<PAGE>

                            UNITED STATES
                 Securities and Exchange Commission
                        Washington, DC 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: July 31, 1999

                                 Or

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


For the transition period from             to

                                   0-3255
                         (Commission File Number)

                             JAYARK CORPORATION
       (Exact name of registrant as specified in its charter)

DELAWARE                                             13-1864519
(State or other jurisdiction of incorporation)       (IRS EIN)

Post Office Box 741528, Houston, Texas               77274
(Address of principal executive offices)             (Zip Code)

                             (713) 783-9184
        (Registrant's telephone number, including area code)


 (Former name, former address and fiscal year, if changed since last
                              report.)

     Indicate by check mark whether the registrant (1) has filed all
reports  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 [ ]

      Indicate  the  number of shares outstanding  of  each  of  the
issuer's classes of common stock, as of the latest practicable date:

               Class                    Outstanding at July 31, 1999
     Common Stock $0.01 Par Value            27,663,597

<PAGE>

                               Part I.
                               Item I.

                 Jayark Corporation and Subsidiaries
                     Consolidated Balance Sheets

<TABLE>
<CAPTION>



                                                      Unaudited     Audited
                                                       7/31/99      4/30/99
                                                      ----------   ----------
<S>                                                      <C>          <C>

Assets
Current Assets
Cash and Cash Equivalents                              $513,734      $209,724
Accounts Receivable-Trade, Less Allowance For Doubtful
Accounts of $82,000 at 7/31/99 and $59,000 at 4/30/99  1,411,577    1,818,214
Inventories                                              504,204      337,914
Other Current Assets                                      48,966       46,247
                                                      ----------   ----------
Total Current Assets                                   2,478,481    2,412,099

Non Current Assets
Property & Equipment, Less Accumulated Depreciation
and Amortization                                         112,822      120,410
Excess of Cost Over Net Assets of Businesses Acquired, Less
Accumulated Amortization of $490,000 at 7/31/99 and
$485,000 at 4/30/99                                      242,042      247,382
                                                      ----------   ----------
Total Non-Current Assets                                 354,864      367,792
                                                      ----------   ----------
Total Assets                                          $2,833,345   $2,779,891
                                                      ==========   ==========

Liabilities
Current Liabilities
Notes Payable & Line of Credit                                $0           $0
Current Maturities of Long Term Debt                     161,332      161,332
Accounts Payable                                         618,070      689,209
Accrued Expenses                                         255,916      253,796
Accrued Salaries                                         413,703      392,420
Accrued Interest                                         504,510      504,510
Other Current Liabilities                                 44,225       39,918
                                                      ----------   ----------
Total Current Liabilities                              1,997,756    2,041,185

Long Term Debt                                         1,420,787    1,424,229
                                                      ----------   ----------
Total Liabilities                                     $3,418,543   $3,465,414


Stockholders' Equity (Deficit)
Common Stock of $.01 Par Value.  Authorized
30,000,000 Shares; Issued 27,663,597 Shares at
7/31/99 and 4/30/99                                      276,636      276,636
Additional Paid-In Capital                            12,350,084   12,350,084
Deficit                                              (13,211,918) (13,312,243)
Total Stockholders' Equity (Deficit)                   $(585,198)   $(685,523)
                                                      ----------   ----------
Total Liabilities & Stockholders' Equity (Deficit)    $2,833,345   $2,779,891

     See accompanying notes to consolidated financial statements

</TABLE>
<PAGE>


                 Jayark Corporation and Subsidiaries
                Consolidated Statements of Operations
                             (Unaudited)
<TABLE>
<CAPTION>


Three Months Ended:                   7/31/99    7/31/98
                                     ---------   ---------
<S>                                     <C>         <C>

Net Revenues                         $3,430,942 $4,046,269
Cost of Revenues                      2,883,838  3,498,261
                                     ---------   ---------
Gross Margin                            547,104    548,008

Selling, General and Administrative     419,392    481,177
                                     ---------   ---------

Operating Income                        127,712     66,831

Other Income (Expense):
Interest Expense                        (27,387)   (93,674)
                                     ---------   ---------
Pre Tax Earnings (losses)               100,325    (26,843)

Provision for Income Taxes                   --        --
                                     ---------   ---------

Net Income (loss)                      $100,325   $(26,843)
                                     =========   =========

Basic and Diluted Earnings (Loss)per Common Share:
Net Income (Loss)                          $.00      $.00
                                     =========   =========

Weighted Average Common Shares:
Basic and Diluted                    27,663,597 9,221,199
                                     =========   =========

     See accompanying notes to consolidated financial statements
</TABLE>
<PAGE>

                 Jayark Corporation and Subsidiaries
                Consolidated Statement of Cash Flows
                     For the Three Months Ended
                             (Unaudited)

<TABLE>
<CAPTION>

                                                      7/31/99     7/31/98
                                                     ---------   ---------


<S>                                                     <C>         <C>
Cash Flows From Operating Activities:
Net Income (loss)                                     $100,325   $(26,843)

Adjustments to Reconcile Earnings (Loss) to Cash
From Operating Activities:
Depreciation and Amortization of Property and Equipment 16,634     29,224
Changes In Assets and Liabilities:
(Increase) Decrease in Accounts Receivable Net         406,637   (138,419)
(Increase) Decrease in Inventories                    (166,290)  (235,305)
(Increase) Decrease in Other Current Assets             (2,718)   (18,110)
Increase (Decrease) in Accounts Payable                (71,138)   228,628
Increase (Decrease) in Accrued Expenses                  2,120     (2,604)
Increase (Decrease) in Accrued Salaries                 21,282     (9,503)
Increase (Decrease) in Accrued Interest                     --     42,000
Increase (Decrease) in Other Liabilities                 4,307     30,026
                                                     ---------   ---------
Net Cash Provided By (Used In) Operating Activities    311,159   (100,906)


Cash Flows From Investing Activities:
Purchases of Property and Equipment                    (3,706)   (778,395)
                                                     ---------   ---------
Net Cash Provided By (Used In) Investing Activities    (3,706)   (778,395)


Cash Flows From Financing Activities:
Proceeds From Issuance of Long Term Debt                    --    142,955
Proceeds From Issuance of Notes Payable                     --    650,000
Payments of Notes Payable & Subordinated Debentures    (3,443)    (12,138)
                                                     ---------   ---------
Net Cash Provided By (Used In) Financing Activities    (3,443)    780,817

Net Increase (Decrease) in Cash and Cash Equivalents   304,010    (98,484)
Cash & Cash Equivalents at Beginning of Year           209,724    238,858
                                                     ---------   ---------
Cash & Cash Equivalents at End of Year                $513,734   $140,374
                                                     =========   =========

     See accompanying notes to consolidated financial statements

</TABLE>
<PAGE>

             Notes to Consolidated Financial Statements
                             (Unaudited)

1.    Jayark  Corporation ("Jayark" or "the Company")  conducts  its
  operations through two wholly owned subsidiaries, AVES Audiovisual
  Systems, Inc. ("AVES") and MED Services Corp. ("Med"), each of which
  constitute a business segment for financial reporting purposes.  The
  consolidated  balance sheet of Jayark Corporation and subsidiaries
  (the "Company"), as of July 31, 1999, and the related consolidated
  statements of operations and cash flows for the periods ended July
  31, 1999 and 1998 are unaudited. The consolidated balance sheet as
  of  April  30,  1999  has  been  derived  from  audited  financial
  statements. The consolidated financial statements should be read in
  conjunction with the audited financial statements and footnotes for
  the year ended April 30, 1999, included in the Company's report on
  Form 10-K.

2.The   interim   financial  statements  reflect   all   adjustments
  (consisting of only normal and recurring accruals and adjustments)
  which  are,  in  the opinion of management, necessary  to  a  fair
  statement  of  the results for the interim periods presented.  The
  Company's operating results for any particular interim period  may
  not be indicative of results for the full year.

3.    Certain reclassifications have been made in the 1998 financial
  statements  to conform them to and make them consistent  with  the
  presentation used in the 1999 financial statements.


<PAGE>

                               Item 2.
     Management's Discussion & Analysis of Results of Operations

    Three Months Ended July 31, 1999 as compared to July 31, 1998

                            NET REVENUES

      Consolidated Revenues of $3,431,000 for the period ended  July
31,  1999  decreased  $615,000, or 17.9%, as compared  to  the  same
period in 1998.  Sales at AVES were down $575,000 as compared to the
same  period  last  year.  This decrease was due to  a  decrease  in
direct  sales  as  compared to the prior year.  In addition  to  the
decrease at AVES, Med reported zero sales as compared to $40,000  in
prior year rental sales, as a result of the November 1998 termination
of its distribution agreements with Vivax Medical Corporation.

                          COST OF REVENUES

     Consolidated Cost of Revenues of $2,884,000 decreased $614,000,
or  17.6%,  as compared to the same period last year.  The  decrease
was a result of the decrease in sales.

                            GROSS MARGIN

     Consolidated Gross Margin of $547,000 was 15.9% of revenues, as
compared to $548,000, or 13.5%, for the same period last year.   The
Company experienced lower unit sales with higher profit margins that
resulted in a gross margin comparable to the prior year, despite the
decrease in revenues.

            SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

     Consolidated Expenses of $419,000 decreased $62,000 or 12.8% as
compared  to  the same period last year.  Jayark Corporate  expenses
decreased  $38,000  due  to a reduction in  the  President's  salary
accrual and decreased legal and audit fees as compared to last year.
Med decreased expenses $21,000 due to a reduction in legal fees from
the  prior  year.  The prior year legal fees were a  result  of  the
formation of the new subsidiary.  AVES' spending was down $3,000  as
compared to the same period last year.


                          OPERATING INCOME

     Consolidated Operating Income of $128,000 increased $61,000, or
91.1%, as compared to the same period last year.  This increase was
possible, despite the decrease in revenues, due to the decrease in
selling, general and administrative expenses.

<PAGE>

                          INTEREST EXPENSE

      Consolidated Interest Expense of $27,000 decreased $66,000, or
70.8%.   This  decrease was primarily a result of  the  decrease  in
subordinated debt and notes payable attributed to the conversion  of
debt  in  conjunction  with  the Rights Offering  which  expired  on
October  30,  1998.  As compared with the prior period, subordinated
debt  was  down  $787,000, with an interest rate  reduction  on  the
$613,000  in  remaining principal from 12% to 8%, and notes  payable
decreased $1,000,000 due to the exchange of equity for debt.


                          NET INCOME (LOSS)

      Consolidated Net Income of $100,000 increased as compared to a
net  loss  of  $(27,000)  during the same  period  last  year.   The
$127,000  increase,  or 473.7%, was a result of  decreased  selling,
general and administrative costs and reduced interest expense.

<PAGE>

                   LIQUIDITY AND CAPITAL RESOURCES

At  July 31, 1999, and at April 30, 1999, consolidated open lines of
credit  available to the Company for borrowing were $1,250,000.   It
is  the opinion of the Company's management that operating expenses,
as  well as obligations coming due during the next fiscal year, will
be  met  primarily by cash flow generated from operations  and  from
available borrowing levels.

Working  capital  was  $481,000  at July  31,  1999,  compared  with
$371,000 at April 30, 1999.

Net  cash provided by operating activities was $311,000 in  1999  as
compared with net cash used of $101,000 in 1998.

Cash  flows  used  in investing activities were $4,000  in  1999  as
compared  to $778,000 in 1998.  This difference is a result  of  the
Med's purchase of equipment for rental in the prior year.

Cash  used  by financing activities was $3,000 in 1999, compared  to
cash  provided  of $781,000 in 1998 as a result of the  issuance  of
notes payable and long-term debt.

Year 2000

The year 2000 issue is the result of computer programs being written
using  two  digits  rather than four to define the applicable  year.
Certain information technology systems and their associated software
("IT  Systems"), and certain equipment that uses programmable  logic
chips  to  control  aspects  of  their  operation  ("embedded   chip
equipment"), may recognize "00" as a year other than the year  2000.
The  year 2000 issue could result, at the Company and elsewhere,  in
system   failures   or   miscalculations  causing   disruptions   of
operations, including, among other things, a temporary inability  to
process   transactions  or  to  engage  in  other  normal   business
activities.

The  Company has addressed, and continues to address, its year  2000
issues,  including efforts relating to IT Systems and embedded  chip
equipment  used  within the Company, efforts to address  issues  the
Company faces if third parties who do business with the Company  are
not  prepared  for  the  year 2000, and contingency  planning.   The
Company  has used both internal and external resources to  identify,
correct,  upgrade  or replace and test its IT systems  and  embedded
chip equipment for year 2000 compliance.

The  Company's  IT  Systems have been tested and  determined  to  be
compliant  in a simulated year 2000 environment.  As a  result,  the
Company  believes that its IT systems are ready for the  year  2000,
although  isolated incidences of non-compliance may be  experienced.
The   Company  plans  to  allocate  internal  resources  and  retain
dedicated consultants and vendor representatives to be ready to take
action should these events occur.

<PAGE>

The  Company  has  identified  some non-IT  systems,  embedded  chip
equipment, such as telephones, fax machines, climate control devices
and  building security systems, which may be impacted  by  the  year
2000 problem, and is in the process of determining what actions  may
be required to make the equipment year 2000 compliant.  These non-IT
systems  are minor in nature and would not significantly impact  the
Company's operations.

With respect to the IT and non-IT Systems of critical third parties,
such  as product vendors, utilities, communications, transportation,
government,  banking and other important services, the  Company  has
established  communication  to  obtain  assurances  regarding  their
respective year 2000 efforts.  While the Company expects such  third
parties to address the year 2000 issues based on the representations
it  has  received to date, the Company cannot guarantee  that  these
systems  will  be  made  year 2000 compliant  in  a  timely  manner.
Computer  errors  or  failures in any of these areas  may  have  the
potential to disrupt business operations.  The Company will continue
to monitor the progress of such third parties.

Although  the  Company  values established  relationships  with  key
vendors,  substitute products for most goods may  be  obtained  from
other vendors.  If certain vendors are unable to deliver product  on
a  timely  basis,  due  to their own year 2000 issues,  the  Company
anticipates  that there will be others who will be able  to  deliver
similar  goods.  However, the lead-time involved in sourcing certain
goods may result in temporary shortages of relatively few items.

The  Company  expects all expenditures relating to their  year  2000
readiness  to be funded by cash flows from operations and that  this
will not materially impact other operating or investment plans.

The  Company  believes  that  the IT and non-IT  technologies  which
support  its critical functions will be ready for the transition  to
the  year  2000.  There can be no assurance that similar  unresolved
issues for key third parties will not cause an adverse effect on the
Company.   As a result, the Company is in the process of  developing
and  finalizing the appropriate contingency plans, which plans  will
be  established and then revised as necessary during the  course  of
1999.  Although the Company believes that its efforts to address the
year  2000  issue  will be sufficient to avoid  a  material  adverse
impact on the Company, there can be no assurances that these efforts
will be fully effective.

<PAGE>

                     PART II. OTHER INFORMATION


ITEM 6.   Exhibits and Reports on Form 8-K.

     (a)  Exhibits - None

     (b)  Report 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.

                                   JAYARK CORPORATION
                                   Registrant

     /s/  David L. Koffman                      September 10, 1999
     David L. Koffman, President
     Chief Executive Officer



     /s/ Robert C. Nolt                         September 10, 1999
     Robert C. Nolt
     Chief Financial Officer

<PAGE>

[ARTICLE] 5
[CIK] 0000053260
[NAME] JAYARK CORPORATION
[MULTIPLIER] 1000
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   3-MOS
[FISCAL-YEAR-END]                          APR-30-2000
[PERIOD-START]                             MAY-01-1999
[PERIOD-END]                               JUL-31-1999
[CASH]                                             514
[SECURITIES]                                         0
[RECEIVABLES]                                    1,494
[ALLOWANCES]                                        82
[INVENTORY]                                        504
[CURRENT-ASSETS]                                 2,478
[PP&E]                                             433
[DEPRECIATION]                                     320
[TOTAL-ASSETS]                                   2,833
[CURRENT-LIABILITIES]                            1,998
[BONDS]                                              0
[PREFERRED-MANDATORY]                                0
[PREFERRED]                                          0
[COMMON]                                           277
[OTHER-SE]                                       (862)
[TOTAL-LIABILITY-AND-EQUITY]                     2,833
[SALES]                                          3,431
[TOTAL-REVENUES]                                 3,431
[CGS]                                            2,884
[TOTAL-COSTS]                                    2,884
[OTHER-EXPENSES]                                   419
[LOSS-PROVISION]                                     0
[INTEREST-EXPENSE]                                  27
[INCOME-PRETAX]                                    100
[INCOME-TAX]                                         0
[INCOME-CONTINUING]                                100
[DISCONTINUED]                                       0
[EXTRAORDINARY]                                      0
[CHANGES]                                            0
[NET-INCOME]                                       100
[EPS-BASIC]                                        .00
[EPS-DILUTED]                                      .00
</TABLE>