U.S. SECURITIES AND EXCHANGE COMMISSION
                    WASHINGTON, D.C.  20549


                          FORM 10-QSB



[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934

     FOR THE QUARTERLY PERIOD ENDED:  September 30, 1997

                               OR

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

               COMMISSION FILE NUMBER:  333-7841


                   DESERT NATIVE DESIGNS, INC.
     (Exact name of registrant as specified in its charter)


      NEVADA                                       13-3859938
(State or other jurisdiction                 (I.R.S. Employer
of incorporation or organization)            Identification No.)


                     1393 Luckspring Drive
                   Salt Lake City, Utah 84106
            (Address of principal executive offices)

                         (801) 466-8928
      (Registrant's telephone number, including area code)


Check whether the issuer (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 report(s), and (2)
has been subject to such filing requirements for the past 90
days.

YES [X]   NO [ ]

The number of $.001 par value common shares outstanding at
September 30, 1997:  1,000,000

<PAGE>

                 PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements

     See attached.

Item 2:  Management's Discussion & Analysis or Plan of Operations

     The Company was incorporated on July 20, 1995 to engage in
the business of producing and marketing drums, rattles and other
specialty crafts related to the shamanistic practices of Native
Americans.

     The Company commenced planned principal operations, but did
not generate significant revenues therefrom.  Operating and other
expenses were funded from initial capital contributions, a
limited offering of its securities and shareholder loans.
Management's plan of operation also included raising additional
funding from a public offering of securities.  Pursuant thereto,
the Company commissioned the preparation and filing of a
registration statement covering distribution and exercise of
Series A and B Warrants, and shares of common stock underlying
the warrants, exercise of which would have generated gross
proceeds of as much as $300,000 to the Company.  Such
registration statement became effective, and the Series A and B
Warrants were distributed to stockholders of record as of,
October 23, 1996.  However, none of the Warrants were ever
exercised.  Furthermore, efforts at marketing the Company's
products were unsuccessful.  Because of the lack of any
significant revenues, such operations were subsequently
discontinued.  The Company is still considered a development
stage company and presently has no significant assets or
operating capital.

<PAGE>

     The Company began looking for other potential business
ventures with which it might become involved.  During August,
1997, the Company entered into a letter of intent with respect to
a proposed acquisition (the "Acquisition") of FiberNet Telecom,
Inc. ("FiberNet"), a Delaware corporation engaged in business in
the telecommunications industry.  As proposed, the Acquisition
contemplates that the Company will issue approximately 11,500,000
shares of its common stock (after effecting a 3.5 for 1 forward
stock split) in exchange for all the issued and outstanding stock
of FiberNet, in a transaction anticipated to constitute a tax-
free exchange.  The parties are proceeding toward closing,
however, as of the date of filing of this report, the Acquisition
had not closed and there is no assurance that the Acquisition
will be consummated.

     The accompanying financial statements of the Company have
been prepared in conformity with generally accepted accounting
principles which contemplate continuation of the Company as a
going concern.  However, the Company is newly formed, has
incurred losses since its inception and has not yet been
successful in establishing profitable operations.  These factors
raise substantial doubt about the ability of the Company to
continue as a going concern.  In this regard, management is
proposing to make the Acquisition and raise any necessary
additional funds not provided by operations through loans and/or
through additional sales of its capital stock.  However, there is
no assurance that the Company will be successful in consummating
the Acquisition, raising additional capital or acheiving
profitable operations.  In the event the business of the Company
is unsuccessful, there is no assurance the Company could
successfully become involved with any other business venture. The
Company presently has no plans, commitments or arrangements with
respect to any potential business venture other than the proposed
Acquisition.  The financial statements do not include any
adjustments that might result from the outcome of these
uncertainties.  See attached financial statements.

<PAGE>

                  PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

     None.

Item 2.  Changes in Securities and Use of Proceeds

     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

     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.

                              Desert Native Designs, Inc.



Date:  October 29, 1997         by:   /s/ Jody St. Clair
                                   Jody St. Clair, President

<PAGE>                            
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                   DESERT NATIVE DESIGNS, INC.
                  [A Development Stage Company]
                                
            UNAUDITED CONDENSED FINANCIAL STATEMENTS
                                
                       SEPTEMBER 30, 1997
                                
                               AND
                                
                        DECEMBER 31, 1996
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
 <PAGE>                               
                                
                                

                   DESERT NATIVE DESIGNS, INC.
                  [A Development Stage Company]
                                
               UNAUDITED CONDENSED BALANCE SHEETS
                                
                                
                             ASSETS
                                

                                September  30,  December 31,
                                        1997          1996
                                    ___________  ___________
CURRENT ASSETS:
  Cash in bank                          $     3     $    474
                                    ___________  ___________
        Total Current Assets                  3          474
                                    ___________  ___________

OTHER ASSETS:
  Assets of discontinued operation        3,920       11,535
  Organization costs, net                   276          345
                                    ___________  ___________
        Total Current Assets              4,196       11,880
                                    ___________  ___________

                                        $ 4,199     $ 12,354
                                    ___________  ___________

         LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES:
  Accounts payable                          648            -
  Other accrued liabilities                 146        3,288
  Note payable - related party                -       23,500
                                    ___________  ___________
        Total Current Liabilities           794       26,788
                                    ___________  ___________
STOCKHOLDERS' EQUITY (DEFICIT):
  Preferred stock, $.001 par value,
   5,000,000 shares authorized,
   no shares issued and outstanding           -            -
  Common stock, $.001 par value,
   50,000,000 shares authorized,
   1,000,000 shares issued and
   outstanding at September 30, 1997
   and December 31, 1996                  1,000        1,000
  Capital in excess of par value         52,645       11,285
  Deficit accumulated during the
    development stage                   (50,240)     (26,719)
                                    ___________  ___________
  Total Stockholders' Equity (Deficit)    3,405      (14,434)
                                    ___________  ___________
                                      $   4,199     $ 12,354
                                    ___________  ___________

NOTE:   The balance sheet at December 31, 1996 was taken from the
     audited financial statements at that date and condensed.

 The accompanying notes are an integral part of these financial
                           statements.


<PAGE>
                   DESERT NATIVE DESIGNS, INC.
                  [A Development Stage Company]
                                
                                
          UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
                                
                                
                          For the Three     For the Nine   From Inception
                           Months Ended     Months Ended   on July 20,
                          September 30,    September 30,   1995 Through
                       ________________    ______________  September 30,
                           1997    1996     1997     1996    1997
                       _________  ______   ______   ______  ________
REVENUE:
  Sales                   $    - $      -  $     - $     -   $     -

                       _________  _______  _______  _______  ________
EXPENSES:
  General and administrative   -        -        -       -         -
                       _________  _______  _______  _______  ________

(LOSS) FROM CONTINUING
  OPERATIONS  BEFORE INCOME
  TAXES                        -        -        -       -         -

CURRENT TAX EXPENSE            -        -        -       -         -

DEFERRED TAX EXPENSE           -        -        -       -         -
                       _________  _______  _______  ______  _________

(LOSS) FROM CONTINUING
  OPERATIONS                   -        -        -       -         -
                       _________  _______  _______  _______  _______

DISCONTINUED OPERATIONS:

(Loss) from operations of
  discontinued crafts
   operations            (6,234)  (10,977)  (21,320) (21,239) (48,039)


Estimated (Loss) on 
  disposition of crafts
  operation              (2,201)       -     (2,201)      -     (2,201)
                       _________  _______  ________  _______  ________

(LOSS) FROM DISCONTINUED
  OPERATIONS             (8,435) (10,977)  (23,521) (21,239)  (50,240)
                       _________  _______  _______  _______  _________

NET LOSS               $(8,435) $(10,977) $(23,521) $(21,239) $(50,240)
                       ________  _______  ________  _________  ________

LOSS PER COMMON SHARE   $(.01)   $(.01)    $(.02)   $ (.02)   $(.05)
                       _______   _______   _______   _______   _______
                                
                                
                                
 The accompanying notes are an integral part of these financial
                           statements.

<PAGE>
                   DESERT NATIVE DESIGNS, INC.
                  [A Development Stage Company]
                                
          UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                                
                                
                                    For the Nine     From Inception
                                    Months Ended      on July 20,
                                   September 30,      1995 Through
                              _______________________ September 30,
                                  1997        1996        1997
                              ___________  __________  _____________
Cash Flows to Operating Activities:
  Net loss                      $(23,521)   $(21,239)  $ (50,240)
  Adjustments to reconcile net
    loss  to net cash used by
    operating activities:
     Non-cash expenses		    2,201         -         2,201
     Depreciation and amortization  1,004        988        2,213
     Changes in assets and liabilities:
        Inventory                   4,479    (2,514)      (1,920)
        Accounts payable              648        930          648
        Accrued liabilities           718        900        4,006
                              ___________  __________  ___________
        Net Cash Flows to Operating
          Activities             (14,471)   (20,935)     (43,092)
                              ___________  __________  ___________
Cash Flows to Investing Activities:
  Purchase of property and equipment    -    (3,800)      (6,230)
  Payment of organization costs         -          -        (460)
                              ____________  _________  ___________
        Net Cash to Investing Activities-    (3,800)      (6,690)
                              ____________  _________  ___________
Cash Flows from Financing Activities:
  Proceeds from common stock issuance   -          -       19,500
  Payments for stock offering costs     -          -      (7,215)
  Proceeds from notes 
    payable - related party        14,000     23,500       37,500
                            ______________  _________  ___________
        Net Cash from Financing
          Activities               14,000     23,500       49,785
                            ______________  _________  ____________
Net Increase (Decrease) in Cash     (471)    (1,235)            3

Cash at Beginning of Period           474      3,120            -
                            ______________  _________  ____________
Cash at End of Period           $       3    $ 1,885    $       3
                            ______________  _________  ____________

Supplemental Disclosures of Cash Flow information:
  Cash paid during the period for:
    Interest                    $       -    $     -    $       -
    Income taxes                $       -    $     -    $       -

Supplemental schedule of Noncash Investing and Financing
Activities:
  For the period ended September 30, 1997 and 1996:
     Notes  payable of $37,500 and accrued interest of $3,860  were
     converted to contributed capital.
                                
                                
 The accompanying notes are an integral part of these financial
                           statements.

<PAGE>
                   DESERT NATIVE DESIGNS, INC.
                  [A Development Stage Company]
                                
        NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
  
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  
  Organization - The Company was organized under the  laws  of  the
  State  of Nevada on July 20, 1995 and was engaged in the business
  of  producing  and marketing crafts. The Company has subsequently
  discontinued  its  crafts business and  has  been  seeking  other
  business  opportunities.  The Company is considered a development
  stage company as defined in SFAS No. 7.  The Company has, at  the
  present  time, not paid any dividends and any dividends that  may
  be paid in the future will depend upon the financial requirements
  of the Company and other relevant factors.
  
  Condensed  Financial  Statements  -  The  accompanying  financial
  statements have been prepared by the Company without  audit.   In
  the  opinion  of management, all adjustments (which include  only
  normal  recurring  adjustments) necessary to present  fairly  the
  financial  position,  results of operations  and  cash  flows  at
  September  30, 1997 and for all the periods presented  have  been
  made.
  
  Certain information and footnote disclosures normally included in
  financial   statements  prepared  in  accordance  with  generally
  accepted  accounting principles have been condensed  or  omitted.
  It is suggested that these condensed financial statements be read
  in  conjunction with the financial statements and  notes  thereto
  included  in  the  Company's December 31, 1996 audited  financial
  statements.   The  results of operations  for  the  period  ended
  September  30,  1997  are  not  necessarily  indicative  of   the
  operation results for the full year.
  
  Accounting Estimates - The preparation of financial statements in
  conformity with generally accepted accounting principles requires
  management  to  make estimates and assumptions  that  affect  the
  reported  amounts  of asset and liabilities, the  disclosures  of
  contingent  assets and liabilities at the date of  the  financial
  statements  and  the  reported amount of  revenues  and  expenses
  during  the  reported period.  Actual results could  differ  from
  those estimated.
  

NOTE 2 - DISCONTINUED OPERATIONS

  The  Company  previously  was in the business  of  producing  and
  marketing  crafts consisting of drums, rattles and other  crafts.
  During   1997,   management  determined  to   discontinue   these
  operations  and  began  looking  for  other  potential   business
  ventures.   At December 31, 1996 the Company had inventory  of  $
  6,399  and property and equipment (net of depreciation) of $5,136
  which was related to the craft operations.  At September 30, 1996
  the   Company  has  reclassified  the  assets  related   to   the
  discontinued  operations under the balance  sheet  classification
  "Assets  of Discontinued Operation".  The following is a  summary
  of the items included in assets of discontinued operations

                              September 30, December 31,
                                   1997         1996
                                __________ __________
       Inventories               $   1,920   $  6,399
       Equipment and tools           6,230      6,230
       Less accumulated depreciation (2,029)   (1,094)
       Allowance for loss on
        disposition                  (2,201)       -
                                __________ __________
                                 $   3,920   $ 11,535
                                __________ __________

<PAGE>

                   DESERT NATIVE DESIGNS, INC.
                  [A Development Stage Company]
                                
        NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE 2 - DISCONTINUED OPERATIONS (continued)

  The  statements of operations for all periods presented have been
  reclassified  to  segregate  the  discontinued  operations   from
  continuing   operations.   Total  revenues  received   from   the
  discontinued  operations amounted to $2,595 for the period  ended
  December 31, 1996.  There were no revenues received during 1997.
  The Company has accrued $2,201 which is the estimated loss to be
  incurred upon disposition of the remaining assets of the discontinued
  crafts operation.

NOTE 3 - CAPITAL STOCK
  
  Common  Stock  Warrants  - During 1996, the  Company  distributed
  warrants  to  its  stockholders on a  one  for  one  basis.   The
  warrants were distributed to the stockholders of record as of the
  effective   date  of  a  registration  statement  and  prospectus
  covering  the  distribution and exercise of such  warrants.   The
  registration  statement which was filed with the  Securities  and
  Exchange Commission on Form SB-2 became effective on October  23,
  1996.   The warrants comprise in the aggregate 500,000  Series  A
  Warrants  and  500,000  Series  B  warrants,  each  of  which  is
  exercisable  for  one share of common stock of the  Company.  The
  Warrants are exercisable at prices of $.25 for the Series  A  and
  $.35 for the Series B, at any time after their issuance but in no
  event after June 30, 1998.  Two principle shareholders have agreed
  to cancel 925,700 of these warrants without consideration leaving
  a total of 74,300 warrants outstanding.  On October 24, 1997, the
  Company announced its intention to redeem the remaining outstanding
  warrants effective November 24, 1997.
  
  Common  Stock  -  During October, 1995, in  connection  with  its
  organization, the Company issued 950,000 shares of its previously
  authorized, but unissued common stock.  Total proceeds  from  the
  sale of stock amounted to $9,500.
  
  Public  Offering - During October, 1995 the Company issued 50,000
  shares of common stock pursuant to a public offering, for cash at
  $.20 per share.
  
  Preferred Stock - The Company has authorized 5,000,000 shares  of
  preferred  stock, $.001 par value, with such rights,  preferences
  and designations and to be issued in such series as determined by
  the Board of Directors.  No shares are issued and outstanding  at
  December 31, 1996.
  
NOTE 4 - INCOME TAXES
  
  The   Company  accounts  for  income  taxes  in  accordance  with
  Statement  of Financial Accounting Standards No. 109  "Accounting
  for  Income Taxes".  FASB 109 requires the Company to  provide  a
  net deferred tax asset/liability equal to the expected future tax
  benefit/expense of temporary reporting differences  between  book
  and   tax  and  any  available  operating  loss  or  tax   credit
  carryforwards.  At September 30, 1997, the Company has  available
  unused  operating  loss carryforwards  of approximately  $45,000,
  which  may  be  applied against future taxable income  and  which
  expire  in 2010.  The amount of and ultimate realization  of  the
  benefits  from  the operating loss carryforwards for  income  tax
  purposes is dependent, in part, upon the tax laws in effect,  the
  future  earning  of  the Company, and other  future  events,  the
  effects   of  which  cannot  be  determined.   Because   of   the
  uncertainty surrounding the realization of the loss carryforwards
  the  Company has established a valuation allowance equal  to  the
  tax  effect of the loss carryforwards and, therefore, no deferred
  tax  asset  has been recognized for the loss carryforwards.   The
  change  in the valuation allowance is equal to the tax effect  of
  the current period's net loss.

<PAGE>

                   DESERT NATIVE DESIGNS, INC.
                  [A Development Stage Company]
                                
        NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
  
NOTE 5 - RELATED PARTY TRANSACTIONS
  
  Management  Compensation  - During the nine  month  period  ended
  September  30, 1997, no compensation was paid to any  officer  or
  director.
  
  Notes  Payable -   An entity which is  a  shareholder  of  the
  Company or individuals related thereto, made several loans to the
  Company  with  proceeds totaling $37,500.  During the nine month
  period ended September 30, 1997, $14,000 was advanced and $23,500
  was advanced through the period ended December  31,  1996. These
  unsecured  loans provided  for  interest  at  10%  and  were 
  payable  on  demand. Interest  of  $2,518 and $1,362 had been 
  accrued for the  periods ending  September  30,  1997 and 
  December  31,  1996.   Effective September  30, 1997, these notes
  were cancelled and converted  to capital contributions (see below).
  
  Capital  Contributions - During September, 1997, an entity  which
  is  a  shareholder of the Company or individuals related thereto,
  agreed  not to pursue collection of certain notes payable in  the
  amount  of $37,500 and related interest of $3,860.  These amounts
  have  been  reclassified and accounted for as additional  capital
  contributions.
  
  Office  Space - The Company maintains an address and phone number
  at a business office of one of its principal shareholders, in New
  York, on a rent free basis as its principal executive office.
  
  The  Company, for the time being, will have the use of  the  home
  office facilities of its president, in Salt Lake City, Utah, on a
  rent  free  basis  as  its place of business  for  producing  the
  crafts.  The  Company will, however, reimburse its president  for
  any additional out-of-pocket costs related to the use of the home
  office.   Management  does  not  intend  to  seek  other   office
  arrangements  unless  and until the Company's  business  requires
  more  extensive  facilities, which  is  not  anticipated  in  the
  foreseeable future.
  
NOTE 6 - GOING CONCERN
  
  The  accompanying  financial statements  have  been  prepared  in
  conformity  with  generally accepted accounting principles  which
  contemplate  continuation  of the Company  as  a  going  concern.
  However,  the Company is newly formed, has incurred losses  since
  its  inception  and has not yet been successful  in  establishing
  profitable  operations.   These factors raise  substantial  doubt
  about  the ability of the Company to continue as a going concern.
  In  this  regard, management is proposing to make the Acquisition
  (See  Note  7)  and  raise  any necessary  additional  funds  not
  provided  by  operations through loans and/or through  additional
  sales of its common stock. There is no assurance that the Company
  will  be  successful  in  consummating the  Acquisition,  raising
  additional  capital  or  achieving  profitable  operations.   The
  financial  statements do not include any adjustments  that  might
  result from the outcome of these uncertainties.
  
NOTE 7 - PROPOSED ACQUISITION
  
  During  August, 1997 the Company entered into a letter of  intent
  with  respect to a proposed acquisition of FiberNet Telecom, Inc.
  ("FiberNet"), a Delaware corporation engaged in business  in  the
  telecommunications industry.  The Company is proposing  to  issue
  approximately 11,500,000 shares of post-split common stock (after
  effecting a 3.5 to 1 forward stock split) for all the issued  and
  outstanding  stock of FiberNet.  The acquisition has  not  closed
  and  there  is no assurance that the acquisition will  ultimately
  occur.

<PAGE>