U.S. SECURITIES AND EXCHANGE COMMISSION

                           Washington, D.C.  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 SEPTEMBER 30, 1997

(   )  TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT OF 1934 
FOR THE TRANSITION PERIOD FROM ______________TO_______________


                       COMMISSION FILE NUMBER  0-25380


                    			ULTRADATA SYSTEMS, INCORPORATED			
    		(Exact name of small business issuer as specified in its charter)

	        Delaware		                              43-1401158		
(State or other jurisdiction of      	(I.R.S. Employer Identification No.)
  incorporation or organization)

9375 Dielman Industrial Drive, St. Louis, MO                63132		
(Address of principal executive offices)			               (Zip Code)


Issuer's telephone number, including area code:  (314) 997-2250

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_____

State the number of shares outstanding of each of the issuer's classes of
common equity as of the latest practicable date.

Class                                Outstanding as of  November 3, 1997
Common, $.01 par value                             3,396,493

Transitional Small Business Disclosure Format    Yes_____    No   X	    	


<PAGE>

                                          									         File Number	
									                                                     0-25380	

                        ULTRADATA SYSTEMS, INCORPORATED
                                  FORM 10-QSB
                               September 30, 1997
                                     INDEX

PART 1 - FINANCIAL INFORMATION				                             		   PAGE

     Item 1.  Financial Statements

             Consolidated Balance Sheets at
               September 30, 1997 and December 31, 1996           	    3.
				
             Consolidated Statements of Income
               for the quarters and nine months 
               ended September 30, 1997 and 1996                       4.

             Consolidated Statements of Cash Flows
               for the nine months ended September 30,
               1997 and 1996                                           5.

             Notes to Consolidated Financial Statements                6.

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

PART 11 - OTHER INFORMATION                                           11.
  
          Signatures                                                  12.


<PAGE>

Item 1.  Financial Statements

                    ULTRADATA SYSTEMS, INCORPORATED AND SUBSIDIARY
                            Consolidated Balance Sheets

	
                                                 September 30,     	December 31,
                                                     	1997             	1996	
                                                  	(unaudited)
	                                Assets

Current assets:			
	Cash and cash equivalents                       	$ 4,151,825  	 	 $ 3,960,577
	Trade accounts receivable, net of allowance for
		doubtful accounts of $19,493 and $16,644 at
		September 30, 1997 and December 31, 1996,
  respectively                                      2,771,308       	4,608,285
	Costs and estimated earnings on long-
  term contracts                                      556,216          438,670
	Inventories                                       	4,050,658       	3,289,453
	Deferred tax assets                                  	62,600          	62,600
	Prepaid expenses and other current assets 	         	886,851        		641,376

			Total current assets                            12,479,458       13,000,961

Property and equipment, net                          	786,206         	642,245
Deferred compensation trust                           	91,689          	91,689
Capitalized software development                      215,877                -
Other assets                                         		56,030          	43,968

			Total assets                                  	$13,629,260     	$13,778,863

                   			Liabilities and Stockholders' Equity

Current liabilities:		
	Accounts payable                                 $  	699,937      $ 1,374,346
	Accrued expenses and other liabilities             1,025,888        		865,263

			Total current liabilities                        1,725,825        2,239,609

Deferred rent, less current portion                    14,306           	8,708
Deferred compensation liability                       	91,689          	91,689
Deferred tax liabilities	                             	23,330          	23,330

			Total liabilities	                             $ 1,855,150      $	2,363,336

Stockholders' equity:
	Common stock, $.01 par value; 10,000,000 shares
		authorized; 3,403,493 shares	issued and 3,396,493 
  outstanding at September 30, 1997
		and 3,403,493 issued and outstanding at        
  December 31, 1996, respectively.                $    34,035      $    34,035
	Additional paid-in capital                        	9,763,001        9,763,001
 Treasury stock, 7,000 shares                         (38,062)               -
	Retained earnings                                 	2,425,636       	2,028,991
	Notes receivable issued for purchase of common
		stock	                                           		(410,500)	      	(410,500)

			Total stockholders' equity                     	11,774,110       11,415,527

			Total liabilities and stockholders' 
			equity                                        	$13,629,260      $13,778,863


See accompanying notes to consolidated financial statements.

<PAGE>

                  ULTRADATA SYSTEMS, INCORPORATED AND SUBSIDIARY 
                      CONSOLIDATED STATEMENTS OF OPERATIONS



                                  Quarter ended               Nine months ended
                                  September 30,                 September 30,
                                 1997         1996         	1997         	1996
	                                   (Unaudited)                 (Unaudited)
Net sales			
	Consumer products         $3,071,478   $1,328,977    $9,545,059   	$3,332,905 
 Contract revenues	           148,324      122,181       425,047      	723,979 
Total net sales             3,219,802    1,451,158     9,970,106     4,056,884 
 
Cost of sales
	Consumer products          1,225,808      594,571     3,834,899     1,543,904 
	Contracts	                    84,823       72,221       218,408       312,643  
Total cost of sales         1,310,631      666,792     4,053,307     1,856,547

Gross profit                1,909,171      784,366     5,916,799     2,200,337

Selling, general &
 administrative	expenses    1,583,365      784,831     4,745,266     2,402,553
Research & development
	expenses	                    230,894      273,350       739,710       762,170
 	
Operating income (loss)        94,912     (273,815)      431,823      (964,386)

Other income (expense)
Interest expense	                (695)        (844)         (800)       (3,307)
Interest income                54,438       29,040       165,188        71,803  
Other, net	                      (368)          16          (631)       (3,517)

Total other income	            53,375       28,212       163,757        64,979
Income (loss) before 
 income tax expense   
 (benefit)                    148,287     (245,603)      595,580      (899,407)
Income tax expense
 (benefit)                     42,481     (127,759)	     198,935      (414,358)

Net income (loss)          $  105,806  $  (117,844)    $ 396,645    $ (485,049)

Earnings (loss) per common
	and common equivalent share:
		primary		                     $0.03      ($0.04)         $0.12        ($0.19) 
		fully Diluted                 $0.03      ($0.04)         $0.12        ($0.19) 

Weighted average common and
	common equivalent shares
	outstanding		              3,414,465   2,726,554(1) 	 3,415,774 	  2,489,285(1)

(1) For the quarter and nine months ended September 30, 1996, the inclusion of 
the common share options and warrants were antidilutive and were excluded from 
the computation.

See Accompanying Notes to Consolidated Financial Statements.

<PAGE>
                ULTRADATA SYSTEMS, INCORPORATED AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF CASH FLOWS

                                           Nine Month Period ended September 30,
	                                                   1997              	1996
                                                         	(unaudited)
Cash flows from operating activities.			
	Net income (loss)                            $ 	 396,645         $   (485,049)
		Adjustments to reconcile net income (loss) 
   to net	cash provided by operations:
				Depreciation                                  135,316              	48,750
				Decrease in accounts receivable, net       	1,836,977            1,613,344
				Increase in inventories                      (761,205)          (1,282,572)
    Decrease in deferred offering cost                  -               21,500
    Increase in prepaid expenses 
     and other current assets                    (245,475)            (178,117)
    Increase in costs and estimated 
     earnings on long-term contracts             (117,546)            (208,875)
    Increase in other assets                      (12,062)              (1,462)
    (Decrease) increase in accounts payable     	(674,409)           	 561,020
				Increase (decrease) in accrued expenses
					and other liabilities                      	 160,625             (806,468)
				Increase in deferred rent                      	5,598                5,598 

	Net cash provided by (used in) 
    operating activities                          724,464             (712,331)

Cash flows from investing activities:
				Capital expenditures                         (279,277)            (237,477)
				Sale of marketable securities                       -              800,000
				Capitalized software development cost        (215,877)                   -

Net cash (used in) provided by investing
  activities                                     (495,154)             562,523

Cash flows from financing activities:
				Repayment on line of credit                         -            	(448,000)
				Proceeds from sale of stock                         -            6,181,391
    Purchase of reasury stock                     (38,062)                   -
 
				Net cash (used in) financing
    activities	                                   (38,062)           5,733,391

Net increase in cash and cash equivalents     $   191,248          $ 5,583,583

Cash and cash equivalents at beginning of
  period	                                     $ 3,960,577          $   	15,065
Cash and cash equivalents at end of period    $	4,151,825         	$ 5,598,648

Supplemental disclosurs of cash flow information:
   Cash paid during the period for interest   $       869           $    5,388
   Cash paid during the period for taxes          275,569            		377,850

See Accompanying Notes to Consolidated Financial Statements.

<PAGE>

                ULTRADATA SYSTEMS, INCORPORATED AND SUBSIDIARY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                            September 30, 1997

NOTE 1 - INTERIM FINANCIAL STATEMENTS

The accompanying consolidated interim financial statements included herein
have been prepared by Ultradata Systems, Incorporated (the "Company"),
without audit, except for the consolidated balance sheet at December 31,
1996, in accordance with generally accepted accounting principles for interim
financial information and pursuant to the rules and regulations of the
Securities and Exchange Commission.  Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although the Company believes that
the disclosures made are adequate to make the information presented not
misleading.

The consolidated financial statements include the accounts of Ultradata Systems,
Incorporated and its majority-owned subsidiary, POIS, Inc. (POIS). As a result
of operating losses incurred by POIS, the consolidated financial statements 
include 100% of the POIS accounts since the minority interest does not currently
have the ability to absorb these losses.  All significant intercompany balances
and transactions have been eliminated in consolidation.

In the opinion of management, the information furnished for the quarters and 
nine month periods ended September 30, 1997 and 1996, respectively, includes all
adjustments, consisting solely of normal recurring accruals necessary for a 
fair presentation of the financial results for the respective interim periods
and is not necessarily indicative of the results of operations to be expected
for the entire fiscal year ending December 31, 1997.  It is suggested that the
interim financial statements be read in conjunction with the audited 
consolidated financial statements for the year ended December 31, 1996, as filed
with the Securities and Exchange Commission on Form 10-KSB (Commission File 
Number 0-25380).

NOTE 2 - EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE

For the quarter and nine months ended September 30, 1997, the earnings per 
common share is based on the weighted average number of common and common
equivalent shares outstanding. For the quarter and nine months ended September
30, 1996, the loss per common and common equivalent share are based on the
weighted average number of common and common equivqlent shares outstanding.  
For the quarter and nine months ended ended September 30, 1997, the earnings 
per common share is computed using 3,414,465 and 3,415,774 common shares 
outstanding.  For the quarter and nine months ended September 30, 1996, the loss
per common and common equivalent share are computed using 2,726,554 and 
2,489,285 common and common equivalent shares outstanding, respectively. 

NOTE 3 - INCENTIVE STOCK OPTION PLAN

As of September 30, 1997, the company's outstanding stock options totaled 
227,792 shares.  These options have been issued to key employees, officers, 
directors and consultants of the Company.  The Company is authorized to issue
350,000 shares of incentive stock options  or non-qualified stock options. On
August 2, 1997 the Board of Directors authorized the cancellation of 118,100
previously issued Incentive Stock Options ranging in exercise price of $5.75 to
$7.39 in exchange for 118,100 new Incentive Stock Options with an exercise 
price of $5.50 per option.  This action was taken to provide additional 
incentives to employees of the Company to improve operating performance.   


NOTE 4 - ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other liabilities at September 30, 1997 include the 
following:

                                      September 30,       December 31,
                                          1997                1996

       Income tax payable              $ 97,003             $173,637
       Sales tax payable                    447               32,138
       Commissions payable              648,427               74,022
       Royalties payable                 20,632               21,097
       Other expenses payable           259,379              564,369

                Total                $1,025,888             $865,263    

NOTE 5 - CAPITALIZED SOFTWARE DEVELOPMENT COST

Software development costs have been accounted for in accordance with Statement
of Financial Accounting Standards No. 86, "Accounting for the Costs of Computer
Software to be Sold, Leased or Otherwise Marketed". Under Standards No. 86,
capitalization of software development costs begins upon the establishment of
technological feasibility, subject to net realizable value considerations. 

Capitalized costs consist of those costs associated with the development of the
initial product.  This product is in the coding and testing stage; therefore
there there is no amortization to date.



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

                 Forward-Looking Statements: No Assurances Intended

This Item 2 contains certain forward-looking statements regarding the Company,
its business, prospects and results of operations that are subject to certain 
risks and uncertainties posed by many factors and events that could cause the 
Company's actual business, prospects and results of operations to differ 
materially from those that may be anticipated by such forward-looking 
statements.  Factors that may affect such forward-looking results, including 
statements about backlog, the Company's ability to successfully develop new
products for new markets; customer acceptance of new products; the possibility
of the Company losing a large customer or key personnel; the Company's ability
to manage growth and to successfully integrate recent strategic marketing and
product development alliances; the impact of competition on the Company's 
revenues; delays in the Company's introduction of new products; and the 
possibility of the Company failing to keep pace with emerging technologies.
Accordingly, no assurances can be given that events or results mentioned in any
such forward-looking statements will in fact occur.  When used in this 
discussion, words such as "believes" and phrases such as "are expected" and 
similar expressions are intended to identify forward-looking statements, but are
not the exclusive means of identifying forward-looking statements.  Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this report.  The Company undertakes no obligation
to revise any forward-looking statements in order to reflect events or
circumstances that may subsequently arise.  Readers are urged to carefully 
review and consider the various disclosures made by the Company in this report
and in the Company's reports filed with the Securities and Exchage Commission.

The analysis of the Company's financial condition, capital resources and 
operating results should be viewed in conjunction with the accompanying 
consolidated financial statements, including the notes thereto.

RESULTS OF OPERATIONS

Net sales for the quarter and nine month period ended September 30, 1997 were 
$3,219,802 and $9,970,106, respectively, compared to $1,451,158 and 
$4,056,884 for the quarter and nine months ended September 30, 1996, 
representing a 122% increase for the quarter and a 146% increase for the nine 
months, respectively. The following shows a quarterly and nine months breakdown
and comparison of these revenues:


  		                Three months ended             Nine months ended Increase  
			                   September 30,     Increase    September 30,   (Decrease) 
REVENUES	            1997        1996    	          1997        1996    
Consumer products $3,071,478  $1,328,977  131%  	$9,545,059  $3,332,905   186%
Contract revenues    148,324     122,181   21%      425,047     723,979   (41%) 
   Total          $3,219,802  $1,451,158  122%   $9,970,106  $4,056,884   146%

Consumer Products revenue for the quarter ended September 30, 1997 increased by 
$1,742,501 which represents a 131% increase from the quarter ended September 30,
1996. The increase in revenue is attributed to increased shipments for custom
travel computers, including a follow-on order for approximately $2.64 million.

Contract revenues for the quarter increased to $148,324 or by $26,143 from the
quarter ended September 30, 1996. For the nine months, contract revenues were 
down by $298,932 over the comparable nine months ended September 30, 1996.
The higher contract revenues for the prior year were associated with the 
continuing completion of a long term production contract for 12 laser pointing
and tracking systems (PATS) installations. Revenues for this contract were 
recorded on a percentage of completion method pursuant to the terms of the
contract. 

Gross profit for the current quarter for the consumer product group totaled 
$1,845,670 or 60.1% of consumer product sales as compared to $734,406 or 55.3%
for the third quarter of 1996. For the nine month period, gross profit totaled
$5,710,160 or 59.8% of consumer product sales compared to $1,789,001 or 53.7%
of sales for the nine months ended September 30, 1996. Selling, general and 
administrative (SG&A) expenses for the current quarter totaled $1,583,365 as 
compared to $784,831 for the same quarter last year, representing a 101.7% 
increase. For the current nine months, SG&A totaled $4,745,266 versus
$2,402,553, representing a 97.5% increase.

Sales commissions for the nine months increased to $1,948,030 from $172,568, 
reflecting higher sales and multi-level marketing efforts in conjunction with
custom orders; advertising and marketing costs increased to $1,028,707 from 
$888,608, reflecting major mailings of credit card inserts, new product 
literature and brochures and the introduction of new products to the market 
place; and personnel costs increased to $862,405 from $488,725, reflecting 
staff additions in data research, finance, and marketing.  This reflects the 
Company's continuing strategy to increase its name recognition and to support
new product offerings.    
 
Research and development expense decreased $42,456, or 16%, to $230,894 
during the quarter ended September 30, 1997 as compared to the same quarter
last year. For the nine month period, research and development decreased by 
$22,460 or 3% to $739,710 as compared to $762,170 for the nine months ended
September 30, 1996.  Research and development expenses for the period do not 
take into consideration "capitalized software development" cost incurred this
year which relates to a new product under development.  These costs will be 
amortized in future periods.  For the year, a total of $215,877 has been 
capitalized relating to software development costs incurred by the company. 
There were no comparable capitalized software development cost during the same 
period last year.

The Company's research and development efforts have resulted in three new 
products being released during the third quarter.  With the completion of these 
products, the Company's standard product line has expanded to fourteen 
individual products.  Further, research and development activity continued 
towards completion of additional products for release early next year, including
several new products.  The Company released its first POIS product, the POIS 
197, a travel computer to be marketed to the automobile aftermarket along with
two low-cost golf products, GOLF GUIDE and GOLFFINDER.  Research and development
activities are currently focused on three new products: (1) TRIPLINK, the 
PC-download to handheld system, (2) TRAVEL STAR, a driver information system, 
incorporating GPS (Global Positioning Satellite) and (3) a handheld Internet
appliance capable of sending and receiving E-mail.  These units contain many 
additional parts and require a greater engineering effort and will be more 
costly to manufacture when compared to the Company's current line of low-cost
travel computers.  These entries are expected to sell for more than the $100 
highest priced point items in the Company's standard line of travel computers. 
They are expected to be available early in 1998. TRAVEL STAR GPS is expected to
retail at approximately $400, substantially less than existing Auto Navigation
Systems which retail for $1,000 to $3,000.  Further, management believes TRAVEL
STAR GPS will have additional functions and user-freindly attributes not 
present in the more expensive GPS units.  TRAVEL STAR GPS is scheduled to be 
introduced at the Consumer Electronics Show in January, 1998 in Las Vegas, with
first production units planned for delivery in the first quarter of 1998.

At the present time, three joint product development agreements are in effect
for travel related products: (1) the TRIPLINK configuration will be employed in
a joint development effort with American Clearing House, a privately owned 
company engaged in database marketing and home delivery systems, to market a 
handheld unit to facilitate more efficient home delivery services such as fast-
food and floral deliveries, and (2) an agreement with Travroute Software, a 
leading developer of trip planning software, to incorporate the ROAD WHIZ 
database of interstate services with their trip planning software in a handheld
unit that has download capabilities from personal computers to address the 
growing PC consumer market, and (3) an agreement with a telecommunications 
company on development of an Internet appliance that would be low cost with the
ability to send and receive E-mail.  This Internet appliance is expected to be
available sometime in the second quarter of 1998.

Interest income for the quarter ended September 30, 1997 totaled $54,438, as 
compared to $29,040 for the quarter ended September 30, 1996.  For the nine 
months ended September 30, 1997 interest income totaled $165,188 as compared
to $71,803 for the same period ended September 30, 1996.  Larger investable 
balances were available during all of the third quarter of this year.  
Generally, the Company invests its surplus funds in more liquid investment 
instruments in order to avoid short term borrowing against the bank line of 
credit.  These more liquid short term investments carry a lower interest yield.

As a result of the foregoing, the Company posted net income of $105,806 (or
$0.03 per share) for the quarter ended September 30, 1997 versus a net loss of 
$117,844 (or $0.04 per share) for the quarter ended September 30, 1996. For the
nine months ended September 30, 1997, the Company posted net income of $396,645
(or $0.12 per share) as compared to a net loss of $485,049 (or $0.19 per share)
for the nine months ended September 30, 1996.

BACKLOG

The current backlog of consumer products was approximately $1,235,097 at 
September 30, 1997.  This backlog consists primarily of orders for non-custom 
travel computers associated with vendor orders for the holiday season. The 
current backlog of orders is scheduled to ship within the next two months.  
There were no comparable backlog records maintained at the quarter ended 
September 30, 1996.

FINANCIAL CONDITION AND LIQUIDITY

The Company has funded its operations primarily through the sale of Common 
Stock and historically through periodic borrowings, and from cash generated by
operations.  At September 30, 1997, the Company had $4,151,825 in cash and cash 
equivalents. 

The Company's operating activities provided $724,465 for the nine months 
ended September 30, 1997. The primary source of cash provided from
operating activities resulted from a $1,836,977 reduction in accounts 
receivable, reflecting the payment of peak trade receivables generated during
the fourth quarter ended December 31, 1996.  Net cash used by investing 
activities totaled $495,154, which includes the purchase od capital equipment
of $279,277 and capitalized software development cost of $215,877.  As a result
of the foregoing, net cash increased by $191,248.

Inventories increased $761,205 from the December 31, 1996 level to $4,050,658
as of September 30, 1997.  This represents the seasonal building of inventory 
for the forthcoming holiday season.  Typically, inventory levels decrease during
the first six months and gradually build during the third and into the fourth
quarter.  Accounts receivable decreased by $1,836,977 from $4,608,285 at 
December 31, 1996.  This decrease is another seasonal occurrence as fourth
quarter sales were substantially collected during the first quarter of fiscal
1997.

As a result working capital decreased slightly from $10,761,352 at December 31,
1996 to $10,753,633 at September 30, 1997.  The Company's current ratio at 
September 30, 1997 was 7.2 to 1 as compared to 5.8 to 1 at December 31, 1996.


The Company has an unsecured line of credit totaling $2.0 million plus a 
$500,000 facility for letters of credit, bringing the total credit facility to 
$2.5 million.  As of September 30, 1997 the borrowing against this line of 
credit was zero. 

The Company believes that the liquidity provided by its existing cash and cash
equivalents, the borrowing arrangement described above, and the cash generated
from operations will be sufficient to meet the Company's operating and capital
requirements for the next twelve months.



                        ULTRADATA SYSTEMS, INCORPORATED
                                     10QSB


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:

          		None

Item 5.        		Other Information:

          		None

Item 6.        		Exhibits and Reports on Form 8-K:
		
		          None


                                  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.

November 13, 1997				   /s/  Monte Ross                                   		
                  						Monte Ross, President and CEO
					                  	(Duly authorized officer and principal
						                  financial officer)