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:
    June 30, 1999                                    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  06615
     -------------------------------------------------------------
           (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
----------------------------       -------           ----------
       29,956,263             Common Stock,         August 2, 1999
                              $.0001 par value


<PAGE>

                        DCI TELECOMMUNICATIONS, INC.

                                  Index


                      PART I  FINANCIAL INFORMATION

ITEM 1. Financial Statements

       Balance Sheet June 30, 1999                                    3

       Statements of Operations
        Three Months Ended June 30, 1999 and 1998                     5

       Statements of Cash Flow
        Three Months ended June 30, 1999 and 1998                     7

       Notes to Unaudited Financial Statements
        June 30, 1999                                                 9

ITEM 2.

       Management's Discussion and Analysis of
        Financial Condition and Results of Operations                 12


                                 PART II

       Other Information                                              18

       Signatures                                                     20








                                  2

<PAGE>

                      DCI Telecommunications, Inc.
                       Consolidated Balance Sheet
                               (unaudited)


                                                        June 30,
ASSETS                                                    1999
                                                          ----
Current assets:
Cash                                                   $1,389,381
Accounts receivable, net                                5,466,065
Other current assets                                      660,784
Inventory                                                 116,469
Due from shareholders                                      84,661
                                                        ---------
Total Current Assets                                    7,717,360

Fixed assets                                              789,156
Less: Accumulated depreciation                           (160,371)
                                                        ---------
Net Fixed Assets                                          628,785

Accounts receivable- long term                          1,022,542
Deposits                                                  471,405
Other assets                                               62,555

Master service agreement                               15,671,875
Less: accumulated amortization                         (1,567,188)
                                                        ---------
Net master service agreement                           14,104,687

Cost in excess of assets acquired:
 Travel Source                                             86,379
 Muller Media                                           1,634,436
 Edge Communications                                    6,940,976

----------
                                                        8,661,791
Less: Accumulated amortization:                          (491,158)
                                                       ----------
Net cost in excess of assets acquired                 8,170,633
                                                      -----------
Total Assets                                          $32,177,967
                                                      -----------
                                                      -----------
                                                              (continued)



See accompanying notes to consolidated financial statements.

                                    3

<PAGE>

LIABILITIES AND SHAREHOLDERS' EQUITY                     June 30,
                                                           1999
Current Liabilities:                                       ----

Accounts payable and accrued expenses                 $10,433,224
Preferred stock dividend                                  794,150
Due to shareholders                                       240,021
Deferred revenue-prepaid phone cards                      200,453
Current portion of long term debt                          72,592
                                                       ----------
Total Current Liabilities                              11,740,440

Long-term debt                                             54,040
Accounts payable                                          709,188

Redeemable, convertible preferred stock,
$1,000 par and redemption
value, 2,000,000 shares authorized,
2302 shares issued & outstanding                        2,302,500
                                                       ----------

Total Liabilities                                      14,806,168
                                                       ----------
Commitments and Contingencies (Note 3)

Common stock, $.0001 par value,
 500,000,000 shares authorized,
 29,862,633 shares issued and outstanding                   2,986
Paid-in capital                                        33,079,183
Treasury stock (780,500 shares at cost)                (1,127,439)

Accumulated deficit subsequent to 12/31/95,
 date of quasi-reorganization (total
 deficit eliminated  $4,578,587)                      (14,582,931)
                                                      -----------
Total Shareholders' Equity                             17,371,799
                                                      -----------
Total Liabilities and Shareholders' Equity            $32,177,967
                                                      -----------
                                                      -----------








                                  4

<PAGE>

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

                                                      Three Months Ended
                                                           June 30,
                                                      1999         1998

  Sales - travel                                    $ 297,617  $ 331,062
  Sales - products                                  6,191,842  4,599,776
                                                   ---------- ----------
  Net sales                                         6,489,459  4,930,838

  Cost of sales - travel                              242,758    284,894
                - product                           6,851,867  4,105,983
                                                   ---------- ----------
  Cost of sales                                     7,094,625  4,390,877

    Gross profit/Loss                                (605,166)   539,961

 Selling, general and administrative expenses         588,802   362,407
 Salaries and compensation                            556,892   499,188
 Professional and consulting fees                     336,356   321,885
 Amortization and depreciation                        933,414   225,222
                                                    --------- ----------
                                                    2,415,464 1,408,702

 Loss before other (expense) income                (3,020,630) (868,741)

 Other Income and (expense)

 Investment income                                     78,929    18,187
 Interest expense                                      (5,709)  (76,992)
                                                    --------- ----------
                                                       73,220   (58,805)
 Loss from continuing operations before
  minority interest                                (2,947,410) (927,546)

 Minority interest                                         --    (3,213)
                                                    ----------- --------
 Loss from continuing operations                   (2,947,410) (930,759)

                                                              (continued)






                                     5

<PAGE>

Discontinued operations:
 Loss from discontinued
  CyberFax operations:
    (net of applicable income tax
     benefit of $0 in 1998)                                --    (84,160)
                                                   -----------  ---------
Net (loss) before
 dividends on preferred stock                      (2,947,410)(1,014,919)

Dividends on preferred stock                           46,050    543,951

Net (loss) applicable to
  common shareholders                              (2,993,460)(1,558,870)

Basic and diluted net (loss)
 per common share:
Loss from continuing operations                          (.10)      (.08)

Loss from discontinued operations                          --       (.01)

Net loss per common share - basic and diluted            (.10)      (.09)

Weighted average common
  shares outstanding - basic and diluted           29,850,199 17,719,279


See accompanying notes to consolidated financial statements.



















                                   6

<PAGE>

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

                                               Three Months Ended
                                                    June 30
                                               1999          1998

Reconciliation of net loss to net cash
  used in operating activities:
Net loss from continuing operations       $ (2,947,410) $(  930,759)
Adjustments to reconcile net loss from
continuing operations to net cash
  used in operating activities:
        Amortization and depreciation          933,414      225,222
        Discontinued operations                     --      (84,160)
        Minority interest                           --        3,213

   Changes in assets and liabilities:
     (Increase) Decrease in:
        Restricted cash                             --        25,771
        Accounts receivable                 (1,180,692)   (1,997,214)
        Inventory                                3,364      (259,669)
        Deposits                               (46,258)      (56,171)
        Prepaid expenses                            --       (38,879)
        Other current assets                  (368,878)       57,885

     Increase (Decrease):
        Accounts payable & accrued expenses   3,335,864      565,526
        Deferred revenue                        (67,490)     104,545
                                             -----------   ---------
            Total adjustments:                2,609,324   (1,453,931)
                                            ------------  ----------
Net cash (used in) operating activities      (  338,086)  (2,384,690)


Cash flows from (used in) investing activities:
        Additions to fixed assets             ( 65,113)     (265,076)
        Cash acquired with acquisitions             --     1,548,947
        Investment in Muller Media                  --    (2,000,000)
        Decrease in long term assets            79,951            --
                                            ----------   -----------
Net cash from (used in) investing activities $  14,838  $   (716,129)

                                                              (continued)








                                    7

<PAGE>

Cash flows from (used in) financing activities:
        Proceeds from stock
            options exercised                   51,275        248,589
        Purchase of treasury stock                  --       (355,318)
        Payment of notes payable                    --     (4,938,942)
        Proceeds from sale of preferred
            stock                                   --      2,750,000
        Due to joint venture                        --        688,157
        Due to shareholders                      2,775       (203,962)
        Advances from shareholders              44,716       (305,627)
        Proceeds from issuance
           of notes payable                         --            --
        Payment of long-term debt              (17,323)           --
        Sale of equity securities                   --      8,124,761
                                             ---------     ----------
Net cash from financing activities              81,443      6,007,658
                                             ----------    ----------
Net (decrease) increase in cash               (241,805)     2,906,839

Cash, beginning of period                    1,631,186        704,991
                                             ---------    -----------
Cash, end of period                         $1,389,381    $ 3,611,830
                                             ---------    -----------

Supplemental disclosures of cash flow information:

Cash paid for interest                         $ 5,709      $  78,000
Cash paid for income taxes                     $    --             --

     Non-cash investing and financing transactions:
      Acquisitions by stock and option  issuance:
          Edge Communications                       --      6,823,586
      Preferred stock dividends                 46,050        543,951
      Stock issued for other assets             40,000            --


See accompanying notes to consolidated financial statements.










                                     8

<PAGE>

DCI Telecommunications, Inc.
Notes to Unaudited Financial Statements June 30, 1999


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 restatements of prior year
numbers have been made to conform to the current years presentations  and
to account for discontinued operations.

The consolidated financial statements include the accounts of the Company
and  its  wholly and majority owned subsidiaries. Material  inter-company
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-KSB filed for the year ended March 31, 1999.

Loss  per share was computed using the weighted average number of  common
shares outstanding.


NOTE 2.  Common and Preferred Stock
-----------------------------------

In  April  1998, the Company issued $3,000,000 of Series F 8%  non-voting
convertible preferred shares. The shares are convertible to common  stock
90  days  from the issue date at the lesser of 75% of the average closing
bid price of the common stock for the ten days prior to conversion or $4.
The  securities must be converted into common shares within two years  of
the  issue  date.  In  connection  with  this  offering  50,000  warrants
exercisable at  $1.56 for a period of five years from the issue date were
granted to these preferred shareholders and 50,000 warrants, at the  same
terms,  were  granted  to  certain individuals as  finder  fees  for  the
placement of the preferred shares with investors.

During  the three months ended June 30, 1998, the holders of $412,500  of
preferred  shares  of  Series E Convertible Preferred  Stock  and  deemed
dividends of $98,959 were converted to 368,304 common shares.

During  the  three months ended June 30, 1999, the holders of $10,000  of
preferred  shares of Series F Convertible Preferred Stock were  converted
to  18,651  common shares. In addition, options to purchase 2,200  common
shares were exercised.


                                    9

<PAGE>

NOTE 3. Commitments and Contingencies
-------------------------------------

In  the quarter ended June 30, 1999 the Company entered into a commitment
to  lease from Harris Digital Telephone Systems a debit card platform and
switching  equipment valued at $806,287. The Company  advanced  $100,000,
and  monthly lease payments of $24,152 are expected to commence in August
or September. The lease term is thirty-six months after which DCI can buy
the switch for $1.

At June 30, 1999 the $100,000 advance is included in the caption Deposits
on the accompanying balance sheet.


NOTE 4. Sale of CyberFax
------------------------

On  March  30,  1999, DCI Telecommunications sold all of the  outstanding
shares  of  common  stock  of its CyberFax, Inc.  subsidiary  to  Carlyle
Corporation, a Nevada corporation.  DCI received a $5,000,000  promissory
note  from Carlyle that is payable on March 30, 2000, and bears  interest
at  9%, paid and compounded quarterly.  Interest payments will be made in
shares  of  Carlyle stock, initially valued at $3 per share.  If  Carlyle
becomes publicly traded, interest payment shares will be revalued at  the
average  closing price for the first 13 weeks of trading.  In  the  event
Carlyle  becomes  publicly traded prior to March 30, 2000,  DCI  has  the
right  to  demand  payment in full, such payment to be  made  in  Carlyle
shares valued at the 13-week average described above.

In  June  1999, with the agreement of DCI and some modifications  of  the
agreement,  Carlyle assigned all its rights and obligations to  SmartFax,
Inc.,  a private Canadian corporation. At the closing, SmartFax paid  off
its  promissory note by issuing 5,000,000 shares of its common  stock  to
DCI.  No  value has been placed on the SmartFax shares and no revenue  or
profit has been recorded.

CyberFax had sales of $48,145 and operating losses of $404,010 in  fiscal
year ended March 31, 1999 before discontinuance of operations. A loss  of
$1,098,228 was recorded on this transaction at March 31, 1999.

NOTE 5. DCI Europe Limited
--------------------------

On   July   23,  1999,  DCI  Europe  Limited  (since  renamed  Gloucester
Communications Limited) was served a Petition for issuance of an






                                   10


<PAGE>

Involuntary  Winding  Up Order. Given the current summer  recess  of  the
court,  the  Company expects the petition to be granted in October 1999.
DCI Telecommunications is still operating in the UK using different corporate
entities. The accompanying  financial statements do not reflect any
adjustments that might result from this matter.

NOTE 6. Investment Banking Firm Engaged
---------------------------------------

On  July  15, 1999 DCI announced the engagement of the investment banking
firm  of  Trenwith Securities to evaluate the Company, identify potential
purchasers  of some or all of its businesses, and assist in a transaction
if  DCI's  Board of Directors believed it to be in the best interests  of
shareholders.





































                                  11


<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  three months ended June 30, 1999. 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,  prepaid  phone
cards, motion picture distribution and a travel agency. Through continued
investments  and  business  acquisitions, the Company  is  expanding  its
business into rapidly developing markets in Europe.


Recent Acquisitions and Dispositions
------------------------------------

CYBERFAX, INC.
--------------

On  March  30,  1999, DCI Telecommunications sold all of the  outstanding
shares  of  common  stock  of its CyberFax, Inc.  subsidiary  to  Carlyle
Corporation, a Nevada corporation.  DCI received a $5,000,000  promissory
note  from Carlyle that is payable on March 30, 2000, and bears  interest
at  9%, paid and compounded quarterly.  Interest payments will be made in
shares  of  Carlyle stock, initially valued at $3 per share.  If  Carlyle
becomes publicly traded, interest payment shares will be revalued at  the
average  closing price for the first 13 weeks of trading.  In  the  event
Carlyle  becomes  publicly traded prior to March 30, 2000,  DCI  has  the
right  to  demand  payment in full, such payment to be  made  in  Carlyle
shares valued at the 13-week average described above.

In  June  1999, with the agreement of DCI and some modifications  of  the
agreement,  Carlyle assigned all its rights and obligations to  SmartFax,
Inc.,  a private Canadian corporation. At the closing, SmartFax paid  off
its  promissory note by issuing 5,000,000 shares of its common  stock  to
DCI.  No  value has been placed on the SmartFax shares and no revenue  or
profit  has  been recorded. It is expected that SmartFax will attempt  an
initial public offering in the next six months.

CyberFax had sales of $48,145 and operating losses of $404,010 in  fiscal
year  end March 31, 1999 before discontinuance of operations. A  loss  of
$1,098,228 was recorded on this transaction at March 31, 1999.


                                   12

<PAGE>

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

At  June  30,  1999  the Company had unrestricted cash  of  approximately
$1,389,000 and approximately $39,000 of marketable securities.

During  the quarter ended June 30, 1998, the Company sold SmarTalk  stock
realizing  net proceeds of $8,125,000. The Company repaid  its  loans  of
$4,939,000 that it had borrowed against its position in SmarTalk stock.

Also,  on  June 9, 1998 the former shareholders of Muller Media exercised
their  put  options  to  receive $2,000,000  in  cash,  and  the  Company
repurchased  800,000  shares of its common stock.  The  Company  received
$1,170,000 of Muller Media's cash with the acquisition.


Year 2000 Issues
----------------

The  Year  2000  issue is the result of computer programs  being  written
using two digits rather than four to define the applicable year. In other
words,  date-sensitive software may recognize a date using  "00"  as  the
year 1900 rather than the year 2000. This could result in system failures
or  miscalculations causing disruptions of operations,  including,  among
others,  a temporary inability to process transactions, send invoices  or
engage in similar normal business activities.


COMPANY'S STATE OF READINESS

One   of  the  Company's  critical  internal  areas  is  its  information
technology   systems,  including  general  ledger,  accounts  receivable,
payable,  inventory  and  related  packages  for  DCI  and  each  of  its
subsidiaries.   In  this  regard, the parent Company  has  installed  new
software  that  is  Year 2000 compliant and plans  to  install  the  same
systems in each of its subsidiaries prior to September 30, 1999.

All  of  the  Company-owned switches, used to  direct  and  monitor  long
distance  telephone traffic, currently are Year 2000 compliant  according
to  the  manufacturer.  Other  less critical  internal  systems  such  as
telephone and voice mail systems are in the process of being evaluated.

The  Company also has relationships with outside third parties that could
impact  its  business.  The most important are the carriers that  process
and  monitor  the Company's long distance and prepaid phone  card  calls.
All  the  carriers expect to be Year 2000 compliant and  are  in  various
stages of readiness. The Company's travel business is partially dependent
on an outside reservation system representing many airlines which is Year
2000 compliant.

COSTS

The  Company is addressing Year 2000 issues in-house and, at the  present
time, the only other costs involve the purchase of financial software

                                  13


<PAGE>

packages.  Total  costs are estimated at $75,000. Costs incurred  to-date
are approximately $40,000.

RISKS

The Company believes that its most reasonable likely worst-case Year 2000
scenario  would  be  if  any of its third party long  distance  telephone
carriers  were  unable to properly monitor or admit  authorized  personal
identification  numbered prepaid phone card calls through their  systems.
The  time frame for the carrier to fix the problem, or the ability of the
Company to recall prepaid phone cards and switch to another carrier  with
competitive rates, could cause a material business interruption.

The  risks  associated  with  the  failure  of  the  Company's  financial
software,  or third party payroll preparation and stock transfer  system,
are  considered  less  severe in that the Company believes  switching  to
other vendors or using other methods would be relatively easy.

The risk of failure of the third party airline reservation system is that
the  Company would have to secure its travel arrangements by methods that
would  be  more cumbersome and time-consuming than the current  automated
system.


CONTINGENCY PLAN

The  Company,  based  upon  a  survey  conducted  with  major  suppliers,
especially  for  financial reporting and telecommunication  services,  is
satisfied   that  these  suppliers  are  able  to  meet  all  Year   2000
requirements and therefore will not be preparing a contingency plan.  The
Company  has  upgraded  its internal accounting  systems  to  meet  these
requirements.


Cautionary  Statement for Purposes of the Safe Harbor Provisions  of  the
Private Securities Litigation Reform Act of 1995
-------------------------------------------------------------------------

This   report  contains  or  incorporates  by  reference  forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act  of  1995.  Where  any  such  forward-looking  statement  includes  a
statement  of  the  assumptions or bases underlying such  forward-looking
statement, the Company cautions that assumed facts or bases almost always
vary  from the actual results, and the differences between assumed  facts
or  bases  and  actual  results  can  be  material,  depending  upon  the
circumstances.  Where, in any forward-looking statement, the  Company  or
its  management expresses an expectation or belief as to future  results,
there  can  be no assurance that the statement of expectation  or  belief
will  result  or be achieved or accomplished. The words believe,  expect,
estimate,  anticipate,  project  and  similar  expressions  may  identify
forward-looking statements.


                                   14


<PAGE>

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


                                        Three Months Ended
                                              June 30,
                                         1999         1998
                                         ----         ----
Net Sales                             $6,489,459    $4,930,838
--------

Net  sales  increased approximately $1,500,000 in the 1999  three  months
compared  to the corresponding 1998 period. Sales in England  and  Spain,
principally prepaid phone cards, increased about $2,465,000  due  to  new
contracts. Muller sales increased $450,000 principally because Muller was
only  acquired on June 9 of the 1998 first quarter. Partially  offsetting
these  increases was a $1,000,000 decline due to the closing of  Canadian
operations  late  in  fiscal 1999. Edge sales declined  $320,000  due  to
residual effects of a shutdown in fiscal year end March 1999.


                                           1999        1998
                                           ----        ----
Cost of Sales                          $ 7,094,625  $4,390,877
-------------

Cost  of  sales  in  the  June  30  quarter  of  1999  exceeded  1998  by
approximately $2,700,000. Cost of sales associated with the new  European
sales  contracts noted above resulted in a $2,531,000 increase  in  1999.
Edge  cost of sales increased $660,000 since it was only included  for  a
portion of the 1998 quarter (acquired April 30, 1998) and due to the fact
that  Edge's margins were lower while trying to regain market share which
was  adversely effected by the temporary carrier service interruption  in
January  and February of 1999.  Muller cost of sales rose $365,000  since
it also was only partially included in the 1998 quarter (acquired June 9,
1998).  Partially offsetting these increases was a $810,000 decline  from
the  closing  of  the Canadian operations late in fiscal year  end  March
1999.

                                               1999        1998
                                             --------    --------
Selling, General & Administration Expense  $  588,802    $362,407
-----------------------------------------

Selling,  general  and  administrative expenses  increased  approximately
$226,000 in the June 1999 quarter compared to a year ago. Increases in UK
and Spain of about $200,000 was principally the result of $157,000 in bad
debts.  Increased Muller and Edge expenses due to their inclusion  for  a
full quarter in 1999 also contributed to the increase.



                                15

<PAGE>

                                          1999        1998
                                          ----        ----
Salaries and Compensation              $ 556,892  $ 499,188
-------------------------

Salaries in the 1999 first quarter increased about $58,000 over the  1998
quarter. Increased salaries at Edge and Muller due to their inclusion for
a  full  quarter  in  1999  resulted in a  $216,000  increase.  Partially
offsetting  this  increase  was $78,000 lower Canadian  salaries  due  to
discontinued operations and $80,000 less salaries in the UK due to  staff
reductions.

                                         1999        1998
                                         ----        ----
Professional and Consulting Fees      $336,356     $321,885
--------------------------------

Professional fees increased $14,000 in the 1999 first quarter. Legal  and
accounting fees increased approximately $124,000 due primarily  to  legal
fees involving the SEC investigation and Edge's shutdown of operations in
November  and  December  1998. The closing  of  the  Canadian  operations
resulted  in  lower  professional  fees  partially  offsetting  the  Edge
increase.

                                          1999        1998
                                          ----        -----
Amortization and Depreciation          $933,414     $225,222
-----------------------------

Amortization and depreciation increased $708,000 in the June 1999 quarter
compared  to  June 1998. The shutdown of Canadian operations resulted  in
$134,000  lower  costs in 1999. Amortization of the  IXC  master  service
agreement  increased 1999 quarterly costs by $784,000. A full quarter  of
Edge  goodwill  amortization and depreciation increases account  for  the
balance of the increase.

                                        1999        1998
                                        -----       ----
Investment Income                      $78,929     $18,187
Interest Expense                     ($  5,709)   ($76,992)

The $61,000 increase in investment income in 1999 is due to owning Muller
Media for a full quarter in 1999 and less than one month in 1998.

The $71,000 decline in interest expense is because in the June 1998 first
quarter,  DCI  parent  had  interest expense of  $72,000  on  short  term
borrowing against its SmarTalk stock investment.



                                  16

<PAGE>


                                           1999       1998
                                           ----       ----
Discontinued operations - CyberFax           --    ($ 84,160)
-----------------------

Since  CyberFax was sold on March 30, 1999 and classified as discontinued
operations,  the $84,000 loss in 1998 June quarter has been  reclassified
as discontinued operations.

















                                      17

<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 19


























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<PAGE>


ITEM 6 - Exhibits and Reports on Form 8K

1. Changes in Registrant's Certifying Accountant as filed on Form 8K, May
19, 1999 and as amended on Form 8K/A, July 02, 1999.


2.  DCI  Telecommunications, Inc. announced the  engagement  of  Trenwith
Securities as filed on Form 8K, July 15, 1999.










































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<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: August 20, 1999              By: /s/Joseph J. Murphy
                                        -------------------
                                        Joseph J. Murphy
                                        President

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



















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