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: December 31, 1997



                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) 406-6800


   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
   January 31, 1998 was 2,483,193.

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


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

                                      ASSETS
                                                   December 31, 1997  September 30, 1997
          <S>                                             <C>                 <C>
   CURRENT ASSETS
      Cash                                               152,623            294,333
      Accounts and notes receivable                      812,107            733,767
          less allowances of  $240,282 and
          $250,000, respectively
      Inventories, net                                   772,966            779,953
      Deferred federal income taxes                      154,530            154,530
      Prepaid expenses and other current assets           43,715             25,224

            TOTAL CURRENT ASSETS                       1,953,691          1,987,807

   PROPERTY AND EQUIPMENT                              2,489,076          2,463,958
      Less accumulated depreciation                   (1,632,617)        (1,548,617)

            NET PROPERTY AND EQUIPMENT                   856,459            915,341

   INVENTORIES - NONCURRENT, net                         161,398            143,647
   OTHER ASSETS                                           18,324             18,260

      TOTAL ASSETS                                     2,972,122          3,065,055
   </TABLE>
   <PAGE>
   <TABLE>
                          LIABILITIES AND STOCKHOLDERS' EQUITY
          <S>                                              <C>                <C>
   CURRENT LIABILITIES
      Accounts payable                                   213,659             69,451
      Accrued expenses                                   106,901            205,674
      Current portion of obligation under capital        168,403            178,033
      lease                                                                
      Deferred revenue                                    31,252             56,011
      Customer deposits                                   23,183             26,358

            TOTAL CURRENT LIABILITIES                    543,398            535,527

   OBLIGATIONS UNDER CAPITAL LEASE                        95,031            128,755
   CUSTOMER DEPOSITS - NONCURRENT                        171,346            166,418
   DEFERRED FEDERAL INCOME TAXES                          26,400             26,400

            TOTAL LIABILITIES                            836,175            857,100

   STOCKHOLDERS' EQUITY
      Common stock, $.01 par value; authorized            29,705             29,705
      7,500,000 shares;
         2,970,481 shares issued
      Paid-in capital                                  2,275,272          2,275,272
      Treasury stock - at cost, 487,288               (1,291,227)        (1,291,227)
      Retained earnings                                1,122,197          1,194,205

            TOTAL STOCKHOLDERS' EQUITY                 2,135,947          2,207,955

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       2,972,122          3,065,055

   </TABLE>
   <PAGE>
   <TABLE>

                                TM CENTURY, INC.
           Statements of Operations and Retained Earnings (Unaudited)
             For the Three Months Ended December 31, 1997 and 1996


                                                       1997            1996
        <S>                                            <C>              <C>
   REVENUES                                         1,719,713       1,694,792
   COSTS AND EXPENSES:
      Production, programming & technical             547,514         754,526
      General and administrative                      550,075         585,029
      Selling, commissions & royalties                606,651         552,466
      Depreciation                                     84,000          90,368

               TOTAL                                1,788,240       1,982,389

   OPERATING INCOME (LOSS)                            (68,527)       (287,597)

   OTHER INCOME (EXPENSES):
      Interest income                                   1,679           1,534
      Interest expense                                 (5,160)         (7,677)
      Other                                                 0            (230)
                                         
               TOTAL                                   (3,481)         (6,373)

   INCOME (LOSS) BEFORE INCOME  TAXES                 (72,008)       (293,970)

   INCOME TAX (BENEFIT) PROVISION:
      Current
                                                         -               -
      Deferred
                                                         -               -
               TOTAL

   NET INCOME (LOSS)                                  (72,008)       (293,970)

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

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


   BASIC NET INCOME (LOSS) PER SHARE                    (0.03)          (0.12)

   WEIGHTED AVERAGE NUMBER OF COMMON                2,483,193       2,537,139
          SHARES OUTSTANDING

   </TABLE>
   <PAGE>
   <TABLE>
                                    TM Century, Inc.
                                Statement of Cash Flows
                   For The Quarter Ending December 31, 1997 and 1996
             <S>                                                    <C>        <C>
                                                                   1997        1996
   CASH FLOWS FROM OPERATING ACTIVITIES
         Net income (loss)                                        (72,008)   (293,970)
         Adjustments to reconcile net income to
         net cash provided by operating activities
            Depreciation                                           84,000      90,368
            Amortization                                           71,100      80,030
            Provision for doubtful accounts                        12,000      22,000
            Gain on disposition of property and equipment                        (818)
         Change in assets and liabilities
            (Increase) decrease in:
               Trade accounts receivable                          (90,340)     (8,257)
               Inventories                                        (81,864)     81,421
               Prepaid expenses                                   (18,555)      1,943
            Increase (decrease) in:
               Accounts payable and accrued expenses               45,435     (48,055)
               Deferred revenue                                   (24,759)     11,544
               Customer deposits                                    1,753     (11,863)

         NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES         (73,238)    (75,657)

   CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of property and equipment                            (25,118)     (4,922)
         Proceeds from sale of property and equipment                             818
         Acquisition of treasury stock                                  0      (6,431)

         NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES         (25,118)    (10,535)

   CASH FLOWS FROM FINANCING ACTIVITIES
         Principal payments on capital lease obligations          (43,354)    (51,213)

         NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES         (43,354)    (51,213)

   NET INCREASE (DECREASE) IN CASH                               (141,710)   (137,405)

   CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD               294,333     377,855

   CASH AND CASH EQUIVALENTS AT END OF PERIOD                     152,623     240,450


   Supplemental disclosures of cash flow information:

        Cash paid for interest                                      5,160       7,677

        Noncash investing and financing activities
             Capital lease obligation incurred                          0     103,878

   </TABLE>
   <PAGE>
   
                              TM CENTURY INC.

                   NOTES TO INTERIM FINANCIAL STATEMENTS

                        December 31, 1997 AND 1996

   1.  BASIS OF PRESENTATION

   The interim financial statements of TM Century, Inc. (the  _Company_)
   at December 31,  1997, and for  the three months  ended December  31,
   1997 and 1996, 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 1997 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 months  ended
   December 31, 1997 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
   $1.4 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  approximately
   $525,000 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 $300,000 revolving Line of Credit with a bank  provides
   a negative pledge  on all accounts  receivable, contract rights,  and
   inventory of the Company.  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.  The Line  of Credit was renewed  through February 28,  1998
   with no other changes in terms.   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 was reduced from $300,000 to $100,000.

   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,  1996, 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 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.  TREASURY STOCK

   On December 19, 1996, the Board of Directors by resolution authorized
   the Company to purchase up to 50,000 shares of its common stock,  and
   on January 27, 1997, authorized the Company to purchase an additional
   25,000 shares  of its  common stock  on the  open market  or  through
   privately negotiated transactions, from time to time, dependent  upon
   market conditions, through  December 31, 1997.   As  of December  31,
   1997, the Company  has made purchases  totaling 54,000  shares at  an
   average price of $.76 per share.  These purchases were funded by cash
   reserves of the  Company.  There  were no purchases  made during  the
   quarter.

   5.  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.

   <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,   station
   identification  jingles,  and   computer  software   used  in   music
   scheduling 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,  jingles,
   and music  scheduling software  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  specialized  software, 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 December 31, 1997, approximately $60,000 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.  Management
   anticipates that cash flow from operations, cash reserves, and  funds
   available under the Company's  line of credit  will be sufficient  to
   meet these capital requirements  at least through  the end of  fiscal
   year 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 $16,300.   The term of the lease is three years and 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  $300,000  to $100,000.    Management
   anticipates that cash flow from operations and cash reserves will  be
   sufficient to meet these  capital requirements.   The Company has  no
   other significant  commitments  for capital  expenditures  in  fiscal
   1998.
   <PAGE>

   RESULTS OF CONTINUING OPERATIONS

   Revenues increased approximately 1.5%  or $25,000 in the  three-month
   period ended December 31, 1997 as compared to the same period for the
   previous year.    The increase  was  primarily due  to  increases  in
   revenue for HitDisc service of $56,000, GoldDisc service of  $58,000,
   and production libraries of $77,000.  Offsetting these increases were
   decreases in royalties from the  broadcasting of the Company's  radio
   Jingles  of  $17,000,  weekly  Comedy  services  of  $40,000.and  the
   decreases in the sale of computer software equipment due to the  sale
   of all such related inventory and assets of $114,000.

   Revenues of  weekly HitDisc  and  GoldDisc music  services  increased
   $114,000, or  10%.    The increase  in  compact  disc  music  library
   revenues was due to the introduction in the fourth quarter of 1996 of
   a new  music  format  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 provided  to equipment  manufacturers  for hard  drive  systems
   which was  introduced during  the quarter  and  a new  music  library
   targeted to non-broadcast customers  which was introduced during  the
   fourth quarter.    Renewals  and new  sales  growth  are  subject  to
   customer acceptance of the new products.

   Overall  production  library  revenues  increased  $77,000,  or  47%.
   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 decreased $17,000  primarily due  a slightly  slower pace  in
   customs compared to the same quarter, prior fiscal year 1996.  Comedy
   services decreased $40,000 as  a result of a  decrease in the  comedy
   share of advertising revenues.
   <PAGE>
   Production, programming  and technical  costs decreased  $207,000  or
   27%, and as a percentage of revenue, decreased from 45% to 32%.   The
   decrease as  a percentage  of revenues  is due  to the  reduction  in
   expenses as a result of the  sale of computer software and  equipment
   during the  third quarter  of 1997,  and  an   increase in  sales  of
   compact disc libraries which have higher profit margins.

   Selling and  commission costs  increased $54,000  or  10%, and  as  a
   percentage of revenues increased  from 33% to 35%.   The increase  in
   expenses is primarily due to higher  selling costs for products  sold
   under barter  arrangements, promotional  costs  of new  products  and
   sales promotions and increases  in sales salaries  due to changes  in
   sales force and commission plans.  Commissions on international sales
   accounted for 35% of selling and commission costs.

   General and administrative costs  decreased $35,000 and is  primarily
   due to a one time provision for sales taxes in the first quarter of 1996.

   Depreciation decreased  $6,000  primarily  due to  the  sale  of  the
   Ultimate Digital Studio production equipment in June 1997 and  offset
   by increases  in computer  hardware and  software depreciation  as  a
   result of purchases in December 1996.
   <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 - Not
   applicable.

   Item 5. Other information - Not applicable.

   Item 6. Exhibits and Reports on Form 8-K

   (a) Exhibits
   10. Material Contracts:  None.
   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 December 31, 1997.
   <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: February 11, 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)
   <PAGE>