FORM 10-QSB - QUARTERLY OR TRANSITIONAL REPORT UNDER
                             SECTION 13 OR 15 (d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934
                        Quarterly or Transitional Report
                     U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

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

         For quarterly period ended January 31, 1998

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

         For the transition period from                     to           

         Commission File Number: 0-25024       

                            TITAN TECHNOLOGIES, INC.
                     (Exact name of small business issuer as
                            specified in its charter)

              NEW MEXICO                               85-0388759          
     (State or other jurisdiction           (IRS Employer Identification No.) 
    of incorporation or organization)           

                 3206 Candelaria Road NE. Albuquerque, NM 87107
                    (Address of principal executive offices)

                                 (505) 884-0272
                           (Issuer's telephone number)

                                       N/A
(Former  name,  former  address and former  three-months,  if changed since last
report)

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the Securities 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  shares of the registrant's common  stock outstanding as
          of February 28, 1998 was:

          No Par Value Common              22,065,411


Transitional Small Business Format:  Yes [   ]   No [ X ]  

                                                       
                          PART I. FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS

                    Titan Technologies, Inc. and Subsidiaries
                           CONSOLIDATED BALANCE SHEET
                                January 31, 1998
                                    UNAUDITED

 ASSETS

      Current Assets
         Cash ...............................................       $    18,150
         Accounts receivable - stockholder ..................               609
                                                                    -----------
                  Total Current Assets ......................            18,759

      Property and Equipment, at cost
         Furniture and fixtures .............................             8,058
         Machinery ..........................................             8,362
          Automotive ........................................            23,000
                                                                    -----------
                                                                         39,420

         Less accumulated depreciation ......................           (10,862)
                                                                    -----------
                  Net property and equipment ................            28,558

                                                                    $    47,317
                                                                    ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

      Current Liabilities
         Accounts payable ...................................       $     4,221
         Note payable stockholder ...........................           124,350
         Other accrued liabilities ..........................            30,884
                                                                    -----------
                  Total Current Liabilities .................           159,455


      Stockholders' Equity
         Common stock - no par value; authorized,
         50,000,000 shares; issued and
         outstanding, 22,016,411 shares .....................         1,305,695
         Accumulated deficit ................................        (1,417,833)
                                                                    -----------
                                                                       (112,138)
                                                                    -----------

                                                                    $    47,317
                                                                    ===========

    The Accompanying Notes Are An Integral Part of These Financial Statements


                    Titan Technologies, Inc. and Subsidiaries
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      For the Three Months January 31, 1998
                                    UNAUDITED

                                                      1998             1997  
                                                  ------------     ------------
REVENUES

      Plant licensing ........................    $     39,353     $       --
      Other income ...........................             182            2,700
                                                  ------------     ------------
                                                        39,535            2,700


COSTS AND EXPENSES

      General and administrative .............          65,707           80,152
      Outside services .......................           1,020           10,238
      Depreciation and amortization ..........           1,311              345
      Interest ...............................           3,360            3,361
                                                  ------------     ------------
                                                        71,398           94,096
                                                  ------------     ------------

      Income (loss) before income taxes ......         (31,863)         (91,396)

      Provision for income taxes .............            --               --   
                                                  ------------     ------------

      Net income (loss) ......................     $ ( 31,863)      $ ( 91,396)
                                                  ============     ============
      Weighted average common shares
         outstanding, basic and
         diluted (Note 2) ....................      21,934,454       18,376,628
                                                  ============     ============

Basic and diluted (loss) per common share ....    $       0.00     $       0.00
                                                  ============     ============

    The Accompanying Notes Are An Integral Part of These Financial Statements


                    Titan Technologies, Inc. and Subsidiaries
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                    For the Six Months Ended January 31, 1998
                                    UNAUDITED

                                                     1998              1997
                                                 ------------      ------------
 REVENUES

      Plant licensing ......................     $     39,353              --
      Gain on sale of assets ...............             --             162,678
      Other income .........................            1,041             5,790
                                                 ------------      ------------
                                                       40,394           168,468


COSTS AND EXPENSES

      General and administrative ...........          141,499           191,404
      Outside services .....................           12,733            19,171
      Depreciation and amortization ........            2,621             1,697
      Interest .............................            6,720             5,223
                                                 ------------      ------------
                                                      163,573           217,495
                                                 ------------      ------------

Income (loss) before income taxes ..........         (123,179)          (49,027)

Provision for income taxes .................             --                --   
                                                 ------------      ------------

Net income (loss) ..........................     $   (123,179)     $    (49,027)
                                                 ============      ============
Weighted average common shares
         outstanding, basic and
         diluted (Note 2) ..................       21,934,454        18,376,628
                                                 ============      ============

Basic and diluted (loss)
          per common share .................     $      (0.01)     $      (0.00)
                                                 ============      ============

    The Accompanying Notes Are An Integral Part of These Financial Statements


                    Titan Technologies, Inc. and Subsidiaries
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                    For the Six Months Ended January 31, 1998
                                    UNAUDITED

                                                         1998           1997  
                                                       ---------      ---------
Cash flows from operating activities
      Cash received from customers ...............     $  39,353      $    --
      Interest received ..........................         1,041          5,790
      Cash paid for suppliers and
         subcontractors ..........................      (147,375)      (209,466)
      Interest paid ..............................        (6,720)        (5,223)
                                                       ---------      ---------
      Net cash provided by (used in)
      operating activities .......................      (113,701)      (208,899)

Cash flows from investing activities
      Acquisition of property
         and equipment ...........................       (28,624)        (2,322)

Cash flows from financing activities
      Proceeds from stockholder loan .............        12,350        112,000
      Proceeds from sale of common stock .........       145,000           --   
                                                       ---------      ---------
                                                         157,350        112,000

      Net increase (decrease) in cash ............        15,025        (99,221)
                                                       ---------      ---------

      Cash at beginning of year ..................         3,125        272,714
                                                       ---------      ---------

      Cash at end of period ......................     $  18,150      $ 173,493
                                                       =========      =========

Reconciliation of Net earnings (loss)
      to Cash Provided by (used in)
         Operating Activities
      Net earnings (loss) ........................     $(123,179)     $ (49,025)
      Adjustments
      Gain on sale of assets .....................          --         (162,678)
      Depreciation and amortization ..............         2,621          1,697
      Changes in assets and liabilities
      (Decrease) increase
         in accounts payable .....................         1,682         (4,435)
      Increase in interest payable ...............         6,720          3,878
      (Decrease) increase in accrued
         liabilities .............................        (1,545)         1,664
                                                       ---------      ---------
      Net cash provided by (used in)
         operating activities ....................     $(113,701)     $(208,899)
                                                       =========      =========

Noncash investing and financing activities: During the six months ending January
     31,1997  certain rights and patents with a net book value of  approximately
     $75,000 were  transferred  to the developer in exchange for notes  payable,
     accrued   interest  and  other   liabilities  to  the  developer   totaling
     approximately $238,000.

    The Accompanying Notes Are An Integral Part of These Financial Statements


                    Titan Technologies, Inc. and Subsidiaries
                          NOTES TO FINANCIAL STATEMENTS
                    For the Six Months Ended January 31, 1998


1)  NOTES TO FINANCIAL STATEMENTS

The balance sheet at January 31, 1998, and the statements of operations and cash
flow for the six  months  ended  January  31,  1998 and 1997 have been  prepared
without audit. In the opinion of management,  all adjustments,  including normal
recurring  adjustments  necessary  to  present  fairly the  financial  position,
results of operations and cash flows,  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 financial  statements be read in conjunction
with the Company's audited financial statements at July 31, 1997. The results of
operations  for the six  months  ended  January  31,  1998  are not  necessarily
indicative of operating results for the full year.

2)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Loss per common share is computed  using the weighted  average  number of common
shares outstanding during the period. The company adopted Statement of Financial
Accounting  Standards  No. 128,  "Earnings  Per Share"  during the quarter ended
January 31,  1998.  Since the Company has only  common  stock  outstanding,  the
adoption of this standard had no significant  effect on the company's  financial
statements.

3)  ISSUANCE OF COMMON STOCK

In March 1997, the Company exchanged  3,000,000 shares of its common stock for a
28.5% interest in ESA Recycling GMBH ("ESA"), an Austrian company. No investment
was recorded  because the  estimated  fair value of the net assets of ESA at the
time of the exchange were nominal.  ESA has no current  operations  but plans to
develop a tire recycling plant in Europe.

In August  1997 the company  sold  580,000  shares of common  stock for which it
received $145,000.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Results of Operations

During the six months  ended  January  31,  1998,  the  Company  had  $39,353 in
licensing revenue.  During the year ended July 31, 1996 the Company granted tire
recycling license rights for Europe,  Australia, New Zealand and South Africa to
a company.  The agreement requires the payment of licensee fees of $1,500,000 to
$2,500,000  to the Company for each plant  constructed  and royalties of 3.5% of
the gross sales price of  by-products  from the plants.  No plants are scheduled
for  construction  at  October  31,  1997.  As a result of these  activities  by
management general and administrative  expenses decreased $14,445 to $65,707 and
outside  services  decreased $9,218 to $1,020 for the three months ended January
31, 1998 as compared to the three  months ended  January 31,  1997.  General and
administrative  decreased  $49,905 to $141,499  and outside  services  decreased
$6,438 to $12,733 for the six months  ended  January 31, 1998 as compared to the
six months ended January 31, 1997

Financial Condition

The  Company's  liquidity  increased in the six months ended January 31, 1998 as
cash increased by $15,025 since July 31, 1997. Operations used $113,701 compared
to the same  period of the prior year in which  operations  used  $208,899.  The
Company  did not repay a note due  September  24,  1997 and is in default of the
note. The Company is attempting to renegotiate the note.  Pending  renegotiation
of the note and based on the results of fiscal 1997 and its  prospects for 1998,
management  considers  the  Company's  liquidity  position  adequate  with funds
sufficient to meet its operating needs.


                           PART II. OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

1. The Company has filed suit against two individuals for fraud and/or negligent
misrepresentation  seeking  the  return  of  approximately  2,264,000  shares of
company stock issued to these individuals for technology and license rights. One
of these individuals  subsequently filed  counterclaims  against the Company. In
the opinion of  management,  the ultimate  resolution  of these matters will not
have a  materially  adverse  effect  on  the  Company's  consolidated  financial
position or consolidated results of operations;  however, due to the uncertainty
of the matters, it is at least reasonably possible that management's view of the
outcome will change in the near future.

In the event the Company fails to renegotiate the note referenced  above in Item
2, the company has substantial  offset against the claimed  indebtedness  and is
prepared to litigate if there is no amicable resolution of this matter.

On February  12,  1998 the Company  filed a lawsuit  against a  stockholder  for
fraud,  breach  of  contract,  conversion,  and  breach  of  oral  agreement  in
connection  with contracts and  agreements for the sale and/or  licensing of the
Company's  recycling  technology  and certain  geographic  marketing  rights and
raising  capital  funds  for  recycling   plants  in  Europe.   The  suit  seeks
compensatory  and punitive  damages in excess of $50,000 plus attorney fees. Due
to the early stage of this litigation, management cannot estimate the likelihood
or amount of a favorable verdict.

The  Company  knows of no other  legal  proceedings  pending or  threatened,  or
judgement  against any  director or officer of the Company in their  capacity as
such.


ITEM 2.  CHANGES IN SECURITIES

NONE


ITEM 3.  DEFAULTS IN SENIOR SECURITIES

NONE


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

NONE


ITEM 5.  OTHER INFORMATION

NONE


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     (a) There are no exhibits required by Item 601 of Regulation S-K

     (b)  Reports on Form 8-K.  State  whether any reports on Form 8-K have been
filed  during the  quarter  for which this  report is filed,  listing  the items
reported, any financial statements filed, and the dates of any such reports.

NONE


                                   SIGNATURES

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

                    TITAN TECHNOLOGIES, INC. AND SUBSIDIARIES
 


March 10, 1998  Ronald L. Wilder
                -------------------------------------------------------  
                Ronald L. Wilder, President and Chief Executive Officer



March 10, 1998  Bruce R. Clark
                --------------------------------------------------------
                Bruce R. Clark, General Counsel, Chief Financial Officer
                and Chief Accounting Officer