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, 1998.

              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.)

   2350 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)                      and former fiscal year,
                                             if changed since last report)

   Indicate by  check mark  whether the  registrant  (1) has  filed  all
   reports required  to be  filed by   Section    13 or  15 (d)  of  the
   Securities Exchange Act of  1934 during the  preceding 12 months  (or
   for such   shorter period that  the registrant was  required to  file
   such reports), and (2) has been subject to such  filing  requirements
   for  the  past 90 days.      Yes      X          No        .

          APPLICABLE  ONLY  TO  ISSUERS  INVOLVED  IN  BANKRUPTCY
              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, 1998:  4,352,292
<PAGE>

                            CIRCUIT SYSTEMS, INC.
                              AND SUBSIDIARIES

                                   INDEX


                                                                   Page        
                                                                  Number
   PART   I.              FINANCIAL  INFORMATION

   Item 1.     Financial  Statements

           Consolidated Condensed Balance Sheets .................   3

           Consolidated Condensed Statements of Operations .......   4

           Consolidated Condensed Statements of Cash Flows .......   5

           Notes to Consolidated Condensed Financial Statements ..   6

   Item 2.     Management's Discussion and Analysis of Financial
           Condition and Results of Operations                       8

   Item 3.     Quantitative and Qualitative Disclosures about Market
           Risks .................................................   11


   PART  II. OTHER  INFORMATION

   Item  6.     Exhibits and Reports on Form 8-K.................    11


   SIGNATURES....................................................    12
<PAGE>
<TABLE>
                          CIRCUIT SYSTEMS, INC.
                             AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED BALANCE SHEETS
                                (UNAUDITED)
                                                7/31/98        4/30/98
   <S>                                       <C>            <C>
           ASSETS
   CURRENT ASSETS
       CASH AND CASH EQUIVALENTS.......      $    243,704   $  1,531,526
       ACCOUNTS RECEIVABLE, LESS
           ALLOWANCE OF $150,000.......        11,622,450     14,286,084
       INVENTORIES
           RAW MATERIALS...............         3,188,628      3,118,101
           WORK IN PROCESS.............         2,182,018      2,533,346
           FINISHED GOODS..............         3,413,261      2,863,661
                                                8,783,907      8,515,108

     REFUNDABLE INCOME TAXES...........         1,044,124      1,150,000
       DEFERRED INCOME TAXES...........           330,000        330,000
       PREPAID EXPENSES................           604,736        572,082
              TOTAL CURRENT ASSETS.....        22,628,921     26,384,800

   INVESTMENT IN AFFILIATE..............        2,934,384      2,930,595
   PROPERTY, PLANT AND EQUIPMENT - AT COST
       BUILDING AND IMPROVEMENTS........       13,412,819     13,686,852
       MACHINERY AND EQUIPMENT..........       42,570,869     43,073,334
       AUTOMOTIVE EQUIPMENT.............           85,481         98,938
                                               56,069,169     56,859,124
          LESS ACCUMULATED DEPRECIATION.       23,946,968     22,740,838
                                               32,122,201     34,118,286
             LAND.......................        2,506,703      2,693,089
                                               34,628,904     36,811,375
   OTHER ASSETS
       DEPOSITS AND SUNDRY..............        1,202,164      1,479,927
                                             $ 61,394,373   $ 67,606,697
   LIABILITIES AND SHAREHOLDERS'S EQUITY
   CURRENT LIABILITIES
       CURRENT MATURITIES OF L/T
        OBLIGATIONS...................       $  5,794,002   $  7,088,855
       ACCOUNTS PAYABLE...............          6,901,438     10,203,540
       ACCRUED LIABILITIES............          2,602,057      1,880,966
       INCOME TAXES PAYABLE...........                  -              -
      TOTAL CURRENT LIABILITIES........        15,297,497     19,173,361

   LONG-TERM OBLIGATIONS...............        26,425,507     27,380,107
   DEFERRED INCOME TAXES...............         2,283,000      2,108,000
   MINORITY INTEREST..................                  -        417,878

   SHAREHOLDERS' EQUITY
        COMMON STOCK.................           2,453,459      2,554,579
        RETAINED EARNINGS............          14,934,910     16,107,750
        CUMULATIVE FOREIGN CURRENCY
            TRANSLATION ADJUSTMENT......                -      (134,978)
                                               17,388,369     18,527,351

                                             $ 61,394,373  $  67,606,697

      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        
                                            7/31/98             7/31/97  
   <S>                                  <C>                 <C>
   NET SALES......................      $ 22,553,713        $  12,922,618

   COST OF GOODS SOLD.............        19,501,218           12,283,558

       GROSS PROFIT...............         3,052,495              639,060

   SALES AND MARKETING EXPENSES....          794,165              640,089
   ADMINISTRATIVE EXPENSES.........          913,051              588,355
   RESTRUCTURING CHARGE............        1,520,000                    -
                                           3,227,216            1,228,444

       OPERATING LOSS..............         (174,721)            (589,384)

   OTHER (INCOME) DEDUCTIONS
       INTEREST EXPENSE............          727,179              354,993
       EQUITY IN EARNINGS OF      
        UNCONSOLIDATED AFFILIATE...           (3,789)             (32,528)
       MINORITY INTEREST IN LOSS
        OF SUBSIDIARY..............          (31,782)             (28,375)
       RENTAL INCOME...............         (104,060)             (90,860)
       SUNDRY......................           11,690              (18,328)
                                             599,238              184,902

       LOSS BEFORE INCOME TAXES....         (773,959)            (774,286)

   INCOME TAX BENEFIT..............         (275,000)            (272,000)

       NET LOSS....................     $   (498,959)     $      (502,286)

   PER SHARE DATA:
                                        
       NET LOSS PER COMMON SHARE-BASIC     $    (.11)         $      (.10)

       NET LOSS PER COMMON SHARE-DILUTED   $    (.11)         $      (.10)


      THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS

</TABLE>
<PAGE>
<TABLE>
                          CIRCUIT SYSTEMS, INC.
                             AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (UNAUDITED)
                                                     THREE MONTHS ENDED 
                                                   7/31/98         7/31/97  
 <S>                                            <C>             <C>
 CASH FLOW FROM OPERATING ACTIVITIES:
     NET LOSS..............................     $  (498,959)    $  (502,286)

     ADJUSTMENTS TO RECONCILE NET LOSS TO
      NET CASH PROVIDED BY OPERATING ACTIVITIES:
           DEPRECIATION.....................      1,302,416         979,320
           GAIN ON SALE OF EQUIPMENT........             --            (325)
           MINORITY INTEREST IN LOSS OF
            SUBSIDIARY.....................         (31,782)        (28,375)
           DEFERRED INCOME TAXES...........         175,000         (38,000)
           EQUITY IN EARNINGS OF UNCONSOLIDATED
            AFFILIATE......................          (3,789)        (32,528)

       CHANGES IN ASSETS AND LIABILITIES, NET OF
        EFFECTS FROM ACQUISITION AND DIVESTITURE
               ACCOUNTS RECEIVABLE..........      2,279,298         535,518
               INVENTORIES..................       (529,438)        113,983
               PREPAID EXPENSES.............        (32,654)          3,362
               OTHER ASSETS...  ............        244,456        (382,687)
               ACCOUNTS PAYABLE AND ACCRUED
                LIABILITIES.................     (2,114,463)        153,618
                    TOTAL ADJUSTMENTS.......      1,289,044       1,303,886

               NET CASH PROVIDED BY OPERATIONS.     790,085         801,600

   CASH FLOWS FROM INVESTING ACTIVITIES:
           CAPITAL EXPENDITURES...............     (746,814)       (456,169)
           MINORITY INTEREST CAPITAL
            CONTRIBUTION TO SUBSIDIARY........           --          16,911
           PAYMENT FOR PURCHASE OF PRINTED     
            CIRCUIT BOARD OPERATION OF PHILIPS.          --     (10,150,000)
           PROCEEDS FROM SALE OF EQUIPMENT.....          --             325

           NET CASH USED IN INVESTING ACTIVITIES   (746,814)    (10,588,933)

   CASH FLOWS FROM FINANCING ACTIVITIES:
           NET (PAYMENTS) BORROWINGS UNDER LINE
            OF CREDIT .........................    (189,900)      1,315,463
           REPURCHASE OF COMMON STOCK..........          --        (633,012)
           PROCEEDS FROM LONG-TERM OBLIGATIONS.     365,750      10,426,363
           PAYMENTS ON LONG-TERM OBLIGATIONS...  (1,514,269)     (1,297,111)

           NET CASH (USED IN) PROVIDED BY
                      FINANCING ACTIVITIES.....  (1,338,419)      9,811,703

   EFFECT OF FOREIGN EXCHANGE RATE CHANGES.....       7,326           5,067

   (DECREASE) INCREASE  IN CASH..............    (1,287,822)         29,437

   CASH AT THE BEGINNING OF THE PERIOD.......     1,531,526         294,204
   CASH AT THE END OF THE PERIOD.............   $   243,704     $   323,641
<PAGE>


   SUPPLEMENTAL DISCLOSURES OF CASH FLOW
     INFORMATION:
   CASH PAID (RECEIVED) DURING THE PERIOD FOR:
           INTEREST..........................   $   689,461     $   401,139
           INCOME TAXES......................      (105,876)        189,227
   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 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,  1998
        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
                                                       7/31/97     

         Net Loss                                       $  (502,286)

                                           Shares      Per Share Amount
                                     
         Basic Loss per Share            5,097,843      $      (.10)
         Effect of Dilutive Securities:                                    
             Stock Options                    N/A               N/A
         Diluted Loss per Share          5,097,843      $      (.10)


                                                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>

                          CIRCUIT SYSTEMS, INC.
                             AND SUBSIDIARIES

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                (UNAUDITED)


   5.   Effective for  the  quarter ended  July  31, 1998,  the  Company
        adopted the  provisions  of Statement  of  Financial  Accounting
        Standards  No.  130  "Reporting  Comprehensive  Income",   which
        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  for
        the quarter ended  July 31, 1998  and 1997 was   $(417,973)  and
        $(499,246), respectively.

   6.        Effective July  27,  1998,  the  Company's  executive  vice
        president  resigned  as an officer and  director of the Company.  
        In connection therewith,  the Company agreed  to repurchase  the
        181,181 shares  held  by  him  for  $775,000  and  entered  into
        severance and non-compete agreements and  agreed to sell to  him
        its 70% interest  in Circuit   Systems (India)  Limited and  its
        100% interest in Circuit Sigma India Limited.

        In addition, during the quarter ended July 31, 1998, the Company
        recorded a  restructuring  charge of  approximately  $1,520,000,
        relating to  a reorganization  of the  Company's management  and
        plant operations.   The  majority  of the  restructuring  charge
        relates to severance and termination benefits for its  executive
        vice president and five other managers and supervisors.

   7.        On August 25, 1998, the  Company announced that it  entered
        into a nonbinding letter of  intent with the three  shareholders
        of Silicon  Valley Printed  Circuits  ("SVPC") of  Santa  Clara,
        California, to acquire the assets and assume certain liabilities
        of SVPC.   SVPC specializes in  quick turnaround production  for
        both prototype and low to medium  volume orders.  The  estimated
        purchase price will be $7,000,000 plus the assumption of certain
        liabilities.   The  purchase  price  will  be  funded  utilizing
        $3,000,000 of collateralized bank borrowings plus $4,000,000  in
        subordinated notes from  SVPC and its  three shareholders.   The
        acquisition is expected to be closed during the Company's second
        quarter.
<PAGE>
                          CIRCUIT SYSTEMS, INC.
                            AND SUBSIDIARIES

                  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS
           OF  FINANCIAL  CONDITION  AND RESULTS  OF  OPERATIONS

   This discussion  contains  forward-looking  statements  that  involve
   risks and uncertainties,  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, 1998.  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.

   Net sales  for the  quarter ended  July 31,  1998, were  $22,554,000,
   increasing by 75% when compared to  $12,923,000 for the same  quarter
   last year.  The net sales of IL,  CST, and CSIL for fiscal 1999  were
   $16,737,000, $5,205,000 and  $612,000, respectively,  as compared  to
   $12,585,000, $270,000 and  $68,000, respectively,  for  fiscal  1998.  
   CST sales for the quarter ended July 31, 1997 were included from July
   28, 1997,  the  date  of  acquisition.   The  increase  in  sales  is
   primarily due to sales from the  CST facility as well as an  increase
   in net sales of $4,152,000 for IL,  which is due to new or  increased
   activity from  new customers  as well  as increased  demand from  the
   current customer base.   Net sales  to five  customers accounted  for
   approximately $13,818,000 or   61% for  the quarter ended   July  31,
   1998,  compared   to  three   customers  representing   approximately
   $7,580,000 or 59% of net sales for the same quarter last year.
<PAGE>
   Gross profit for the  quarter was $3,052,000 or  13.5% of net  sales,
   compared to $639,000 or 4.9% of  net sales for the same quarter  last
   year.   The increase  in the  gross profit  is primarily  due to  the
   increase in the net sales as well  as a decrease in the material  and
   labor costs as  a percentage of  net sales which  is attributable  to
   better operating  efficiencies and  yields.   Overhead expenses  have
   increased by approximately $2,100,000 due to the addition of the  CST
   facility and an  increased infrastructure  in IL.   Overall,  margins
   have and  will continue  to  be impacted  as  a result  of  continued
   pricing  pressures,  partially  stemming  from  the  "Asian  economic
   crisis".   Realignment of  certain  manufacturing processes  and  the
   administrative offices continued  during the first  quarter and  will
   continue over the next several quarters.

   Sales and marketing and administrative expenses for the quarter  were
   $1,707,000 or 7.6% of net sales,  compared  to  $1,228,000 or 9.5% of
   net sales for the same  quarter last year.  The  decrease in expenses
   as a percentage  of net  sales is  due to  the  increased  sales  and
   revenue to Philips  not being subject to commission which resulted in
   a decrease  of commissions as a  percent   of net  sales from 3.3% in
   fiscal 1998 to 2.6% in fiscal 1999.

   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  relates
   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
   $589,000 or 4.6% of net sales in fiscal 1998.

   Other deductions-net was $599,000 for the current quarter compared to
   $185,000 for the same quarter last year.  Interest expense  increased
   to $727,000 in fiscal  1999 from $355,000 in  fiscal 1998 due to  the
   Philips acquisition in July 1997  and increased borrowings under  the
   line of credit to fund the additional working capital needs of the IL
   and CST operations and the  Company's stock repurchase during  fiscal
   1998.  The equity  in the earnings of  SigmaTron decreased to  $4,000
   for the current quarter compared to $33,000 for the same period  last
   year.

   The effective income tax rate for the quarter ended July 31, 1998  is
   35.5%, compared  to the  1997 rate  of 35.1%.   The  lower  effective
   income tax  rates are  due  to the  inability  to recognize  the  tax
   effects of certain foreign net operating losses.

   The net  loss and diluted loss  per share for the quarter ended  July
   31, 1998 were $499,000 and $.11, respectively, compared to  net  loss  
   and diluted loss per  share of $502,000  and $.10, respectively,  for
   the same period last year.
<PAGE>

                          CIRCUIT SYSTEMS, INC.
                            AND SUBSIDIARIES

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                (UNAUDITED)


   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.

   For the quarter ended July 31, 1998, the Company renewed its line  of
   credit of  $15,000,000,  consisting  of  $10,000,000,  which  matures
   August 31, 2000 and  $5,000,000,  which  matures on  August 31, 1999.  
   The line bears interest  at the bank's prime  rate (8.5% at July  31,
   1998) or the Company may borrow  in $1,000,000 increments for 30,  60
   or 90 days at LIBOR plus  3%.  The maximum borrowings of  $15,000,000
   is limited to 80%  of eligible accounts  receivable, 75% of  eligible
   finished goods inventory  (not  to exceed $2,500,000) and  $3,000,000
   (based on  equipment  valuation).     At  July 31,  1998,  there  was
   approximately  $2,300,000 of unused  credit available under the  line
   of credit.  The agreement contains certain covenants which have  been
   amended, which restrict  the amount  of dividends  the Company  could
   pay, capital  stock redemptions,  and  capital expenditures.    Other
   financial covenants pertain to the maintenance of current ratio, debt
   to tangible  net worth  ratio, debt  service ratio  and tangible  net
   worth as defined.  The Company was in violation of its capital  stock
   redemption covenant which has been waived by the bank.

   Effective July  27,  1998,  the Company's  executive  vice  president
   resigned as an officer  and director of the  Company.  In  connection
   therewith, the Company agreed to  repurchase the 181,181 shares  held
   by him  for  $775,000  and entered  into  severance  and  non-compete
   agreements and agreed  to sell to  him  its 70%  interest in  Circuit  
   Systems (India) Limited and its 100% interest in Circuit Sigma  India
   Limited.  The net cash outlay to the former officer is  approximately
   $400,000.

   The  Company  has  purchase  commitments  as  of  July  31,  1998  of
   approximately $3,600,000  for  future  deliveries  of  machinery  and
   equipment and $400,000 for building and office improvements/furniture
   for the 2400 E. Lunt Avenue property.  The Company is in the  process
   of moving its administrative staff, training and conference rooms  to
   this location.  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>
   On August 25,  1998, the  Company announced  that it  entered into  a
   nonbinding letter of  intent with  the three shareholders of  Silicon
   Valley Printed  Circuits  ("SVPC")  of Santa  Clara,  California,  to
   acquire the  assets and  assume certain  liabilities of  SVPC.   SVPC
   specializes in quick turnaround production for both prototype and low
   to medium  volume  orders.   The  estimated purchase  price  will  be
   $7,000,000 plus the assumption of certain liabilities.  The  purchase
   price will  be funded  utilizing  $3,000,000 of  collateralized  bank
   borrowings plus $4,000,000  in subordinated notes  from SVPC and  its
   three shareholders.  The acquisition is expected to be closed  during
   the Company's second quarter.

   The Company's backlog at  July 31, 1998 is approximately $20,000,000,
   which  included  approximately  $8,000,000   for  CST,  compared   to
   $18,790,000 at July 31,  1997.   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, 1998 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  1998 Form 10-K.  
   The Company recently  hired an  independent consulting  firm and  the
   evaluation phase process has begun whereby  the firm will verify  the
   inventory of all existing Company hardware application as well as the
   relevant software portfolio required  to run these applications  such
   as operating  systems, workstations,  source codes,  databases,  data
   files, etc.

   The Company  believes that  the costs  of  the Year  2000  compliance
   project are consistent with its previous estimates.

   The Company anticipates completion of the Year 2000 project by  early
   1999.  The Company's assessments and plans to complete it's 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  impact  on  its  business,
   operations or financial condition.

   Item 3.  Quantitative and Qualitative Disclosures about Market Risks

        Not  Applicable.

<PAGE>
                      PART II -   OTHER  INFORMATION


   Item  6.  Exhibits and Reports on Form 8-K

         (a)Exhibits

         (b)Reports on Form 8-K

            Form 8-K filed July 27, 1998, regarding the resignation of
            its executive vice president/director, repurchase  of  his
            stockholdings and severance/non-compete agreements.

<PAGE>

                          CIRCUIT  SYSTEMS,  INC.
                             AND  SUBSIDIARIES



                                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) 


                                       /s/   James E. Robbs 
                                             James E. Robbs
                                          Chief Financial Officer
                                          (Principal Financial Officer)


   September 11,  1998