Quarterly Report 6-30-1997

               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 June 30, 1997

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

For the transition period from ...................to...................

Commission file number 0-23710


                        Micro-Integration Corp.
   (Exact name of small business issuer as specified in its charter)

    	Delaware					                                  06-1204847
(State or other jurisdiction of 				              (I.R.S. Employer
 incorporation or organization)                   Identification Number)

    	One Science Park
	    Frostburg, MD                                					   21532
(Address of principal executive offices)				            (Zip Code)

Issuer's telephone number: 301-689-0800

    	Check whether the issuer (1) filed all reports required to be filed by 
Section 13 or 15(d) of the Exchange Act during the past 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 ...........

The number of shares outstanding of the issuer's classes of common stock as 
of June 30, 1997: Common Stock, $.01 Par Value --- 2,491,939 shares

Transitional Small Business Disclosure Format (check one):  
Yes ............  No ......X......


<PAGE>
                   Micro-Integration Corp. and Subsidiaries
                                  Form 10-QSB
                                     Index



Part I	Financial Information	                                   Page
----------------------------                                    ---- 

Item 1.	     Consolidated Balance Sheets	                         2
	            Consolidated Statements of Operations	               4
	            Consolidated Statements of Cash Flows	               5
	            Notes to Unaudited Condensed Consolidated
		           Financial Statements	                                6

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

Part II	Other Information
-------------------------

Item 6.	     Exhibits and Reports on Form 8-K	                    9

Signatures	                                                      11
----------


<PAGE>

Part I Financial Information

Item 1. Financial Statements

                   Micro-Integration Corp. and Subsidiaries
                          Consolidated Balance Sheets
							
							                                             June 30   		March 31
					                                                 1997		      1997
                                                    -------     --------
                                              				(unaudited)

ASSETS							
							
Current Assets							
	Cash 			                                        $  472,546   $  370,598 
	Marketable securities, available-for-sale          100,000      100,000
	Receivables						
		 Trade, net of allowance for doubtful
			 accounts $86,548 and $76,324                  1,652,708    1,872,291
		 Note                                              28,056       70,000
		 Tax refund			                                     46,141       46,141
	Inventory				                                      584,699      596,556
 Prepaid expense				                                 72,556       97,576
							                                           ---------    ---------   
  		Total Current Assets		                        2,956,706    3,153,162 
                                                  ---------    ---------
							
Property, Plant, and Equipment						
	Land	                                               92,962       92,962
	Buildings				                                    1,457,558    1,455,518
	Equipment				                                    1,389,574    1,384,231 
 Automobiles				                                     83,952       83,952 
	Property held for sale				                          58,509       58,794 
                                                  ---------    ---------
                                                  3,082,555    3,075,457
	Less accumulated depreciation				               (1,116,081)  (1,041,637)
                                                  ---------    ---------  
					                                             1,966,474    2,033,820 
							
Cash Surrender Value of Life Insurance							
	 and Other Noncurrent Assets, Net                  307,958      298,437 

				
Intangible Assets, Net of Amortization              781,943      745,912 
                                                  ---------    --------- 							
							
					                                            $6,013,081   $6,231,331 
                                                  =========    =========							


<PAGE>

                   Micro-Integration Corp. and Subsidiaries					
                          Consolidated Balance Sheets
						
						
				                                                June 30		   March 31
			                                                  	1997		      1997
                                                    -------     --------
				                                              (unaudited)
		
LIABILITIES AND SHAREHOLDERS' EQUITY						
						
Current Liabilities						
	Demand notes payable			                         $  421,500   $  462,500 
	Current portion of long-term debt and					
		capital lease obligations		                       187,991      196,181 
	Accounts payable			                                938,720      933,434 
	Accrued expenses			                                308,466      471,137 
	Income tax payable			                                6,708        1,800 
                                                  ---------    ---------     
						
	  	Total Current Liabilities		                   1,863,385    2,065,052 
                                                  ---------    ---------
						
Long-Term Liabilities						
	Debt, less current portion                       1,189,922    1,210,139
						
						
Shareholders' Equity			 			
	Preferred stock - $.01 par value: authorized					
	 4,000,000 shares; none issued as of
		June 30, 1997 and March 31, 1997                        -            -   
	Common stock - $.01 par value; authorized					
		12,000,000 shares; issued 2,641,477 as of
		June 30, 1997 and March 31, 1997                   26,415       26,415 
	Additional capital			                            5,603,263    5,603,263 
	Retained deficit			                             (2,289,010)  (2,292,644)
						                                            ---------    --------- 

				                                              3,340,668    3,337,034 
	Less treasury stock			                             380,894      380,894 
                                                  ---------    ---------  						

				                                              2,959,774    2,956,140 
                                                  ---------    ---------						
						
				                                             $6,013,081   $6,231,331
						                                            =========    =========

See Notes to Unaudited Condensed Consolidated Financial Statements.						


<PAGE>						

                   Micro-Integration Corp. and Subsidiaries
                     Consolidated Statements of Operations
								
								
                                           					Three months ended June 30			
					                                              1997 	           1996
                                                   ----             ----   
					                                                   (unaudited)
[S]			                                         [C]              [C]            
REVENUE								
	License revenue	  			                         $    9,905       $   60,343 
	Product revenue			                             3,348,976        1,514,350
                                                ---------        ---------
	  	Total Revenue			                            3,358,881        1,574,693 
								
	Cost of goods sold				                         2,243,637          481,024
                                                ---------        --------- 
   	Gross Profit			                             1,115,244        1,093,669 

								
Operating Expenses								
	Selling, general, and administrative           1,009,450        1,146,063 
	Depreciation and amortization expense			          80,301          103,699 
                                                ---------        ---------
                                                1,089,751        1,249,762
								
		  Operating Income (Loss)			                     25,493         (156,093)
								
Other Income (Expense)								
	Interest expense				                             (35,785)         (26,396)
 Other income				                                  19,154           15,010 
                                                ---------        ---------
                                                  (16,631)         (11,386)
                                                ---------        ---------						

	  	Income (Loss) before Income Taxes			            8,862         (167,479)
								
  		Income tax expense		                            5,228           11,133 
								                                        ---------        ---------
 
		     	Net Income (Loss)		                    $    3,634       $ (178,612)
								                                        =========        =========

Income (Loss) per Share					                   $        - 		    $    (0.07)
                                                =========        =========
								
Weighted Average Number of								
	Common Shares Outstanding			                   2,491,939        2,392,419 
                                                =========        =========				

See Notes to Unaudited Condensed Consolidated Financial Statements.								


<PAGE>

                   Micro-Integration Corp. and Subsidiaries						
                     Consolidated Statements of Cash Flows						


   				                                            Three months ended June 30		
 		   		                                              1997  	          1996
                                                      ----             ----
                                                        			(unaudited)
[S]                                              [C]              [C]       
Cash Flows from Operating Activities						
Net income (loss)				                            $    3,634       $(178,612)
Adjustments to reconcile net income (loss) to						
	net cash provided by operating activities:					
	Depreciation and amortization			                    80,301         185,561
Change in operating assets and liabilities:						
	Accounts receivable		                              219,583         193,531
	Note receivable                                     41,944               -
 Tax refund receivable			                                 -          (3,821)
	Inventory		                                         11,857         120,445
	Prepaid expense			                                  25,020          37,437
	Accounts payable			                                  5,286         (25,665)
	Accrued expenses			                               (162,671)         (7,391)
	Income taxes payable			                              4,908         (24,205)
                                                  ---------       ---------
Net cash provided by operating activities				       229,862         297,280 
						
Cash Flows from Investing Activities						
	Acquisition of property, plant, and equipment       (7,383)       (136,523)
	Increase in other noncurrent assets			             (41,603)        (42,025)
	Purchase of available-for-sale securities			             - 		   (3,000,000)
	Proceeds from sales of available-for-sale securities			  - 		    3,000,000 
	Increase in cash surrender value of life insurance		(9,521)         (5,548)
	Proceeds from sale of fixed assets			                     - 	        2,540
                                                   ---------      ---------    
Net cash used in investing activities				           (58,507)       (181,556)
						
Cash Flows from Financing Activities	
	Repayments of notes payable, long-term debt, and
		capital lease obligations		                       (28,407)        (37,945)
	Net repayment of short-term debt			                (41,000)              - 
	Issuance of common stock			                              - 		           88 
                                                  ---------       ---------
Net cash used in financing activities			            (69,407)        (37,857)
						
Currency Adjustments:						
	Effect of exchange rate changes on cash	                 - 		       27,355
                                                  ---------       ---------
	Increase in cash			                                101,948         105,222 
	Cash at beginning of period			                     370,598         460,874 
                                                  ---------       --------- 	
 Cash at end of period		                         $  472,546      $  566,096
                                                  =========       =========
						
See Notes to Unaudited Condensed Consolidated Financial Statements.						


<PAGE>

                   Micro-Integration Corp. and Subsidiaries
          Notes to Unaudited Condensed Consolidated Financial Statements


1. 	Basis of Presentation

The accompanying unaudited consolidated financial statements have been 
prepared in accordance with generally accepted accounting principles for 
interim financial information and with the instructions to Form 10-QSB and 
article 10 of Regulation S-X.  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 only of normal recurring adjustments, necessary 
for a fair presentation have been included. The results for the three months
ended June 30, 1997, and 1996, are not necessarily indicative of financial 
information for the full year. The unaudited condensed consolidated financial
statements should be read in conjunction with the consolidated financial 
statements and footnotes thereto included in the Company's annual report and 
Form 10-KSB for the year ended March 31, 1997.

For purposes of comparability, certain prior year amounts in the consolidated
financial statements have been reclassified to conform to the presentation 
used for current period reporting.

2. 	Marketable Securities

Available-for-sale securities are stated at fair value, with the unrealized 
gains and losses, net of tax, reported as a separate component of 
shareholders' equity.  Realized gains and losses and declines in value judged
to be other-than-temporary on available-for-sale securities are included in 
investment income.  The cost of securities sold is based on the specific 
identification method.  Interest on securities classified as available-for-
sale is included in investment income.  Available-for-sale securities include 
obligations of state municipalities and are stated at fair market value of
$100,000 at June 30, 1997, and March 31, 1997. These securities mature in 
August 2026. There were no unrealized gains/losses with respect to these 
securities during the quarters ended June 30, 1997, nor 1996.

3. 	Inventory

Inventory consisted of the following:

                                         		June 30		  March 31
			                                         1997		      1997
                                            ----        ----
					
               	Raw material		          $  112,374  $  129,766 
					
	               Finished goods		           472,325     466,790 
                                         ---------			---------		
			                                     $  584,699  $  596,556 
                                         =========   =========					

Inventory is stated at the lower of cost or market. Cost is determined using 
the first-in, first-out method.


<PAGE>

Part I	Financial Information

Item 2.	Management's Discussion and Analysis of Results of Operations and 
	       Financial Condition for the Three Months Ended June 30, 1997, and 1996



Results of Operations


The Company's total revenue was $3.4 million for the quarter ended June 30, 
1997, up 113% or $1.8 million from the quarter ended June 30, 1996.  Product 
and service revenue increased by $1.8 million or 121%, and license revenue 
declined, as expected, by $50,000 or 84% compared to the same period last 
year.  There were slight unit and revenue declines in the Company's AS/400 
connectivity product sales compared to the quarter ended June 30, 1996, but 
these declines were not as steep as they have been in the recent past. The 
Company believes, as stated previously, that this decline in unit sales is 
primarily a result of a slowdown in purchases of connectivity products in the
IBM AS/400 marketplace, and that this decline will continue. These declines 
were offset by increased revenues from sales by the Company's systems 
integration and consulting business primarily through the Company's Computer 
One and Computer Site subsidiaries. The Company's Computer One and Computer
Site subsidiaries jointly accounted for 66% of the Company's total revenue for 
the June 30, 1997, quarter. 

Gross margin declined to 33.2% for the quarter ended June 30, 1997, from 69.5% 
in the same period in 1996.  The major contributing factor to this decline is 
the change in product mix from high-margin AS/400 connectivity products where 
unit volumes are declining to lower-margin systems integration and consulting 
services sold primarily by the Company's Computer One and Computer Site 
subsidiaries.  Gross margins on product sales by the Computer One and Computer 
Site subsidiaries are also lower than those in the Company's new technology 
services business sector, where margins are strong and sales are increasing. 
The Company expects gross margins to decline further in the short term, as 
computer and network equipment sales by the subsidiaries continue to become a
larger proportion of the product mix. These gross margins may increase in the
future, however, if high-margin technology services become a more predominant 
part of the product mix.

Selling, general, and administrative expenses (SG&A) decreased by $137,000 in 
the quarter ended June 30, 1997, compared to the same period in 1996.  As a 
percentage of sales, SG&A represented 30.1% of total sales in the current 
quarter compared with 72.8% of total sales in the same quarter last year.  
Management continues to control costs in an attempt to keep them below 
expected gross margins.

The Company's net other expense increased $5,000 or 46% from $11,000 for the 
quarter ended June 30, 1996, to $17,000 for the quarter ended June 30, 1997. 
This increase resulted from an increase of $9,000 or 36% in interest expense 
partially offset by an increase of $4,000 or 28% in other income.

For the three months ended June 30, 1997, the Company recognized a corporate 
tax expense of $5,000.  At June 30, 1997, the Company had a net operating 
loss carryforward of approximately $2.3 million available for offset against
future operating profits.



Liquidity and Capital Resources


The Company satisfies its cash requirements primarily through cash flow from 
operations, bank borrowings, and lease financing.  At June 30, 1997, the 
Company had $100,000 invested in available-for-sale securities and an 
additional $472,000 in cash.  The $102,000 increase in cash on hand at June 
30, 1997, compared with cash on hand at March 31, 1997, is primarily due to 
cash provided by operating activities net of investing activities and long- 
and short-term loan repayments.  Investing activities included capitalization
of software development costs assoicated with the Company's new Internet 
voice/fax server product currently in development.

At June 30, 1997, the Company had two working capital credit lines with U.S. 
banks.  One credit line, which is secured by a deposit from MI, had an 
outstanding balance of $70,000 as of June 30, 1997.  The second line which 
had a balance of $351,500 at June 30, 1997, has been renegotiated to an 
available line of $300,000 as of July 31, 1997.  This line of credit will 
continue through January 31, 1998, at which time the terms and conditions of 
the loan will be re-evaluated.  The Company expects that cash generated from 
operations will satisfy its operating cash needs for the foreseeable future.

Working capital remained unchanged at $1.1 million as of June 30, 1997, and 
March 31, 1997.  The Company's current ratio showed a slight improvement from
1.5 to 1 at March 31, 1997, to 1.6 to 1 at June 30, 1997.  At the end of the 
June 1997 quarter, the Company's book value was $2.96 million or 
approximately $1.19 per weighted average share outstanding.


<PAGE>

Part II 	Other Information

Item 6.	Exhibits and Reports on Form 8-K

       	(a)	The following exhibits are included herein:

           	(11.1) Statement re: Computation of Earnings Per Share       	10
	
        (b) 	The Company did not file reports on Form 8-K 
	           	during the three months ended June 30, 1997.
 

<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 in the city of Frostburg, state of
Maryland, on the 12th day of August, 1997:


Micro-Integration Corp.


By:   /s/     John A. Parsons
    ---------------------------
              John A. Parsons
     President, Chairman of the Board
        Chief Executive Officer



By:   /s/     Terry D. Frost
   ----------------------------
              Terry D. Frost
           Chief Financial Officer