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, 1997

[ ]     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    No    X         (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, 1997, 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 has no operations and any 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 the 10KSB for the period ending December 31, 1998, Part I, Item I.

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 I.

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, 1997

                                                                      12/31/97            
                                                                  ----------------    
                                                                    [Unaudited]
<S>                                                            <C>     <C>         
ASSETS

      Total Current Assets                                      $               0  

                                                                  ----------------   
TOTAL ASSETS                                                    $               0   
                                                                  ================   

LIABILITIES & STOCKHOLDERS EQUITY

LIABILITIES

      Current Liabilities                                                     
          Accounts Payable
          Loans from Stockholders                           $                   0   
                                                                  ----------------   
      Total Current Liabilities                                             1,310              
                                                                  ----------------    

TOTAL LIABILITIES                                                           1,310              

STOCKHOLDERS' DEFECIT
     
      Common Stock                                                            900
      Paid-in Capital                                                   2,114,138             
      Accumulated Deficit                                              (2,116,348)           
                                                                  ----------------    
TOTAL STOCKHOLDERS' DEFECIT                                                (1,310)           

                                                                  ----------------    
TOTAL LIABILITIES & STOCKHOLDERS DEFECIT                        $               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.  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, 1997 and 1996

                                             Three Months          Three Months         Nine Months        Nine Months
                                                 Ended                 Ended               Ended              Ended
                                                12/31/97              12/31/96            12/31/97           12/31/96
                                          -------------------   -------------------   ---------------    ---------------
                                              [Unaudited]           [Unaudited]         [Unaudited]        [Unaudited]
<S>                                      <C>     <C>           <C>         <C>     <C>       <C>      <C>       <C>
REVENUE
      Income                             $                  0  $                  0 $               0 $                0
                                          -------------------   -------------------   ---------------    ---------------
NET REVENUE                                                 0                     0                 0                  0

OPERATING EXPENSES
      Administrative Expenses                               0                     0               300                  0
      Office Expenses                                       0                    11                93                 11
      Professional Fees                                   869                   161               941                161
                                          -------------------   -------------------   ---------------    ---------------
TOTAL OPERATING EXPENSES                                  869                   172             1,334                172

                                          -------------------   -------------------   ---------------    ---------------
NET INCOME/(LOSS)                        $               (869) $               (172)$          (1,334)$             (172)
                                          ===================   ===================   ===============    ===============

NET LOSS PER SHARE                       $              (0.01)                (0.01)           (0.01)             (0.01)
                                          ===================   ===================   ===============    ===============

WEIGHTED AVERAGE NUMBER OF SHARES
  OUTSTANDING                                         899,962               599,962           899,962           599,962
                                          ===================   ===================   ===============    ===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>


                                   TECON, INC.
                            STATEMENTS OF CASH FLOWS
        For the Three and Nine Month Periods Ended December 31, 1997 and 1996

                                                              Three Months         Three Months         Nine Months      Nine Months
                                                                  Ended                Ended              Ended            Ended
                                                                12/31/97             12/31/96           12/31/97         12/31/96
                                                             ----------------     ----------------   ----------------- -------------
                                                               [Unaudited]          [Unaudited]        [Unaudited]       [Unaudited]

<S>                                                       <C>                   <C>                <C>                 <C>  
Cash Flows Used For Operating Activities
---------------------------------------------------------
  Net Loss                                                 $            (869)   $            (172) $           (1,334) $       (172)
  Adjustments to reconcile net loss to net cash
    used in operating activities:                                                             
    Issued Stock to Directors                                              0                    0                 300             0
    Increase/(Decrease) in loans from shareholders'                      869                  172               1,034           172
         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>



<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.

                                   
                              TECON, INC.



Date: 3/10/99                 /S/ SHERYL ROSS 
                              Sheryl Ross, Director and President



Date: 3/10/99                 /S/ SHELLEY GOFF            
                              Shelley Goff, Director and Secretary/Treasurer