FORM 10-QSB
                                
                          UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549
                                
                                
[X]  QUARTERLY  REPORT PURSUANT TO SECTION 13  OR  15(d)  OF  THE
     SECURITIES EXCHANGE  ACT OF 1934

For the quarterly period ended September 30, 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:  0-12807
                                
                         PHOTOCOMM, INC.
     (Exact name of registrant as specified in its charter)

           Arizona                             86-0411983
(State or other jurisdiction of    (IRS Employer Identification No.)
incorporation or organization)

     7681 East Gray Road, Scottsdale, Arizona       85260
     (Address of principal executive offices)     (Zip Code)

                         (602) 948-8003
      (Registrant's telephone number, including area code)

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
(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 [  ]

There  were  16,245,044 shares of common stock, $0.10 par  value,
outstanding as of November 4, 1997.
                                
   Transitional Small Business Disclosure Format (check one):
                        Yes        No  X




                 PART I.  FINANCIAL INFORMATION

                                
Item 1.  Financial Statements


                              PHOTOCOMM, INC.
                        CONSOLIDATED INCOME STATEMENT
                                                                         
                                                                         
                               Three months ended          Nine months ended
                                   September 30,              September 30,
                                 1997          1996         1997          1996
                           ------------------------   ------------------------

Net sales                  $8,568,587    $8,469,209   $22,803,841  $18,656,997
                                                                               
Cost of sales               6,328,807     6,799,705    17,849,439   14,339,980
                           ----------    ----------   -----------  -----------
   Gross profit             2,239,780     1,669,504     4,954,402    4,317,017
                                                                               
Selling, general and
  administrative expenses   1,721,241     1,348,813     5,519,894    3,583,996
                           ----------    ----------   -----------  -----------
Income (loss) from
  operations                  518,539       320,691      (565,492)     733,021
                                                                               
Other income (expense):                                                        
   Interest expense           (60,168)      (48,360)      (83,307)     (94,378)
   Other income, net           20,097         9,388        22,107       32,776
                           ----------    ----------   -----------  -----------
Income(loss) before taxes     478,468       281,719      (626,692)     671,419
                                                                             
   Income tax benefit             ---       350,000           ---      350,000
                           ----------    ----------   -----------  -----------
Net income(loss)              478,468       631,719      (626,692)   1,021,419
                                                                               
Preferred stock dividend      (13,132)      (14,624)      (40,783)     (41,214)
                           ----------    ----------   -----------  -----------
Net income(loss)                                                              
  applicable to common
  shareholders               $465,336      $617,095     ($667,475)    $980,205
                           ==========    ==========   ===========  ===========
                                                                             
Net income(loss) per share      $0.03         $0.04        ($0.04)       $0.07
                           ==========    ==========   ===========  ===========
                                                                              
Weighted average common
  shares outstanding       16,325,805    14,834,250    16,392,028   14,781,524
                           ==========    ==========   ===========  ===========
                                                                               
                                                                               
See Notes to Consolidated Financial Statements.



                               PHOTOCOMM, INC.
                         CONSOLIDATED BALANCE SHEET
 
                                                               
                                            September 30,  December 31,
                                                   1997          1996
ASSETS                                      -------------  ------------
Current assets:                                                     
  Cash and cash equivalents                 $   905,775    $ 1,377,898
  Accounts receivable, net                    5,919,524      4,557,102
  Inventories                                 6,637,798      4,490,784
  Other current assets                          162,886        184,904
                                            -----------    -----------
      Total current assets                   13,625,983     10,610,688
                                                                    
                                                                    
Properties at cost less accumulated                                 
  depreciation of $1,691,936 in 1997
  and $1,418,346 in 1996                      2,754,831      2,551,616
Deferred tax asset                              350,000        350,000
Other assets, net                             2,031,511      1,774,457
                                            -----------    -----------
    Total assets                            $18,762,325    $15,286,761
                                            ===========    ===========
                                                                    

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:                                                 
   Accounts payable                         $ 2,928,386    $ 1,695,266  
   Short-term debt                            1,700,000            ---  
   Accrued expenses                             247,945      1,341,811
   Current installments of long-term debt        81,787        556,153
                                            -----------    -----------
      Total current liabilities               4,958,118      3,593,230
Long-term debt, less current installments     2,170,529        134,490
                                            -----------    -----------
    Total liabilities                         7,128,647      3,727,720
                                            -----------    -----------
Shareholders' equity:                                               
Preferred stock, $0.01 par value,
  5,000,000 shares authorized and no
  shares issued or outstanding                      ---            ---
Series A 12% convertible preferred
  stock, 125,000 shares authorized,
  38,972 shares issued and outstanding               39             39
Series AA 11% convertible preferred  
  stock, 200,000 shares authorized,
  44,156 abd 52,565 shares issued and
  outstanding                                        44             53
Common stock, $0.10 par value, 25,000,000                           
  shares authorized and 16,245,044 and                                
  16,151,444 shares issued and
  outstanding, respectively                   1,624,504      1,615,144
Additional paid-in capital                   16,150,383     15,458,405
Accumulated deficit                          (6,141,292)    (5,514,600)
                                            -----------    -----------
    Total shareholders' equity               11,633,678     11,559,041
                                            -----------    -----------
Total liabilities and shareholders'                                 
  equity                                    $18,762,325    $15,286,761
                                            ===========    =========== 

See Notes to Consolidated Financial Statements.




                              PHOTOCOMM, INC.
                    CONSOLIDATED STATEMENT OF CASH FLOWS
                                                             
                                                                  
                                                 Nine months ended
                                                   September 30,
                                                 1997           1996
                                            -------------------------
Cash flows from operating activities:                             
  Net income (loss)                         ($ 626,692)    $1,021,419
  Adjustments to reconcile net income                             
    (loss) to net cash used in
    operating activities:
      Depreciation and amortization            395,191        306,957
      Non-cash settlement charge               650,000            ---
      Change in accounts receivable         (1,362,422)    (3,725,242)
      Change in inventories                 (2,147,014)      (291,637)
      Change in accounts payable and
        accrued expenses                       139,254      1,823,815
      Change in other current assets            22,018       (112,110)
                                            ----------     ----------
Net cash used in operating activities       (2,929,665)      (976,798)
                                                                  
Cash flows used in investing activities:
     Purchase of property and equipment       (476,805)      (820,291)
     Purchase of other assets                 (378,655)    (1,399,368)
                                            ----------     ----------
Net cash used in investing activities         (855,460)    (2,219,659)
                                                                  
Cash flows provided by financing activities:
     Proceeds from issuance of debt          3,802,250      1,399,099
     Repayments of debt                       (540,577)      (103,338)
     Proceeds from issuance of common                            
       stock                                    78,980      1,507,727
     Cash dividends on preferred stock         (27,651)       (41,214)
                                            ----------     ----------
Net cash provided by financing                                    
  activities                                 3,313,002      2,762,274
                                                                  
                                                                  
Net decrease in cash and cash                                     
  equivalents                                 (472,123)      (434,183)
                                                                  
Cash and cash equivalents at beginning                            
  of year                                    1,377,898        485,412
                                            ----------     ----------
Cash and cash equivalents at end of                               
  period                                      $905,775        $51,229
                                            ==========     ==========
                                                                  
                                                                  
See Notes to Consolidated Financial Statements.





                           PHOTOCOMM, INC.
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 
Note 1.  Fiscal Year End

On February 2, 1997, the Board of Directors elected to change the
fiscal   year   end  of  Photocomm,  Inc.  and  its  subsidiaries
("Photocomm" or the "Company") from August 31 to December 31.  As
a  result,  the Company now reports interim financial information
on  a  calendar quarterly basis.  Certain reclassifications  have
been  made  in  the 1996 financial statements to conform  to  the
classifications used in 1997.


Note 2.  Legal Proceedings

On July 22, 1997, the Company reached a settlement of the pending
arbitration  proceedings with former executives  Robert  Kauffman
and Thomas LaVoy.

In  connection  with the settlement, the Company paid  severance,
benefits  and attorney's fees. To facilitate the settlement,  two
of  the  Company's  directors  purchased  all  outstanding  stock
options  from  Mr.  Kauffman. The Company retired  100,000  stock
options  held  by  Mr.  LaVoy.  In addition  to  the  approximate
$1,200,000  reserve  previously  announced  for   severance
under   the  employment  agreements,  the  settlement  agreements
resulted  in an additional aggregate one-time charge of $800,000,
of  which  $650,000 was non-cash.  As an additional provision  of
the  agreement,  Mr.  Kauffman resigned  as  a  director  of  the
Company.

As previously provided in the employment agreement, the Company's
majority   shareholder,  ACX  Technologies,  Inc.   (NYSE:   ACX)
purchased  500,000  shares  of  common  stock  and  common  stock
equivalents  from Mr. Kauffman.  ACX also made a $2,000,000  non-
recourse loan to Mr. Kauffman, secured by his remaining 1 million
shares of common stock of the Company.


Note 3.  New Accounting Standards

Statement of Financial Accounting Standards No. 131, "Disclosures
about  Segments  of  an Enterprise and Related Information",  was
issued  in  June 1997.  This statement establishes standards  for
the  way  public  business enterprises report  information  about
operating  segments.  It also establishes standards  for  related
disclosure  about products and services, geographical areas,  and
major  customers.  This statement is effective for the  Company's
financial statements for the year ended December 31, 1998 and the
adoption  of  this standard is not expected to  have  a  material
effect on the Company's financial statements.

Statement  of Financial Accounting Standards No. 130,  "Reporting
Comprehensive  Income", was issued in June 1997.   The  statement
establishes  standards for reporting and display of comprehensive
income in financial statements.  This statement is effective  for
the  Company's  financial statements for the year ended  December
31,  1998  and the adoption of this standard is not  expected  to
have a material effect on the Company's financial statements.

Statement  of  Financial Accounting Standards No. 128,  "Earnings
per  Share", was issued in February 1997.  The adoption  of  this
new  accounting standard, which is required on December 31, 1997,
will  result  in the restatement of earnings per  share  for  all
periods presented.  Based on management's estimates, the adoption
of this standard is not expected to have a material effect on the
Company's financial statements.


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


Business Overview

Photocomm  is  engaged in manufacturing and marketing  solar  and
solar  hybrid electric systems in the United States  and  abroad.
The  Company  operates  in  two major markets,  distribution  and
industrial, which are outlined below.

Distribution

For   the  distribution  markets,  applications  include   remote
electrification of rural homes, recreational vehicles and  boats,
water  pumping,  and  lighting,  which  the  Company  distributes
through   dealer   networks  and  retail  catalogs.    Currently,
distribution  accounts for approximately half  of  the  Company's
sales and is largely domestic, however, management believes there
is   opportunity  for  expanding  and  developing   international
markets.  Distribution sales are relatively steady throughout the
year, although there are seasonal swings in this largely domestic
segment resulting in increased levels of sales in the second  and
third  quarters.  As international growth continues, the  Company
expects the seasonality to diminish.

International distribution is currently located in  two  regional
centers.   The  Central and South American markets  are  serviced
through  an office in Florida, and on October 1, 1996 the Company
opened  an  Australia  office through a wholly-owned  subsidiary,
Photocomm  Pty.,  Ltd.   Although  these  offices  are  primarily
focused  on distribution sales, the Company also plans to  pursue
future growth opportunities in industrial applications worldwide.


Industrial Business

Industrial sales are focused primarily on power supply  solutions
for remote applications within the telecommunications and the oil
and  gas communications and exploration markets.  Although  sales
to  these  markets  are  typically not seasonal  in  nature,  the
Company  has participated in large projects within these  markets
by  developing  relationships  with  local  carriers  and  larger
original equipment manufacturers ("OEMs").  Historically, it  has
not  been  possible to predict this activity quarter to  quarter.
However, as these relationships continue to develop and  new  OEM
customer relationships are built, it is the Company's strategy to
develop  a more consistent level of this business.  Additionally,
the  Company expects sales in this market to continue to grow  as
the  Company  develops  new  domestic  customers  and  identifies
applications  internationally.   An  increase  in  the  Company's
international  presence  was recently  accomplished  through  the
addition  of contracts obtained from Integrated Power Corporation
("IPC").

On  November  13, 1997, the Company announced the  signing  of  a
memorandum of understanding to acquire the assets and business of 
Utility  Power  Group  ("UPG"),  headquartered  in  Chatsworth,
California.  UPG, with 1996 revenues of approximately $6 million,
manufactures,  integrates and installs utility  grid  interactive
solar systems for the industrial telecommunications market.



Results of Operations

Consolidated  net sales for the three months ended September  30,
1997  were  $8,568,587,  an increase  of  $99,378,  or  1.2%,  as
compared  to the 1996 similar period.  The increase in  sales  is
attributable  to  the  IPC  contracts, increased  volume  in  the
industrial  oil and gas communications businesses, and  increased
volume  in  domestic  distribution.  Partially  offsetting  these
increases  were  sales declines in industrial  telecommunications
and  international distribution related to the timing of  certain
large  contracts that were realized in the third quarter of 1996.
For  the third quarter of 1997, sales in the distribution  market
accounted  for  approximately  48%  of  total  sales,  with   the
remainder  from the industrial markets.  For the comparable  1996
quarter,   sales  to  the  distribution  market   accounted   for
approximately  55%  of total sales, with the remainder  from  the
industrial markets.

Consolidated  net sales for the nine months ended  September  30,
1997  were  $22,803,841, an increase of $4,146,844, or 22.2%,  as
compared  to the 1996 similar period.  The increase in  sales  is
attributable   to   increased  volume  in   both   domestic   and
international distribution and increased volume in the industrial
business  primarily  related  to the  IPC  contracts.   Partially
offsetting  these  increases  was a  decline  in  the  industrial
telecommunications business, a result of the  timing  of  certain
large  contracts that were realized in the third quarter of 1996.
For  both  nine  month  periods  ended  September  30,  1997  and
September  30,  1996, sales to the distribution market  accounted
for  approximately  54%  of sales, with the  remainder  from  the
industrial markets.

Gross  margin (gross profit divided by net sales) was  26.1%  for
the  third  quarter  of 1997, compared to  19.7%  for  the  third
quarter  of  1996.   The  increase in the gross  margin  for  the
quarter is primarily attributable to the change in sales mix to a
greater   percent   of   sales  from  the   industrial   markets,
specifically  related  to the IPC contracts,  and  strong  summer
season  sales in the distribution markets.  For the  nine  months
ended  September 30, 1997, gross margin was 21.7% as compared  to
23.1%  for  the 1996 similar period.  The decrease in  the  gross
margin  is  primarily a result of lower volume in the  industrial
markets and the resulting under absorption of fixed costs  during
the second quarter of 1997.

Operating  income  was $518,539 for the third  quarter  of  1997,
compared  to  $320,691 for the third quarter of 1996.   Operating
income  as  a  percent of sales increased to 6.1% for  the  third
quarter  of  1997 from 3.8% for the third quarter of  1996.   The
increase  in  operating income was a result of  the  increase  in
gross margin as described above, offset in part by an increase in
selling,  general  and  administrative  expenses  due  to   costs
associated with streamlining the Company's operations.   The nine
month  period ended September 30, 1997 had an operating  loss  of
$565,492, compared to operating income of $733,021 for  the  nine
month period ended September 30, 1996.  The decrease in operating
income  is  primarily  a result of a second quarter  compensation
charge  of  $800,000  associated with severance  agreements  with
former executives of the Company and the decrease in gross margin
as  discussed above.  The severance agreements are discussed more
extensively in Part II, Item 1, of this Quarterly Report.

The  Company has not recognized any income tax benefit or expense
for  the  three and nine month periods ended September 30,  1997.
Realization of the net operating losses generated during 1997 and
the  remaining  operating losses generated in  prior  periods  is
dependent  on  the  generation of future taxable  income  and  is
limited  by ownership changes.  At this time management  has  not
determined  that  it  is more likely than  not  that  the  entire
deferred  tax asset will be realized and has provided a valuation
allowance   against  the  Company's  deferred  tax  asset.    The
realizability  of the deferred tax asset will be monitored  on  a
quarterly basis.

During the three and nine month periods ended September 30, 1996,
the   Company  recognized  a  $350,000  tax  benefit   from   the
establishment  of a deferred tax asset through an  adjustment  in
the   valuation  allowance.   This  decrease  in  the   valuation
allowance  resulted  primarily  from  the  utilization   of   net
operating  loss carryforwards during the 1996 third  quarter  and
the  release  of  a portion of the deferred tax  asset  valuation
allowances  based  upon  the  Company's  re-evaluation   of   the
realizability of the remaining net operating loss carryforwards.


Liquidity and Capital Resources

The  Company's liquidity is generated from internal and  external
sources and is used to fund short-term working capital needs  and
capital expenditures.  Internally generated liquidity is measured
by  net  cash from operations and working capital.  At  September
30,  1997,  the Company's working capital was $8,667,865  with  a
current  ratio of 2.7 to 1.  At December 31, 1996, the  Company's
working capital was $7,017,458 with a current ratio of 3.0 to  1.
The Company considers its working capital sufficient to meet  its
anticipated short-term requirements.

Cash  used  in  operating activities for the  nine  months  ended
September 30, 1997 was $2,929,665.  The Company's operating  cash
uses   primarily  consisted  of  an  increase  in  inventory   of
$2,147,014  and an increase in accounts receivable of $1,362,422.

Cash   used  in  investing  activities  primarily  consisted   of
expenditures   for   computer   equipment,   manufacturing    and
engineering equipment, and the IPC contracts.

Cash  generated from financing activities primarily  consists  of
$3,700,000 of proceeds from a $4,000,000 line of credit  provided
by  majority shareholder, ACX Technologies, Inc.  The significant
terms of this agreement include an interest rate of 1% less  than
the  monthly  prime rate, a three year term, and interest  to  be
paid quarterly.  Offsetting the above proceeds were repayments of
debt in the amount of $540,577.

Although  no  assurances are possible, the Company believes  that
its future operating cash flows and available line of credit from
the  majority  shareholder, ACX Technologies, Inc., will  provide
adequate  funding  for current obligations, projected  operations
and  planned  expansion  for  the  next  twelve  months  and  the
foreseeable future.



Forward-Looking Statements

The  statements made in this report that are not historical facts
contain  forward-looking  information  that  involves  risks  and
uncertainties.  Forward-looking statements include, but  are  not
limited to, statements of the Company's beliefs, expectations and
strategies.  Important factors that may cause actual  results  to
differ from such forward-looking statements include, but are  not
limited  to,  market  demand  and  acceptance  of  the  Company's
products,  the impact of competitive technologies,  products  and
services,   risks   associated  with   international   operations
including currency fluctuations, litigation, seasonality,  claims
to  which  the Company may be a party, availability  of  critical
materials  or  supply, the Company's ability  to  manage  planned
expansion of its business and to integrate acquisitions of  other
businesses,  the effect of economic and business  conditions  and
other  risk  detailed from time to time in the Company's  filings
with the Securities and Exchange Commission.

These statements should be read in conjunction with the financial
statements and notes thereto included in the Company's  Form  10-
KSB  for  the  year  ended  August 31,  1996.   The  accompanying
financial  statements  have  not  been  examined  by  independent
accountants  in  accordance  with  generally  accepted   auditing
standards,  but  in  the opinion of the Company,  such  financial
statements include all adjustments necessary to summarize  fairly
the   Company's  interim  financial  position  and   results   of
operations.   All  adjustments  made  to  the  interim  financial
statements  presented  are  of a normal  recurring  nature.   The
results  of operations for the three month and nine month periods
ended  September 30, 1997 may not be indicative of  results  that
may be expected for the year ending December 31, 1997.



                   PART II.  OTHER INFORMATION


Item 1.   Legal Proceedings

On July 22, 1997, the Company reached a settlement of the pending
arbitration  proceedings with former executives  Robert  Kauffman
and Thomas LaVoy.

In  connection  with the settlement, the Company paid  severance,
benefits  and attorney's fees. To facilitate the settlement,  two
of  the  Company's  directors  purchased  all  outstanding  stock
options  from  Mr.  Kauffman. The Company retired  100,000  stock
options  held  by  Mr.  LaVoy.  In addition  to  the  approximate
$1,200,000  reserve  previously   announced   for   severance
under   the  employment  agreements,  the  settlement  agreements
resulted  in an additional aggregate one-time charge of $800,000,
of  which  $650,000 was non-cash.  As an additional provision  of
the  agreement,  Mr.  Kauffman resigned  as  a  director  of  the
Company.

As previously provided in the employment agreement, the Company's
majority   shareholder,  ACX  Technologies,  Inc.   (NYSE:   ACX)
purchased  500,000  shares  of  common  stock  and  common  stock
equivalents  from Mr. Kauffman.  ACX also made a $2,000,000  non-
recourse loan to Mr. Kauffman, secured by his remaining 1 million
shares of common stock of the Company.



Item 6.   Exhibits and Reports on Form 8-K

(a)  Exhibits:

Exhibit
Number              Document Description

27                  Financial Data Schedule


(b)  Reports on Form 8-K

There  were no reports filed on Form 8-K during the quarter ended
September 30, 1997.



                           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: November 13, 1997          By /s/Jeffrey C. Brines
                                 -----------------------------
                                 Jeffrey C. Brines
                                 (Chief Financial Officer)