SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    Form 10-Q


     QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE
                                   ACT OF 1934

     For Quarter Ended March 31, 1998    Commission File Number 0-7475

                            PHOTO CONTROL CORPORATION
             (Exact Name of Registrant as Specified in its Charter)


         Minnesota                                        41-0831186
(State or Other Jurisdiction of                        (I.R.S. Employer
 Incorporation or Organization)                       Identification No.)


4800 Quebec Avenue North, Minneapolis, Minnesota             55428
    (Address of Principal Executive Offices)              (Zip Code)


Registrant's Telephone Number  (612)  537-3601

     ----------------------------------------------------------------------
             (Former name, former address, and former fiscal year if
                           changes 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 twelve 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 practical date.


          Class                            Outstanding at April 30, 1998
----------------------------               -----------------------------
Common Stock, par value $.08                     1,604,163 Shares

<PAGE>


                            PHOTO CONTROL CORPORATION
                                      INDEX
                            -------------------------


PART I    Financial Information                                      Page Number

         Item 1:   Financial Statements

                   Consolidated Balance Sheet -
                     March 31, 1998 and December 31, 1997                 3

                   Consolidated Statement of Operations
                     Three Months Ended March 31, 1998 and 1997           4

                   Consolidated Statement of Cash Flows -
                     Three Months Ended March 31, 1998 and 1997           5

                   Notes to Consolidated Financial
                     Statements                                           6

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


PART II   Other Information

     Item 2:       Changes in Securities                                  9

     Item 6:       Exhibits and Reports on Form 8-K                       9

<PAGE>


                            PHOTO CONTROL CORPORATION
                           CONSOLIDATED BALANCE SHEET
                                   (Unaudited)

                                               March 31      December 31
                                                  1998           1997
                                              -----------    -----------

                      ASSETS
Current Assets
  Cash                                        $   271,688    $   808,169
  Accounts Receivable                             402,172        505,373
  Other Receivables                                 2,700          2,700
  Inventories                                   4,732,358      4,322,603
  Prepaid Expenses                                135,642        201,899
                                              -----------    -----------
         Total Current Assets                   5,544,560      5,840,744
                                              -----------    -----------

Investments and other Assets
  Cash Value of Life Insurance                    270,657        261,966
  Deferred Income Taxes                           200,000        200,000
                                              -----------    -----------
         Total Investments and other Assets       470,657        461,966
                                              -----------    -----------

Plant and Equipment
  Land and Building                             2,207,871      2,204,871
  Machinery and Equipment                       3,429,548      3,303,719
  Accumulated Depreciation                     (3,675,665)    (3,629,310)
                                              -----------    -----------
         Total Plant and Equipment              1,961,754      1,879,280
                                              -----------    -----------
                                              $ 7,976,971    $ 8,181,990
                                              ===========    ===========

          LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
  Accounts Payable                                588,014        288,724
  Accrued Payroll and Employee Benefits           319,219        270,214
  Accrued Expenses                                163,521        114,908
                                              -----------    -----------
         Total Current Liabilities              1,070,754        673,846
                                              -----------    -----------

Deferred Compensation                             561,193        540,312
                                              -----------    -----------

Stockholders' Equity
  Common Stock                                    128,333        128,333
  Additional Paid-In Capital                    1,393,484      1,393,484
  Retained Earnings                             4,823,207      5,446,015
                                              -----------    -----------
         Total Stockholders' Equity             6,345,024      6,967,832
                                              -----------    -----------
                                              $ 7,976,971    $ 8,181,990
                                              ===========    ===========

See accompanying notes to consolidated financial statements.

<PAGE>


                            PHOTO CONTROL CORPORATION
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                   (Unaudited)

                                THREE MONTHS ENDED MARCH 31
                                    1998           1997
                                -----------    -----------

Net Sales                       $ 1,947,046    $ 2,246,642
Cost of Sales                     1,807,289      1,839,319
                                -----------    -----------
Gross Profit                        139,757        407,323

Expenses
 Marketing and Administrative       531,949        820,520
 Research, Development & Eng        230,616        296,120
 Interest                                            9,147
                                -----------    -----------
                                    762,565      1,125,787
                                -----------    -----------

Loss Before Income Tax             (622,808)      (718,464)

Income Tax Benefit                                (194,000)
                                -----------    -----------

Net Loss                        $  (622,808)   $  (524,464)
                                ===========    ===========


Net Loss Per Common Share       $      (.39)   $      (.33)
                                ===========    ===========

  See accompanying notes to consolidated financial statements.

<PAGE>


                            PHOTO CONTROL CORPORATION
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (Unaudited)


                                                          March 31
                                                          --------
                                                     1998          1997
                                                   ---------    ---------
Cash flows from operating activities:
     Net Loss from operations                      $(622,808)   $(524,464)
     Items not affecting cash-
         Depreciation                                 78,000       92,578
         Deferred compensation                        37,500        9,333
         Loss on sale of assets                        6,153
     Payment of deferred compensation                (16,619)      (6,156)
     Change in:
         Receivables                                 103,201     (347,290)
         Inventories                                (409,755)      30,878
         Prepaid expenses                             66,257       30,668
         Accounts payable                            299,290      126,230
         Accrued expenses                             97,618       70,737
                                                   ---------    ---------

                  Net cash used in operating
                  expenses                          (361,163)    (517,486)
                                                   ---------    ---------

Cash flows from investing activities:
     Additions to plant and equipment               (175,761)     (87,087)
     Proceeds from sale of equipment                   9,134
     Additions to cash value of life
     insurance                                        (8,691)      (8,690)
                                                   ---------    ---------

                  Net cash used in investing
                  activities:                       (175,318)     (95,777)
                                                   ---------    ---------
Cash flow from financing activities:
     Repayment of long-term debt                                   (5,431)
     Proceeds from note payable                                    21,725
                                                   ---------    ---------
                  Net cash provided by financing
                  activities                                       16,294
                                                   ---------    ---------

Change in cash                                      (536,481)    (596,969)
Cash at beginning of period                          808,169      736,031
                                                   ---------    ---------

Cash at end of period                              $ 271,688    $ 139,062
                                                   =========    =========

See accompanying notes to consolidated financial statements.

<PAGE>


                            PHOTO CONTROL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1998
                                   (Unaudited)

NOTE 1

         Notes to financial statements presented herein do not include all the
         footnotes normally presented in the Company's annual report to
         stockholders.

         The accompanying financial statements reflect, in the opinion of
         management, all normal and recurring adjustments necessary to a fair
         presentation of financial position, results of operations, and cash
         flows for the interim periods. The results for interim periods are not
         necessarily indicative of results to be expected for the year.

NOTE 2

         Inventories are analyzed as follows:

                                      March 31      December 31
                                       1998             1997
                                       ----             ----

              Raw Materials         $3,179,199        $2,666,732

              Work in Progress         680,424           492,833

              Finished Goods           872,735         1,163,038
                                    ----------        ----------

                                    $4,732,358        $4,322,603
                                    ==========        ==========

NOTE 3

Net Income per common share is computed based on the weighted average number of
common shares outstanding during the period when computing the basic earnings
per share. When dilutive, stock options are included as equivalents using the
Treasury Stock method when computing the diluted earnings per share.

<PAGE>


                            PHOTO CONTROL CORPORATION
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS

OPERATIONS

Sales for the first quarter ended March 31, 1998, were $1,947,000, a decrease of
13.3% and $299,000 from the first quarter in 1997. The decrease in sales was
primarily due to decline of OEM and dealer sales in the flash equipment product
line. The camera product line sales increased $230,000, but was offset by a
decrease in the printer product line sales of approximately the same amount. In
October 1997, the manufacturing of the flash equipment product line was moved
from California to Minnesota. Because of the inefficiency associated with the
move, certain sales backlog was not shipped in the the first quarter of 1998. It
is expected that production will be sufficient in the second quarter to ship all
backlog. Demand for the camera product line increased in the first quarter of
1998 as compared to the first quarter of 1997, however, the sales trend for the
printer line continues to decline.

The gross profit margin for the first quarter of 1998 decreased to 7.2% compared
to 18.1% in the first quarter of 1997. The decline is attributable to the
inefficient production of the flash equipment line as a result of the move from
California to Minnesota. Management continues to expect that the margins for the
year 1998 will be comparable to 1995 which approximated 26%.

Research, development and engineering expenses decreased by $55,000 for the
first quarter of 1998 compared to the first quarter of 1997 and marketing and
administrative expenses decreased $289,000. The decreases reflect staff
reductions as a result of consolidation of operations in Minnesota.

Interest expense decreased by $9,000 compared to the first quarter of 1997
because all debt was paid off at the end of 1997.


LIQUIDITY AND CAPITAL RESOURCES

Cash decreased $536,000 to $272,000 since December 31, 1997. Operations for the
quarter resulted in $361,000 of negative cash flow. In addition, $175,000 was
spent on capital equipment. At March 31, 1998 there was no bank borrowing and
the Company had $1,500,000 available under its line of credit.

The Company believes that its cash flow from operations and available borrowing
capacity will be sufficient to finance operations and capital requirements.

<PAGE>


FACTORS THAT MAY AFFECT FUTURE RESULTS

Statements included or incorporated by reference in this Quarterly Report on
Form 10-Q which are not historical in nature are identified as "forward looking
statements" for the purposes of the safe harbor provided by Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. The Company cautions readers that forward looking
statements, including without limitation, those relating to the Company's future
business prospects, revenues, working capital, liquidity, capital needs,
interest costs, and income, are subject to certain risks and uncertainties that
could cause actual results to differ materially from those indicated in the
forward looking statements. The risks and uncertainties include, but are not
limited to, economic conditions, product demand and industry capacity,
competitive products and pricing, manufacturing efficiencies, new product
development and market acceptance, the regulatory and trade environment, and
other risks indicated in filings with the Securities and Exchange Commission.

<PAGE>


ITEM 2.  Changes in Securities

                               Common Stock
                        ------------------------
                                                   Additional
                         Number of                  Paid In      Retained
                          Shares        Amount      Capital      Earnings
                        ----------    ----------   ----------   ----------
Balance at
    December 31, 1997    1,604,163    $  128,333   $1,393,484   $5,446,015
                        ----------    ----------   ----------   ----------

Net Loss                                                          (622,808)
                        ----------    ----------   ----------   ----------

Balance at
    March 31, 1998       1,604,163    $  128,333   $1,393,484   $4,823,207
                        ==========    ==========   ==========   ==========


ITEM 6.  Exhibit and Reports on Form 8-K

A.  Exhibits - None
B.  Reports on Form 8-K - There was no Form 8-K filed during the quarter.








                                PHOTO CONTROL CORPORATION
                                -------------------------
                                       (Registrant)


------------------              --------------------------------------
       Date                     John R. Helmen, C.E.O. and President


------------------              --------------------------------------
       Date                     C.R. Jackels, Vice President-Treasurer