.  The  Company can give  no
   assurance that  the expectations  indicated by  such  forward-looking
   statements will  be realized.   If  any of  management's  assumptions
   should prove  incorrect, or  if any  of the  risks and  uncertainties
   underlying such expectations should materialize, the Company's actual
   results may differ  materially from those  indicated by the  forward-
   looking statements.

   The key factors that  are not within the  Company's control and  that
   may have a direct bearing on  operating results include, but are  not
   limited to, continued  maturation of the  domestic and  international
   markets for compact disc technology;  acceptance by the customers  of
   the  Company's  existing  and  any  new  products  and  formats;  the
   development by competitors of products using improved or  alternative
   technologies and the potential  obsolescence of technologies used  by
   the Company;  the continued  availability of  software, hardware  and
   other products obtained by the Company from third parties; dependence
   on distributors,  particularly in  the international  market, and  on
   third parties engaged to replicate the Company's products on  compact
   discs; the  retention  of employees;  the  success of  the  Company's
   current  and  future   efforts  to  reduce   operating  expenses; the
   effectiveness of  new  marketing  strategies;  and  general  economic
   conditions.  Additionally, the  Company may not  have the ability  to
   develop new products cost-effectively.  There may be other risks  and
   uncertainties that management is not able to predict.

   When used  in  this  Quarterly  Report,  words  such  as  _believes,_
   _expects,_,  _intends,_  _plans,_   _anticipates,_  _estimates_   and
   similar  expressions   are  intended   to  identify   forward-looking
   statements, although there may be certain forward-looking  statements
   not accompanied by such expressions.  All forward-looking  statements
   are intended to be covered by the safe harbor created by Section  21E
   of the Securities Exchange Act of 1934.

<PAGE>

   LIQUIDITY AND CAPITAL RESOURCES

   The Company relies upon current sales of music libraries and  jingles
   on terms of cash upon delivery for operating liquidity.  Liquidity is
   also provided by  cash receipts  from customers  under contracts  for
   production libraries and weekly music service contracts having  terms
   of up  to four  years.   The Company  is obligated  to provide  music
   updates throughout the contract terms for both production library and
   weekly music service contracts.   Sales of music libraries,  jingles,
   and the payments  under production library  and weekly music  service
   contracts  will  provide  in  the  opinion  of  management,  adequate
   liquidity to meet operating requirements at least through the end  of
   fiscal 1998.

   During the quarter  ended March 31,  1998, approximately $42,000  was
   spent for  the purchase  of property  and equipment  and for  product
   development costs for new music libraries, music library updates, and
   jingles.  Funds  for operating  needs, new  product development,  and
   capital expenditures for the period were provided from cash reserves.
   The Company's expenditures for  property, equipment, and  development
   of new products are discretionary.  Product development  expenditures
   are expected to be approximately $150,000 in fiscal 1998.

   In May, 1996,  the Company  entered into  a lease  agreement for  the
   financing of  an  upgrade  of  its  computer  hardware  and  software
   systems.   The Company  is required  to  repay the  amount  financed,
   totaling $550,000 in equal monthly payments of principal and interest
   during the term  of the  lease.  Monthly  payments on  the lease  are
   approximately $16,000. The term  of the lease is  three years and  is
   scheduled to  expire in  November, 1999.  The lease  is backed  by  a
   letter of credit  in the amount  of $200,000.   The letter of  credit
   reduces the availability under the Company's revolving Line of Credit
   from $500,000 to $300,000.

   Management anticipates  that  cash  flow  from  operations  and  cash
   reserves will be  sufficient to  meet these  capital requirements  at
   least through the end of fiscal year 1998.  The Company has no  other
   significant commitments for capital expenditures in fiscal 1998.

<PAGE>

   RESULTS OF CONTINUING OPERATIONS

   Comparison of the Three-Month Periods Ended March 31, 1997 and 1998

   Revenues declined approximately  $45,000 or 2.4%  in the  three-month
   period ended March 31,  1998 as compared to  the same period for  the
   previous year.   The decrease was  primarily due to  the sale of  all
   computerized radio station computer software and equipment  inventory
   and  other  assets  in  June,  1997.     The  Company's  revenue   of
   computerized  radio   station   computer   software   and   equipment
   contributed approximately $157,000 in revenue for three months  ended
   March 31, 1997.  Excluding this revenue for three months ended  March
   31, 1997, would result in revenues increasing approximately  $112,000
   or 6.7% in the three-month period ended March 31, 1998 as compared to
   the same period  for the  previous year.   The  revenue increase  was
   primarily due to an increase in revenues for production libraries  of
   $89,000 and radio  Jingles of $113,000.   Offsetting these  increases
   were decreases in the weekly HitDisc  and GoldDisc music services  of
   $11,000 and Morning Show services of $79,000.  Morning Show  services
   decreased as a result of a decrease in the allocation of  advertising
   revenues.

   Production library revenues increased $89,000, or 4.8%.  Increases in
   production library  revenue is  due to  the substantial  increase  in
   advertising/barter arrangements for the  Company's sales and  imaging
   libraries.  Even though production  library revenues may decline  due
   to the expiration of  three-year contracts, management believes  that
   production libraries will continue to generate a significant  portion
   of  overall  revenues  from   sales  of  existing  products   through
   advertising/barter arrangements  and  sales  of new  products.    The
   Company introduced a new production library in the second quarter  of
   fiscal 1997.   Sales and  new sales  growth are  subject to  customer
   acceptance of the new products.

   Jingles increased $113,000 or 43.6% primarily  due to an increase  in
   demand for custom Jingles compared to the same quarter, prior  fiscal
   year 1997.

   Revenues of  weekly HitDisc  and  GoldDisc music  services  decreased
   $5,000 and  $6,000 respectively,  or 1.0%  as  compared to  the  same
   period previous year.   The decrease  in compact  disc music  library
   revenues was  due to  a  slight decrease  in  weekly music  sales  to
   customers.  The introduction  in the fourth quarter  of 1996 and  the
   first quarter of 1998 of new music formats targeted to  non-broadcast
   customers reduced the decline in the  GoldDisc music service. As  the
   compact disc music library market matures, sales of compact discs are
   generated primarily from  changes in music  formats or  sales of  new
   music libraries or  formats rather than  from conversions to  compact
   disc music delivery technology.   The market  for compact disc  music
   libraries to broadcast customers has  reached a substantial level  of
   maturity in the  United States, which  is the market  from which  the
   Company derives most  of its music  library revenues.   A decline  in
   revenues from music  library sales  may result  in a  proportionately
   greater decline in operating  income because music libraries  provide
   higher  margins  than  the  Company's  other  products.      However,
   management believes  that sales  to non-broadcast  customers and  the
   introduction of new products will counteract the declines in revenues
   from existing  music libraries.   New  products include  pre-recorded
   music (GoldDrive) provided to  equipment manufacturers of hard  drive
   systems which was introduced during the  fiscal year 1997, and a  new
   music  library  targeted   to  non-broadcast   customers  which   was
   introduced during the second quarter of  fiscal year 1998.   Renewals
   and new sales growth  are subject to customer  acceptance of the  new
   products.

<PAGE>
   Production, programming  and technical  costs decreased  $165,000  or
   22.2%, and as a percentage of revenue decreased from 40.3% to  32.1%.
   The decrease as  a percentage  of revenues  is primarily  due to  the
   reduction  in  expenses   which  resulted  from   the  sale  of   all
   computerized radio station computer software and equipment  inventory
   and assets in June 1997.
 
   Commissions decreased $6,000 or 1.8%, and as a percentage of revenues
   increased from 18.0% to 18.1%. Commissions as a percentage of selling
   and commission  costs decreased  from 57.6%  to 54.7%  due to  higher
   selling costs in the three months ended fiscal year 1998 compared  to
   same period prior year.
   Selling costs  increased $26,000  or 10.7%,  and as  a percentage  of
   revenues increased from 13.2% to 15.0%.  The increase in expenses  is
   primarily due to higher promotional costs  of new products and  sales
   promotions, and increases in sales salaries  due to changes in  sales
   force and commission plans.  Selling costs as a percentage of selling
   and commission costs increased from 42.3% to 45.3%.

   General and administrative  costs decreased $63,000  or 11.3% and  is
   primarily  due  to  the  Company's  continued  efforts  in   reducing
   operating expenses.

   Depreciation decreased $6,000 or  6.7% primarily due  to the sale  of
   all  computerized  radio  station  computer  software  and  equipment
   inventory and  assets  in June,  1997,  and offset  by  increases  in
   production equipment in the first and second quarters of fiscal  year
   1998.

   During the  quarter ended  March 31,  1997,  the Company  recorded  a
   charge against  operations of  approximately $148,000  to reduce  the
   carrying value of its equipment inventory and related assets to their
   net realizable value.
<PAGE>
   Comparison of the Six-Month Periods Ended March 31, 1997 and 1998

   Revenues declined  approximately $32,000  or  1.0% in  the  six-month
   period ended March 31,  1998 as compared to  the same period for  the
   previous year. The  decrease was  primarily due  to the  sale of  all
   computerized radio station computer software and equipment  inventory
   and  other  assets  in  June,  1997.     The  Company's  revenue   of
   computerized  radio   station   computer   software   and   equipment
   contributed approximately $271,000  in revenue for  six months  ended
   March 31, 1997.   Excluding this revenue for  six months ended  March
   31, 1997 would result  in revenues increasing approximately  $239,000
   or 7.4% in the six-month period  ended March 31, 1998 as compared  to
   the same period  for the  previous year.   The  revenue increase  was
   primarily due  to increase  in revenues  for the  weekly HitDisc  and
   GoldDisc music services of $102,000, production libraries of $151,000
   and radio  Jingles  of $110,000.    Offsetting these  increases  were
   decreases in  Morning  Show  services  of  $119,000.    Morning  Show
   services decreased as  a result of  a decrease in  the allocation  of
   advertising revenues.

   Revenues of  weekly HitDisc  and  GoldDisc music  services  increased
   $51,000 and $52,000  respectively, or 4.9%  as compared  to the  same
   period previous year.   The increase  in compact  disc music  library
   revenues was primarily due to an  increase in weekly music sales  and
   the introduction in the fourth quarter of 1996 and the first  quarter
   of 1998 of new music formats targeted to non-broadcast customers.  As
   the compact disc music library market matures, sales of compact discs
   are generated primarily from changes in music formats or sales of new
   music libraries or  formats rather than  from conversions to  compact
   disc music delivery technology.   The market  for compact disc  music
   libraries to broadcast customers has  reached a substantial level  of
   maturity in the  United States, which  is the market  from which  the
   Company derives most  of its music  library revenues.   A decline  in
   revenues from music  library sales  may result  in a  proportionately
   greater decline in operating  income because music libraries  provide
   higher  margins  than  the  Company's  other  products.      However,
   management believes  that sales  to non-broadcast  customers and  the
   introduction of new products will counteract the declines in revenues
   from existing  music libraries.   New  products include  pre-recorded
   music (GoldDrive) provided to  equipment manufacturers of hard  drive
   systems which was introduced during the  fiscal year 1997, and a  new
   music  library  targeted   to  non-broadcast   customers  which   was
   introduced during the second quarter of  fiscal year 1998.   Renewals
   and new sales growth  are subject to customer  acceptance of the  new
   products.

   Production library revenues increased $151,000, or 43.2%.   Increases
   in production library revenue is due  to the substantial increase  in
   advertising/barter arrangements for the  Company's sales and  imaging
   libraries.  Even though production  library revenues may decline  due
   to the expiration of  three-year contracts, management believes  that
   production libraries will continue to generate a significant  portion
   of  overall  revenues  from   sales  of  existing  products   through
   advertising/barter arrangements  and  sales  of new  products.    The
   Company introduced a new production library in the second quarter  of
   fiscal 1997.   Sales and  new sales  growth are  subject to  customer
   acceptance of the new products.

   Jingles increased $110,000 or 24.7% primarily  due to an increase  in
   demand for custom Jingles compared to  the same period, prior  fiscal
   year 1997.

   Production, programming  and technical  costs decreased  $377,000  or
   25.3%, and as a percentage of revenue decreased from 42.5% to  32.0%.
   The decrease as  a percentage  of revenues  is primarily  due to  the
   reduction  in  expenses   which  resulted  from   the  sale  of   all
   computerized radio station computer software and equipment  inventory
   and assets in June 1997.

<PAGE>

   Commissions decreased $9,000 or 1.4%, and as a percentage of revenues
   decreased from 18.3% to 18.2%  Commissions as a percentage of selling
   and commission  costs decreased  from 58.3%  to 53.5%  due to  higher
   selling costs in the  six months ended fiscal  year 1998 compared  to
   same period prior year.
  
   Selling costs  increased $90,450  or 19.7%,  and as  a percentage  of
   revenues increased from 13.1% to 15.8%.  The increase in expenses  is
   primarily due to higher promotional costs  of new products and  sales
   promotions, and increases in sales salaries  due to changes in  sales
   force and commission plans.  Selling costs as a percentage of selling
   and commission costs increased from 41.7% to 46.5%.

   General and administrative  costs decreased $112,000  or 9.8% and  is
   primarily  due  to  the  Company's  continued  efforts  in   reducing
   operating expenses.

   Depreciation decreased $12,000 or 6.9% primarily  due to the sale  of
   all  computerized  radio  station  computer  software  and  equipment
   inventory and other assets in June, 1997, and offset by increases  in
   production equipment in the first and second quarters of fiscal  year
   1998.

   During the  quarter ended  March 31,  1997,  the Company  recorded  a
   charge against  operations of  approximately $148,000  to reduce  the
   carrying value of its equipment inventory and related assets to their
   net realizable value.

<PAGE>


                        PART II. OTHER INFORMATION

   Item 1. Legal proceedings - Not applicable.

   Item 2. Changes in securities - Not applicable.

   Item 3. Defaults upon senior securities - Not applicable.

   Item 4. Submission of matters to a vote of security holders
       The holders of approximately 71% of the outstanding common stock
   of the Company, by written consent executed as of April 28, 1998 in
   accordance with Delaware law, (i) re-elected each of the four
   directors of the Company, Marjorie L. McIntyre, Neil W. Sargent, Ann
   A. Armstrong and Donald E. Latin, and (ii) approved the appointment
   of Deloitte & Touche as the Company's independent public accountants
   for the fiscal year ending September 30, 1998.  The Company did not
   solicit proxies or consents in connection therewith.

   Item 5. Other information - The Company provides music library
   services to radio stations in various States.  One of the States the
   Company provides this service has indicated their intention to audit
   the 1991 to 1995 calendar years for any tax possibly due, due to
   sales.  The final audit assessment has not yet occurred and therefore
   the results of such audit are unknown.


   (a) Exhibits
   Material Contracts:
   10.1.  WMCA Line of Credit Extension Letter Agreement by and  between
   Merrill Lynch Business Financial Services  Inc. and TM Century,  Inc.
   dated April 21, 1998.
   10.2.   Request  To Amend  A  Letter of  Credit  by and  between  The
   Northern Trust Company and TM Century, Inc. dated April 21, 1998.
   27.1   Financial Data Schedule

   (b) Reports on Form 8-K
   No reports on Form 8-K were filed by the Company during the three
   month period ending March 31, 1998.

<PAGE>

                                SIGNATURES

   In accordance  with Section  13 or  15(d) of  the Exchange  Act,  the
   registrant caused  this report  to be  signed on  its behalf  by  the
   undersigned thereunto duly authorized.

                                      Dated: May 12, 1998

                                      TM CENTURY, INC.


                                      BY:/s/Roger A. Holeman
                                      Roger A. Holeman
                                      Chief Financial Officer
                                      (Principal Accounting Officer)


                                      BY:/s/Neil W. Sargent
                                      Neil W. Sargent
                                      Chief Executive Officer
                                      (Principal Executive Officer)