SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                  ___________

                                   Form 10-Q

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

For the quarterly period ended December 31, 1995

                                       OR

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

For the transition period from _________________ to _________________ 

                         Commission file number 0-12329

                              LCS INDUSTRIES, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

       Delaware                                          13-2648333 
------------------------                    ------------------------------------
(State of incorporation)                    (I.R.S. Employer Identification No.)

         120 Brighton Road, Clifton, New Jersey            07012-1694
--------------------------------------------------------------------------------
(Address of principal executive offices)                   (Zip Code)

Registrant's telephone number, including area code      (201)  778-5588
                                                  -----------------------------

                                      N/A
--------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last report

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the  Securities  Exchange Act of
1934 during the  preceding  12 months,  and (2) has been  subject to such filing
requirements for the past 90 days.   Yes ( X )    No (  )

                     APPLICABLE ONLY TO CORPORATE ISSUERS:

         The number of shares outstanding of the registrant's  Common Stock, par
value of $.01 per share, as of February 2, 1996, was 4,257,620.
<PAGE>
                              LCS INDUSTRIES, INC.
                                AND SUBSIDIARIES

                                      INDEX


                          PART I FINANCIAL INFORMATION

Item 1.  Financial Statements

                                                                 
         Consolidated Balance Sheets
         As of December 31, 1995 (Unaudited) and
         September 30, 1995                                      

         Consolidated Statements of Operations
         For the Three Months Ended
         December 31, 1995 and 1994 (Unaudited)                  

         Consolidated Statements of Cash Flows
         For the Three Months Ended
         December 31, 1995 and 1994 (Unaudited)                  

         Notes to Consolidated Financial Statements
         (Unaudited)                                             

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


PART II       OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K                        
<PAGE>
                      LCS INDUSTRIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                 December 31,       September 30,
                                                                    1995                1995
                                                                 -----------         -----------
                                                                (Unaudited)
<S>                                                              <C>                 <C>      
ASSETS
Current assets:
   Cash and cash equivalents ............................        $13,441,229         $ 8,630,831
   Investments - held-to-maturity .......................            199,859             199,859
   Accounts receivable (less allowance
       for doubtful accounts: December 31 - $659,000
       and September 30 - $624,000) .....................         24,541,391          23,815,919
   Prepaid expenses and other current assets ............          1,203,635           1,891,837
   Deferred taxes .......................................            307,000             263,250
                                                                 -----------         -----------
     Total current assets ...............................         39,693,114          34,801,696

Investments - available-for-sale, net ...................            797,394             797,583
Property and equipment, net .............................          6,367,321           5,222,513
Goodwill (net of accumulated amortization:  December 31 -
    $305,100 and September 30 - $233,500) ...............          7,782,087           7,853,675
Other assets ............................................            876,205           1,061,166
                                                                 -----------         -----------
                                                                 $55,516,121         $49,736,633
                                                                 ===========         ===========

</TABLE>
Continued
<PAGE>
                      LCS INDUSTRIES, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS - Continued
<TABLE>
<CAPTION>
                                                                 December 31,       September 30,
                                                                    1995                1995
                                                                 -----------         -----------
                                                                (Unaudited)
<S>                                                              <C>                 <C>      
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Accounts payable .....................................        $14,696,053         $15,105,009
   Accrued salaries and commissions .....................          1,718,476           2,076,999
   Other accrued expenses ...............................          3,358,214           2,352,477
   Income taxes payable .................................            935,185                --
   Current portion of long-term debt ....................            469,169             567,294
   Current portion of capital lease obligations .........            491,506             516,989
   Deferred revenue .....................................          5,795,150           3,614,331
                                                                 -----------         -----------
     Total current liabilities ..........................         27,463,753          24,233,099
                                                                 -----------         -----------

Long-term debt, net of current portion ..................          2,777,163           2,804,790
Capital lease obligations, net of current portion .......            532,703             631,475
Deferred taxes ..........................................             34,500              19,750
Stockholders' equity:
   Preferred stock $.01 par value; authorized
       1,000,000 shares; issued - none
   Common stock $.01 par value; authorized
       6,000,000 shares; issued December 31 - 4,418,311
       shares and September 30 - 4,347,886 shares .......             44,183              43,479
   Common stock issuable ................................          2,407,521           2,407,521
   Additional paid-in capital ...........................          5,660,021           5,431,455
   Retained earnings ....................................         16,883,256          14,451,854
                                                                 -----------         -----------
                                                                  24,994,981          22,334,309
                                                                 -----------         -----------
   Less:  treasury stock, at cost, 187,766 shares .......           (207,953)           (207,953)
          marketable securities valuation adjustment ....            (79,026)            (78,837)
                                                                 -----------         -----------
     Total stockholders' equity .........................         24,708,002          22,047,519
                                                                 -----------         -----------
                                                                 $55,516,121         $49,736,633
                                                                 ===========         ===========
</TABLE>
                 See Notes to Consolidated Financial Statements.
<PAGE>
                      LCS INDUSTRIES, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                     For the Three Months Ended December 31,
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                           Three Months
                                                      1995             1994
                                                   -----------      -----------
C<S>                                                 <C>              <C>       
Net sales ....................................     $25,654,057      $18,735,957
Cost of sales ................................      17,468,923       13,224,354
                                                   -----------      -----------
Gross profit .................................       8,185,134        5,511,603
Selling and administrative expenses ..........       4,031,676        3,357,092
Other (income) expense:
   Dividend and interest income ..............        (182,695)         (55,192)
   Interest expense ..........................         100,459           43,228
                                                   -----------      -----------
Income before income taxes ...................       4,235,694        2,166,475
Provision for income taxes ...................       1,727,000          883,000
                                                   -----------      -----------
Net income ...................................     $ 2,508,694      $ 1,283,475
                                                   ===========      ===========

Per common and common equivalent share:
Net income ...................................     $       .49      $       .29
                                                   ===========      ===========

Weighted average number of
     shares outstanding ......................       5,078,420        4,434,674
                                                   ===========      ===========

Dividends ....................................     $      .019      $      .011
                                                   ===========      ===========
</TABLE>
                 See Notes to Consolidated Financial Statements.
<PAGE>
                      LCS INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     For the three Months Ended December 31,
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                               1995                1994
                                                           ------------         ------------
<S>                                                        <C>                  <C>         
Increase (Decrease) in cash and cash equivalents
Cash flows from operating activities:
   Net income .....................................        $  2,508,694         $  1,283,475
                                                           ------------         ------------
   Adjustments to reconcile net income to net cash
      provided by operating activities:
      Depreciation and amortization ...............             547,712              437,545
      Deferred income taxes .......................             (29,000)              (3,000)
      Provision for doubtful accounts receivable ..              30,000               15,000
      Gain on sale of fixed assets ................                --                 (3,000)
                                                           ------------         ------------
      Total adjustments ...........................             548,712              446,545
   Changes in operating assets and liabilities:
      Accounts receivable .........................            (755,472)            (135,274)
      Prepaid expenses and other current assets ...             688,202             (128,894)
      Accounts payable and accrued expenses .......             238,258             (782,252)
      Income taxes payable ........................             935,185              796,393
      Deferred revenue ............................           2,180,819                 --
      Other, net ..................................             184,960              (84,675)
                                                           ------------         ------------
      Total adjustments and changes ...............           4,020,664              111,843
                                                           ------------         ------------
      Net cash provided by operating activities ...           6,529,358            1,395,318
                                                           ------------         ------------
Cash flows from financing activities:
   Changes in long-term debt and capital
       leases (including current portion):
       Repayments .................................            (250,007)            (137,193)
   Dividends paid .................................             (77,291)             (42,153)
   Exercise of stock options ......................             186,654              142,175
   Employee stock purchase plan proceeds ..........              42,616               14,940
                                                           ------------         ------------
   Net cash used in financing activities ..........             (98,028)             (22,231)
                                                           ------------         ------------
Cash flows from investing activities:
   Additions to property and equipment ............          (1,620,932)            (288,820)
   Proceeds from sales of equipment ...............                --                 93,938
                                                           ------------         ------------
   Net cash used in investing activities ..........          (1,620,932)            (194,882)
                                                           ------------         ------------
Cash and cash equivalents:
   Net increase in cash and cash equivalents ......           4,810,398            1,178,205
   Cash and cash equivalents at beginning of period           8,630,831            1,679,489
                                                           ------------         ------------
   Cash and cash equivalents at end of period .....        $ 13,441,229         $  2,857,694
                                                           ============         ============
</TABLE>
                             Continued on next page.
<PAGE>
                      LCS INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     For the Three Months Ended December 31,
                                   (Unaudited)

                          Continued from previous page.
<TABLE>
<CAPTION>
                                                               1995                1994
                                                           ------------         ------------
<S>                                                        <C>                  <C>         
Supplementary disclosures of cash flow information:
   Cash paid during the period for:
       Interest ...................................        $     27,738         $     36,594
       Income taxes ...............................        $    331,316         $     91,818

</TABLE>
Supplemental disclosures of non-cash investing
   and financing activities:

   Valuation adjustment:
     For the three months ended  December 31, 1995 and 1994,  $189 and $107,148,
     net of taxes, was added to the marketable  securities valuation adjustment.
     This  represents the additional net unrealized  losses on the investments -
     available-for-sale, net, during the period.

   Capital lease obligations:
     For the quarter  ended  December  31, 1994,  a capital  lease  obligaton of
     $152,525 was incurred for the leasing of  equipment.  There were no capital
     lease obligations entered into during the quarter ended December 31, 1995.

   Stock Dividends:
     The December 31, 1994 financial  statements  reflect the 10% stock dividend
     (179,929  shares)  paid on  January  31,  1995 and the 2 for 1 stock  split
     (2,061,087 shares) paid as a stock dividend on October 24, 1995.


                 See Notes to Consolidated Financial Statements.
<PAGE>
                      LCS INDUSTRIES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)



1) In the opinion of management, the accompanying unaudited financial statements
include all adjustments (consisting only of normal recurring accruals) which are
necessary for a fair presentation of results for the periods indicated.  Certain
information and footnote  disclosures  normally  included in complete  financial
statements prepared in accordance with generally accepted accounting  principles
have been  omitted.  Therefore,  these  financial  statements  should be read in
conjunction  with the financial  statements  and the  footnotes  included in the
Company's  Annual Report on Form 10-K for the year ended September 30, 1995. The
results of operations  for the three months ended December 31, 1995 and 1994 are
not  necessarily  indicative of the results for the full year. The September 30,
1995 Balance Sheet was derived from the audited Balance Sheet at that date.

2)  Certain  reclassifications  have  been  made to the  fiscal  1995  financial
statements in order to conform to the fiscal 1996 presentations.

3) For the three month  periods ended  December 31, 1995 and 1994,  earnings per
share have been  calculated  based on the weighted  average  shares  outstanding
using the treasury  stock method for stock options which are  considered  common
stock  equivalents,  and the  maximum  number of shares  currently  issuable  in
connection with the acquisition of Catalog  Resources,  Inc.  Earnings per share
and the weighted  average  number of shares  outstanding  for the quarter  ended
December 31, 1994 include the effect of the ten percent  stock  dividend paid in
January,  1995 and the 2 for 1 stock  split  paid as a 100%  stock  dividend  in
October, 1995.

4) At the  Company's  annual  meeting  held on January  23,  1996,  shareholders
approved an increase of 9,000,000  shares in the authorized  number of shares of
Common Stock, par value $.01, to 15,000,000 shares.

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



Results of Operations

           Three Months ended December 31, 1995

           Sales  increased  37% in the  quarter  ended  December  31,  1995  to
$25,654,000 from $18,736,000 for the comparable  quarter of the prior year. This
improvement  is accounted  for by a 151%  increase in computer  services,  a 38%
increase in fulfillment services and an 11% increase in list marketing services.
Computer  services'  increase  reflects the revenues  related to the $40 million
contract,  announced September 6, 1995, to provide computer services through the
building of a marketing  database for a major non-U.S.  communications  company.
The  contract  extends  through  June,  1998,   subject  to  early   termination
provisions.  Revenue is recognized based on the percentage-of-completion  method
of accounting  measured by the percentage of labor hours incurred to date to the
estimated total labor hours required for the contract.  The fulfillment increase
reflects a 79% increase in continuity  fulfillment  services, an 11% increase in
the catalog  fulfillment  operation,  a 230% increase in outbound  telemarketing
services offset partially by a 51% decrease in inbound  telemarketing  services.
The continuity  services'  increase  reflects  revenues from new customers added
since the prior fiscal period.  Although catalog services sales increased,  this
increase  reflects  lower  than  anticipated  revenues,  as a result of  reduced
transaction  volume,  from  the new  two-year  agreement  with a major  consumer
products corporation, announced September 11, 1995. This shortfall was more than
offset by increased  revenues  from several other  catalog  customers.  The list
marketing  increase resulted from an expanded customer base and increase volumes
with continuing customers.

           Gross profit increased 49% to $8,185,000 for the current quarter from
$5,512,000 in the comparable quarter of 1994. Gross profit margin was 32% in the
current  quarter  compared to 29% in 1994.  The increase in gross profit  amount
resulted  from the  increased  sales  volumes and the  improved  overall  profit
margin. The improvement in gross profit margin results primarily from the margin
associated with the increased computer services'  revenues,  as described above,
which have a higher gross profit margin than the Company's  overall  margin from
its other  operations and improved margins in the fulfillment  operation.  These
positive  movements were partially offset by a lower gross profit margin derived
from the catalog fulfillment operation.

           Selling and  administrative  expenses  increased 20% to $4,014,000 in
the current quarter from $3,339,000 in the comparable  quarter of 1994.  Selling
and administrative  expenses, as a percentage of sales, were 16% for the current
quarter and 18% for the  comparable  period in 1994.  The  increase in amount of
selling and administrative expenses, when compared to the sales increase of 37%,
and the  decrease in these costs as a percentage  of sales are due  primarily to
the lack of selling and administrative  expenses associated with the incremental
computer  services'  revenues  partially offset by  administrative  salaries and
related  expenses   associated  with  the  facility  expansion  at  the  catalog
fulfillment operation.

           Net dividend and interest  income was $82,000 in the current  quarter
compared to $12,000 in 1994.  Dividend and interest income increased $128,000 in
the current  fiscal period as a result of a higher level of funds  available for
short-term  investment  coupled with higher interest rates in the current fiscal
quarter.  The  increase  in interest  expense  quarter  over  quarter of $57,000
resulted from the  $2,532,000  in long-term  debt recorded at September 30, 1995
for the future  payments  required in connection with the acquisition of Catalog
Resources,  Inc. The unsecured  line of credit  available to the Company was not
utilized in either quarter.

           Net income was  $2,509,000  ($.49 per share) in the  current  quarter
compared to $1,283,000 (.29 per share) in the comparable 1994 quarter.

Financial Condition, Liquidity and Capital Resources

           Working  capital was  $12,229,000  at December  31, 1995  compared to
$10,569,000  at September 30, 1995.  Fluctuations  in the  components of working
capital  resulted  primarily from the increases in cash and cash equivalents and
accounts  receivable  and  decreases in accounts  payable and accrued  personnel
costs partially  offset by increases in deferred  revenue,  income taxes payable
and other accrued  expenses and a decrease in prepaid expenses and other current
assets.

           For the current  quarter,  cash  generated  by  operations  increased
$5,134,000  over such amounts  generated in the comparable  quarter of the prior
year.  This  increase  was  primarily  the result of  increases in net income of
$1,225,000,  prepaid  expenses and other  current  assets of $817,000,  accounts
payable and accrued expenses of $1,021,000 and deferred revenue of $2,181,000.

           In the quarter ended December 31, 1995, financing activities resulted
in a net use of funds of $98,000  compared  to net cash used of $22,000 in 1994.
The  increase in funds used in fiscal 1995  primarily  resulted  from  increased
repayments of debt. Cash used for investing activities,  in the current quarter,
increased  $1,426,000  compared  to  1994  due  to  additions  to  property  and
equipment,  primarily for the  expansion of warehouse  and office  facilities at
Catalog  Resources,  Inc. (CRI).  The Company is negotiating a $2.5 million five
year term loan to substantially fund these purchases.

           Pursuant to the purchase agreement, as amended, with CRI, the Company
is obligated to pay to CRI's selling  shareholders,  in cash or stock,  up to an
aggregate  of  $10,000,000.  Under such  purchase  agreement,  the Company  paid
$1,012,500 (one-half in cash and one-half in stock) on January 1, 1996. Further,
such amounts  will be payable each January 1 through 2002  totaling a maximum of
$6,075,000.  The  discounted  value of these  future  payments  was  recorded at
September 30, 1995 since it is probable that the future  earnings levels will be
attained which will require the maximum payments to be made.

           Management  believes cash generated from current operations and other
liquid assets  combined  with the  available  bank credit line and the five year
term loan mentioned  above will be sufficient to meet cash flow needs during the
fiscal year.
<PAGE>
PART II        OTHER INFORMATION


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

         (a)  Exhibit 11 - Computation of earnings per share

         (b)  Report on Form 8-K. - LCS Industries, Inc.  did not file any
                 reports on Form 8-K during the quarter ended December 31, 1995.
<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.


Date: Clifton, New Jersey
      February 12, 1996


                                         LCS INDUSTRIES, INC.
                                            (Registrant)


                                         By:   /s/   Arnold J. Scheine
                                              ----------------------------------
                                                     Arnold J. Scheine
                                                         President
                                                  (Chief Executive Officer)



                                         By:   /s/   Pat R. Frustaci
                                              ----------------------------------
                                                     Pat R. Frustaci
                                                  Vice President-Finance
                                                (Chief Financial Officer)