Securities & Exchange Commission
                             Washington, D.C. 20549

                                   FORM 10-QSB
(Mark One)
[X]      QUARTERLY  REPORT  PURSUANT  TO SECTION  13 or 15(d) OF THE  SECURITIES
         EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1996

[  ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

                         Commission file number 0-25764

                                MarketLink, Inc.
        (Exact name of small business issuer as specified in its charter)
        Minnesota                                            41-1675041
(State or other jurisdiction                               (IRS Employer
of incorporation or organization)                        Identification No.)

                          10340 Viking Drive, Suite 150
                             Eden Prairie, MN 55344
                    (Address of principal executive offices)

                                  612-996-9000
                           (Issuer's telephone number)

         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 [ ]

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

         Check whether the registrant  filed all documents and reports  required
to be  filed  by  Section  12,13  or 15  (d)  of  the  Exchange  Act  after  the
distribution of securities under a plan confirmed by court. NOT APPLICABLE

                         APPLICABLE TO CORPORATE ISSUERS

         State the number of shares  outstanding of each of the issuer's classes
of  common  equity,  as  of  the  latest  practicable  date:   2,943,831  shares
outstanding  as of  10/31/96,  par  value  $.01 per  share.  

         Transitional  Small Business  Disclosure Format (check one); 

                                   YES [ ] NO  [X]


<PAGE>


                                                                    

                                MarketLink, Inc.

                                Table of Contents

PART I              Financial Information                            Page No.

Item 1.  Financial Statements (Unaudited)
           Balance Sheets                                                3
           Statements of Operations                                      4
           Statements of Cash Flows                                      5
           Notes to Financial Statements                                 6

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

PART II           Other Information                                     10

Item 1.  Legal Proceedings                                              10

Item 5.  Other Information                                              11

Item 6.  Exhibits and Reports on Form 8-K                               12


SIGNATURES                                                              13



<PAGE>                                                  
Part 1 - Financial Information
Item 1. Financial Statements

                                MarketLink, Inc.
                                 Balance Sheets
<TABLE>
<CAPTION>
                                                                  September 30,
                                                                       1996      December 31,
                                                                   (unaudited)       1995
                                                                   -----------   -----------
<S>                                                               <C>            <C>
Assets
Current assets:
      Cash and cash equivalents                                   $ 1,121,751    $ 2,720,771
      Trade accounts receivable, net of allowance for
        doubtful accounts of $7,500 in 1995 and $95,025 in 1996       178,882         70,946

      Accrued interest receivable

      Minimum lease payments receivable                                34,200         34,200
      Computer parts and supplies, net of reserve for
        obsolescence of $1,000 in 1995 and $4,000 in 1996              57,110        123,463
      Prepaid expenses                                                 55,731         63,470
                                                                  -----------    -----------
Total current assets                                                1,447,674      3,012,850

Property and equipment:
      Furniture and equipment                                         826,473        624,691
      Equipment leased to others                                      314,504        313,664
                                                                  -----------    -----------
                                                                    1,140,977        938,355
      Accumulated depreciation                                       (509,329)      (302,551)
                                                                  -----------    -----------
                                                                      631,648        635,804
Other assets:
      Goodwill                                                        640,591           --
      Investment in sales type leases                                  19,468         38,514
      Merger costs                                                     62,492           --
      Deposits                                                         45,885         11,465
                                                                  -----------    -----------
                                                                      768,436         49,979
                                                                  -----------    -----------
Total Assets                                                        2,847,758      3,698,633
                                                                  ===========    ===========
Liabilities and shareholders' equity

Current liabilities
      Accounts payable                                            $   174,350    $    96,199
      Notes payable                                                    10,310           --
      Current maturities of long-term debt                             54,276         73,844
      Accrued expenses                                                  3,004         25,038
      Customer deposits                                                 1,642           --
      Deferred revenue                                                 50,337         45,147
      Other accrued liabilities                                       244,883        119,662
                                                                  -----------    -----------
Total current liabilities                                             538,802        359,890

Long-term debt - related parties                                        3,261         19,380

Long-term debt, net of current maturities                              72,844         64,918

Shareholders' equity:
      Common stock, par value $.01 per share
      Authorized shares--5,000,000
        Issued and outstanding shares:
          1996 and 1995--2,943,831 and 2,931,415                       29,438         29,314
      Additional paid-in capital                                    6,346,663      6,081,148
      Accumulated deficit                                          (4,143,250)    (2,856,017)
                                                                  -----------    -----------
Total shareholders' equity                                          2,232,851      3,254,445
                                                                  -----------    -----------
Total liabilities and shareholders' equity                        $ 2,847,758    $ 3,698,633
                                                                  ===========    ===========
</TABLE>
See accompanying notes.



<PAGE>


                                MarketLink, Inc.
                            Statements of Operations
                                   (unaudited)
<TABLE>
<CAPTION>
                                                Three months ended September 30, Nine months ended September 30,
                                                        1996          1995            1996          1995
                                                   -----------    -----------    -----------    -----------
<S>                                                <C>            <C>            <C>            <C>
Revenues                                           $   319,917    $   229,675    $   743,375    $   555,069

Cost of revenues                                       156,621         73,399        334,337        280,127
                                                   -----------    -----------    -----------    -----------
Gross profit                                           163,296        156,276        409,038        274,942

Operating expenses:

             Selling, general and administrative       456,953        242,872      1,330,770        644,862

             Research and development                  125,382        125,277        449,631        320,365

             N11 application costs                        --             --             --           10,203
                                                   -----------    -----------    -----------     ----------
Total operating expenses                               582,335        399,661      1,780,401      1,101,477
                                                   -----------    -----------    -----------     ----------
Operating loss                                        (419,039)      (211,873)    (1,371,363)      (700,488)


Interest income                                         26,644         51,500         84,198         66,297

Interest expense                                        (5,761)        (5,508)       (14,802)       (74,652)

Other income                                              --             --           14,734          7,749
                                                   -----------    -----------    -----------     ----------
Net loss                                           $  (398,156)   $  (165,881)   $(1,287,233)   $  (701,094)
                                                   ===========    ===========    ===========     ==========
Net loss per share                                 $     (0.14)   $     (0.06)   $     (0.44)   $     (0.34)

Weighted average number of shares outstanding        2,925,831      2,930,452      2,921,300      2,044,125


</TABLE>





<PAGE>
  
                                MarketLink, Inc.

                            Statements of Cash Flows
                                   (unaudited)

<TABLE>
<CAPTION>
                                                   Nine months ended September 30,
                                                         1996            1995
                                                     ------------   ------------
<S>                                                  <C>            <C>
Operating Activities
Net Loss                                             $(1,287,233)   $  (701,094)
Adjustments to reconcile net loss to
  net cash used in operating activities:

    Depreciation                                         211,320        155,940
    Amortization of goodwill                              10,860           --
    Net gain on sale of property and                      (4,634)          --
    equipment

    Changes in operating assets and liabilities:
      Accounts receivable                               (107,936)       (56,388)
      Minimum lease pmts receivable                       25,650        (58,682)
      Computer parts and supplies                         66,353       (149,754)
      Prepaid expenses and deposits                       (9,439)       (37,846)

      Other assets                                       (86,338)          --
      Accounts payable                                    78,151       (178,089)
      Accrued liabilities                                105,449        (72,791)
      Deferred revenue                                     5,190         35,219
                                                     -----------    -----------
Net cash used in operating activities                   (992,607)    (1,063,485)

Investing Activities:
Investment in subsidiary                                 265,645           --
Increase in goodwill                                    (651,451)          --
Short term investments                                      --       (3,223,777)
Sale of property and equipment                            79,685           --
Capital expenditures                                    (282,215)      (110,104)
                                                     -----------    -----------
Net cash used in investing activities                   (588,336)    (3,333,881)

Financing activities:
Proceeds from issuance of common stock                      --        5,556,248
Deferred stock offering costs                               --          123,145
Increase in capital leases                                23,163           --
Payments on short-term and long-term notes payable       (41,240)    (1,335,033)
                                                     -----------    -----------
Net cash (used) provided by financing activities         (18,077)     4,344,360
                                                     -----------    -----------
Decrease in cash and cash equivalents                 (1,599,020)       (53,006)
Cash and cash equivalents at beginning of period       2,720,771         97,931
                                                     -----------    -----------
Cash and cash equivalents at end of period           $ 1,121,751    $    44,925
                                                     ===========    ===========
</TABLE>

See accompanying notes.


<PAGE>



                                MarketLink, Inc.
                          Notes to Financial Statements
                               September 30, 1996
                                   (Unaudited)


Note. 1.  Summary of Significant Accounting Policies.

Interim Financial Information

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information.
Accordingly,  certain information and footnote  disclosures normally included in
financial  statements  prepared in accordance with generally accepted accounting
principles have been omitted pursuant to such rules and  regulations.  Operating
results  for the nine  months  ended  September  30,  1996  are not  necessarily
indicative  of the  results  that may be  expected  for the year ended  December
31,1996. The accompanying  financial statements and related notes should be read
in conjunction with the audited financial  statements of the Company,  and notes
thereto,  for the fiscal year ended December 31, 1995, included in the Company's
Form 10-KSB for the year ended  December 31, 1995 and the Company's  1995 Annual
Report to Shareholders.

The financial information furnished reflects, in the opinion of management,  all
adjustments,  consisting  of normal  recurring  accruals,  necessary  for a fair
presentation of the results of the interim periods presented.

Reclassifications
Certain  prior  year  items  have been  reclassified  to  conform  with the 1996
presentation.



<PAGE>


                                                        



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

Results of Operations

The  following  table sets  forth  certain  Statement  of  Operations  data as a
percentage of revenues.
<TABLE>
<CAPTION>

                                            Third                 Third              Nine months ended          Nine months ended
                                        Quarter 1996           Quarter 1995            September 30,              September 30,
                                                                                           1996                       1995

<S>                                        <C>                    <C>                     <C>                        <C>   
Revenues                                   100.0%                 100.0%                  100.0%                     100.0%
Cost of revenues                            49.0                   32.0                    45.0                       50.5
Gross profit                                51.0                   68.0                    55.0                       49.5
Operating expense:
   Selling, general &                       142.8                 105.7                    179.0                      116.2
administrative
   Research & development                   39.2                   54.5                    60.5                       57.7
   N11 costs                                 0.0                   0.0                      0.0                        1.8
Total other income (expense)                 6.5                   20.0                    11.3                       (.1)
Net loss                                  (124.5)%               (72.2)%                 (173.2)%                   (126.3)%
</TABLE>


Revenues

Revenues for the nine month period ended September 30, 1996 increased 33.9% over
the same period in 1995 to $743,375.  For the three month period ended September
30, 1996 revenues increased 39.3% over the same period in 1995 to $319,917.  The
Company recognized  approximately $57,000 in revenue from the Company's One Call
product in the three months ended September 30, 1996,  compared to approximately
$127,000 for the three  months  ended  September  30,  1995.  This  represents a
decrease of $70,000,  or 55.1%,  from the same period last year. The decrease is
due primarily to a sale of a One Call system in the third quarter of 1995 and no
comparable  sale in 1996.  In the three months  ended  September  30, 1996,  the
Company received  approximately $76,000 in revenue from operating leases between
MarketLink and various newspaper publishing  companies,  up from $39,000 for the
same  period  of 1995,  an  increase  of  94.9%.  Revenues  from the  Geographic
Information  Systems  (GIS)  product  were  $53,000  in the three  months  ended
September  30, 1996  compared to $13,000 in the same period of 1995, an increase
of  $40,000 or 308%.  Revenues  from the sale of  telephone  access  cards,  the
Company's newest product resulting from the August 1996 acquisition of Provident
Worldwide Communications, Inc. were $76,000 for the three months ended September
30, 1996.





<PAGE>


Gross Profit

The Company's  cost of revenues  increased  $83,222 or 113.4% in the three month
period ended  September  30, 1996.  A large  portion of this  increase is due to
telephone  access card business  which had costs of $64,695.  For the nine month
period ended September 30, 1996, the cost of revenues increased $54,210 or 19.4%
when  compared to the same period in 1995.  The gross profit of $163,296 for the
three month period  ended  September  30, 1996,  is an increase of 132% over the
same period  last year after  excluding  the sale of the One Call  system  which
occurred in the three month period ended September 30, 1995. Gross profit,  as a
percentage of revenues,  for the three month period ended September 30, 1996 was
51.0% compared to 68.0%. The higher  percentage for the three month period ended
September  30,  1995,  is the  result of the sale of the One Call  system in the
third  quarter which had  relatively  low costs of revenue.  Gross profit,  as a
percentage of revenues,  for the nine month period ended  September 30, 1996 was
55.0% compared to 49.5% for the same period in 1995.

Selling, General and Administrative

For the three month  period  ended  September  30,  1996,  selling,  general and
administrative  expenses were $456,953  compared to $242,872 for the same period
in 1995, an increase of 88%. This increase of $214,081 is due to increased sales
staff and the operating costs associated with the acquired telephone access card
business. Selling, general and administrative expenses for the nine month period
ended September 30, 1996 increased  $685,908 or 106% compared to the same period
in 1995. In addition to the increased  costs in the third  quarter,  the Company
had increased costs in prior quarters related to legal fees, severance payments,
printing and advertising.

Research and Development

Research and  development  expenses  remained  relatively  constant in the three
months  period ended  September 30, 1996 as compared to the same period of 1995.
Research and development  expenses increased $129,266 or 40.3% in the nine month
period  ended  September  30,  1996,  compared to the same  period in 1995.  The
increases  which  occurred in earlier  quarters  are related to increases in the
number of employees needed for the continued development and testing of new UNIX
systems,  as well as  development  of  Geographic  Information  Systems  mapping
capabilities.

N11 Expenses

In late 1995, the Company  discontinued  efforts to obtain and commercialize the
use of abbreviated dialing codes. As a result, N11 expenses were incurred in the
three month period ended March 31, 1995, but none have been incurred in 1996.





<PAGE>


Other Income and Expense

For the nine month period ended September 30, 1995 the Company incurred interest
expense of $74,652,  primarily due to outstanding notes for Bridge Loans used to
fund the Company until an initial  public  offering of its common stock could be
completed.  Subsequent to the initial public offering, completed April 27, 1995,
the Bridge  Loans were  repaid and excess  proceeds  were  invested  in interest
bearing  instruments.  Interest  expense for the nine months ended September 30,
1996 was $14,802,  related to interest on notes  payable and  equipment  leases.
Interest  income  for the nine  months  ended  September  30,  1996 was  $84,198
compared  to $66,297 for the same  period in 1995.  For the three  month  period
ended September 30, 1996,  interest  income was $26,644  compared to $51,500 for
the same period in 1995,  the  decrease  being due to the  reduction of interest
bearing deposits in 1996.

Net Loss

The Company  incurred a net loss of  $1,287,233  for the nine month period ended
September  30, 1996  compared  to a net loss of $701,094  for the same period in
1995.  The net loss  increased  to $398,156  in the three  months  period  ended
September 30, 1996 from $165,881 in the same period last year.


Liquidity and Capital Resources

The Company had positive  working capital of $2,652,960 and $908,872 at December
31, 1995 and  September  30, 1996  respectively.  In the nine month period ended
September 30, 1996,  cash used in operations  was $992,607  primarily  resulting
from a net loss of $1,287,233,  partially  offset by  depreciation  of $211,320,
goodwill  amortization of $10,860 and a change in working capital of $72,446. In
the nine  month  period  ended  September  30,  1996,  cash  used for  investing
activities  was  $588,336,  which  included the  investment  of $265,645 and the
creation  of goodwill  totaling  $651,451,  resulting  from the  acquisition  of
Provident  Worldwide  Communications,  Inc., the Company's telephone access card
subsidiary.  An  additional  $282,215  was used for the purchase of property and
equipment offset by the sale of equipment for $79,685.

If the Company continues to incur losses and use cash at the rate established in
the nine months  ended  September  30, 1996,  the Company  will need  additional
financing  by the  end of the  second  quarter  of  1997 in  order  to  continue
operations.  Although  the  Company  believes  that it can reduce its losses and
improve its cash flow, there is no assurance that it will be successful in doing
so. There is no assurance  that  additional  financing  will be available to the
Company on acceptable terms or at all. In order to obtain additional  financing,
the  Company  may issue  equity  securities  at a price  which  would  result in
dilution to existing shareholders.




<PAGE>

PART II    Other Information

Item 1.    Legal Proceedings

         On March 8, 1996,  Don Lomax, a former  employee of the Company,  filed
suit  against  the Company in Hennepin  County  District  Court for the State of
Minnesota.  The suit alleges breach of an unsigned employment  agreement between
Mr. Lomax and the Company.  The terms of the unsigned instrument provide for the
annual  payment of salary and for the issuance of a certain  number of shares of
Company  Common Stock to Mr. Lomax upon the  execution of such  instrument.  Mr.
Lomax is  seeking  specific  performance  of the  terms of the  instrument.  The
Company has sought legal  counsel with respect to such suit.  Management  of the
Company believes the suit will be resolved in its favor.

         On April 22, 1996,  Spanlink  Communication  Company,  Inc.  filed suit
against an employee of the Company,  David J. Meyer, and the Company in Hennepin
County  District Court for the State of Minnesota.  The suit alleges breach of a
Confidentiality and Non-Competition  Agreement and requests, among other things,
a  Temporary  Restraining  Order  prohibiting  Mr.  Meyer  from  continuing  his
employment with MarketLink or disclosing any Spanlink  confidential  information
to  MarketLink.  Following a hearing on April 23,  1996,  the Court  declined to
grant a Temporary Restraining Order. At a second hearing held on May 2, 1996 the
Court  declined to grant a Temporary  Injunction in this matter.  As of November
14,  1996,  no  dates  have  been  set for any  further  steps  in this  matter.
Management of the Company believes the suit will be resolved in its favor.

         On August 27 and August 29, 1996,  Ian D. Packer and Allan K. Pray, the
former  President  and Vice  President  of  Finance  and  Administration  of the
Company,  respectively,  and the Company entered into  agreements  resolving all
disputes in connection with the termination of their  employment by the Company.
The Company  paid each of Messrs.  Packer and Pray  compensation  equal to three
months'  base pay,  provided  for mutual  releases of all  existing or potential
claims, and agreed that Messrs.  Packer's and Pray's incentive stock options had
terminated,  without exercise. Total compensation of $52,500 was paid to Messrs.
Packer and Pray during the three month period ended  September 30, 1996, and all
of such  compensation  was accrued as an expense  during the three month  period
ended June 30, 1996.

Items 2 through 4.  Not Applicable

Item 5.  Other Information

Subsequent Event

The Company and Ronald E.  Eibensteiner,  Chairman of the  Company,  Nicholas C.
Bluhm,  President  and  CEO  of the  Company,  have  not  reached  an  agreement
concerning  Messrs.   Eibensteiner's  and  Bluhm's  respective  compensation  as
officers and directors of the Company.  Compensation of $34,900 has been accrued
as to Mr.  Bluhm at an annual rate of $90,000 per year,  although  Mr. Bluhm has
agreed the Company may defer payment of such accrued amount until a compensation
arrangement is agreed upon.

Item 6.     Exhibits and Reports on Form 8-K

            (a)   Exhibits
                  27.  Financial Data Schedule

            (b)   Reports on Form 8-K

                  The issuer  filed a report on Form 8-K dated August 2, 1996 to
                  report its acquisition of Provident Worldwide  Communications,
                  Inc. and filed an amendment dated October 15, 1996 to file the
                  following pro forma financial information:

                  1.       Unaudited  Proforma   consolidated  combined  balance
                           sheet at June 30, 1996.

                  2.       Unaudited  Proforma  Condensed  Combined Statement of
                           Operations for year ended December 31, 1995.

                  3.       Unaudited  Proforma  Condensed  Combined Statement of
                           Operations - six months ended June 30, 1996.



<PAGE>


                                MarketLink, Inc.


                                   SIGNATURES
Pursuant to the  registration  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.

                                     MARKETLINK, INC.
                                     (Registrant)


Date: November 14, 1996              BY: /s/ Nick Bluhm
                                     President and Chief Executive Officer


  
                                     BY: /s/ Michael D. Ryan
                                     Chief Financial Officer
                                     (Principal Financial & Accounting Officer)







<PAGE>

                                  Exhibit Index

                                MarketLink, Inc.
                                   Form 10-QSB

Exhibit Number    Description

         27       Financial Data Schedule (filed only in electronic format)