FORM 10-Q
	SECURITIES AND EXCHANGE COMMISSION
	Washington, D.C.  20549

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

For the quarterly period ended September 30, 1995

Commission file number              0-0000

	CARVER CORPORATION
	(Exact Name of Registrant as specified in its charter)

	WASHINGTON                                              91-1043157
   (State of other jurisdiction         (I.R.S. Employer
of incorporation or organization)     Identification Number)

	20121 - 48th Avenue West, Lynnwood, WA         98036
	(Address of principal executive offices)     (Zip Code)

	(206) 775-1202
	(Registrant's telephone number, including area code)
						     
	(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 (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 ___

	APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
	PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all 
documents and reports required to be filed by Sections 12, 13 or 
15(d) of the Securities Exchange Act of 1934  subsequent to the 
distribution of securities under a plan confirmed by a court.

Yes ___  No ___

	APPLICABLE ONLY TO CORPORATE ISSUERS:

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

At September 30, 1995, 3,679,538 shares of $.01 par value common 
stock of the Registrant were outstanding.
							    
						Page 1 of 15 pages.  
								    
<TABLE>
PART 1.  FINANCIAL INFORMATION
Item 1.  Financial Statements

	CARVER CORPORATION
	CONSOLIDATED BALANCE SHEET
	ASSETS
<CAPTION>
				   September 30,  December 31,
				       1995           1994         
					   (Unaudited) 
<S>                                  <C>             <C>
Current assets                                    
   Cash and cash equivalents       $    47,000    $   249,000
   Marketable securities                 5,000          5,000
   Accounts receivable               2,713,000      3,830,000
   Inventories                       6,121,000      8,050,000
   Current portion of note receivable   13,000         13,000
   Prepaid assets                      430,000        634,000
	  Total current assets       9,329,000     12,781,000
  Property and equipment,
    less accumulated depreciation    2,354,000      2,528,000
  Other assets and deferred charges                     
    Note receivable, net of
    current portion                    982,000        989,000  
    Other                              279,000        330,000
	  Total assets             $12,944,000    $16,628,000

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities                                     
   Note payable                    $ 1,884,000    $ 3,067,000  
   Accounts payable                  1,218,000      1,383,000              
   Accrued liabilities
      Commissions and advertising      134,000        221,000
      Payroll and related taxes        212,000        243,000
      Warranty                         103,000        103,000
      Other                             87,000        155,000
   Current maturities of
      long-term debt                    20,000         20,000
	  Total current liabilities  3,658,000      5,192,000

   Long-term settlement payable,
     net of current portion            152,000        203,000
   Long-term debt, net of 
     current portion                   681,000        696,000
	  Total long-term liabilities  833,000        899,000

   Shareholders' equity
      Preferred stock, par value $.01
	 per share, 2,000,000 shares 
	 authorized, no shares issued
   Common stock, par value $.01 per
	 share, 20000,000 shares 
	 authorized, 3,679,538 shares
	 issued and outstanding         37,000         37,000 
   Additional paid-in capital       15,933,000     15,931,000
   Accumulated deficit              (7,517,000)    (5,431,000)

	 Total shareholders' equity  8,453,000     10,537,000
	 Total liabilities and
	   shareholders' equity    $12,944,000    $16,628,000

 (See Notes to Consolidated Financial Statements)
</TABLE>

<TABLE>

	CARVER CORPORATION
	CONSOLIDATED STATEMENT OF INCOME
	(Unaudited)

<CAPTION>
		       Three Months Ended      Nine Months Ended
			  September 30,            September 30,
			1995        1994        1995       1994      
<S>                  <C>         <C>         <C>          <C>
Net sales           $4,494,000  $5,675,000  $14,655,000 $ 5,991,000

Cost of sales        3,416,000   4,441,000   11,689,000  12,656,000

Gross Profit         1,078,000   1,234,000    2,966,000   3,335,000     
	
Operating expense
  Selling              702,000     939,000    2,750,000     793,000
  General & admin      340,000     393,000    1,294,000   1,381,000     
  Engineering, R&D     117,000     281,000      685,000     868,000

		     1,159,000   1,613,000    4,729,000   5,042,000     
 
Loss from operations   (81,000)   (379,000)  (1,763,000)(1,707,000)

Other income (expense)  
  Interest expense     (82,000)    (90,000)    (274,000)  (258,000)
  Interest income       22,000      22,000       65,000     65,000
  Other                (10,000)   (440,000)    (114,000)  (479,000)


Loss before income 
   tax                (151,000)   (887,000)  (2,086,000)(2,379,000)

Income tax benefit           0           0            0          0

Net loss            $ (151,000)  $(887,000)$(2,086,000)$(2,379,000)

Loss per share      $ (   0.04)  $(   0.24)$(     0.57)$(     0.65) 

(See Notes to Consolidated Financial Statements)
</TABLE>
<TABLE>
			   CARVER CORPORATION
	      CONSOLIDATED STATEMENT OF CASH FLOWS
			  (unaudited)

					    Nine Months Ended
					      September 30,
					   1995           1994
<S>                                        <C>              <C>
OPERATING ACTIVITIES
Net loss                                $(2,086,000) $(2,379,000)
Adjustments to reconcile net loss
  to cash flows from operating activities:
  Depreciation and amortization             311,000       253,000
  Changes in:
    Accounts receivable                   1,117,000     1,230,000
    Inventories                           1,929,000     1,053,000
    Prepaid expenses                        204,000      (101,000)
    Accounts payable and 
      accrued liabilities                  (401,000)      190,000 
    Other assets and deferred charges       (45,000)      (47,000)

Net cash provided by operating
  activities                              1,029,000       199,000

INVESTING ACTIVITIES:
Proceeds from repayment of note
  receivable                                  7,000         8,000
Acquisition of property, plant and
  equipment, net                            (42,000)     (100,000)

Net cash used by investing activities       (35,000)      (92,000)

FINANCING ACTIVITIES:
Repayment of notes payable               (1,183,000)      (67,000)
Repayment of long-term debt                 (15,000)      (13,000)
Issuance of Common Stock                      2,000         1,000   

Net cash used by financing activities    (1,196,000)      (79,000)

Increase (decrease) of cash and
 cash equivalents                          (202,000)       28,000 

Cash and cash equivalents:
  Beginning of period                       249,000       171,000
  End of period                         $    47,000  $    199,000

SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid                           $   274,000  $    258,000
</TABLE>

	CARVER CORPORATION
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
	THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
	(unaudited)

NOTE 1 - SUMMARY OF FINANCIAL STATEMENT PREPARATION

In the opinion of management, the consolidated financial statements 
include all adjustments (which include only normal recurring 
adjustments) necessary to present fairly the changes in financial 
position and results of operations for the interim periods 
reported.  The results of operations for any interim period are not 
necessarily indicative of the results for the entire year.

The financial statements should be read with reference to 
"0Management's Discussion and Analysis of Financial Condition and 
Results of Operations" contained herein and the "Notes to 
Consolidated Financial Statements" set forth in the Company's 10-K 
filing for the year ended December 31, 1994.  

NOTE 2 - INVENTORIES

Inventories consisted of the following:

			       September 30,      December 31,
				   1995              1994   

      Raw materials               $1,422,000      $1,444,000
      Work-in-progress             1,694,000       1,712,000
      Finished goods               3,005,000       4,894,000

				  $6,121,000      $8,050,000

NOTE 3 - EARNINGS PER SHARE

The earnings per share computations are based upon the weighted 
average number of shares outstanding for the interim periods 
presented as set forth in Exhibit 11, "Computation of Earnings per 
Share."  The earnings per share calculation for periods in which a 
loss is recorded excludes common share equivalents because the 
effect would be antidilutive.

NOTE 4 - PROPERTY AND EQUIPMENT
				September 30,    December 31,
				    1995             1994    

Land                             $  440,000       $  440,000
Building & improvements           2,452,000        2,444,000
Equipment                         2,041,000        2,026,000

				  4,933,000        4,910,000

Less accumulated 
  depreciation                   (2,579,000)      (2,382,000)

				 $2,354,000       $2,528,000

NOTE 5 - INCOME TAXES - Effective January 1, 1993, the Company 
adopted Statement of Financial Accounting Standards (SFAS) No. 109, 
"Accounting for Income Taxes", under which income tax expense is 
determined using an asset and liability approach.  There was no 
effect on the Company's financial position or results of operations 
as a result of implementing this accounting standard.  Management 
is of the opinion that it is not appropriate to record a benefit 
for net operating loss carryforwards of approximately $12,700,000 
at this time.  As future operating results improve, management will 
re-assess its position in this matter.

NOTE 6 - COMMITMENTS - As of September 30, 1995, the Company has 
committed to purchase approximately $2,000,000 of inventory 
expected to be received in 1995 and 1996 from various offshore 
vendors.

NOTE 7 - CONTINGENCIES - See Customs Audit, Part 1, Item 2 
"Management's Discussion and Analysis of Financial Condition and 
Results of Operations".

PART 1.  FINANCIAL INFORMATION (Continued)
Item 2.  Management's Discussion and Analysis of Financial  
	 Condition and Results of Operations

RESULTS OF OPERATIONS -

The following tables set forth items in the consolidated statement 
of income as a percentage of net sales for the three-month periods 
ended September 30, 1995 and 1994.

				  
				 Percentage of Net Sales

			    Three Months Ended   Nine Months Ended
			       September 30,        September 30,
			      1995      1994       1995      1994

Net sales                    100.0%    100.0%     100.0%    100.0%

Cost of sales                 76.0      78.3       79.7      79.1

Gross profit                  24.0      21.7       20.2      20.9

Operating expenses
  Selling                     15.6      16.5       18.7      17.5
  General and admin            7.6       6.9        8.8       8.7
  Engineering, R & D           2.6       5.0        4.7       5.4

Loss from operations          (1.8)     (6.7)     (12.0)    (10.7)

Interest expense              (1.9)    ( 1.6)     ( 1.9)    ( 1.6)
Interest income                0.5       0.4        0.5       0.4
Other expense                 (0.2)    ( 7.7)     ( 0.8)    (3.0)

Loss before tax               (3.4)    (15.6)     (14.2)    (14.9)
Income tax benefit              -         -          -         - 

Net loss                      (3.4%)   (15.6%)    (14.2%)   (14.9%)


RECENT DEVELOPMENTS -

Strategic Alternatives. The Company has retained the services of 
the investment banking firm of Cruttenden Roth with the intention 
of seeking a strategic partner, capital infusion or buyer for part 
or all of the Company. Management has reached the conclusion that 
outside investment of capital is necessary to fund the Company's 
current operating and future growth plans.   While the Company is 
currently conducting discussions with various interested parties, 
there can be no assurances any outside investment can be obtained 
on terms favorable for the Company and its shareholders.  If the 
Company is unable to obtain additional financing, it will be 
necessary to further streamline the Company's operations. (See 
"Liquidity and Capital Resources.")

Customs Audit.  Between 60% to 65% of the Company's revenues in 
recent years are of products which are sourced from offshore 
suppliers primarily from the Far East.  Late in 1994 the United 
States Customs Service conducted an audit of the Company's import 
operations.  The Customs Service found that the Company had made 
late duty payments totaling $99,000 on tooling between 1989 to 
1993.  On March 9, 1995, the Customs Service issued to the Company 
a prepenalty notice indicating that it will assess a penalty up to 
approximately $400,000.  The Company provided documentation to the 
Customs Service which the Company believes will result in a 
significant mitigation of this penalty. In July, 1995 the Company 
paid United States Customs $50,000 as an offer in compromise to the 
penalties.  While the Company believes its offer will be accepted, 
there can be no assurances.  The Company's current cash flow 
position would not allow it to pay a $400,000 penalty.

Seasonality.  The markets for consumer audio equipment are 
moderately seasonal, with somewhat higher sales expected to occur 
in the last six months of the year.  The introduction of new 
products may affect this seasonality and quarter-to-quarter 
comparisons.  Demand for audio products also exhibits some 
cyclicality, reflecting the general state of the economy and 
consumer expectations.
 
NET SALES AND NET LOSSES - 

Net sales of the quarter ended September 30, 1995 were $4,494,000 
down 20.8% from sales of $5,675,000 for the same period in 1994.  
The largest factor in the decline of sales was unavailability of 
offshore sourced product that the Company sells to its consumer 
customers.  Due to its cash constraints the Company was unable to 
purchase enough of these products to fill its orders. The Company 
has also streamlined its product offerings from a year ago and 
therefore had planned for a decline in net sales.  There was also a 
significant decline of sales of professional amplifiers.  
Management attributes this decline to increased price competition 
by its competitors and market uncertainty about Carver's future. 

Sales of product that the Company builds in its Lynnwood factory 
and sales to international and OEM customers increased in quarter 
to quarter comparison.  Sales of product built in the Company's 
manufacturing facility comprised 55% of total revenues from 
approximately 38% for the same period in 1994.

Net sales for the nine months ended September 30, 1995 were 
$14,655,000 down 8.4% from sales of $15,991,000 for the first nine 
months of 1994.  The Company is planning to broaden its consumer 
distribution which is likely to increase net revenues in 1996 and 
beyond.

The Company reported net losses of $151,000 (3.4% of sales) or 
$0.04 per share and $2,086,000 (14.2% of sales) or $0.57 per share 
for the three and nine month periods respectively ended September 
30, 1995.  This compares to net losses of $887,000 (15.6% of sales) 
or $0.24 per share for the three month period and $2,379,000 (14.9% 
of sales) or $0.65 per share.  The Company's operating performance 
improved due to improved margins and aggressive cost cutting.  1994 
net losses include a $430,000 provision due to a legal settlement.

GROSS PROFIT - 

Gross profit increased as a percent of net sales to 24% in the 
third quarter of 1995 from 21.7% in the third quarter of 1994.  The 
third quarter benefited from improvements in the Company's 
manufacturing productivity and from a product mix that was 
predominantly amplifiers that the Company produces in its Lynnwood 
factory.  While the strength of the U.S. Dollar against the Japanese Yen 
improved during this period, the Company purchased less sourced 
products than it has historically and currency fluctuations did not  
significantly impact the quarter's improvement.  For the first nine months 
of 1995 the Company's gross profit improved only slightly when compared to 
the first nine months of 1994.  Improvements in the Company's 
manufacturing process were largely offset by the weakness of the 
U.S. dollar that occurred in the first part of 1995.

OPERATING EXPENSE -

Selling expense decreased both in actual dollars ($237,000) and as 
a percentage of sales in quarter to quarter comparisons due to 
elimination of certain personnel and all discretionary spending 
including media advertising.  When the Company's cash position 
improves, it is likely to invest more in sales and marketing expense, as it 
believes its current reduced level of expenditures on advertising and 
other promotional activities is having an adverse impact on the 
Company's revenues.

General and administrative expense have decreased in quarter to 
quarter and year to year comparisons primarily due to decreased 
salary expenditure, cost cutting measures and a reduction in legal 
fees.

Research and development expense has decreased substantially in the 
third quarter and for the nine month period ended September 30, 
1995 primarily due to head count reductions and the limiting of new 
development projects started.

OTHER INCOME AND EXPENSE -

Other expense has decreased $438,000 in quarter to quarter comparisons.  
This reflects a $430,000 legal settlement that was recorded in 1994.

Year to date interest expense has increased by $16,000 even though 
the Company has decreased its borrowings largely due to an increase 
in interest rates.

LIQUIDITY AND CAPITAL RESOURCES -

The Company's working capital on September 30, 1995 was $5,671,000 
which included cash and short term investments aggregating 
approximately $52,000.  This compares with working capital of 
$7,589,000 and cash and short-term investments of $251,000 at 
December 31, 1994.  At November 6, 1995, the Company's immediate 
capital resources consisted of approximately $95,000 in cash (and 
cash equivalents) and the credit facility described below.

The Company has a $6,000,000 revolving line of credit, $1,000,000 
of which can be used to open commercial letters of credit.  
Borrowings under this agreement are restricted to 70% of eligible 
accounts receivable and 50% of eligible inventory which at 
November 6, 1995 produced a borrowing base of $1,800,000.  The line 
is collateralized by substantially all assets of the Company and 
bears interest at the prime lending rate plus 2%.  This line 
expires April 30, 1996.  At November 6, 1995, borrowings of 
$1,500,000 were outstanding under this line.

The Company's inventory has decreased $1,929,000 from December 31, 
1994 primarily in sourced finished goods.  Accounts receivable have 
decreased $1,117,000 from the end of 1994 due to the decline in 
sales.

As the Company's borrowing base is dependent on its inventory and 
receivables and as the Company has continued to experience a 
decline in sales accompanied by higher than expected losses, the 
Company's borrowing availability has contracted to a level at which 
current cash requirements exceed its ability to borrow.  Therefore, 
the Company has been and will continue to be forced to delay prompt 
payment of certain of its vendors.  In response, the Company has 
negotiated payment and delivery schedules with some of its foreign 
suppliers and has canceled purchase orders for certain products.  
In addition certain products have been and will continue to be 
discounted and sold to generate cash which will impair margins.  An 
aggressive cost cutting program has also been implemented to 
preserve cash and allow the Company to operate within its cash 
availability.  It is the intention of management to not jeopardize 
its Lynnwood production and to maintain a reliable supply of 
domestic built product.

The Company has announced that it has retained the services of an 
investment banker to seek alternative or additional sources of 
working capital or a buyer for all or part of the Company.  There 
can be no assurance that the Company will be able to obtain 
additional financing or other sources of working capital, or if it 
is able, that the terms will be favorable to the Company.  Nor can 
there be any assurance that the Company will be able to obtain 
concessions from its suppliers or reduce its expenses sufficient to 
achieve positive cash flow.

If the Company does not attract additional financing and if it 
continues to record losses, the Company likely would have to delay 
payment of suppliers and be forced to seek other relief from its 
creditors.

EFFECTS OF INFLATION AND CHANGES IN FOREIGN CURRENCY EXCHANGE RATES

Due to the competitive conditions in the market for consumer 
electronics, historically the Company has been limited in its 
ability to increase prices for its products in amounts sufficient 
to offset increased production and operating costs.  The Company 
increased its domestic consumer and worldwide professional prices 
on average of 5% on January 15, 1995 due to the increase in 
material and labor costs it has been experiencing as well as the 
continued erosion in the strength of the U.S. dollar.  Consumer 
export prices were also increased in July 1995. The Company 
believes that it is appropriate to trade some decline in sales for 
an improvement in margins.  The Company intends to continue to 
monitor costs and its market and adjust prices taking into 
consideration the Company's costs and competitive conditions.

Approximately 60% of the Company's net sales in 1994 and 43% year 
to date in 1995 were of products designed by and/or manufactured to 
the Company's specifications by overseas suppliers.  The Company 
purchased a substantial portion of these products at an agreed per 
unit price payable in Japanese yen.  Accordingly, the weakening in 
the value of the dollar versus the yen has had an adverse effect on 
the Company's gross margin. This adverse impact of the weak dollar 
has been somewhat mitigated by a mild recovery in the third quarter 
and the Company's decreased reliance on offshore sourcing of its 
products. It is presently the Company's intention to discontinue 
certain Japanese built products by the end of 1995 which is likely 
to result in write offs of prepaid tooling.  The Company is 
currently evaluating a strategy which involves sourcing from 
countries that do not require payment in yen and evaluating the 
impact of this change.  However, the transition to alternate 
suppliers will take several months and may occasion an initial 
increase in quality control issues, delays in delivery of product 
and other transitional problems.

Due to credit restrictions experienced by the Company it has not 
been able to hedge against foreign currency exposure.  Accordingly, 
the Company has considerable exposure to currency fluctuations 
which will adversely affect its gross profit in 1995 unless the 
U.S. dollar strengthens considerably against the yen. 


PART II.  OTHER INFORMATION

	CARVER CORPORATION

Item 1.    Legal Proceedings.

	   None.

Item 2.    Changes in Securities.

	   None.

Item 3.    Defaults Upon Senior Securities.

	   None.

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

	   None

Item 5.    Other Information.

	   None.

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

	  (a)  Exhibit 11
	       Computation of Earnings per Share

	  (b)  Reports on Form 8-K

		None.

	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.

						CARVER CORPORATION


Dated:  November 14, 1995               /s/ Sandra L. Jenkins    
					    Sandra L. Jenkins
					    Vice President - Finance
						(Principal Financial and 
						 Accounting Officer)



	CARVER CORPORATION
	EXHIBIT INDEX

Exhibit                       Title                            Page

11                      Computation of Earnings Per Share      15


	  
EXHIBIT 11

	CARVER CORPORATION AND SUBSIDIARY
	COMPUTATION OF EARNINGS PER SHARE
	(unaudited)


			Three Months Ended      Nine Months Ended
			   September 30,          September 30,
			 1995        1994       1995        1994     

PRIMARY EARNINGS PER 
  SHARE NET LOSS     $(151,000)  $(887,000) $(2,086,000) $(2,379,000) 
  
Weighted average number  
  of shares
  outstanding        3,679,538    3,678,202   3,679,106    3,677,843         
	

Add shares issuable from      
  the assumed exercise  
  of options             *            *           *            *
									 
Weighted average number           
  of shares outstanding,
  as adjusted        3,679,538    3,678,202   3,679,10    3,677,843 

LOSS PER SHARE      $    (0.04)  $    (0.24) $   (0.57)  $    (0.65)   


*Effect on loss per share is antidilutive