SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    Form 10-Q


           |x| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
                                  

                  For the quarterly period ended March 31, 1997

                                       OR

          |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

             FOR THE TRANSITION PERIOD FROM __________ TO __________

                         Commission File Number 0-57495


                               SAVILLE SYSTEMS PLC
             (Exact name of registrant as specified in its charter)



                               Republic of Ireland
         (State or other jurisdiction of incorporation or organization)

                                 Not Applicable
                      (I.R.S. Employer Identification No.)

                   IDA Business Park, Dangan, Galway, Ireland
          (Address of principal executive offices, including zip code)

                               011-353-91-526611
              (Registrant's telephone number, including area code)

  American Depository Shares, Representing Ordinary Shares, $0.0025 par value
                                (Title of Class)

     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 such
filing requirements for the past 90 days. Yes |x| No |_|

Number of shares  outstanding of the registrant's class of Ordinary Shares as of
April 30, 1997 was 18,168,445.


<PAGE>



                               SAVILLE SYSTEMS PLC

                                FORM 10-Q REPORT

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997

                                TABLE OF CONTENTS

                               
                         PART I - FINANCIAL INFORMATION                     PAGE

Item 1.  Consolidated Financial Statements
                                                  
         Consolidated Balance Sheets as at March 31, 1997 (unaudited) 
          and December 31, 1996                                                3

         Consolidated Statements of Income for the three months ended          4
          March 31, 1997 and 1996 (unaudited)

         Consolidated Statements of Cash Flows for the three months ended      5
          March 31, 1997 and 1996 (unaudited)

         Notes to Consolidated Financial Statements (unaudited)                6


Item 2.  Management's Discussion and Analysis of Financial Condition and 
          Results of Operations                                             7-11



                           PART II - OTHER INFORMATION


SIGNATURES                                                                    13

EXHIBIT INDEX                                                                 14




<PAGE>
<TABLE>

Saville Systems PLC


CONSOLIDATED BALANCE SHEETS


(in thousands of U.S. dollars)

                                                                                     March 31     December 31
                                                                                       1997          1996
                                                                                    (unaudited)
--------------------------------------------------------------------------------     --------      --------
<S>                                                                                   <C>            <C>
ASSETS
Current
Cash and cash equivalents ......................................................     $ 27,935      $ 34,395
Marketable securities ..........................................................        8,000         1,000
Accounts receivable, less allowance for doubtful accounts
of  $1,120 and $756, respectively ..............................................       22,594        15,308
Prepaid expenses and other assets ..............................................        1,715         1,511

                                                                                       60,244        52,214
Property and equipment, net ....................................................        4,378         4,275

                                                                                     $ 64,622      $ 56,489

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable ...............................................................        1,973         1,711
Accrued compensation and related benefits ......................................        2,193         2,704
Income taxes payable ...........................................................        3,283         2,910
Deferred revenue ...............................................................        3,801         1,420
Other current liabilities ......................................................          824           770
Current portion of long-term debt ..............................................         --              43

                                                                                       12,074         9,558


Minority interest ..............................................................          327           320

Shareholders' equity
Share capital ..................................................................           93            93
Additional paid-in capital .....................................................       29,019        27,778
Retained earnings ..............................................................       23,215        18,813
Cumulative translation account .................................................         (106)          (73)

                                                                                       52,221        46,611

                                                                                     $ 64,622      $ 56,489


See accompanying notes

</TABLE>
<PAGE>
<TABLE>

Saville Systems PLC


CONSOLIDATED STATEMENTS OF INCOME


 (in thousands of U.S. dollars, except per share data)

                                                                                               
                                                                                    Three months ended    
                                                                                   March 31    March 31
                                                                                     1997        1996
                                                                                  (unaudited)(unaudited)

<S>                                                                                <C>        <C>  
REVENUE
Services .......................................................................   $ 16,515   $  9,032
License fees ...................................................................      3,615      1,523

                                                                                     20,130     10,555


EXPENSES
Cost of services ...............................................................      8,037      4,478
Cost of license fees ...........................................................         88         22
Sales and marketing ............................................................      1,202        637
Research and development .......................................................      1,481        860
General and administrative .....................................................      3,909      2,321

                                                                                     14,717      8,318


Income from operations .........................................................      5,413      2,237
Other income, net ..............................................................        354        243
Income before income taxes .....................................................      5,767      2,480

Provision for income taxes .....................................................      1,325        440

Income before minority interest ................................................      4,442      2,040
Minority interest share in subsidiaries' net income ............................         40         (2)

Net income .....................................................................   $  4,402   $  2,042

Net income per share ...........................................................   $   0.23   $   0.11

Weighted average share and share equivalents (in thousands) ....................     19,275     18,685

</TABLE>

See accompanying notes


<PAGE>
<TABLE>

Saville Systems PLC

CONSOLIDATED STATEMENTS OF CASH FLOWS


(in thousands of U.S. dollars)

                                                                                    
                                                                                      Three months ended    
                                                                                     March 31    March 31  
                                                                                       1997        1996   
                                                                                    (unaudited)(unaudited)
--------------------------------------------------------------------------------     --------    --------
<S>                                                                                  <C>            <C>
                                                                              
CASH FLOWS FROM OPERATING ACTIVITIES
Net income .....................................................................   $  4,402    $  2,042
Adjustments to reconcile net income to net cash provided by operating
activities:
  Depreciation and amortization ................................................        278         147
  Allowance for doubtful accounts ..............................................        370          75
  Minority interest in net income ..............................................         40          (2)
   Gain on sale of property and equipment ......................................        (19)       --
   Stock based compensation expense, net of related taxes ......................         60        --
Changes in operating assets and liabilities:
  Accounts receivable ..........................................................     (7,662)     (4,632)
  Prepaid expenses and other assets ............................................       (205)       (215)
  Accounts payable .............................................................        263         359
  Accrued compensation and related benefits ....................................       (512)       (113)
  Accrued royalties ............................................................       --          (163)
  Income taxes payable .........................................................        373         440
   Deferred revenue ............................................................      2,381        --
   Other current liabilities ...................................................         54         287

Net cash used in operating activities ..........................................       (177)     (1,775)


CASH FLOWS FROM INVESTING ACTIVITIES
Net purchase of property and equipment .........................................       (391)       (428)
Purchase of marketable securities ..............................................     (7,000)       --

Net cash used in investing activities ..........................................     (7,391)       (428)


CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt ....................................................        (43)        (13)
Proceeds from share issuances ..................................................        706        --
Public offering costs ..........................................................        (46)        (45)
Tax benefit on employee stock transactions .....................................        488        --

Net cash provided by (used in) financing activities ............................      1,105         (58)

Effect of exchange rate changes on cash ........................................          3         (12)


Net decrease in cash and cash equivalents ......................................     (6,460)     (2,273)
Cash and cash equivalents, beginning of period .................................     34,395      23,722

Cash and cash equivalents, end of period .......................................   $ 27,935    $ 21,449


  Supplement disclosure of cash flow information:
  Cash paid for interest .......................................................          3           6
  Cash paid for income taxes ...................................................        548        --
</TABLE>

See accompanying notes


<PAGE>


Saville Systems PLC

Notes to Consolidated Financial Statements at March 31, 1997.  (unaudited)

1.       Basis of Presentation

The accompanying consolidated financial statements are unaudited, except for the
balance  sheet  dated as of December  31,  1996,  and have been  prepared by the
Company  in  accordance  with U.S.  generally  accepted  accounting  principles.
Certain  information and footnote  disclosure normally included in the Company's
audited annual consolidated  financial statements have been condensed or omitted
in accordance  with the rules and  regulations  of the  Securities  and Exchange
Commission.  The unaudited interim  consolidated  financial  statements,  in the
opinion of management,  reflect all adjustments  (consisting  only of normal and
recurring  adjustments)  necessary for a fair presentation of the results of the
interim  periods  ended  March 31, 1997 and 1996 and the  financial  position at
March 31, 1997.

The results of operations for the interim periods are not necessarily indicative
of the results of operations  to be expected for the fiscal year.  These interim
consolidated financial statements should be read in conjunction with the audited
consolidated  financial  statements  of the Company  which are  contained in the
Company's Annual Report on Form 10-K for the year ended December 31, 1996.

2.       Net Income Per Share

The net income per share is computed  based upon the weighted  average number of
Ordinary  Shares and  dilutive  share  equivalents  outstanding.  The  Financial
Accounting Standards Board has issued Statement of Financial Accounting Standard
No. 128 "Earnings  per Share"  (`SFAS 128').  SFAS 128 will be effective for the
Company's year ending and quarter ending  December 31, 1997. The Company has not
determined  the  impact,  if any,  of  SFAS  128 on its  consolidated  financial
statements.

3.       Share Capital

The number of Ordinary  Shares and Deferred Shares  outstanding  were 18,163,145
and  30,000,   respectively  at  March  31,  1997  and  18,081,571  and  30,000,
respectively at December 31, 1996.  During the quarter ended March 31, 1997, the
Company  issued 81,574  Ordinary  Shares to officers and employees for aggregate
cash consideration of approximately $706,000.

Subsequent  to March 31, 1997 the  shareholders  authorized  an amendment to the
Company's  Memorandum  and  Articles of  Association  to increase  the number of
authorized Ordinary Shares from 40,000,000 to 75,000,000.


The  following  table  summarizes  the activity in Ordinary  Share  options from
December 31, 1996 to March 31, 1997:

<TABLE>
                        Number of Ordinary Share Options
               ---------------- ---------------- ----------------
                                  Available for     Unexercised       Weighted
                                     grant                         average price
                                                                     per share
<S>                                <C>            <C>                <C>                                         
Balance at December 31, 1996         2,692,232        1,500,916       $ 8.33

Options granted                     (1,056,210)       1,056,210        37.55
Options exercised                                       (81,574)        8.65
Options cancelled                       38,175          (38,175)       19.04

Balance at March 31, 1997            1,674,197        2,437,377       $20.85

</TABLE>
<PAGE>




A summary of  Ordinary  Share  options  outstanding  as of March 31,  1997 is as
follows:

<TABLE>


Total Outstanding      Range of          Weighted          Weighted       Exercisable at       Weighted
                   Exercise Prices       Average           Average        March 31, 1997       Average
                                      Exercise Price      Remaining                         Exercise Price
                                                         Contractual                        of Exercisable
                                                       Life (in years)                         Options
<S>                <C>                  <C>                <C>            <C>                <C>
           10,490           $  1.68      $  1.68             2.3               10,490            $  1.68
          402,807              2.40         2.40             2.8              402,807               2.40
          891,258      8.66 - 10.00         9.00             8.5              317,819               9.28
           34,091     15.00 - 26.63        17.40             8.8               20,757              16.33
        1,098,731     28.63 - 43.00        37.49             9.4               10,000              34.43
------------------ ----------------- ----------------- ----------------- ----------------- -----------------
        2,437,377   $  1.68 - 43.00      $ 20.85             7.9              761,873            $  6.06
------------------ ----------------- ----------------- ----------------- ----------------- -----------------
</TABLE>

Subsequent  to March 31, 1997 the  shareholders  authorized  an amendment to the
Company's 1995 Share Option Plan to increase the number of shares  authorized to
be granted under the plan from 2,980,000 to 5,000,000.


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

General

The  following  information  should be read in  conjunction  with the  Unaudited
Consolidated  Financial  Statements and Notes thereto included in Item 1 of this
Quarterly  Report,  the  Audited  Consolidated  Financial  Statements  and Notes
thereto and  Management's  Discussion  and Analysis of Financial  Condition  and
Results of Operations  contained in the Company's Annual Report on Form 10-K for
the year ended December 31, 1996.

Results of Operations

Revenue

Total  revenue  increased  90.7 % from $10.6  million in the three  months ended
March 31, 1996 to $20.1  million in the three months ended March 31, 1997.  Both
service and license fee revenue increased as described below.


Services  revenue  increased  82.8 % from $9.0 million in the three months ended
March 31, 1996 to $16.5  million in the three months  ended March 31, 1997.  The
increase was attributable primarily to more customized development performed for
existing clients in both the AS/400 and UNIX development  environments and, to a
lesser  extent,  the  amount  of  new  client  initial  customization  including
requirement definitions.

License  fees  revenue  increased  137.4 % from $1.5 million in the three months
ended March 31, 1996 to $3.6  million in the three  months ended March 31, 1997.
Depending on the level of customization or enhancements  required,  license fees
are  recognized  at time of  delivery,  or amortized  over the expected  term of
initial  customization.  The license fee increase was  attributable to increased
license  fee  amortization  on  existing   customization  projects  and  on  new
installations in the United States and Europe.




<PAGE>



Cost of Services

Cost of services  increased  79.5 % from $4.5  million in the three months ended
March 31, 1996 to $8.0 million in the three  months  ended March 31, 1997.  As a
percentage of services revenue, cost of services remained relatively constant in
both periods,  decreasing from 49.6 % in the period ended March 31, 1996 to 48.7
% in the same period in 1997. The overall increase in expenses was primarily due
to additional  personnel hired to support the increased volume of business.  The
number of personnel  primarily  responsible  for consulting  services  increased
46.8% in the three  months ended March 31, 1997 over the  comparative  period in
1996.

Cost of License Fees

Cost of license fees  increased from $22,000 in the three months ended March 31,
1996 to $88,000 in the three months ended March 31, 1997.  This increase was due
to employee sales commissions earned on new license fee agreements.

Sales and Marketing

Sales and marketing  expenses increased 88.7 % from $637,000 in the three months
ended March 31, 1996 to $1.2  million in the three  months ended March 31, 1997.
This  increase was primarily  due to the  Company's  continued  expansion of its
sales force in the United  States and Europe and the creation of a sales team to
address the Latin  American  market.  The  Company  anticipates  that  continued
expansion  of its sales force in North  America and Europe and its  intention to
establish a stronger  sales  presence in Latin  America  and Asia  Pacific  will
increase its sales and  marketing  expenses  through the remainder of 1997 which
may have an adverse effect on the Company's results of operations.

Research and Development

Research and  development  expenses  increased 72.2 % from $860,000 in the three
months  ended March 31, 1996 to $1.5 million in the three months ended March 31,
1997. This increase was due to increased  development  efforts by the Company in
creating  new and  enhanced  billing and  customer  care  products.  The Company
intends to continue to invest  resources to expand its product  offerings in the
future and  therefore  expects  that  research  and  development  expenses  will
continue to increase.

General and Administrative


General and  administrative  expenses  increased  68.4% from $2.3 million in the
three  months  ended March 31, 1996 to $3.9  million in the three  months  ended
March 31, 1997.  The  increase was  attributable  to  increased  management  and
administrative salaries,  recruitment,  facilities and other expenses associated
with the  corresponding  growth in the  employee  base and the  expansion of the
Company's business.


Other Income and Expenses

Other income, net of other expenses,  increased 45.7% from $243,000 in the three
months  ended March 31, 1996 to  $354,000  in the three  months  ended March 31,
1997.  Increased interest income on increased cash and cash equivalents balances
was the primary  reason for the  increase in other  income.  This was  partially
offset  by  foreign  exchange  losses  experienced  due to  fluctuations  in the
Canadian and Irish currencies compared to the U.S. dollar.


<PAGE>



Provision for Income Taxes

The Company recorded a tax provision of $440,000 in the three months ended March
31, 1996  representing  an  effective  tax rate of 17.7%.  Comparatively,  a tax
provision  of $1.3 million was recorded in the three months ended March 31, 1997
representing an effective tax rate of 23.0%. The Company's effective tax rate is
largely  dependent on the proportion of the Company's income earned in different
tax  jurisdictions.  The  Company is  currently  eligible  for a 10% tax rate on
"manufacturing"  income  earned  in the  Republic  of  Ireland.  The rate is not
available  for other types of income such as income earned by the Company on its
cash  investments.  The  eligibility for the 10% tax rate is the reason that the
Company's  effective  tax  rate is below  the  Irish  standard  rate of 38% (36%
effective April 1, 1997), and below the statutory rates of Canada and the United
States. There can be no assurances that the Company will continue to be eligible
for this 10% tax rate in future periods.

Liquidity and Capital Resources

Cash and cash equivalents  decreased $6.5 million from $34.4 million at December
31, 1996 to $27.9 million at March 31, 1997. This decrease was attributable to a
$7.0 million  increase in investments in short term  marketable  securities over
the same period. On a combined basis, therefore, there was a $540,000 increase.


During the three  months  ended  March 31,  1997,  $177,000  of cash was used in
operating  activities  representing  a decrease  of $1.6  million  over the $1.8
million of cash used in the corresponding period in 1996. The major contributors
to this change were the cash  provided by a $2.4 million  increase in net income
and the $2.4 million increase in deferred  revenue  partially offset by the cash
used by a $3.0 million increase in accounts receivable.


The Company used $391,000 to purchase fixed assets during the three months ended
March 31, 1997.  This  represents  a decrease of $37,000 over the  corresponding
period in 1996.  The  Company  continues  to make fixed  asset  investments  for
infrastructure  to support its historical  business  growth and its  anticipated
needs in future fiscal periods.  The Company expects to continue its fixed asset
investments  in the  remainder  of 1997 as the  Company  expands  its  locations
worldwide.

During the three months ended March 31, 1997 the Company issued  Ordinary Shares
pursuant  to  exercises  of options  under the  employee  stock  option plan for
proceeds of approximately $706,000.

As of March 31, 1997 the Company had $22.6  million in net accounts  receivable.
The average days sales  outstanding  ("DSO") at March 31, 1997 was approximately
102 days as compared to  approximately  110 at March 31, 1996. DSO is calculated
based on the average daily sales of the immediately preceding three month period
divided by the trade accounts receivable balance at the end of the period.


The  Company  believes  that  existing  cash  balances  and funds  generated  by
operations  will be  sufficient  to meet its  anticipated  liquidity and working
capital requirements for the next twelve months.


Foreign Currency Exposure

The Company's  international  sales are predominately  invoiced and paid in U.S.
currency  with the  exception of certain  clients who are invoiced  primarily in
Canadian dollars and Pounds Sterling. The impact of foreign currency translation
has not been material to the Company's operations.


<PAGE>



Certain Factors That May Affect Future Results

This Quarterly Report contains forward-looking statements that involve risks and
uncertainties.  The Company's actual results may differ  significantly  from the
results  discussed  in  the  forward-looking  statements,  including  statements
regarding the Company's plans to establish a sales presence in Latin America and
Asia  Pacific,  the  Company's  plans to  continue  to  invest in  research  and
development  efforts,  the Company's  expectation  that it will continue to make
capital asset  investments in 1997, the Company's  belief that its existing cash
balance  and  funds  generated  by  operations  will be  sufficient  to meet its
anticipated  liquidity and working capital  requirements through at least fiscal
1998 and the Company's general expectations of growth. A number of uncertainties
exist that could  affect the  Company's  future  operating  results,  including,
without  limitation,  the  Company's  ability to retain  existing  customers and
attract new  customers,  the Company's  ability to attract and retain  qualified
employees,  the  costs  associated  with  significant  increases  in  number  of
employees,  the  Company's  continuing  ability  to  develop  products  that are
responsive  to the  evolving  needs  of its  customers,  increased  competition,
changes in operating  expenses,  foreign currency  exchange rates, the Company's
continued  ability  to take  advantage  of  favorable  tax  treatment  currently
available to the Company, and general economic factors.

To date, a substantial  portion of the Company's total revenues has derived from
a small number of  customers.  This  concentration  of  customers  can cause the
Company's  revenues and earnings to fluctuate from quarter to quarter,  based on
these  customers'  requirements  and the timing of their  orders.  A significant
decrease  in  business  from any of its major  customers  would  have a material
adverse effect on the Company's business,  financial  condition,  and results of
operations.

The Company  competes  with both  independent  providers of systems and services
like  the   Company  and  with   internal   billing   departments   of  existing
telecommunications  service providers,  many of which have substantially greater
financial,  technical,  sales, marketing and other resources, as well as greater
name recognition,  than the Company.  There can be no assurance that the Company
will be able to compete  successfully with its existing  competitors or with new
competitors.

The Company's future success depends in large part on its ability to develop new
customer  relationships  with successful  telecommunications  service providers.
There  can be no  assurance  that  the  Company  will be able  to  develop  such
relationships  or that service  providers  that become  customers of the Company
will be  successful.  Historically,  the Company has been dependent on long-term
customer relationships and therefore,  the failure of the Company's customers to
compete  effectively  in the  telecommunications  market  could  have a material
adverse  effect on the Company's  business,  financial  condition and results of
operations.


Although the Company has developed  software for  UNIX-based  operating  systems
jointly with a Channel partner, the Company's billing and customer care software
currently runs primarily on the IBM AS/400  platform which  represents a leading
platform for existing and new billing systems.  If there should be a rapid shift
away from the  current  use of the  AS/400  platform  by the  telecommunications
industry  for  billing,  the Company  would be  required  to expend  substantial
capital resources to develop new software and likely experience delays or losses
in customer orders.


The  Company's  success  will depend  upon its  ability to enhance its  existing
products and to introduce  new products and features to meet  changing  customer
requirements and to permit it to meet the needs of new customers. The Company is
currently  devoting  significant  resources to refining and  expanding  its base
software modules and to continuing the development of billing software that will
operate on  UNIX-based  operating  systems.  If the Company were unable,  due to
resource,  technological  or other  constraints,  to  adequately  anticipate  or
respond to such changes, the Company's business, financial condition and results
of operations would be materially adversely affected.


<PAGE>



The Company's international business is subject to risks such as fluctuations in
exchange rates,  difficulties or delays in developing and supporting non-English
language versions of the Company's  products,  political and economic conditions
in various jurisdictions, unexpected changes in regulatory requirements, tariffs
and  other  trade  barriers,  difficulties  in  staffing  and  managing  foreign
operations and longer accounts receivable payment cycles.

Recently,  the Company has expanded  its  operations  rapidly,  which has placed
significant demands on the Company's  administrative,  operational and financial
personnel and systems.  Additional  expansion by the Company may further  strain
the  Company's  management,  financial  and  other  resources.  There  can be no
assurance that the Company's  systems,  procedures,  controls and existing space
will be adequate to support expansion of the Company's operations. The Company's
future  operating  results  will  substantially  depend  on the  ability  of its
officers  and key  employees  to  manage  changing  business  conditions  and to
implement and improve its operational,  financial control and reporting systems.
If the Company is unable to respond to and manage changing business  conditions,
the quality of the Company's  services,  its ability to retain key personnel and
its results of operations could be materially adversely affected.

Fluctuations  in  exchange  rates  may have a  material  adverse  effect  on the
Company's results of operations,  particularly its operating margins,  and could
also result in exchange losses.  The impact of future exchange rate fluctuations
on the Company's results of operations cannot be accurately predicted.  To date,
the Company has not sought to hedge the risks  associated  with  fluctuations in
exchange rates, but may undertake such transactions in the future.  There can be
no  assurance  that any hedging  techniques  implemented  by the Company will be
successful  or that the Company's  results of operations  will not be materially
adversely affected by exchange rate fluctuations.

The Company has  significant  operations and generates a substantial  portion of
its taxable  income in the  Republic of Ireland,  and,  under an  incentive  tax
program due to terminate in 2010,  is taxed on its  "manufacturing  income" at a
10% rate, which is substantially lower than U.S. tax rates. If the Company could
no longer  qualify  for this 10% tax rate or if the tax laws were  rescinded  or
changed,  the Company's net income could be materially  adversely  affected.  In
addition,  if U.S.,  Canadian or other foreign tax authorities were to challenge
successfully  the manner in which profits are  recognized  among the Company and
its subsidiaries,  the Company's effective tax rate could increase, and its cash
flow and results of operations could be materially adversely affected.


<PAGE>




                               SAVILLE SYSTEMS PLC

                           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

         The Company held the 1997 Annual General Meeting of  Shareholders  (the
"Annual Meeting) on April 24, 1997. At the Annual meeting, the following actions
were taken.


1. The shareholders  considered the audited accounts of the Company for the
year ended  December 31, 1996 and the Reports of the  Directors and the Auditors
thereon; 
 
2. The  shareholders  re-elected John A Blanchard III, Brian E. Boyle,
Richard A.  Licursi and John W.  Sidgmore as Class II  Directors of the Company,
each to serve for a three year  term.  Holders of  18,158,654  Ordinary  Shares,
18,158,654  Ordinary Shares,  18,158,654 Ordinary Shares and 18,158,654 Ordinary
Shares voted for Messrs. Blanchard,  Boyle, Licursi and Sidgmore,  respectively;

3. The shareholders ratified the reappointment of Ernst & Young as the Company's
independent  auditors by a vote of  18,158,654  Ordinary  Shares  for,  and zero
Ordinary  Shares  against;  

4. The  shareholders  authorized an amendment to the Company's  1995 Share 
Option Plan by a vote of 17,435,154  Ordinary  Shares for,711,000  Ordinary 
Shares against and 12,500  Ordinary Shares not voting;  

5. The shareholders authorized an amendment to the Company's Memorandum and 
Articles of Association  and an  increase  in the  number  of  Ordinary  Shares
that may be allotted by the Board of Directors to  75,000,000  Ordinary  shares 
by a vote of 17,436,154  Ordinary  Shares for,  710,000  Ordinary  Shares  
against and 12,500 Ordinary  Shares not voting;  

6. The  shareholders  authorized  the directors to
determine the  remuneration of the independent  auditors by a vote of 18,158,654
Ordinary Shares for, and zero Ordinary Shares against;  and 

7. The  shareholders authorized  the  holding of the 1998  Annual  General  
Meeting of the Company in North  America by a vote of  18,158,654  Ordinary  
Shares for, and zero Ordinary Shares against.

Item 5.  Other Information

         None


Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits

              The exhibits  listed in the Exhibit  Index as part of or included
              in this report.

         (b)  Reports on form 8-K

               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 by the
undersigned thereunto duly authorized.

                                                     SAVILLE SYSTEMS PLC
                                                     (Registrant)






Date:         May 13, 1997                      By:  /s/ John J. Boyle, III
     ---------------------------------------        ----------------------------
                                                    John J. Boyle, III
                                                    President & CEO





Date:         May 13, 1997                      By:  /s/ Christopher A. Hanson
     ---------------------------------------        ---------------------------
                                                    Christopher A. Hanson
                                                    Chief Financial Officer
                                                   (Principal Financial Officer)





<PAGE>



                               SAVILLE SYSTEMS PLC
                                FORM 10-Q REPORT
                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997


                                INDEX TO EXHIBITS


Exhibit No.               Description                                       Page



10.1                      Amendment to 1995 Share Option Plan                 15

10.2                      Employment letter agreement with
                          Andrew Campbell dated November 12, 1996             16

10.3                      Employment letter agreement with
                          Christopher A. Hanson dated January 28, 1997        17


11.0                      Statement re:  Computation of Per Share             18
                                         Earnings

27.0                      Financial Data Schedule                             19