SECURITIES AND EXCHANGE COMMISSION
                          Washington, DC 20549
                               FORM 10 - QSB

                QUARTERLY REPORT UNDER REGULATION SB OF THE
                       SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended                        Commission File Number:
   September 30, 1997                              2-96976-D
-----------------------                         ------------------

                      DCI TELECOMMUNICATIONS, INC.
       (Exact Name of Registrant as specified in its charter)

             COLORADO                            84-1155041
          ---------------                  -----------------------
   (State or other jurisdiction          (IRS Employer Identification
  of incorporation or organization)               Number)


           611 Access Road, Stratford, Connecticut  06497
     -------------------------------------------------------------
           (Address and zip code of principal executive offices)


                              (203) 380-0910
                            -----------------
           (Registrant's telephone number, including area code)

Indicate  by check mark whether the Registrant (1) has filed all  reports
required  by Regulation SB 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  the
filing requirements for at least 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 last practicable date:

Number of Shares Outstanding        Class               Date
----------------------------       -------           ----------
        13,266,652             Common Stock,       November 13, 1997
                              $.0001 par value

<PAGE>

                        DCI TELECOMMUNICATIONS, INC.

                                  Index


     PART I  FINANCIAL INFORMATION

       Balance Sheet September 30, 1997                               3

       Statements of Operations
        Three and Six Months Ended September 30, 1997 and 1996        4

       Statements of Cash Flow
        Six Months Ended September 30, 1997 and 1996                  5

       Notes to Unaudited Financial Statements
        September 30, 1997                                            6

       Management's Discussion and Analysis of
        Financial Condition and Results of Operations                 9

PART II
       Other Information                                              13

       Signatures                                                     15






                                  2
<PAGE>

                      DCI Telecommunications, Inc.
                       Consolidated Balance Sheet
                               (unaudited)

                                                        September 30,
          ASSETS                                            1997

Current Assets:
    Cash                                                 $1,335,655
    Investments                                              43,575
    Accounts Receivable                                   3,565,280
    Due from SmarTalk                                     9,000,000
    Prepaid expenses                                         88,107
    Inventory                                               184,145
                                                          ---------
Total Current Assets                                     14,216,762

Property and Equipment                                    1,320,469
    Less: Accumulated depreciation                          692,209
                                                          ---------
Net property and equipment                                  628,260
                                                          ---------

Accounts receivable                                         419,447
Deposits                                                     25,788

Other Assets   - copyrights                               1,700,000
               - costs in excess of net assets acquired   4,843,763
                                                          ---------
                                                          6,543,763
Less: Accumulated amortization                              439,500
                                                          ---------
Net other assets                                          6,104,263
                                                          ---------
Total Assets                                            $21,394,520
                                                        -----------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
    Loans from Shareholders                              $  285,286
    Notes and settlements payable                            79,952
    Accounts payable and accrued expenses                 4,659,028
    Participations payable                                1,596,332
    Income Taxes Payable                                     63,792
                                                         ----------
Total Current Liabilities                                 6,684,390

Participations payable                                      469,251
Long Term Debt                                              460,319
Deferred Income Taxes                                       386,835
Redeemable, convertible preferred stock $1,000 par and
  redemption value, 2,000,000 shares authorized, 1,760
  shares issued and outstanding                           1,760,000

Total Liabilities                                         9,760,795

Commitments and Contingencies

Shareholders' Equity:
    9.25% cumulative convertible, preferred stock
      $100 par value, 5,000,000 shares authorized,
      29,076 shares issued and outstanding;                305,000
    Common stock, $.0001 par value,
     500,000,000 shares authorized,
        10,970,972 shares issued and outstanding             1,097
    Paid in capital                                     10,506,253
    Treasury Stock                                             (13)
    Unrealized Capital Loss                                 (5,493)
    Retained earnings subsequent to 12/31/95, date of
       quasi-reorganization (total deficit
       eliminated $4,578,587)                              826,881
                                                         ---------
Total Shareholders' Equity                              11,633,725
                                                         ---------
Total Liabilities and Shareholders' Equity             $21,394,520
                                                       -----------

         See Accompanying Notes to Consolidated Financial Statements



                                    3

<PAGE>

                     DCI Telecommunications, Inc.
               Consolidated Statements of Operations
                               (unaudited)

                              Three Months Ended      Six Months Ended
                                 September 30,          September 30,
                              1997         1996       1997         1996

  Net Sales                $2,057,892  $  509,661  $4,616,582 $1,050,065
  Cost of Sales             1,890,481     408,040   3,850,511    786,827
                           ----------   ---------   --------- ----------
    Gross Profit              167,411     101,621     766,071    263,238

 Selling, General &
  Admin. Expenses             294,049      60,101     711,302    166,589
 Salaries and
  Compensation                505,261     106,880     716,150    207,056
 Amortization &
  Depreciation                 53,043      62,607     158,672    123,843
 Professional and
    Consulting Fees           168,842      48,003     270,963     71,191
                            ---------    --------   --------- ----------
                            1,021,195     277,591   1,857,087    568,679

 Income (Loss)
   from Operations           (853,784)   (175,970) (1,091,016) (305,441)

Other Income and (Expense):
  Interest Expense            (44,828)     (3,615)    (76,541)  (10,648)
  Interest Income             180,230          --     192,180        --
                            ---------  ----------   --------- ---------
                              135,402      (3,615)    115,639   (10,648)

  Net (Loss) - Continuing
               Operations    (718,382)   (179,585)   (975,377) (316,089)


Loss from discontinued computer
  board operations           (526,178)               (558,958)

Sale of discontinued operation -
  prepaid phone card -
  UK segment                3,078,421               3,078,421

Discontinued prepaid phone
  card segment - U.K.        (585,775)               (226,091)

  Net Income (Loss)         1,248,086    (179,585)  1,317,995 (316,089)

  Net Income (Loss)
   per common share             $0.12      ($0.05)      $0.13   ($0.08)

Fully diluted Net
  Income (Loss) per share       $0.09      ($0.05)      $0.10   ($0.08)

  Weighted average common
   shares outstanding      10,730,520  3,910,553   9,923,048 3,835,098

     See Accompanying Notes to Consolidated Financial Statements


                                   4
<PAGE>

                       DCI Telecommunications, Inc.
                  Consolidated Statements of Cash Flows
                               (unaudited)

                                               Nine Months Ended
                                                 September 30,
Cash Flows from Operating Activities:          1997          1996

Net Income (Loss)from operations           ($ 975,377)     ($316,089)
Loss from discontinued computer
 board operations                            (558,958)
Loss from discontinued prepaid phone
 card segment - UK                           (226,091)
Gain on sale of discontinued prepaid
 UK segment                                 3,078,421
                                            --------      ---------
Net Income (Loss)                           1,317,995     ( 316,089)

Adjustment to reconcile net income
(loss) to net cash provided by (used in)
 operating activities:
        Gain on contract assignment        (3,078,421)
        Unamortized customer base             492,985
        Depreciation and amortization         256,944        123,843
        Stock issued for services                 800         10,335
        Non-cash settlements                                 (43,235)

   Changes in assets and liabilities:
     (Increase) Decrease in:
        Accounts & Contracts Receivable      274,936        (22,937)
        Inventory                             61,767           (277)
        Deposits & Prepayments               (38,858)        (1,164)

     Increase (Decrease) in:
        Accounts & Contracts Payable      (1,155,027)      (106,171)
        Income taxes                          43,229
                                            --------       --------
           Total Adjustments              (3,141,645)      ( 39,606)
                                            --------       --------
        Net cash provided by (used in)
              operating activities        (1,823,650)      (355,695)
                                            --------       --------

Cash flows from (used in) investing activities:
        Additions to property,
          plant & equipment                   (8,503)       (16,857)
        Cash acquired with acquisition       110,259
        Acquisition costs                    (15,735)
                                            --------       --------
        Net cash provided by (used in)
          investing activities                86,021        (16,857)
                                            --------       --------

Cash flows from (used in) financing activities:
        Advances from (to)shareholders       370,696       ( 57,991)
        Proceeds from sale of
             stock & options               1,388,507        534,674
        Bank overdraft                                      (42,004)
        Payment of notes payable                            (37,184)
                                            --------       --------
        Net cash provided by (used in)
            financing activities           1,759,203        397,495
                                            --------       --------

Net Increase (Decrease) in cash               21,574         24,943

Cash, Beginning of Year                    1,314,081         32,073
                                           ---------       --------

Cash, End of Period                       $1,335,655       $ 57,016


                                                Six Months Ended
                                                  September 30,
                                             1997           1996

Supplemental disclosures of cash flow information:

Non cash investing and financing transactions:
     Acquisition by stock issuance:
        CardCall International           $7,518,357
        CyberFax                         $1,000,000
     Non cash settlements                  $ 40,000       $ 151,900
     Stock subscriptions receivable                       $  58,384
     Disposition of prepaid phone
       segment                          ($5,700,000)

     See Accompanying Notes to Consolidated Financial Statements




                                    5

<PAGE>

DCI Telecommunications, Inc.
Notes to Unaudited Financial Statements September 30, 1997

NOTE 1.
-------

The accompanying unaudited financial statements have been prepared in
accordance with  generally accepted accounting principles for interim
financial   information  and  with  the  provisions  of  Regulation   SB.
Accordingly, they do not include all of the information and footnotes
required   by  generally  accepted  accounting  principles  for  complete
financial  statements.  In  the opinion of  management,  all  adjustments
(consisting of normal recurring adjustments) considered necessary  for  a
fair  presentation have been included. Certain reclassification of  prior
year numbers have been made to conform to the current years presentations
and to report the acquisition of The Travel Source, Ltd. as a pooling  of
interest.

The consolidated financial statements include the accounts of the Company
and  its  wholly  owned  subsidiaries, (CardCall  International,  DCI  UK
Limited,  CyberFax  Inc., Privilege Enterprises Limited  and  The  Travel
Source,  Limited)and R&D Scientific and Muller Media as if  the  purchase
and  sale agreement with R&D Scientific and stock purchase agreement with
Muller  were  completed. Material intercompany balances and  transactions
have been eliminated in consolidation.

The  results  of operations for the periods presented are not necessarily
indicative  of  the  results  to be expected  for  the  full  year.   The
accompanying financial statements should be read in conjunction with  the
Company's form 10-K filed for the year ended March 31, 1997.

Income (loss) per share was computed using the weighted average number of
common shares outstanding.

NOTE 2. Acquisition of CardCall International Holdings Inc.
-----------------------------------------------------------

On March 31, 1997, DCI Telecommunications, Inc. made an offer to CardCall
International  Holdings,  Inc. ("CardCall"), a Delaware  Corporation,  to
purchase  all  its  outstanding  common  stock  (8,238,125  shares)   and
warrants.

                                   6
<PAGE>

CardCall  is  the parent company of CardCaller Canada, Inc.,  a  Canadian
corporation, and CardCall (UK) Limited incorporated under the Laws of the
United Kingdom. CardCall is in the business of designing, developing  and
marketing,  through distributors, prepaid phone cards which  provide  the
cardholder  access to long distance service through switching facilities.
DCI  had previously invested $1,500,000 in CardCall for which it received
$1,200,000 in notes payable 120 days from demand. The remaining  $300,000
did not have any stipulated repayment terms.

In  June  1997,  the  Board  of Directors and  shareholders  of  CardCall
approved the transaction. For each 100 shares of common stock of CardCall
held  by a shareholder, DCI will issue a warrant to purchase 9 shares  of
common  stock  for  $4.00 per share on or before February  28,  2001.  In
addition,  each  shareholder of CardCall may acquire  85  shares  of  DCI
common  stock  under  a subscription agreement for  each  100  shares  of
CardCall  held  by  such shareholder on or before  July  31,  1997  at  a
purchase  price of $.20 per share. As of September 30, 1997, options  for
223,500 shares of DCI stock had been exercised.

Such  options expire on April 30, 2002. In accordance with the agreement,
shares   of  DCI  stock  received  from  the  exercise  of  options   has
restrictions on its ability to be sold ranging from September 1, 1997  to
November 1, 1998.

The  transaction  was recorded under the purchase method  of  accounting,
effective  April  1, 1997. The total purchase price, including  goodwill,
was  recorded  at $7,518,357. See Note 3 for explanation  of  sale  of  a
distribution contract of CardCall (UK) and discontinuation of  a  portion
of the operations.

NOTE 3.  Gain from Sale of Distribution Contract
------------------------------------------------

In September, 1997, DCI Telecommunications, Inc. agreed in principal with
SmarTalk  Teleservices, Inc. to sell its prepaid phone card  distribution
contract  with D Services, a wholly owned subsidiary of W.H.  Smith,  for
$9,000,000. DCI received $1,000,000 in cash at the closing and shares  of
SmarTalk  common  stock worth $8,000,000 based on the price  of  SmarTalk
stock on the closing date.

A   non-compete  clause  in  the  agreement  will  preclude  DCI  or  its
subsidiaries  from  engaging in the prepaid phone card products  business
through  the  distributor  for a period of  seven  years.  As  a  result,
operations  to date for CardCall UK are shown as discontinued operations.
Operations of CardCaller Canada are shown as continuing operations.

                                  7

<PAGE>

The  gain  of  the  transaction is $3,078,421,  after  the  write-off  of
goodwill associated with the CardCall acquisition, and is recorded in the
financial statements for the period ending September 30, 1997.

NOTE 4.  Discontinuance of Computer Board Division
--------------------------------------------------

In  the  second quarter ended September 30, 1997 the Company discontinued
the  operation of its division that assembled computer boards  that  were
sold  to  a  number of industries including education and government.  In
conjunction with this event, unamortized customer base totaling  $492,985
was  written  off  and  operating losses through September  30,  1997  of
$65,973 are shown as discontinued operations.

NOTE 5.  Acquisition of R&D Scientific Corporation
---------------------------------------------------

On  June  19, 1995, DCI entered into an agreement to acquire  the  common
stock  of R&D Scientific Corp. (R&D), a New Jersey Corporation, for  106,
250, shares (to be adjusted on or before December 31, 1997 for a value of
$1,700,000). The shares are to be exchanged subject to the condition that
the  Company  make a cash infusion requirement of $150,000 to  R&D.  Such
shares remain in escrow but are included in outstanding common stock  for
the  period  ended  June 30, 1997. The Company was granted  an  extension
until  December 31, 1997 to make the cash infusion of $150,000,  required
by  the  agreement, in order to consummate the transaction with  R&D.  In
consideration  for  the  extension, R&D has the right  to  terminate  the
purchase  and sale agreement at its sole discretion prior to  DCI  making
the  cash  infusion.  As  of September 30, 1997,  $145,000  of  the  cash
infusion has been made.

The  Company's financial statements include the operations  of  R&D  from
June 19, 1995, the date of the purchase and sale agreement. The financial
statements  do  not include any adjustments that might  result  from  the
termination of the purchase and sale agreement.

NOTE 6.  Acquisition of Muller Media, Inc.
------------------------------------------

On  November  26, 1996, DCI entered into a stock purchase agreement  with
Muller  Media, Inc. (Muller), a New York corporation, to acquire 100%  of
the  outstanding  common stock of Muller in a stock for  stock  purchase,
with  DCI exchanging one million two hundred thousand (1,200,000)  shares
of  common stock for all of the shares of Muller capital stock.  The  DCI
stock  was  valued at two dollars and fifty cents ($2.50) per  share  ($3
million in total).
                                  8

<PAGE>

The  shares  of both companies have been deposited with an escrow  agent.
DCI  must repurchase the shares, if Muller exercises a "put" option which
commences  on the earlier of 120 days from December 27, 1996,  unless  an
extension is requested by DCI, which Muller cannot unreasonably withhold,
or  14  days  after  DCI has received an aggregate of $3,000,000  in  net
proceeds from the sale of its capital stock.  An extension was granted by
Muller  through  December  31, 1997.  The selling  stockholders  have  an
option  to  keep DCI stock or accept up to $3,000,000 in cash  from  DCI.
Muller is a distributor of syndicated programming and motion pictures  to
the television and cable industry. The acquisition has been accounted for
as a purchase.

NOTE 7.  Common and Preferred Stock
-----------------------------------

During  the  six  months ended September 30, 1997, the  holders  of  1190
shares  of  Series C Convertible Preferred Stock elected to convert  into
common  shares,  resulting  in the issue of  962,077  common  shares.  In
addition,  options  to  purchase 590,000 common  shares  were  exercised.
During  the  first  six  months  the  Company  has  raised  approximately
$1,500,000 through the sale of its Convertible Preferred Stock.
















                                    9
<PAGE>

               Management's Discussion and Analysis of
             Financial Condition and Results of  Operations

Overview
--------

The   following   discussion  and  analysis  provides  information   that
management believes is relevant to an assessment and understanding of DCI
Telecommunications,   Inc.  and  its  subsidiaries   (collectively,   the
Company), consolidated results of operations and financial condition  for
the six months ended September 30, 1997. The discussion should be read in
conjunction  with  the  Company's consolidated financial  statements  and
accompanying notes.

The Company, since its recent acquisitions, operates predominantly in the
telecommunications  industry  providing a broad  range  of  communication
service. The Company's services include long distance, cellular  as  well
as  real-time  fax over the Internet. Through continued  investments  and
fiscal  1997 business acquisitions, the Company has expanded its business
into rapidly developing markets.

Recent Acquisitions
-------------------

The  acquisition of CardCall International and CyberFax  in  the  quarter
ended  June  30,  1997 were accounted for under the  purchase  method  of
accounting  under  both  U.S.  and  United  Kingdom  generally   accepted
accounting  principles. The Company believes that CardCall International,
CyberFax  and  DCI  UK  Limited, operating with  the  combined  networks,
financial resources, management, personnel and technical expertise of the
Company,  will  be  better able to capitalize on the  world  wide  growth
opportunities  in  the  telecommunications  industry.  In  addition,  the
Company  expects  these  companies will be  able  to  derive  significant
advantages from the more efficient utilization of their combined  assets,
management and personnel.


                                   10

<PAGE>

Liquidity and Capital Resources
-------------------------------

On  December 30, 1994 and January 5, 1995 the Company acquired the assets
of  Sigma  Telecommunications and Alpha Products  through  the  issue  of
1,330,000   shares  of  common  stock,  and  renamed  the   Company   DCI
Telecommunications,  Inc.  The  liabilities  remaining  from  the  former
Fantastic Foods International, Inc. at acquisition left the Company  with
negative  working capital and little financing capability. In  June  1995
the  Company acquired R&D Scientific and in November 1996 acquired Muller
Media,  both  through  the  issue  of  common  stock.  The  acquisitions,
particularly  Muller  Media,  greatly improved  the  Company's  financial
position and at March 31, 1997 the current ratio was a positive 1.9 to  1
and  cash  on  hand  was  $1,300,000. However, with  the  acquisition  of
CardCall  International in the quarter ended June 30, 1997, the Company's
current ratio dropped to a negative position.

The  most  significant  event was the sale  of  the  prepaid  phone  card
distribution  contract  in the United Kingdom to  SmarTalk  Teleservices,
Inc.,  a  U.S.  company  trading on NASDAQ, for $1,000,000  in  cash  and
$8,000,000  in  SmarTalk common stock. The stock will be registered  upon
DCI's  request six months from the closing. While the gain was booked  as
of  September  30, 1997, the proceeds were received after that  date  and
therefore  was  of  no benefit to liquidity during the six  months  ended
September 30. Due to a non-compete clause in the sales contract, CardCall
UK  has  discontinued its phone card sales through W.H. Smith in the  UK.
Since  CardCall UK was a net user of cash, it is expected that this  will
not have a negative impact on liquidity.

Cash  used in operations was $1,800,000 in the six months ended September
30,  1997.  The Company was able to overcome this shortfall  by  proceeds
from  the  sale  of  preferred  stock of $1,500,000,  and  advances  from
stockholders totaling approximately $400,000.

While  CyberFax had limited operations during the quarter, it has secured
nine  contracts  in  four  countries  for  its  real  time  fax  to   fax
transmission  packages. Privilege Enterprises is embarking on  a  prepaid
cellular  phone  program. All of these programs will require  significant
cash to finance the expansion plans.

The   Company  is  continuing  to  pursue  long-term  financing  for  its
acquisition  and expansion program. However, no assurance  can  be  given
that  additional  financing will be available or, if available,  that  it
will  be on acceptable terms. The ability to finance all new and existing
operations will be heavily dependent on external sources.

                                   11

<PAGE>

Consolidated Results of Operations
----------------------------------

All of the variances in the results of operations are predominantly due
to the addition of CardCall International effective April 1, 1997.
































                                    12

<PAGE>

                           PART II
                      OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.
          Not applicable.

ITEM 2.  CHANGES IN SECURITIES.
          Not applicable.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.
          Not applicable.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
          Not applicable.

ITEM 5.  OTHER INFORMATION.
          Not applicable.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.
          Page 14.

















                                    13

<PAGE>

ITEM 6 - Exhibits and Reports on Form 8K

On  April  18,  1997  the  Company filed a Form 8K  which  described  the
acquisition of CyberFax Inc.

On  September  23, 1997 the Company filed a Form 8K which  described  the
acquisition of CardCall International Holdings.

On  October  20,  1997  the Company filed a Form 8K which  described  the
change in independent accountants.

On  November 4, 1997 the Company filed a Form 8K which described the sale
of CardCall UK's distribution contract to SmarTalk.
























                                   14

<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.

                                      DCI TELECOMMUNICATIONS, INC.
                                              (Registrant)


Dated: November 14, 1997           By: Joseph J. Murphy
                                        ----------------
                                        Joseph J. Murphy
                                        President

                                    By: Russell B. Hintz
                                        ----------------
                                        Russell B. Hintz
                                        Chief Financial Officer


















                                   15
<PAGE>