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 March 31, 1997

                                       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 May 2, 1997, was 4,654,728.
<PAGE>
                              LCS INDUSTRIES, INC.
                                AND SUBSIDIARIES

                                      INDEX


PART I 
                              FINANCIAL INFORMATION

Item 1.               Financial Statements

                      Consolidated Balance Sheets
                      As of March 31, 1997 (Unaudited) and
                      September 30, 1996        

                      Consolidated Statements of Operations
                      For the Three Months and Six Months Ended
                      March 31, 1997 and 1996 (Unaudited)  

                      Consolidated Statements of Cash Flows
                      For the Six Months Ended
                      March 31, 1997 and 1996 (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 4.               Submission of Matters to a Vote of
                      Security-Holders    

Item 6.               Exhibits and Reports on Form 8-K  

<PAGE>
<TABLE>
<CAPTION>
                           LCS INDUSTRIES, INC. AND SUBSIDIARIES
                                        CONSOLIDATED
                                       BALANCE SHEETS

                                                             March 31,       September 30,
                                                               1997              1996
                                                          ------------      ------------
                                                           (Unaudited)
<S>                                                       <C>               <C>
ASSETS
Current assets:
   Cash and cash equivalents ........................     $ 14,951,215      $ 11,893,982       
   Investments - held-to-maturity ...................       11,813,825        10,435,026
   Accounts receivable (less allowance
       for doubtful accounts:  March 31  - $524,000
       and September 30 -  $  627,000)...............       22,759,964        24,519,050
   Prepaid expenses and other current assets.........        1,236,013         1,596,819
   Deferred taxes ...................................          293,000           338,000
                                                          ------------      ------------
     Total current assets ...........................       51,054,017        48,782,877
                                                          ------------      ------------

Investments - available-for-sale, net.................         124,384           369,722
Property and equipment, net ..........................       7,184,502         7,549,229
Goodwill (net of accumulated amortization:  March
    31 - $663,031 and September 30 - $519,855)........       7,424,150         7,567,326
Other assets .........................................         669,109           700,793
                                                          ------------      ------------
                                                          $ 66,456,162      $ 64,969,947       
                                                          ============      ============
<PAGE>
<CAPTION>
                           LCS INDUSTRIES, INC. AND SUBSIDIARIES
                                        CONSOLIDATED
                                       BALANCE SHEETS

                                                             March 31,       September 30,
                                                               1997              1996
                                                          ------------      ------------
                                                           (Unaudited)
<S>                                                       <C>               <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Accounts payable ..................................    $ 12,275,582      $ 14,726,387       
   Accrued salaries and commissions...................       2,279,189         2,389,837
   Other accrued expenses ............................       3,272,783         2,513,841
   Income taxes payable ..............................          42,064           215,635
   Current portion of long-term debt..................       1,050,147         1,047,989
   Current portion of capital lease obligations.......         376,929           390,399
   Deferred revenue ..................................       7,488,847         8,139,767
                                                          ------------      ------------
     Total current liabilities .......................      26,785,541        29,423,855
                                                          ------------      ------------

Long-term debt, net of current portion................       3,668,883         4,331,542
Capital lease obligations, net of current portion.....          66,747           250,997
Deferred taxes .......................................         155,000           103,000
Stockholders' equity:
   Preferred stock $.01 par value; authorized
       1,000,000 shares; issued - none
   Common stock $.01 par value; authorized
       15,000,000 shares; issued March 31 - 4,838,500.
       shares and September 30 - 4,611,487 shares.....          48,385            46,115
   Common stock issuable .............................       1,490,431         1,945,983
   Additional paid-in capital ........................       8,549,067         7,223,263
   Retained earnings .................................      25,903,472        21,887,737
                                                          ------------      ------------
                                                            35,991,355        31,103,098
   Less:  treasury stock, at cost, 187,766 shares.....        (207,953)         (207,953)
          available-for-sale securities valuation
          adjustment, net of deferred income taxes....          (3,411)          (34,592)
                                                          ------------      ------------
     Total stockholders' equity .....................       35,779,991        30,860,553
                                                          ------------      ------------
                                                          $ 66,456,162      $ 64,969,947      
                                                          ============      ============

                                             
                See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                                     LCS INDUSTRIES, INC. AND SUBSIDIARIES
                            
                                     CONSOLIDATED STATEMENTS OF OPERATIONS
                           
                                  For the Three and Six Months Ended March 31,
                                                  (Unaudited)

                                                       Three  Months                       Six Months
                                            ------------------------------------------------------------------
                                                 1997              1996              1997              1996
                                            ------------      ------------      ------------      ------------
<S>                                         <C>               <C>               <C>               <C>
Net sales .............................     $ 24,839,137      $ 22,347,757      $ 51,070,353      $ 48,001,814
Cost of sales .........................       17,059,924        15,451,671        35,307,290        32,920,594
                                            ------------      ------------      ------------      ------------
   Gross profit .......................        7,779,213         6,896,086        15,763,063        15,081,220
Selling and  administrative expenses ..        4,443,888         4,003,831         8,938,661         8,035,507

Other (income) expense:
   Dividend and interest income .......         (348,982)         (209,986)         (685,941)         (392,681)
   Interest expense ...................          109,578            92,840           234,039           193,299
                                            ------------      ------------      ------------      ------------
Income before income taxes ............        3,574,729         3,009,401         7,276,304         7,245,095

Provision for income taxes ............        1,462,000         1,235,000         2,978,000         2,962,000
                                            ------------      ------------      ------------      ------------
Net income ............................        2,112,729         1,774,401      $  4,298,304         4,283,095
                                            ============      ============      ============      ============

Per common and common equivalent share:
Primary earnings ......................     $        .41      $        .35      $        .84      $        .85
                                            ============      ============      ============      ============

Fully diluted earnings ................     $        .41      $        .34      $        .84      $        .82
                                            ============      ============      ============      ============

Dividends .............................     $       .038      $       .025      $       .063      $       .044
                                            ============      ============      ============      ============


                                See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                           LCS INDUSTRIES, INC. AND SUBSIDIARIES
                                           
                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                   
                            For the Six Months Ended March 31,

                                        (Unaudited)

                                                                1997              1996
                                                           ------------      ------------
<S>                                                        <C>               <C>
Increase  (Decrease)  in cash and cash  equivalents
 Cash flows  from  operating activities:
   Net income ........................................     $  4,298,304      $  4,283,095
                                                           ------------      ------------

   Adjustments to reconcile net income to net cash
       provided by operating activities:
       Depreciation and amortization .................        1,247,865         1,141,705
       Deferred income taxes .........................           75,000            (5,000)
       Provision for doubtful accounts receivable ....           60,000            60,000
       Gain on sale of available-for-sale securities .             (474)             --
                                                           ------------      ------------

       Total adjustments .............................        1,382,391         1,196,705
   Changes in operating assets and liabilities:
       Accounts receivable ...........................        1,699,086         2,813,562
       Prepaid expenses and other current assets .....           80,231           752,362
       Accounts payable and accrued expenses .........       (1,737,229)       (2,529,682)
       Income taxes payable ..........................          165,429           235,914
       Deferred revenue ..............................         (650,920)        4,308,209
       Other assets ..................................           31,684            78,623
                                                           ------------      ------------
       Total adjustments and changes .................          970,672         6,855,693
                                                           ------------      ------------
        Net cash provided by  operating activities ...        5,268,976        11,138,788
                                                           ------------      ------------

Cash flows from financing activities:
   Changes in long-term debt and capital
       leases (including current portion):
       Borrowings ....................................             --           1,785,000
       Repayments ....................................         (923,503)         (783,845)
   Dividends paid ....................................         (282,569)         (183,022)
   Exercise of stock options .........................          470,932           547,493
   Employee Stock Purchase Plan and employment
       agreement stock purchase proceeds .............           62,590            78,746
                                                           ------------      ------------
   Net cash (used in) provided by financing activities         (672,550)        1,444,372
                                                           ------------      ------------
<PAGE>
<CAPTION>
                           LCS INDUSTRIES, INC. AND SUBSIDIARIES
                                           
                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                   
                            For the Six Months Ended March 31,

                                        (Unaudited)
                                        (continued)

                                                                1997              1996
                                                           ------------      ------------
<S>                                                        <C>               <C>
Cash flows from investing activities:
   Additions to property and  equipment ..............         (739,962)       (2,601,101)
   Net purchases of investments-held-to-maturity .....         (799,231)             --
                                                           ------------      ------------
   Net cash (used in) investing activities ...........       (1,539,193)       (2,601,101)
                                                           ------------      ------------

Cash and cash equivalents:
   Net increase in cash and cash equivalents .........        3,057,233         9,982,059
   Cash and cash equivalents at beginning of period ..       11,893,982         8,630,831
                                                           ------------      ------------
   Cash and cash equivalents at  end of period .......     $ 14,951,215      $ 18,612,890
                                                           ============      ============

Supplementary disclosures of cash flow information:
   Cash paid during the period for:
       Interest.......................................     $    170,117      $    102,107    
       Income taxes...................................     $  2,892,559      $  2,248,738  

Supplemental disclosures of non-cash investing
   and financing activities:

   Valuation adjustment:
         For the six months  ended March 31,  1997,  the account was adjusted to
         reflect  an  increase  in  market  values  of  the   available-for-sale
         securities  portfolio of $31,181, net of deferred income taxes. For the
         six months ended March 31, 1996,  $8,513, net of deferred income taxes,
         was added to the available-for-sale securities valuation adjustment.

   Stock Dividend:
         On October 24, 1995,  2,061,087  shares of the  Company's  common stock
         were  issued as a result of a 2 for 1 stock  split paid as a 100% stock
         dividend.  On January 5, 1996,  360 shares of common stock were paid as
         dividends  upon  exchange of 150 shares of the  Company's  "old" common
         stock.

   Acquisition of business:
         During the six month  periods  ended March 31, 1997 and 1996,  $455,552
         and $461,538 of common stock  issuable  was  converted  into 38,762 and
         34,621 issued shares of the Company's  common stock, in accordance with
         the  terms  of the  Catalog  Resources,  Inc.  purchase  agreement,  as
         amended.

                 See Notes to Consolidated Financial Statements.
</TABLE>
<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, 1996. The
results  of  operations  for  the  six  months  ended  March  31,  1997  are not
necessarily  indicative of the results for the full year. The September 30, 1996
Balance Sheet was derived from the audited Balance Sheet at that date.

2) On April  15,  1997,  the  Company  announced  the  signing  of a  definitive
agreement to acquire McIntyre & King Ltd., a UK based telemarketing, fulfillment
and mailing services company.  The purchase price of approximately  $1.6 million
is payable over two years.
<PAGE>
Item 2.          Management's Discussion and Analysis of Financial
                 Condition and Results of Operations.

Results of Operations

           Three Months ended March 31, 1997

           Sales   increased  11%  in  the  quarter  ended  March  31,  1997  to
$24,839,000 from $22,348,000 for the comparable  quarter of the prior year. This
improvement  is  accounted  for by 12%  increases  in  both  computer  and  list
marketing services and a 10% increase in fulfillment services. Computer services
increase  reflects the revenues  related to the $40 million  contract 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  on  the
percentage-of-completion  method of  accounting  measured by the  percentage  of
labor hours incurred to date to the total labor hours required for the contract.
The list marketing  revenue increase  resulted  primarily from increased volumes
with  continuing  customers.  The  fulfillment  services  increase  reflects 19%
increases in both continuity and catalog  fulfillment  services partially offset
by decreases in outbound  telemarketing (72%) and inbound  telemarketing  (59%).
The continuity and catalog fulfillment  services increases reflect revenues from
new  customers  added since the prior fiscal  period and  increased  volume from
continuing customers.  The outbound telemarketing decrease resulted from reduced
volume  under  a  contract  to  provide  business-to-consumer   services  for  a
telecommunications  company and a reduced customer base. As previously reported,
this  function has been made an integral part of the customer  service  function
within continuity fulfillment.  The decrease in inbound telemarketing is part of
the Company's strategic plan to de-emphasize this service.

           Gross profit increased 13% to $7,779,000 for the current quarter from
$6,896,000  in the  comparable  quarter of 1996.  Gross profit margin was 31% in
each period.  The increase in gross profit amount  resulted  primarily  from the
increased sales volumes.

           Selling and  administrative  expenses  increased 11% to $4,444,000 in
the current quarter from $4,004,000 in the comparable  quarter of 1996.  Selling
and administrative  expenses, as a percentage of sales, were 18% in each period.
The increase in amount of selling and  administrative  expenses is the result of
the overall increase in sales and increased  professional fees combined with the
mix of services rendered.

           Net  dividend  and  interest  income of $239,000  was realized in the
current quarter  compared to $117,000 in the comparable  1996 quarter.  Dividend
and interest income increased $139,000 in the current fiscal quarter as a result
of a higher level of funds  available  for  short-term  investment  coupled with
higher  interest  rates  during the current  quarter.  The  increase in interest
expense  quarter over quarter of $17,000  resulted from interest on a $2,500,000
five-year term loan entered into by Catalog Resources, Inc. (CRI). Proceeds from
the  loan  were  received  in March  and  June,  1996 and were  used to fund the
expansion of its warehouse and office  facilities.  The unsecured line of credit
available to the Company was not utilized in either quarter.

           Net income  was  $2,113,000  ($.41 per  share-fully  diluted)  in the
current quarter  compared to $1,774,000  ($.34 per  share-fully  diluted) in the
comparable 1996 quarter.
<PAGE>
           Six Months ended March 31, 1997

           Sales  increased  6% for the  six  months  ended  March  31,  1997 to
$51,070,000 from  $48,002,000 for the comparable  period of the prior year. This
improvement  is  represented  by a 10% increase in  fulfillment  services,  a 7%
increase  in list  marketing  services  partially  offset  by a 2%  decrease  in
computer  services.  The increase in fulfillment  services reflects increases in
continuity  fulfillment  services (17%),  catalog fulfillment  services (7%) and
inbound  telemarketing  (46%)  partially  offset by a 70%  decline  in  outbound
telemarketing.  Sales to new  customers  and  increased  volume with  continuing
customers contributed to the continuity and catalog fulfillment  increases.  The
inbound telemarketing increase was the result of a special project completed for
a  continuing  customer,  during the first  quarter of the current  fiscal year,
although  the  Company  continues  as a strategic  plan,  to  de-emphasize  this
service. The oubound telemarketing decrease resulted from the same circumstances
as described in the current  quarter section above.  The list marketing  revenue
increase resulted  primarily from increased  volumes with continuing  customers.
Computer services decrease was the result of the December 1995 quarter including
sales  from  the  completion  of  one  major  project  in  North  America  for a
telecommunications  company while launching another  previously  announced three
year $40 million service project for another  non-U.S.  communications  company.
Fiscal 1997 includes the revenues from this continuing contract,  the provisions
of which are as described in the current quarter section above.

           Gross  profit  increased 5% to  $15,763,000  for the six month period
from  $15,081,000 in the comparable  period of 1996. Gross profit margin was 31%
in each six month period. The increase in gross profit amount resulted primarily
from the increased sales volumes.

           Selling and administrative  expenses increased 11% to $8,939,000 from
$8,036,000  in 1996.  Selling and  administrative  expenses,  as a percentage of
sales,  were 18% for the current six month period and 17% in the prior year. The
increase in the amount and percentage of selling and administrative  expenses is
the result of the overall increase in sales volume and higher  professional fees
combined with the mix of services rendered.

           Net  dividend  and  interest  income of $452,000  was realized in the
current six month period compared to $199,000 in the comparable  period in 1996.
Dividend and interest income increased  $293,000 in the current six month period
as a result of a higher level of funds available for short-term investment.  The
increase in interest  expense  period over period of $41,000  resulted  from the
$2,500,000 loan entered into by CRI, as described  above.  The unsecured line of
credit available was not utilized in either period.

           Net income  was  $4,298,000  ($.84 per  share-fully  diluted)  in the
current  period  compared to $4,283,000  ($.82 per  share-fully  diluted) in the
comparable 1996 period.


Financial Condition, Liquidity and Capital Resources

           Working  capital  was  $24,268,000  at March  31,  1997  compared  to
$19,359,000  at September 30, 1996.  Fluctuations  in the  components of working
capital  resulted  primarily  from  increases  in  cash  and  cash  equivalents,
investments-held-to-maturity  and  decreases  in accounts  payable and  deferred
revenue  partially  offset by  decreases  in  accounts  receivable  and  prepaid
expenses and other current assets and an increase in other accrued expenses.
<PAGE>
           For the six month  period,  cash  generated by  operations  decreased
$5,870,000  over such amounts  generated in the  comparable  period of the prior
year. This decrease was primarily the result of decreases in deferred revenue of
$4,959,000  and  increases  in accounts  receivable  of  $1,114,000  and prepaid
expenses and other current assets of $672,000  partially  offset by increases in
accounts payable and accrued expenses of $792,000 and depreciation of $106,000.

           In the six month period ended March 31,  1997,  financing  activities
used funds of $673,000  compared to providing  funds of  $1,444,000  in 1996. In
both periods, the repayment of debt was the primary use of funds and amounted to
$924,000 in 1997 and $784,000 in 1996. In March,  1996,  $1,785,000 was borrowed
under the terms of a $2.5 million five year term loan to substantially  fund the
expansion of warehouse  and office  facilities  at CRI.  Cash used for investing
activities,  in the current period, decreased $1,062,000 compared to 1996 due to
reduced  additions to property and equipment of $1,861,000  partially  offset by
net purchases of investments-held-to-maturity of $799,000.

           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, 1997. Further,
such amounts  will be payable each January 1 through 2002  totaling a maximum of
$5,062,500.  The  discounted  value of these  future  payments  was  recorded at
September 30, 1995 since it was probable that the future earnings levels will be
attained which will require the maximum payments to be made.

           On April 15, 1997, the Company  announced the signing of a definitive
agreement to acquire McIntyre & King Ltd., a UK based telemarketing, fulfillment
and mailing services company.  The purchase price of approximately  $1.6 million
is payable over two years.  The Company intends to provide at least $2.0 million
over the next year for expansion, capital equipment and working capital.

           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 4.    Submission of Matters to a Vote of Security Holders.

               (a) The annual meeting of  shareholders  was held on February 11,
           1997.

               (b)  Shareholders  elected to the Board of Directors Mr.  Bernard
           Ouziel.  Mr.  Arnold J.  Scheine,  Mr. Marvin Cohen and Mr. Joseph R.
           Barbaro continued as members of the Board of Directors.

               (c) The election of Mr. Ouziel was by a vote of 3,327,738 for and
           301,974 withheld. There were 761,164 broker non-votes.

               (d)  Deloitte & Touche LLP was elected to serve as the  Company's
           independent  auditors by a vote of 3,629,712  for,  9,095 against and
           5,873 abstentions. There were 758,609 broker non-votes.

               (e)  Granting of  non-qualified  stock  options to Mr.  Arnold J.
           Scheine,  President and Chief Executive Officer and Mr. Marvin Cohen,
           Senior Vice  President and Secretary,  to purchase  23,600 and 11,800
           shares,  respectively,  of the Company's Common Stock, par value $.01
           was approved by a vote of 1,856,508 for,  810,166  against and 16,762
           abstentions. There were 1,707,440 broker non votes.

               (f)  The  1996  Non-Employee  Directors  Stock  Option  Plan  was
           approved  by a vote of  1,954,241  for,  711,026  against  and 18,168
           abstentions. There were 1,707,441 broker non-votes.


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

               (a) Exhibit 11 - Computation of earnings per share

               (b) Reports on Form 8-K - LCS  Industries,  Inc. did not file any
           reports on Form 8-K during the quarter ended March 31, 1997.
<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
        May 12, 1997


                                           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)

<PAGE>








                              LCS INDUSTRIES, INC.


                           Commission File No. 0-12329



                                    ---------


                          Quarterly Report on Form 10-Q

                                     for the

                         Six Months Ended March 31, 1997




                                     EXHIBIT
<PAGE>
     INDEX TO EXHIBIT

        Exhibit
           No.                               Description
           ---                               -----------


           11              Statement re: Computation of Per Share Earnings