UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-QSB



(Mark One)

[X      ]    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES 
             EXCHANGE ACT OF 1934
             For the quarterly period ended November 30, 1996

[       ]    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE 
             ACT
             For the transition
             period from ____________ to _______________


                  Commission file number 0-12551

             CREATIVE COMPUTER APPLICATIONS, INC.		
(Exact name of small business issuer as specified in its charter)

          California                         95-3353465
(State or other jurisdiction of            (I.R.S. Employer
incorporation or organization)            Identification No.)

26115-A Mureau Road, Calabasas, California 91302
(Address of principal executive offices)

(818) 880-6700
Issuer's telephone number:


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       

State the number of shares outstanding of each of the 
issuer's classes of common equity, as of the latest practicable 
date:  2,824,865 common shares as of December 27, 1996

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


FORM 10-QSB



I N D E X



PART I - Financial Information:                             PAGE

Condensed Balance Sheets, as at November 30,
    1996 and August 31, 1996                                 3

Condensed Statements of Income for the
    three months ended November 30,
    1996 and November 30, 1995                               4

Condensed Statements of Cash Flows
    for the three months ended November 30,
    1996 and November 30, 1995                               5

Notes to Condensed Financial Statements                      6

Management's Discussion and Analysis
    or Plan of Operation                                     6


PART II - Other Information:

Items 1 through 6                                            8

Signatures                                                   8

PART 1 - FINANCIAL INFORMATION



CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                           November  30,     August 31,
                                               1996           1996   *
                                                    (Unaudited)
	ASSETS
<S>                                              <C>            <C>
CURRENT ASSETS:
        Cash                                 $   408,621    $   253,201
        Receivables                            1,610,620      1,678,564
        Inventories                              668,058        642,787
        Prepaid expenses and
        other assets                             113,837         86,881
        Deferred tax asset                       437,000        437,000

        TOTAL CURRENT ASSETS                   3,238,136      3,098,433

PROPERTY AND EQUIPMENT, net                      587,184        480,108
INVENTORY OF COMPONENT PARTS                     137,857        148,357
CAPITALIZED SOFTWARE COSTS, net
of accumulated amortization
of $243,509 and $446,632                         748,009        693,696
INTANGIBLES, net                                 302,758        315,551
OTHER ASSETS                                      23,099         23,480
DEFERRED TAX ASSET                                77,600         77,600

        TOTAL ASSETS                         $ 5,114,643    $ 4,837,225

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
        Notes payable to bank                $   120,000    $   191,875
        Accounts payable                         536,677        306,321
	Accrued liabilities:
                Vacation Pay                     172,120        157,106
                Other                            446,834        426,341
        Deferred service contract income         398,798        464,076
	Capital lease obligations,
         current portion                          26,691         27,489

        TOTAL CURRENT LIABILITIES              1,701,120      1,573,208

NOTES PAYABLE TO BANK, NET OF
 CURRENT PORTION                                  57,296              0
CAPITAL LEASE OBLIGATIONS, net
 of current portion                               15,303         21,250
DEFERRED RENT                                     27,685         35,235

        TOTAL LIABILITIES                      1,801,404      1,629,693

SHAREHOLDERS' EQUITY:
	Preferred shares, no par
         value; 500,000 shares  
         authorized; no shares
         outstanding                                   -              -

        Common shares, no par
         value; 20,000,000 shares
         authorized; 2,824,865 and
         2,820,915 shares outstanding          5,720,495      5,714,570

        Accumulated deficit                   (2,407,256)    (2,507,038)
        TOTAL SHAREHOLDERS' EQUITY             3,313,239      3,207,532


                                             $ 5,114,643    $ 4,837,225
</TABLE>

See Notes to Financial Statements.
* As presented in the audited financial statements

CONDENSED STATEMENTS OF INCOME


<TABLE>
<CAPTION>
                                       Three Months Ended November 30, 
                                              1996            1995 

                                                 (unaudited)
<S>                                            <C>                   <C>
NET SYSTEM SALES AND SERVICE REVENUE
        System sales                       $ 1,166,153      $ 1,221,494
        Service revenue                        568,418          494,040
                                             1,734,571        1,715,534

COST OF PRODUCTS AND SERVICES SOLD
        System sales                           599,631          603,174
        Service revenue                        315,657          290,146
                                               915,288          893,320

        Gross profit                           819,283          822,214

OPERATING EXPENSES:
	Selling, general and
         administrative                        574,183          468,989

        Research and development               134,387          137,524

                                               708,570          606,513

        Operating income                       110,713          215,701

INTEREST AND OTHER INCOME                        1,219              456

INTEREST EXPENSE                                (5,798)          (7,565)

        Income before taxes on income          106,134          208,592

TAXES ON INCOME                                 (6,350)         (16,600)

NET INCOME                                      99,784          191,992

EARNINGS PER COMMON SHARE (Note 2):        $       .03      $       .06


WEIGHTED AVERAGE NUMBER OF COMMON
	SHARES AND COMMON STOCK 
        EQUIVALENTS OUTSTANDING              3,019,099        3,023,905
</TABLE>

See Notes to Financial Statements. 

CONDENSED STATEMENTS OF CASH FLOWS

Increase (Decrease) in Cash

<TABLE>
<CAPTION>
                                           Three Months Ended November 30, 
                                                 1996            1995 
                                                     (unaudited)
<S>                                            <C>              <C>
OPERATING ACTIVITIES:
  Net income                               $    99,784      $   191,992
  Adjustments to reconcile net income
   to net cash provided by operating
   activities:
       Depreciation and amortization           104,916           92,788
        Provision for possible losses           (2,136)          10,056

  Changes in operating assets and
     liabilities:
       Receivables                              70,081         (253,717)
       Inventories                             (25,271)          59,696
       Prepaid expenses and other assets       (34,506)         (29,376)
       Accounts payable                        230,356          (76,357)
       Accrued liabilities                     (29,771)         (39,196)

       Net cash provided by (used in)
         operating activities                  413,453          (44,114)

INVESTING ACTIVITIES 
       Additions to property and equipment    (146,634)         (20,792)
       Capitalized software costs              (96,000)         (67,500)
           Net cash used in investing
            activities                        (242,634)         (88,292)

FINANCING ACTIVITIES:
  Additions to (payments on)
   notes payable, net                          (14,579)          67,000
  Decrease in capital lease obligations,
   net of payments                              (6,745)         (13,899)
       Exercise of Stock Option                  5,925            1,890
       Net cash provided by (used in)
        financing activities                   (15,399)          54,991

NET INCREASE (DECREASE) IN CASH                155,420          (77,415)

Cash, beginning of period                      253,201          377,813

Cash, end of period                        $   408,621      $   300,398
</TABLE>

See notes to financial statements.



NOTES TO CONDENSED FINANCIAL STATEMENTS

Note 1.	In the opinion of management, the accompanying 
unaudited condensed financial statements reflect 
all adjustments (which include only normal 
recurring accruals) necessary to present fairly the 
Company's financial position as of November 30, 
1996 and August 31, 1996, the results of its 
operations for the three months ended November 30, 
1996 and 1995, and cash flows for the three months 
ended November 30, 1996 and November 30, 1995.

Note 2.	Earnings per common share are computed by dividing 
the net income for each period by the weighted 
average number of common shares plus the weighted 
average of dilutive common share equivalents 
outstanding during the period using the treasury 
stock method.  Common share equivalents consist of 
stock options and warrants.  Common stock 
equivalents are considered dilutive for earnings 
per share if the average stock price exceeds the 
exercise price during the period.  The common stock 
equivalents are weighted from the beginning of the 
earliest quarter in which they become dilutive.



Item 2.	Management's Discussion and Analysis of Results of 
Operations and Financial Condition

		This following section of the report contains 
forward-looking statements within the meaning of the Private 
Securities Litigation Reform Act of 1995.  Such forward-looking 
statements involve risks and uncertainties so that the actual 
results may vary materially.


Results of Operations

		Sales for the first quarter of fiscal 1997 ended 
November 30, 1996 increased by $19,037 or 1% compared to the same 
quarter of fiscal 1996.  When analyzed by product category, sales of 
Clinical Information Systems (CIS) decreased $142,649 or 14%, sales 
of data acquisition products increased $84,883 or 50% and service 
and other revenues increased $76,803 or 15%.  The increase in sales 
is primarily attributable to an increase in the sales of data 
acquisition products and service revenues, offset by a fewer number 
of Clinical Information Systems shipped during the quarter.  The 
Company's new CIS products have continued to receive interest from 
the healthcare market which resulted in new orders for such products 
during the quarter and a marked increase in new quotations for 
potential sales.  The increase in service revenues is indicative of 
a greater number of accounts under contract.

		Cost of sales for the first quarter of 1997 
increased by $21,968 or 2% as compared to the same quarter of 1996.  
The increase in cost of sales was primarily attributable to an 
increase in labor costs of $15,998 or 6% and an increase in other 
costs of $37,266 or 13%.  The increases were partially offset by a 
decrease in material costs of $31,296 or 10%.  The decrease in 
material costs is attributable to a greater volume of software only 
revenues that improve gross margins and a lower volume of sales of 
Clinical Information Systems.  Cost of sales as a percentage of 
sales increased to 53% in the current fiscal quarter as compared to 
52% in the same quarter of fiscal 1996.

		Selling and administration expenses increased 
$105,194 or about 22% for the current quarter compared to the same 
quarter of 1996.  The increase was primarily attributable to planned 
expenditures in sales and marketing associated with the Company's 
CIS products.  Management anticipates the increased level of sales 
and marketing expenditures to continue in future quarters as the 
Company expands its sales and marketing activities related to the 
sale of its CIS products across a broader market spectrum.

		In fiscal 1996 management restructured its sales 
and marketing activities, including the recruitment of a Vice 
President of Sales and Business Development.  The Company also began 
strategic joint marketing partnerships with other companies which 
improved the Company's market penetration.  Management views the 
near term outlook for the continued sale of CIS products favorably 
during the first half of the 1997 fiscal year.  However, the 
Company's future operating results will continue to be subject to 
quarterly variations based upon a wide variety of factors, including 
the volume mix and timing of orders received during any quarter or 
annual periods.

		Research and Development expense decreased $3,137 
or about 3% for the current quarter as compared to the same quarter 
of 1996.  The Company continues to expend considerable resources on 
new product development and product enhancements which should 
continue for the foreseeable future.  In addition, the Company has 
also initiated the design phase of new CIS products that will 
require increased development expenditures in future periods.

		As a result of the aggregate factors discussed 
above the Company earned net income of $99,784 or $.03 per share for 
the first fiscal quarter ended November 30, 1996 compared to 
$191,992 or $.06 per share for the same quarter a year ago.

Capital Resources and Liquidity

		As of November 30, 1996, the Company's working 
capital amounted to $1,537,016 compared to $1,525,225 at August 31, 
1996.  The ratio of the Company's current assets to current 
liabilities was approximately 1.9 to 1 at November 30, 1996 compared 
to 2.0 to 1 at August 31, 1996.

		The Company's bank line of credit as of November 
30, 1996 amounted to approximately $700,000, of that amount $178,000 
was outstanding as of that date.  The Company was in compliance with 
all covenants and financial ratios required by its bank as of 
November 30, 1996. 

		The Company believes that its cash flow from 
operations together with its bank credit facilities should be 
sufficient to fund its working capital requirements for its 1997 
fiscal year.


Seasonality, Inflation and Industry Trends

The Company sales are generally lower in the summer 
and higher in the fall and winter.  Inflation has had no material 
effect on the Company business since the Company has been able to 
adjust the prices of its products and services.  Management  
believes that most phases of the healthcare segment of the computer 
systems industry will continue to be competitive and that the 
changes making place in healthcare will have a long term positive 
impact on its business.  In addition, management believes that the 
industry will experience more significant technological advances 
which will improve the quality of service and reduce costs.  The 
Company is poised to meet these challenges by continuing to employ 
new technologies when they become available, diversifying its 
product offerings, and by constantly enhancing its software 
applications.





PART II - OTHER INFORMATION


Items 1 through 5. NOT APPLICABLE 

Item 6. Exhibits and Reports on Forms 8-K

     (a)  Exhibit 11 - Statement re: computation of 
          per share earnings.

          Exhibit 27 - Financial Data Schedule.

     (b)  There were no reports filed on Form 8-K 
          during the quarter ended November 30, 1996.


SIGNATURES

In accordance with the requirements of the Exchange Act, the Company 
caused this report to be signed on its behalf by the undersigned, 
thereunto duly authorized.


	CREATIVE COMPUTER APPLICATIONS, INC.
	(Company)



Date  January 10, 1997		/S/  Steven M. Besbeck
				Steven. M. Besbeck, President
				Chief Executive Officer, Chief
				Financial Officer



Date  January 10, 1997		/S/  Carol Bessel			
				Carol Bessel,
                                Controller and Chief Accounting
				Officer



Exhibit 11

CREATIVE COMPUTER APPLICATIONS, INC.

COMPUTATION OF EARNINGS PER COMMON SHARE

<TABLE>
<CAPTION>
                                               Three Months ended 
                                                 November 30, 
                                             1996             1995 

<S>				<C>		<C>

ENDING MARKET PRICE PER SHARE              $      2.13      $      1.75

AVERAGE MARKET PRICE PER SHARE             $      1.86      $      1.79

NET INCOME                                 $    99,784      $   191,992

PRIMARY EARNINGS PER SHARE:
   Shares:
     Weighted average number of
      common shares outstanding              2,824,207        2,735,715
     shares issuable upon exercise
      of options and warrants                  671,000          816,000
     Shares assumed to be repurchased
      under the treasury stock
      method (1) (2)                          (476,108)        (527,810)

   Adjusted weighted average number
    of common shares outstanding             3,019,099        3,023,905

   Primary earnings per share              $       .03      $       .06


FULLY DILUTED EARNINGS PER SHARE:
   Shares:
     Weighted average number of
      common shares outstanding              2,824,207        2,735,715
   Shares issuable upon exercise
     of options and warrants                   681,000          816,000
   Shares assumed to be repurchased
     under the treasury
     stock method (1) (2)                     (424,817)        (139,000)
   Adjusted weighted average
     number of common shares outstanding     3,080,390        3,412,715

   Fully diluted earnings per share        $       .03      $       .06
</TABLE>


(1)	Shares assumed to be repurchased under the treasury stock 
          method:
        Primary common stock equivalents are assumed to be 
          repurchased at average market price.
        Fully diluted common stock equivalents are assumed to 
          be repurchased at the greater of average or ending
          market price.
	Shares assumed to be repurchased under the treasury stock 
          method are limited to 20% of the number of shares 
          outstanding at the end of the period in accordance with 
        Accounting Principals Board Statement No. 15.

(2)	Shares assumed to be repurchased under the treasury stock 
          method were based on proceeds of assumed options
          of $885,560 for primary and $904,860 for fully diluted 
          for the period ended November 30, 1996.

 

 

CREATIVE COMPUTER APPLICATIONS, INC.

CREATIVE COMPUTER APPLICATIONS, INC.