10

                               UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.  20549
                                     
                           AMENDED FORM 10-QSB
                                     
 [   X    ]     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                THE SECURITIES EXCHANGE ACT OF 1934
 
               For the quarterly period ended September 30, 1996
                                     
                                    OR
                                     
 [         ]    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:  0-23952
                                     
                                AVERT, INC.
     (Exact name of small business issuer as specified in its charter)
                                     
          Colorado                                         84-1028716
 (State or other jurisdiction of                              (I.R.S.
  incorporation or organization)                 Employer Identification No.)
 
 
                  301 Remington, Fort Collins, CO  80524
                 (Address of principal executive offices)
                                     
                               970/484-7722
           (Registrant's telephone number, including area code)
                                     
                                 No Change
 (Former name, former address and former fiscal year, if changed from last
                                 report).
 
      Check whether the registrant (1) 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
 issuer was required to file such reports), and (2) has been subject to
 such filing requirements for the past 90 days.
 
                    [  X   ]   Yes         [     ]   No
                                     
 As of November 11, 1996 the issuer had 3,400,000 shares of Common Stock, no
 par value, outstanding
 
              Transitional Small Business Disclosure Format.
                     [      ]  Yes         [  X  ]  No
 Form 10-QSB
 Quarter Ended September 30, 1996
 
 
                                   INDEX
                                     
                                     
                                                             PAGE
 
 PART I - FINANCIAL INFORMATION
 
      ITEM 1.  Financial statements
 
           Unaudited balance sheets..........................  3
 
           Unaudited statements of income....................  4
 
           Unaudited statements of cash flows................  5
 
           Notes to unaudited financial statements...........  6
 
      ITEM 2.  Management's Discussion and Analysis or
              Plan of
 Operations..................................................  7
 
 
 PART II - OTHER INFORMATION
 
      ITEMS 1, 2, 3, 4 and 5    Not applicable...............
 
      ITEM 6   Exhibits and Reports on Form 8-K..............  11
 
 
 Signatures..................................................  12
 
 
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     

                      PART I - FINANCIAL INFORMATION
                                AVERT, INC.
                              BALANCE SHEETS
                                     
                                  ASSETS
                                     
                                              SEPTEMBER 30,     DECEMBER 31,
                                                  1996              1995
                                               (unaudited)
Current assets:
     Cash and cash equivalents..............    $ 243,500       $ 159,700
     Marketable securities..................    5,500,400       5,966,500
     Accounts receivable, net of allowance..    1,002,900         607,900
     Prepaid expenses and other.............      150,400         240,600

          Total current assets..............  $ 6,897,200       6,974,700

Property and equipment, net.................    2,136,000       1,389,100
Other     assets............................       16,200          19,400

Total assets................................  $ 9,049,400    $  8,383,200
                                              ===========      ==========

                   LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
     Accounts payable.......................   $  359,500    $    407,900
     Accrued expenses.......................      170,000          81,300
     Deferred revenue.......................       53,000          58,600
          Total current liabilities.........      582,500         547,800

Shareholders' equity:
     Preferred shares, no par value; authorized
       1,000,000 shares; none outstanding....         ---            ---
     Common stock, no par value; authorized
       9,000,000 shares; 3,442,250 shares issued
       and outstanding.......................   4,960,600       4,960,600
     Treasury Stock                              (168,200)           ---
     Retained earnings............ ..........   3,674,500       2,874,800
          Total shareholders' equity.........   8,466,900       7,835,400

Total liabilities and shareholders' equity... $ 9,049,400     $ 8,383,200
                                               ==========      ==========
                                     
            See accompanying notes to the financial statements.
                                     
                                     
                                     
                                     
                                   AVERT, INC.
                           STATEMENTS OF INCOME
                                (unaudited)

                                    Three Months Ended      Nine Months Ended
                                      September  30,          September 30,

                                    1996        1995       1996         1995
Net revenues:
     Search and product fees... $2,054,900  $1,578,000  $5,466,800  $4,158,000
     Interest and other income.....158,900     106,800     367,100     303,500

                                 2,213,800   1,684,800   5,833,900   4,461,500
Expenses:
     Search and product costs..... 892,700     740,400   2,385,100   1,841,300
     Marketing.....................374,100     213,900     984,300     578,100
     General and administrative....259,400     231,300     774,700     670,800
     Software development.......... 91,500      53,800     268,400     168,000
     Depreciation and amortization..50,100      26,100     130,600      79,900
                                                
                                 1,667,800   1,265,500   4,543,100   3,338,100

Income before income taxes.........546,000     419,300   1,290,800   1,123,400

     Income tax expense......... ( 207,900)   (159,100)   (491,100)   (422,400)

Net income.................. $     338,100 $   260,200   $ 799,700   $ 701,000
                                ==========   =========    ========    ========
Net income per common share..$         .10 $       .08   $     .23   $     .20
                                ==========   =========    ========    ========
Weighted average common
     shares outstanding..........3,422,797   3,442,250   3,423,893   3,442,250
                                ==========   =========   =========   =========










            See accompanying notes to the financial statements.

                                     
                                     
                                     
                                     
                                     
                                AVERT, INC.
                         STATEMENTS OF CASH FLOWS
                                (unaudited)
                                     
                                             NINE MONTHS ENDED SEPTEMBER 30,
                                               1996                 1995
Cash Flows From Operating Activities:
    Net income...........................   $ 799,700           $  701,000
    Adjustments to reconcile net income to net cash
      provided by operating activities:
         Depreciation and amortization...     130,600               79,900
         Bad debt expense................      22,500               21,500
         Increase/(decrease) in marketable securities and
          other gains....................     (76,600)            (259,400)
         Changes in operating assets and liabilities:
          Accounts receivable................(417,500)            (286,200)
          Prepaid expenses and other current assets        
                               ...........     90,200              (88,600)
          Other assets....................      3,200               11,300
          Accounts payable................    (48,400)             167,200
          Accrued expenses................    (36,900)             (38,600)
          Income taxes payable............    125,600             (173,500)
          Deferred revenue and deposits ..     (5,600)             (25,900)

     Net cash provided by operating activities
                               ...........    586,800              108,700

Cash Flows from Investing Activities:
     Additions to furniture and equipment.    (877,500)           (677,500)
     Sale of marketable securities........     542,700               ---

     Net cash provided by investing activities   
                               ...........    (334,800)           (677,500)

Cash Flows from Financing Activities:
     Purchase of Treasury Stock...........    (168,200)               ---

     Net cash provided by financing activities(168,200)               ---

Increase/(Decrease) in Cash and Cash Equivalents
                             .............      83,800           (568,800)

Cash and Cash Equivalents, beginning of period
                             .............     159,700             738,300

Cash and Cash Equivalents, end of period..   $ 243,500           $ 169,500
                                             ==========         ===========

            See accompanying notes to the financial statements.
                                     
                                     
                                     
                                     
                                     
                                AVERT, INC.
                       NOTES TO FINANCIAL STATEMENTS

     On June 22, 1994, the Company completed an initial public offering
("IPO") of 1,000,000 units ("Units"), each consisting of one share of
Common Stock and one Redeemable Warrant.  The Units separated on December
7, 1994, and the Common Stock and the Redeemable Warrants began trading
separately as of that date.  Two Redeemable Warrants entitle the holder to
purchase one share of Common Stock at a price of $6.50 per share (subject
to adjustment) for a nine month period originally stated as March 22, 1995
and ending December 22, 1995.  On October 11, 1995, the Company announed
that it extended the expiration date of its Redeemable Warrants from
December 22, 1995 to April 30, 1996.  The expiration date was further
extended  to April 30, 1997, as announced on Form 8-K dated  March 6, 1996.
All of the other terms of the Redeemable Warrants remain the same.  The
Redeemable Warrants are redeemable by the Company at a redemption price of
$0.05 per Redeemable Warrant at any time commencing March 22, 1995, on at
least 30 days prior written notice, provided that the closing price of the
Common Stock equals or exceeds $7.50 per share for a period of 15
consecutive trading days ending within 15 days prior to the notice of
redemption.  Net proceeds from the IPO totalled approximately $4,382,300.

     The financial information contained herein is unaudited, but includes
all adjustments (consisting of only normal recurring accruals) which, in
the opinion of management, are necessary to present fairly the information
set forth.  The financial statements should be read in conjunction with the
Notes to Financial Statements which are included in the Annual Report on
Form 10-KSB of the Company for the year ended December 31, 1995.

     The results for interim periods are not necessarily indicative of
results to be expected for the fiscal year of the Company ending December
31, 1996.  The Company believes that the six month report filed on Form
10-QSB is representative of its financial position, its results of
operations and its cash flows as of and for the periods ended September 30,
1996 and 1995 covered thereby.





















ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


Results of Operations

Comparison of quarters ended September, 1996 and September 30, 1995

     Net revenues increased from $1,684,800 for the three month period
ended September 30, 1995,to $2,213,800 for the comparable three month period
in 1996 or 31%.  The breakdown of net revenues, exclusive of product discounts
and other miscellaneous income items, is as follows:

                        Three Months Ended   Three Months Ended  Percent of
                        Septemer 30, 1996    Septemer 30, 1995   Increase
                         Revenues  % total    Revenues  % total  (Decrease)
Products:
  Workers compensation histories 
                       $  354,600    16.0%    $ 350,200    20.8%        1.3%
  Criminal history reports                      
                       $1,114,200    50.3%    $ 831,800    49.4%        34.0%
  Previous employment reports/credit reports
                       $  246,400    11.1%    $ 165,900     9.9%        48.5%
  Motor vehicle driving records                 
                       $  256,700    11.6%    $ 202,300    12.0%        26.9%
  Other products       $  111,100     5.0%    $  75,300     4.5%       147.5%

Interest income        $   76,700     3.5%    $  93,200     5.5%       (17.7)%


     NET REVENUES      $2,213,800            $1,684,800                  31.4%



     Moderate to strong growth in sales of all of the Company's products
continued during the third quarter of 1996 with the exception of Workers'
Compensation reports.  Although sales of Workers' Compensation histories
only increased approximately 1.3% from third quarter 1995 to third
quarter 1996, it is still the second largest product line respresenting
$354,600 for the third three months of 1996 and $350,200 for the comparable
period in 1995.   Sales of Workers' Compensation histories are expected to 
continue to be a viable product as the Company new  markets, continues to 
educate customers, continues workers' compensation marketing campaigns, and
locates new data sources, but to continue to decrease as a percentage of total
revenues.  In terms of dollars, Criminal History reports contributed the
largest increase in net revenues and represented strong growth of approximately
34% in the quarter ended September 30, 1995 over the quarter ended September
30, 1996.  The Criminal History product line represented approximately 50.3%
of net revenues in the third quarter of 1996 as compared to approximately
49% of net revenues in the third quarter of 1995.  There was an approximate 
48% growth from third quarter 1995 to third quarter 1996 in the area of
Previous Employment/Credit.  These products represent approximately 11.1%
of net revenues in the quarter ended September 30, 1996 as compared to
approximately 9.9% of net revenues in the same quarter in 1995.


     The category above titled as "Other Products" consists of four products:
Education/Credential Verification, Name Link, Employment Applications, and
First Check.  While these products do not represent a material amount of
dollars, they continue to experience strong growth and represent approximately
5% of net revenues and $111,100 in revenues in the quarter ended September 30,
1996, as compared to approximately 4.5% of net revenue and $75,300 in revenue
for the quarter ended September 30, 1995.

     Income before income taxes increased from $419,300 in the period
ended September 30, 1995 to $546,000 in the period ended September 30, 1996 or
approximately 30.2% and represented approximately 24.7% of net revenues in
the third quarter 1996 compared to approximately 24.9% in the third quarter
1995.

     Total expenses increased from $1,265,500 for the three month period
ended September 30, 1995 to $1,667,800 for the comparable period in 1996.  A
breakdown in expenses is as follows:

                     Three Months Ended  Three Months Ended  Increase (Decrease)
                     September 30, 1996  September 30, 1995    % of Revenues
                     Expense  % of       Expense  % of        1995 over 1994
                              Revenue             Revenue 

Search and product     $ 892,700   40.3% $ 740,400   43.9%      (3.6)%
Marketing                374,100   16.9    213,900   12.7        4.2
General and administration         
                         259,400   11.7    231,300   13.7       (2.0)
Software development      91,500    4.1     53,800    3.2        0.9
Depreciation and amortization            
                          50,100    2.3     26,100    1.6        0.7


     Expenses        $ 1,667,800   75.3% $1,265,500  75.1%       .20%
                       ========   ====== ==========  ======   ===========

     The expenses for both third quarter periods in 1996 and 1995 remained 
stable as a whole in terms of percentage of revenue.  The Company experienced
an approximate 3.6% decrease in product costs and 2.0% decrease in general 
and administrative costs.  These decreases were offset by the increase
primarily in marketing expenses.  This increase was primarily associated with
the generation of new customer leads and the hiring and training of 
additional sales personnel needed for implementation of the Company's
nationwide marketing efforts.

     Income taxes remained consistent between the respective three month
periods at the expected combined federal and state statutory rate of
approximately 38%, resulting in net income of $338,100 or $.10 per share on
3,422,800 shares for the third quarter ended September 30, 1996, as compared 
to net income of $260,200 or $.08 per share on 3,442,250 shares for the third
quarter ended September 30, 1996.

  
Comparison of nine months ended September 30, 1996 and September 30, 1995

     Net revenues increased from $4,461,500 for the nine month period ended
September 30, 1995, to $5,833,900 for the comparable nine month period in 1996
or approximately 30.8%.  The breakdown of net revenues, exclusive of
product discounts and other miscellaneous income items, is as follows:

                       Nine Months Ended    Nine Months Ended    Percent of
                       September 30, 1996   September 30, 1995    Increase
                       Revenues    % total  Revenues   % total   (Decrease)

Products:
   Workers' compensation histories
                       $  964,800   16.5%   $  982,000  22.0%      ( 1.8)%
   Criminal history reports
                       $2,982,900   51.1%   $2,125,400  47.6%       40.3%
   Previous employment reports/credit report
                       $  645,200   11.1%   $  379,900   8.5%       69.9%
   Motor vehicle driving records
                       $  704,800   12.1%   $  583,500  13.1%       20.8%
   Other products      $  320,100    5.5%   $  198,100   4.4%      161.6%

Interest income        $  237,700    4.1%   $  270,000   6.1%     ( 12.0)%

     NET REVENEUS      $5,833,900           $4,461,500               30.8%


     Moderate to strong growth in sales of all of the Company's products 
continued during the first nine months of 1996 with the exception of 
Workers' Compensation reports.  Although sales of Workers' Compensation
histories actually decreased approximately 1.8% from the nine month period
ended September 30, 1995 to the same nine month period in 1996, it is still
the second largest product line representing $964,800 for nine months of 1996
and $982,000 for nine months of 1995.  Sales of Workers' Compensation
histories are expected to continue to be a viable product as the Company
enters new markets, continues to educate customers, continues workers' 
compensation marketing campaigns, and locates new data sources, but to 
continue to decrease as a percentage of total revenues.  Very strong growth
of approximately 40.3% continued in the Criminal History product line 
representing approximately 51.1% of net revenues in the first nine month
period of 1996 as compared to approximately 47.6% of net revenues in the 
first nine month period of1995.  There was an approximate 69.9% growth from
the nine month period ended September 30, 1995 to the nine month period ended
September 30, 1996 in the area of Previous Employment/Credit.  These products
represent approximately 11.1% of net revenues in the nine months ended 
September 300, 1996 as compared to approximately 8.5% of net revenues in the
same period in 1995.

     The category above labeled "Other Products" consists of four products:
Education/Credential Verification, Name Link, Employment Applications, and
First Check.  These products continue to experience strong growth and
represent approximately 5.5% of net revenues or $320,100 in revenues in the 
nine month period ended September 30, 1996, as compared to approximately
4.4% of net revenues, or $198,100 in the same nine month period in 1995.

     Income before income taxes increased from $1,123,400 in the nine month
period ended September 30, 1995 to $1,290,800 in the nine month period ended
September 30, 1996 or approximately 14.9% and represented approximately 22.1%
of net revenues in the first nine months of 1996 compared to approximately 
25.2% in the first nine months of 1995.

     Total expenses increased from $3,338,100 for the nine month period
ended September 30, 1995, to $4,543,100 for the comparable period in 1996.
A breakdown in expenses is as follows:

                   Nine Months Ended    Nine Months Ended  Increase(Decrease)
                   September 30, 1996   September 30, 1995    % of Revenues
                    Expenses  % of       Expense   % of     1996 over 1995
                             Revenue              Revenue

Search and product..$2,385,100  40.9%   $1,841,300  41.2%        (0.3)%
Marketing              984,300  16.9       578,100  13.0          3.9
General and administration
                       774,700  13.3       670,800  15.0         (1.7)
Software development   268,400   4.6       168,000   3.8          0.8
Depreciation and amortization
                       130,600   2.2        79,900   1.8          0.4

     Expenses       $4,543,100  77.9%   $3,338,100  74.8%         3.1%
                    ==========  =====   ==========  =====         ====

     The expenses for the nine month period ended September 30, 1996 
increased approximately 3.1% as a percentage of revenues over the same nine
month period in 1995.  Additional marketing expenses accounted for the 
majority of the increase.  Those expenses are primarily associated with the
generation of new customer leads and the hiring and training of additional
sales personnel needed for implementation of the Company's nationwide
marketing efforts.  The Company experienced an approximate 1.7% decrease
in product and general and administrative costs.  Other areas of expense
remained relatively stable.

     Income taxes remained consistent between the respective nine month
periods at the expected combined federal and state statutory rate of 
approximately 38%, resulting in net income of $799,700 or $.23 per share
on 3,423,900 shares for the nine months ended September 30, 1996, as compared
to net income of $701,000 or $.20 per share on 3,442,250 shares for the
nine months ended September 30, 1995.   


Liquidity and Capital Resources

     The Company's financial position at September 30, 1996 remained strong
with working capital at that date of $6,314,700 compared to $6,426,900 at
December 31 1995.  Cash and cash equivalents at September 30, 1996 were
$243,500 and increased from $159,700 at December 31, 1995.  Net cash
provided from operations for the nine month period ended September 30, 1996
was $586,800 and consisted primarily of net income of $799,700, a $417,000
increase in accounts receivable, and a $125,600 increase in income taxes
payable.  The Company had capital expenditures of $877,500 for the nine 
month period ended September 30, 1996 as compared to $387,400 for the year
ended December 31,1995.  The majority of the capital expenditures during the
nine months ended September 30, 1996 was attributable to the final phase of
construction and purchase of assets for an approximate 14,600 square feet
office building for use as its headquarters.  The total construction costs
were approximately $1.2 million.  Construction was financed entirely by
available cash derived from past operations.  No proceeds from the IPO was
used for the purchase of the land or the construction of the building.  
Construction was completed in March, 1996.  In addition, Avert has now 
internally committed to spend up to $1.5 million to develop new software and
upgrade its existing software.  The Company expects the new software and
upgrade of its existing sfotware to allow the Company to:  (1) manage its
higher volume with a lower cost per transaction; (2) introduce new products
and services at a much quicker pace; (3) directly integrate the Company's
information technology systems with strategic partners, suppliers, and
large customers; and (4) maintain the Company's competitive position and
provide leading edge, but safe and proven, technology for its customers.
Development and upgrade of the software will be financed by available cash
derived from past or continued operations.  No proceeds from the IPO or this
offering will be used for development of this new software and upgrade of the
Company's existing software.  Development and upgrading of the software 
presently is expected to be complete in late 1997 or early 1998, with
scheduled software releases occurring prior to that time.
















                        PART II - OTHER INFORMATION
                                     
                                     
ITEM 1.        Legal Proceedings

               NONE


ITEM 6.        Exhibits and Reports on Form 8-K

               (a)     None

               (b)     Reports on Form 8-K

          The registrant filed the following reports on Form 8-K during the
second quarter, 1996:

          (i)  Form 8-K dated July 1, 1996 announcing the Avertadvantage
Program and price increase.

          (ii) Form 8-K dated July 23, 1996 announcing financial results for
the second quarter and six month period.

          (iii)Form 8-K dated November 11, 1996 announcing financial results
for the third quarter and nine month period.




































                                SIGNATURES



In accordance with 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.


                                   AVERT, INC.


DATE:          November 11, 1996          BY:  Dean A. Suposs
                                          Dean A. Suposs, President



DATE:          November 11, 1996          BY:  Jamie M.Burgat
                                          Jamie M. Burgat, Vice President of
                                          Operations and Chief Financial
                                          Officer









[TYPE]         EX-27
[SROS]         NASD
[FILER]
[ARTICLE] 5
[CIK]          0000920909
[CCC]          gjw8ap@p
[FILER]
[NAME]         AVERT, INC.
[PERIOD-START] JUL-01-1996
[PERIOD-TYPE]  9-MOS
[FISCAL-YEAR-END]  DEC-31-1996
[PERIOD-END]   SEP-30-1996
[CASH]                                    243,500
[SECURITIES]                            5,500,400
<RECEIVABLES, NET>                      1,002,900
[ALLOWANCES]                                    0
[INVENTORY]                                     0
<CURRENT ASSETS>                        6,897,200
<PP&E, NET>                             2,136,000
[DEPRECIATION]                                  0
<TOTAL ASSETS>                          9,049,400
<CURRENT LIABILITIES>                     582,500
[BONDS]                                         0
[PREFERRED-MANDATORY]                           0
[PREFERRED]                                     0
[COMMON]                                4,960,600
[OTHER-SE]                              3,506,300
[TOTAL-LIABILITY-AND-EQUITY]            9,049,400
[SALES]                                 5,466,800
[TOTAL-REVENUES]                        5,833,900
[CGS]                                           0
[TOTAL-COSTS]                           4,543,100
[OTHER-EXPENSES]                                0
[LOSS-PROVISION]                                0
[INTEREST-EXPENSE]                              0
[INCOME-PRETAX]                         1,290,800
[INCOME-TAX]                              491,100
[INCOME-CONTINUING]                             0
[DISCONTINUED]                                  0
[EXTRAORDINARY]                                 0
[CHANGES]                                       0
[NET-INCOME]                              799,700
[EPS-PRIMARY]                                 .23
[EPS-DILUTED]                                 .23