U. S. Securities and Exchange Commission
                          Washington, D. C.  20549


                                 FORM 10-QSB


[X]     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934

        For the quarterly period ended December 31, 1998

[ ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934

         For the transition period from                to
                                        --------------    ------------------


                         Commission File No. 2-97869-D


                                   TECON, INC.
                 (Name of Small Business Issuer in its Charter)


               UTAH                                 87-0419571
   (State or Other Jurisdiction of             (I.R.S. Employer I.D. No.)
    incorporation or organization)


                               455 East 5th South
                             Hermes Bldg., Suite 200
                            Salt Lake City, UT 84101
                    (Address of Principal Executive Offices)

                    Issuer's Telephone Number: (801) 363-7411

                              None; Not Applicable
         (Former name or Former Address, if changed since last Report)


     Indicate  by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by Sections 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.

(1)  Yes  X  No             (2)  Yes  X    No
        ----    ----                 ----      ----

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

     Check whether the Issuer has filed all documents and reports required to be
filed by Sections 12, 13 or 15(d) of the Exchange Act after the  distribution of
securities under a Plan confirmed by a court. Yes_____ No ______

None; not Applicable.




<PAGE>



     (APPLICABLE  ONLY  TO  CORPORATE  ISSUERS)  

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

                                  March 8, 1999
                               Common Voting Stock
                                    1,199,962

                              
                       DOCUMENTS INCORPORATED BY REFERENCE

     A description of any "Documents  Incorporated by Reference" is contained in
Item 6 of this Report.


PART I - FINANCIAL INFORMATION

Item 1.Financial Statements.

     The Financial  Statements of the Registrant  required to be filed with this
10-QSB  Quarterly  Report  were  prepared  by  management  and  commence  on the
following pages, together with related Notes. In the opinion of management,  the
Financial Statements fairly present the financial condition of the Registrant.

Item 2.Management's Discussion and Analysis or Plan of Operation.

Plan of Operation.

     The Company has not engaged in any material operations in the period ending
December 31, 1998, or for the past five calendar years.  The Company intends to
continue to seek out the acquisition of assets, property or business that may be
beneficial to the Company and its stockholders.

     The Company only  foreseeable  cash  requirements  are being  advanced by a
shareholder.


<PAGE>

PART II - OTHER INFORMATION

Item 1.Legal Proceedings.
------------------------

None; not applicable.

Item 2.Changes in Securities.
-----------------------------

See Part I, Results of Operations.

Item 3.Defaults Upon Senior Securities.
---------------------------------------

None; not applicable.

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

     No matter was submitted to a vote of security holders of the Company during
the period covered by this Report. For additional  information see the 10KSB for
the period ending December 31, 1998, Part I, Item 1.

Item 5.Other Information.
-------------------------

None; not applicable.

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

(a)Exhibits.*

None; not applicable.

(b)Reports on Form 8-K.

     The Company filed with the Securities  and Exchange  Commission a report on
Form  8-K,  as filed on March 27,  1992,  which is  incorporated  herein by this
reference.*

(c) Documents Incorporated by Reference
     
     Form 10-KSB for the period ending 3-31-98**
     Form 8-K, as filed on March 27, 1992**

     *A summary of any Exhibit is modified in its  entirety by  reference to the
actual Exhibit. 

     **These  documents  have been  previously  filed  with the  Securities  and
Exchange Commission and are incorporated herein by this reference.



<PAGE>
<TABLE>
<CAPTION>

                                   TECON, INC.
                                 BALANCE SHEETS
                      December 31, 1998 and March 31, 1998

                                                                      12/30/98            3/31/98            
                                                                  ----------------    ----------------
                                                                    [Unaudited]
<S>                                                            <C>     <C>         <C>    <C>

                                     ASSETS

Assets                                                          $               0   $               0
                                                                  ----------------    ---------------- 
          Total Assets                                          $               0   $               0   
                                                                  ================    ================

                        LIABILITIES & STOCKHOLDERS' DEFECIT

Current Liabilities:

      Loans from Stockholders                                   $           4,807   $           1,962
                                                                  ----------------    ----------------
          Total Liabilities                                     $           4,807   $           1,962    
                                                                  ================    ================
        

Stockholders' Deficit
      Capital Stock--300,000,000 shares authorized
             having a par value of $0.001 per share; 
             1,199,962 shares issued and outstanding                        1,200               1,200                
      Additional Paid-in Capital                                        2,114,138           2,114,138    
      Accumulated Deficit                                              (2,120,145)         (2,117,300)  
                                                                  ----------------    ---------------- 
          Total Stockholders' Defecit                                      (4,807)             (1,962)        

                                                                  ----------------    ----------------
          Total Liabilities and Stockholders Defecit            $               0   $               0 
                                                                  ================    ================

</TABLE>


     NOTE TO FINANCIAL  STATEMENTS:  Interim  financial  statements  reflect all
adjustments  which  are,  in the  opinion  of  management,  necessary  to a fair
statement of the results for the periods.  The March 31, 1998 balance  sheet has
been derived from the audited  financial  statements.  These  interim  financial
statements  conform with the requirements for interim  financial  statements and
consequently do not include all the disclosures  normally  required by generally
accepted accounting principles.

<PAGE>
<TABLE>
<CAPTION>

                                   TECON, INC.
                            STATEMENTS OF OPERATIONS
      For the Three and Nine Month Periods Ended December 31, 1998 and 1997

                                             Three Months          Three Months           Nine Months          Nine Months        
                                                 Ended                 Ended                 Ended                Ended
                                               12/31/98              12/31/97              12/31/98             12/31/97         
                                          -------------------   -------------------   -------------------   -------------------
                                              [Unaudited]           [Unaudited]            [Unaudited]         [Unaudited]
<S>                                      <C>     <C>           <C>         <C>       <C>        <C>        <C>        <C>   
REVENUE
      Revenue from Operations            $                  0  $                  0  $                  0  $                  0
                                          -------------------   -------------------   -------------------   -------------------
          Total Revenue                                     0                     0                     0                     0

General and Administrative Expenses                       493                   869                 2,516                 1,334
                                          -------------------   -------------------   -------------------   -------------------
Net Income Before Taxes                  $               (493) $               (869) $             (2,516) $             (1,334)
                                          ===================   ===================   ===================   ===================
Income/Franchise Taxes                                    149                     0                   149                     0
                                           
Net Loss                                 $               (642) $               (869) $             (2,665) $             (1,334)
                                          
Loss Per Share                           $              (0.01) $              (0.01) $              (0.01) $              (0.01) 
                                          ===================   ===================   ===================   ===================
Weighted Average Shares Outstanding                 1,199,962               899,962             1,199,962               899,962 
                                          ===================   ===================   ===================   ===================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>


                                   TECON, INC.
                            STATEMENTS OF CASH FLOWS
      For the Three and Nine Month Periods Ended December 31, 1998 and 1997

                                                              Three Months       Three Months       Nine Months        Nine Months
                                                                 Ended              Ended             Ended              Ended
                                                               12/31/98           12/31/97          12/31/98           12/31/98
                                                             ---------------   ----------------   ----------------   --------------
                                                               [Unaudited]       [Unaudited]        [Unaudited]        [Unaudited]

<S>                                                       <C>         <C>   <C>         <C>    <C>         <C>    <C>         <C>
Cash Flows Used For Operating Activities

Net Loss                                                   $         (642)    $        (869)     $      (2,665)    $       (1,334)
Adjustments to reconcile net loss to net cash                     
    used in operating activities:                                                           
      Issued stock to directors                                         0                 0                  0                300  
      Increase/(Decrease) in Loans from Shareholder                   642               869              2,665              1,034
                                                             -------------     -------------      -------------      ------------- 
    Net Cash used for Operating Activities                              0                 0                  0                  0
                                                             =============     =============      =============      =============
Cash Flows Provided by Financing Activities

     Net Increase in Cash                                               0                 0                  0                  0  
     Beginning Cash Balance                                             0                 0                  0                  0
     Ending Cash Balance                                                0                 0                  0                  0
                                                             =============     =============      =============      ============= 

</TABLE>

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.

                                   
                              TECON, INC.



Date: 4/14/99                 /S/ SHERYL ROSS 
                              Sheryl Ross, Director and President



Date: 4/14/99                 /S/ SHELLEY GOFF            
                              Shelley Goff, Director and Secretary/Treasurer