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, 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 March 31, 1996, there were 41,733,000  outstanding shares of common stock,
par value $.0001 outstanding.



<PAGE>



PART 1. FINANCIAL INFORMATION

     ITEM 1. Financial Statements
             --------------------

TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Condensed Consolidated Balance Sheet
                                                      March 31,
                                                         1996         June 30,
                                                     (Unaudited)        1995
--------------------------------------------------------------------------------
ASSETS

CURRENT ASSETS
 Cash                                                $     1,171    $    47,671
 Accounts receivable                                       5,973         39,963
 Note receivable from related party                         --           30,500
 Inventories                                              14,805         50,000
 Prepaid expenses                                            196          2,950
--------------------------------------------------------------------------------

  Total current assets                               $    22,145    $   171,084
--------------------------------------------------------------------------------


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
 Note payable to financial institution               $    22,349    $   138,382
 Accounts payable                                        137,505        144,347
 Accrued expenses                                           --           16,490
--------------------------------------------------------------------------------
  Total current liabilities                              159,854        299,219
--------------------------------------------------------------------------------

STOCKHOLDERS' EQUITY (DEFICIT)
 Common stock, stated value $.001 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                                  (1,104,566)    (1,094,992)
  Total stockholders' (deficit)                         (137,709)      (128,135)

                                                     $    22,145    $   171,084
================================================================================

             The accompanying notes are considered an integral part
                           these financial statements


<PAGE>
<TABLE>
<CAPTION>

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

                                 Three Months Ended                        Nine Months Ended
                                 March 31                                  March 31,
                                 ---------------------------------         ------------------------------------
                                      1996                1995                 1996                     1995
---------------------------------------------------------------------------------------------------------------

<S>                              <C>                  <C>                  <C>                     <C>         
NET SALES                        $     28,589         $    121,270         $     43,845            $    491,100

COST OF SALES                          29,092               85,600               46,234                 349,000
---------------------------------------------------------------------------------------------------------------

GROSS PROFIT                             (503)              36,120               (2,389)                142,100

SELLING, GENERAL
AND ADMINISTRATIVE                      3,441               85,859               14,469                 284,550
---------------------------------------------------------------------------------------------------------------

OPERATING LOSS                         (3,944)             (49,739)             (16,858)               (142,450)

OTHER INCOME (EXPENSE)                   (721)              (1,854)               7,284                  (7,365)
---------------------------------------------------------------------------------------------------------------

NET LOSS                         $     (4,665)        $    (51,593)        $     (9,574)           $   (149,815)
---------------------------------------------------------------------------------------------------------------


NET LOSS PER SHARE               $       --           $       --           $       --              $       --
---------------------------------------------------------------------------------------------------------------

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

</TABLE>



<PAGE>
<TABLE>
<CAPTION>

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

                                                           Nine Months Ended
                                                                March 31,
                                                        ------------------------
                                                           1996        1995
--------------------------------------------------------------------------------

CASH FLOWS FROM OPERATING ACTIVITIES
 Net loss                                               $  (9,574)    $(149,815)
 Adjustments to reconcile net income (loss)
  to net cash provided by operating activities:
   Depreciation and amortization                             --           3,933
  Changes in operating assets and liabilities:
   Accounts receivable                                     33,990        26,363
   Inventories                                             35,195       (19,390)
   Prepaid expenses                                         2,754        18,460
   Payable and receivable, affiliates                      30,500        (1,973)
   Accounts payable and accrued liabilities               (23,332)       73,490
   Other                                                     --          10,705
--------------------------------------------------------------------------------

                                                           69,533       (38,227)
--------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
 Borrowings on note payable                                  --          83,232
 Principal payments to financial institution             (116,033)      (47,800)
--------------------------------------------------------------------------------

                                                         (116,033)       35,432

NET INCREASE (DECREASE) IN CASH                           (46,500)       (2,795)

CASH - BEGINNING OF PERIOD                              $  46,671     $  18,395
--------------------------------------------------------------------------------

CASH - END OF PERIOD                                    $   1,171     $  15,600
================================================================================

SUPPLEMENTAL DISCLOSURES OF CASH
 FLOW INFORMATION

  Cash paid for interest                                $    --       $   8,700

 Inventory received as part of vendor
     settlement agreement                                    --           4,967





<PAGE>



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


                                                                       
                                            Common Stock     Additional
                                  --------------------------   Paid-in         Accumulated
                                    Shares           Amount    Capital           Deficit          Total
--------------------------------------------------------------------------------------------------------
<S>            <C>               <C>                <C>        <C>            <C>              <C>       
Balances, July 1, 1995           41,733,000         $41,733    $925,124       $(1,094,992)     $(128,135)

 Net loss (unaudited)                   --              --          --             (9,574)        (9,574)
--------------------------------------------------------------------------------------------------------

Balances, March 31, 1996
(unaudited)                      41,733,000          $41,733   $925,124       $(1,104,566)     $(137,709)
========================================================================================================
</TABLE>


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.

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, 1995.

The results of  operations  for the three months ended March 31, 1996,  are note
necessarily indicative of the results for the remainder of fiscal 1996.

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.






<PAGE>



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, 1996,  the Company had net sales of $28,589
with a cost of sales of $29,092, and gross profit of ($503). For the same period
in 1994, the net sales were $121,270 with a cost of sales of $86,500 for a gross
profit of $36,120.

     In quarter ended March 31, 1996, the Company incurred $3,441 in general and
administrative  for an operating loss of ($3,944).  The Company  expensed ($721)
for other matters which  increased the net loss to ($4,665) for the period.  The
operating results for the same period in 1994 were $85,859 in selling,  general,
and  administrative  expenses which produced an operating loss of ($49,739).  An
additional  ($1,854)  expense,  when combined with the operating loss totalled a
net loss of ($51,593) for the March 31, 1995 quarter.


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

     The Company had nominal cash capital at the end of the period.  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,
               1996. (incorporated by reference): None.




<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 of the
undersigned thereunto duly authorized.

Dated: August 28, 1997

                                    TELECONFERENCING SYSTEMS INTERNATIONAL, INC.


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