UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C. 20549

                             Form  10 - Q
  (Mark  One)

      X      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15
     ___     (d) OF THE SECURITIES EXCHANGE ACT OF 1934.
             For the period ended July 31, 1999.

     ___     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
             SECURITIES EXCHANGE ACT OF 1934.
             For the transition period from        to      .

                      Commission file number 0-15407

                           Circuit Systems, Inc.
         (Exact name of registrant as specified in charter)

           Illinois                                        36-2663010
     (State or other jurisdiction                       (I.R.S. Employer
   of incorporation or organization)                   Identification No.)

  2400 East Lunt Avenue, Elk Grove Village, Illinois          60007
  (Address of principal executive offices)                  (Zip Code)

        (847)  439 - 1999
  (Registrant's telephone number,           (Former name, former address and
   including area code)                      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
             PROCEEDING  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, August 31, 1999: 3,926,020

<PAGE>

                           CIRCUIT SYSTEMS, INC.
                             AND SUBSIDIARIES

                                  INDEX


     PART I.     FINANCIAL INFORMATION                           Page
                                                                Number
                                                                ------

     Item 1.     Financial Statements

                       Consolidated Condensed Balance Sheets        3

                       Consolidated Condensed Statements of         4
                        Operations

                       Consolidated Condensed Statements of         5
                        Cash Flows

                       Notes to Consolidated Condensed              6
                        Financial Statements

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

     Item 3.     Quantitative and Qualitative Disclosures          10
                 about Market Risks



     PART II.    OTHER INFORMATION


     Item 6.     Exhibits and Reports on Form 8-K                  10


     SIGNATURES                                                    11

<PAGE>
<TABLE>
                         CIRCUIT SYSTEMS, INC.
                            AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED BALANCE SHEETS
                              (UNAUDITED)

<CAPTION>
          ASSETS                               07/31/99     04/30/99
                                              ----------   ----------
  <S>                                        <C>          <C>
  CURRENT ASSETS
      CASH AND CASH EQUIVALENTS              $    44,896  $ 1,463,336
      ACCOUNTS RECEIVABLE, LESS
          ALLOWANCE OF $175,000               14,235,178   13,048,378
      INVENTORIES
          RAW MATERIALS                        4,865,016    4,007,914
          WORK IN PROCESS                      2,405,525    2,451,106
          FINISHED GOODS                       3,387,604    3,073,442
                                              ----------   ----------
                                              10,658,145    9,532,462

      REFUNDABLE INCOME TAXES                    579,000      579,000
      DEFERRED INCOME TAXES                      309,000      309,000
      PREPAID EXPENSES                            63,773      103,707
                                              ----------   ----------
                  TOTAL CURRENT ASSETS        25,889,992   25,035,883

  INVESTMENT IN AFFILIATE                      3,252,775    3,211,083

  PROPERTY, PLANT AND EQUIPMENT - AT COST
      BUILDING AND IMPROVEMENTS               15,683,799   15,206,521
      MACHINERY AND EQUIPMENT                 56,401,792   53,454,625
      AUTOMOTIVE EQUIPMENT                       226,922      226,922
                                              ----------   ----------
                                              72,312,513   68,888,068
           LESS ACCUMULATED DEPRECIATION      29,802,706   28,082,923
                                              ----------   ----------
                                              42,509,807   40,805,145
       LAND                                    3,040,453    3,040,453
                                              ----------   ----------
                                              45,550,260   43,845,598
  OTHER ASSETS
      GOODWILL, NET                            6,376,447    6,487,447
      DEPOSITS AND SUNDRY                      1,446,509    1,335,757
                                              ----------   ----------
                  TOTAL OTHER ASSETS           7,822,956    7,823,204
                                              ----------   ----------
                   TOTAL ASSETS              $82,515,983  $79,915,768
                                              ==========   ==========
<PAGE>

          LIABILITIES AND EQUITY

  CURRENT LIABILITIES
      CURRENT MATURITIES OF LONG-TERM
       OBLIGATIONS                           $ 7,408,707  $ 7,854,208
      ACCOUNTS PAYABLE                        14,749,154    9,252,421
      ACCRUED LIABILITIES                      2,528,984    2,461,738
      INCOME TAXES PAYABLE                            -            -
                                              ----------   ----------
            TOTAL CURRENT LIABILITIES         24,686,845   19,568,367

  LONG-TERM OBLIGATIONS                       40,471,655   41,512,604
  DEFERRED INCOME TAXES                        2,235,182    2,556,000
  COMMITMENTS AND CONTINGENCIES                       -            -

  SHAREHOLDERS' EQUITY
       COMMON STOCK                            2,191,168    2,191,168
       RETAINED EARNINGS                      12,931,133   14,087,629
                                              ----------   ----------
         TOTAL SHAREHOLDERS' EQUITY           15,122,301   16,278,797
                                              ----------   ----------
        TOTAL LIABILITIES AND EQUITY         $82,515,983  $79,915,768
                                              ==========   ==========

    THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS
</TABLE>
<PAGE>
<TABLE>
                         CIRCUIT SYSTEMS, INC.
                            AND SUBSIDIARIES
           CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                               (UNAUDITED)


                                                  THREE MONTHS ENDED
                                              7/31/99           7/31/98
                                          ------------        -----------
  <S>                                    <C>                 <C>
  NET SALES                              $  23,359,056       $ 22,553,713
  COST OF GOODS SOLD                        21,952,643         19,501,218
                                          ------------        -----------
      GROSS PROFIT                           1,406,413          3,052,495

  SALES AND MARKETING EXPENSES               1,139,129            794,165
  ADMINISTRATIVE EXPENSES                    1,193,173            913,051
  RESTRUCTURING CHARGE                              -           1,520,000
                                          ------------        -----------
                                             2,332,302          3,227,216

      OPERATING LOSS                          (925,889)          (174,721)

  OTHER (INCOME) DEDUCTIONS
      INTEREST EXPENSE                         985,384            727,179
      EQUITY IN EARNINGS OF
          UNCONSOLIDATED AFFILIATE             (41,692)            (3,789)
      MINORITY INTEREST IN LOSS
          OF SUBSIDIARY                             -             (31,782)
      RENTAL INCOME                           (105,159)          (104,060)
      SUNDRY                                       (26)            11,690
                                          ------------        -----------
                                               838,507            599,238

      LOSS BEFORE INCOME TAXES              (1,764,396)          (773,959)

  INCOME TAX BENEFIT                          (607,900)          (275,000)
                                          ------------        -----------
      NET LOSS                           $  (1,156,496)      $   (498,959)
                                          ============        ===========
  PER SHARE DATA:

   NET LOSS PER COMMON SHARE-BASIC       $        (.29)      $       (.11)
                                          ============        ===========
   NET LOSS PER COMMON SHARE-DILUTED     $        (.29)      $       (.11)
                                          ============        ===========


    THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS
</TABLE>
<PAGE>
<TABLE>
                          CIRCUIT SYSTEMS, INC.
                            AND SUBSIDIARIES
            CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                               (UNAUDITED)
<CAPTION>
                                                       THREE MONTHS ENDED
                                                    07/31/99        07/31/98
                                                   ----------     -----------
 <S>                                              <C>            <C>
 CASH FLOWS FROM OPERATING ACTIVITIES:
      NET LOSS                                    $(1,156,496)   $   (498,959)

      ADJUSTMENTS TO RECONCILE NET LOSS  TO
       NET CASH PROVIDED BY OPERATING ACTIVITIES:
         DEPRECIATION AND AMORTIZATION              1,839,783       1,302,416
         GAIN ON SALE OF EQUIPMENT                         -               -
         MINORITY INTEREST IN LOSS OF SUBSIDIARY           -          (31,782)
         DEFERRED INCOME TAXES                       (320,818)        175,000
         EQUITY IN EARNINGS OF UNCONSOLIDATED
          AFFILIATE                                   (41,692)         (3,789)

         CHANGES IN ASSETS AND LIABILITIES,
           NET OF EFFECTS FROM DIVESTITURE
              ACCOUNTS RECEIVABLE                  (1,186,800)      2,279,298
              INVENTORIES                          (1,125,683)       (529,438)
              PREPAID EXPENSES                         39,934         (32,654)
              OTHER ASSETS                           (110,752)        244,456
              ACCOUNTS PAYABLE AND ACCRUED
               LIABILITIES                          5,563,979      (2,114,463)
                                                   ----------     -----------
                   TOTAL ADJUSTMENTS                4,657,951       1,289,044
                                                   ----------     -----------
          NET CASH PROVIDED BY OPERATIONS           3,501,455         790,085

  CASH FLOWS FROM INVESTING ACTIVITIES:
          CAPITAL EXPENDITURES                     (3,433,445)       (746,814)
          PROCEEDS FROM SALE OF EQUIPMENT                  -               -
                                                   ----------     -----------
         NET CASH USED IN INVESTING ACTIVITIES     (3,433,445)       (746,814)

  CASH FLOWS FROM FINANCING ACTIVITIES:
          NET BORROWINGS (PAYMENTS) UNDER
           LINE OF CREDIT                             500,000        (189,900)
          REPURCHASE OF COMMON STOCK                       -               -
          PROCEEDS FROM LONG-TERM OBLIGATIONS              -          365,750
          PAYMENTS ON LONG-TERM OBLIGATIONS        (1,986,450)     (1,514,269)
                                                   ----------     -----------
     NET CASH USED IN FINANCING ACTIVITIES         (1,486,450)     (1,338,419)

  EFFECT OF FOREIGN EXCHANGE RATE CHANGES                  -            7,326

  DECREASE  IN CASH                                (1,418,440)     (1,287,822)
                                                   ----------     -----------
  CASH AT THE BEGINNING OF THE PERIOD               1,463,336       1,531,526
                                                   ----------     -----------
  CASH AT THE END OF THE PERIOD                   $    44,896    $    243,704
                                                   ==========     ===========
<PAGE>

  SUPPLEMENTAL DISCLOSURES OF CASH FLOW
  INFORMATION:

  CASH PAID (RECEIVED) DURING THE PERIOD FOR:
          INTEREST                                $   997,796    $    689,461
          INCOME TAXES                                     -         (105,876)
  SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING
   AND FINANCING ACTIVITIES:
     DIVESTITURE OF NET INVESTMENT IN CIRCUIT
      SYSTEMS (INDIA) LIMITED AND CIRCUIT SIGMA
      INDIA LIMITED IN SATISFACTION OF CERTAIN
      ACCRUED LIABILITIES AND REPURCHASE
      OF COMMON STOCK                             $        -     $  1,270,049


      THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS
</TABLE>
<PAGE>
                           CIRCUIT SYSTEMS, INC.
                             AND SUBSIDIARIES

            NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                (UNAUDITED)

     1.  These  interim  Consolidated  Condensed  Financial   Statements
         should be read  in conjunction with the Consolidated  Financial
         Statements and notes  included in the Company's April 30,  1999
         Annual Report and Form 10-K.

     2.  In  the opinion  of  the Company,  the  accompanying  unaudited
         condensed  consolidated  financial  information  reflects   all
         adjustments  (consisting  only of  normal  recurring  accruals)
         necessary for a  fair presentation of the statements  contained
         herein.

     3.  These consolidated statements are presented in accordance  with
         the requirements of Form 10-Q and consequently may not  include
         all  disclosures  normally   required  by  generally   accepted
         accounting principles  normally made  in the  Company's  Annual
         Report and Form 10-K.

     4.  The following table  illustrates a reconciliation of the  basic
         and diluted earnings per share calculations:

                                        Three Months Ended
                                             7/31/99
                                        ------------------
           Net Loss                               $(1,156,496)
                                                   ==========
                                       Shares    Per Share Amount
                                      ---------    ----------
           Basic Loss per Share       3,926,020   $      (.29)
           Effect of Dilutive
           Securities:
               Stock Options                N/A           N/A
                                      ---------    ----------
           Diluted Loss per Share     3,926,020   $      (.29)
                                      =========    ==========

                                        Three Months Ended
                                             7/31/98
                                        ------------------
           Net Loss                               $  (498,959)
                                                   ==========
                                       Shares       Per Share
                                                     Amount
                                      ---------    ----------
           Basic Loss per Share       4,503,296   $      (.11)
           Effect of Dilutive
           Securities:
               Stock Options                N/A           N/A
                                      ---------    ----------
           Diluted Loss per Share     4,503,296    $     (.11)
                                      =========    ==========
<PAGE>
    5.   The provisions of  Statement of Financial Accounting  Standards
         No.  130  "Reporting Comprehensive  Income"  requires  that  an
         entity report, by major  components and as a single total,  the
         change  in  its   net  assets  during  the  period  from   non-
         shareholder resources.   Total comprehensive income (loss)  for
         the quarters  ended July 31,  1999 and 1998  was   $(1,156,496)
         and $(417,973), respectively.

    6.   On  September  10,  1999,  the  Company  acquired  all  of  the
         outstanding    shares   of    stock   of    Infovision,    Inc.
         ("Infovision").  Infovision specializes in two markets: 1)  the
         rendering of consulting and programming services and  currently
         has  approximately  55   full-time  consultants,  and  2)   the
         development and licensing of a certain software product,  which
         is  being finalized  for  general release,  which  documents  a
         company's ISO procedures, with internet/intranet  capabilities.
         The  purchase price  of  $3,750,000  (plus  acquisition  costs)
         consists  of cash  of $1,440,000,  subordinated term  notes  of
         $1,785,000  with installment  terms ranging  from two  to  five
         years  and  $525,000  of  the  Company's  common  stock.    The
         Company's president/CEO and his wife own 14% of the  Infovision
         common stock  and affiliates of  the president/CEO  own 36%  of
         the Infovision common stock.

         Infovision  has  total assets  of  approximately  $800,000  and
         total liabilities  of approximately $1,600,000, which  includes
         a  note   payable  and  accrued   interest  to  the   Company's
         president/CEO of approximately  $1,150,000.  It is  anticipated
         that  based   upon  the  terms   of  the  purchase   agreement,
         approximately  $950,000  of   the  note  payable  and   accrued
         interest  will  be   converted  into  Company  stock  and   the
         remaining $200,000  will be paid in  cash within the next  four
         months.

         The  acquisition  will be  accounted  for  under  the  purchase
         method.  The cash portion of the purchase price will be  funded
         by a $1,000,000  increase in the Company's installment note  to
         its  commercial lender  and  the  remainder from  its  line  of
         credit.

         The excess  of the purchase  price, including  direct costs  of
         acquisition  over  the net  assets  acquired  of  approximately
         $4,675,000 will be amortized to operations over 15 years.

<PAGE>
                 MANAGEMENT'S  DISCUSSION  AND  ANALYSIS
          OF  FINANCIAL  CONDITION  AND RESULTS  OF  OPERATIONS

  This discussion contains forward-looking statements that involve risks
  and uncertainties, including Year 2000 matters.  The Company's  actual
  results could differ materially from those discussed herein.   Factors
  that could cause or  contribute to such  differences include, but  are
  not limited to, those discussed herein, as well as those discussed  in
  the Company's  Annual Report  on  Form  10-K  for the year ended April
  30, 1999.   Reliance  on  these  forward-looking  statements   reflect
  management's analysis  only  as  of the  date  hereof.    The  Company
  undertakes no  obligation  to  publicly release  the  results  of  any
  revision to  these forward-looking  statements which  may be  made  to
  reflect events or circumstances  after the date  hereof or to  reflect
  the occurrence of unanticipated events.  Although the Company believes
  the expectations  expressed  in such  forward-looking  statements  are
  based on reasonable assumptions within the bounds of its knowledge  of
  its business, a number of factors could cause actual results to differ
  materially from  those expressed  in any  forward-looking  statements,
  whether oral or written, made by or on behalf of the Company.  Many of
  these factors have previously been identified in filings or statements
  made by or on behalf of the Company.   The Company does not intend  to
  update these forward-looking statements.

  Reference  to  "IL"  hereinafter  refers  to  the  Company's  Illinois
  operations only;  reference  to "CST"  refers  to Circuit  Systems  of
  Tennessee; reference  to  "CSIL"  refers to  Circuit  Systems  (India)
  Limited; reference to "SVPC" refers to SVPC Circuit Systems, Inc.

  Net sales  for the  quarter ended  July  31, 1999,  were  $23,359,000,
  increasing by 3.6% when compared to  $22,554,000 for the same  quarter
  last year.  The net sales  of IL, CST, and  SVPC for fiscal 2000  were
  $15,986,000, $3,965,000 and $3,408,000,  respectively, as compared  to
  $16,737,000, $5,205,000 and  $0, respectively, for  fiscal 1999.   The
  fiscal 1999 sales also included revenues of $612,000 from CSIL,  which
  was divested as of July 27, 1998.  The increase in sales is due to the
  inclusion of SVPC which  was partially offset by  decreases in IL  and
  CST sales of $751,000 and $1,240,000,   respectively, compared to  the
  prior year.    The  decrease in IL  and CST  sales is  due to  pricing
  decreases and decreased demand  from the current  customer base.   Net
  sales to four customers accounted for approximately $12,279,000 or 53%
  for the  quarter ended   July  31, 1999,  compared to  five  customers
  representing approximately $ 13,818,000  or 61% of  net sales for  the
  same quarter last year.

  Gross profit for  the quarter  was $1,406,000  or 6.0%  of net  sales,
  compared to $3,052,000 or 13.5% of net sales for the same quarter last
  year.  The  gross profit  of IL,  CST and  SVPC for  fiscal 2000  were
  $1,853,000, $(413,000)  and $(34,000),  respectively, as  compared  to
  $2,719,000 and $238,000 for IL and CST, respectively, for fiscal 1999.
  CSIL  had a gross profit of $95,000 for fiscal 1999.  The gross margin
  for IL has been  impacted by a slight  reduction in volume,  continued
  pricing pressure and an overall increase  in occupancy costs with  the
  addition of  a  new  facility  which is  not currently  in production.
  CST's margin  has  been negatively  impacted  this quarter  due  to  a
  combination of  a decrease  in sales  volume, pricing and product mix.
  SVPC is impacted by volume, pricing, a higher than average scrap  rate
  in May and June and the failure of certain production equipment  which
<PAGE>
  resulted in an  increase in outside  service costs.   Overall  margins
  have and will continue to be impacted as a result of continued pricing
  pressures driven  by Far  East competitors.   Realignment  of  certain
  manufacturing   processes   within   existing   facilities   and   the
  installation  of  machinery  and  building  improvements  in  the  new
  manufacturing facility in  IL continued during  the first quarter  and
  will continue through the next quarter.

  Sales and marketing and administrative  expenses for the quarter  were
  $2,332,000 or 10.0% of  net sales, compared to  $1,707,000 or 7.6%  of
  net sales for  the same quarter  last year.   Operating expenses  have
  increased primarily  due  to  the  acquisition  of  SVPC,  which  have
  increased these  expenses by  $670,000  during  the  current  quarter.
  IL  expenses   have  increased   by  $112,000   due to an increase  in
  customer service personnel, commissions (based on a change in the  mix
  of commissionable sales), professional fees and bad debt expense.  CST
  expenses were relatively unchanged from the same period last year.

  Operating expenses in fiscal 1999 also included a restructuring charge
  of  $1,520,000  relating  to  the  reorganization  of  the   Company's
  management and plant operations.  The  majority of the charge  related
  to severance  and  other   termination  benefits   for  an   executive
  vice president and five other managers and supervisors.  Excluding the
  restructuring charge, income from operations was  $1,345,000  or  6.0%
  of  net sales  in  fiscal  1999  compared to a loss from operations of
  $926,000 or 4% of net sales in fiscal 2000.

  Other deductions-net were $838,000 for the current quarter compared to
  $599,000 for the same quarter last  year.  Interest expense  increased
  to $985,000 in  fiscal 2000 from  $727,000 in fiscal  1999 due to  the
  SVPC acquisition in December 1998, increased borrowings under the line
  of credit to fund additional working capital needs and an increase  in
  installment obligations  to  fund  equipment  purchases  and  the  new
  facility expansion.  The equity in the earnings of SigmaTron increased
  to $42,000 for  the current quarter  compared to $4,000  for the  same
  period last year.

  The effective income tax rate for  the quarter ended July 31, 1999  is
  34.5%, compared to the fiscal 1999 effective rate of 35.5%.  The lower
  effective income tax rates are due  to the inability to recognize  the
  tax benefits  of  certain  state and  foreign  (in  fiscal  1999)  net
  operating losses.

  The net  loss and  diluted loss per share  for the quarter ended  July
  31, 1999 were  $1,156,000 and $.29,  respectively, compared  to a  net
  loss  and diluted loss per  share of $499,000 and $.11,  respectively,
  for the same period last year.

  LIQUIDITY  AND  CAPITAL  RESOURCES

  The  Company  has  historically   financed  its  operations,   capital
  expenditures and debt payment requirements through its line of credit,
  other collateralized borrowings and cash generated from operations.
<PAGE>
  The Company's line of credit  agreement allows for maximum  borrowings
  of $17,000,000  (as  amended) and  is    limited to  85%  of  eligible
  accounts receivable, 75%  of eligible  finished goods  (not to  exceed
  $2,500,000), 50% of  eligible raw  material inventory  (not to  exceed
  $2,000,000) and  60%  of  the  fair  market  value  of  the  Company's
  investment in SigmaTron (not to exceed $2,000,000).  At July 31, 1999,
  there was approximately  $2,150,000 of unused  credit available  under
  the line of credit.   The agreement  contains certain covenants  which
  restrict the amount of dividends the Company could pay, capital  stock
  redemptions, and  capital  expenditures.   Other  financial  covenants
  pertain to the maintenance of specified debt to tangible net worth and
  debt service  ratios and  minimum EBITDA  and  tangible net  worth  as
  defined.  At July 31, 1999, the  Company was in violation of its  debt
  to tangible net  worth covenant and  is anticipating that  it will  be
  waived by the bank.

  During  August  1999,  the  Company  converted  accounts  payable  for
  equipment   purchases  into  new  term  obligations  of  approximately
  $1,700,000.

  On September 10,  1999, the Company  acquired all  of the  outstanding
  shares of  stock  of  Infovision,  Inc.  ("Infovision").    Infovision
  specializes in  two  markets:  1)  the  rendering  of  consulting  and
  programming services  and  currently has  approximately  55  full-time
  consultants, and   2) the development  and  licensing   of  a  certain
  software   product,  which  is  being  finalized for  general release,
  which documents  a company's  ISO procedures,  with  internet/intranet
  capabilities.   The purchase  price  of $3,750,000  (plus  acquisition
  costs) consists  of cash  of $1,440,000,  subordinated term  notes  of
  $1,785,000 with installment terms ranging from  two to five years  and
  $525,000 of the Company's common  stock.  The Company's  president/CEO
  and his wife own 14% of the Infovision common stock and affiliates  of
  the president/CEO own 36% of the Infovision common stock.

  Infovision has  total  assets  of  approximately  $800,000  and  total
  liabilities of approximately $1,600,000, which includes a note payable
  and accrued interest to  the Company's president/CEO of  approximately
  $1,150,000.   It is  anticipated  that based  upon  the terms  of  the
  purchase agreement,  approximately $950,000  of the  note payable  and
  accrued  interest  will  be  converted  into  Company  stock  and  the
  remaining $200,000 will be paid in cash within the next four months.

  The acquisition will be accounted for under the purchase method.   The
  cash portion of  the purchase  price will  be funded  by a  $1,000,000
  increase in the  Company's installment note  to its commercial  lender
  and the remainder from its line of credit.

  The  excess  of  the  purchase   price,  including  direct  costs   of
  acquisition, over the net assets acquired of approximately  $4,675,000
  will be amortized to operations over 15 years.

  The  Company  has  purchase  commitments  as  of  July  31,  1999   of
  approximately  $2,200,000  for  future  deliveries  of  machinery  and
  equipment.   The Company  intends to  finance such  purchases  through
  collateralized borrowings  and  existing cash  flow.   The  amount  of
  anticipated capital  expenditures  will  frequently  change  based  on
  future changes in business plans.
<PAGE>
  The Company's backlog at  July 31, 1999 is approximately  $24,500,000,
  compared to $20,000,000 at  July 31, 1998.    Backlog is comprised  of
  orders for which artwork has been  received, a delivery date has  been
  scheduled and the Company anticipates it will manufacture and  deliver
  the order.  The majority of the July 31, 1999 backlog is scheduled  to
  be shipped within approximately 4 months.  The reliability of  backlog
  as an indicator of future sales varies substantially with the  make-up
  of customers'  orders  and  the  Company's  scheduled  production  and
  delivery dates.  A significant portion of the Company's backlog at any
  time may be subject to cancellation or postponement without penalty.

  YEAR 2000 COMPLIANCE

  During  the  first  quarter,  the  Company  continued  its  Year  2000
  compliance project as  previously  discussed in  its  1999 Form  10-K.
  The Company has  substantially completed its  internal assessments  of
  operations, equipment, etc. within  each of its  plants.  The  Company
  has completed the implementation  of its Enterprise Resource  Planning
  ("ERP") II systems within the IL  operations and is approximately  75%
  complete with the same  ERP modules it intends  to utilize within  its
  CST facility.  In  addition, the Company  has selected, purchased  and
  begun implementation of  a  human resource/payroll  software  program.
  Management intends to run this  program simultaneous with its  current
  software module within the IL  operations during December and  intends
  to  "go live" on  January 1, 2000.   SVPC and CST currently  outsource
  this function, but will implement the  same program in the first  part
  of calendar 2000.

  The Company has formed its team of officers and managers to develop  a
  detailed contingency  plan to  address each  of its  facilities.   The
  teams have  met on  several occasions  and  intend to  complete  their
  formal plans by the end of October.

  The Company has expended approximately $600,000 in external costs  and
  it anticipates  it will  spend an  additional $250,000  for  hardware,
  software and  implementation  costs  prior  to  December  31.    These
  estimates  are  subject  to  change  as  additional  information   and
  assessments become available.

  The Company's assessments and plans to complete its Year 2000  project
  are  based  upon  management's  best  estimates,  which  were  derived
  utilizing presently  available  information and  numerous  assumptions
  about future events such as availability of certain resources, ability
  to identify and correct relevant codes  and other uncertainties.   The
  Company believes that its  compliance with Year  2000 issues will  not
  have  a  material  adverse  impact  on  its  business,  operations  or
  financial condition.

  Item 3.  Quantitative and Qualitative Disclosures about Market Risks

       Not  Applicable.

                      PART II -   OTHER  INFORMATION

  Item  6.  Exhibits and Reports on Form 8-K

        (a)Exhibits - None
        (b)Reports on Form 8-K - None
<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, registrant's principal financial officer,
  thereunto duly authorized.




                             Circuit Systems, Inc.
                             (registrant)


  September 13, 1999         /s/ James E. Robbs
                             James E. Robbs
                             Chief Financial Officer
                             (Principal  Financial  Officer)