SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C.  20549

                                  FORM 10-Q
                                 (Mark One)
      
     
  [X]         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
              	   THE SECURITIES EXCHANGE ACT OF 1934

                 For the Quarterly period ended April 4, 1998  
  
                                       OR
      
  [ ]         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934


                         Commission file number 0-9487


                                  CORCOM, INC.
              ------------------------------------------------------
              (Exact name of registrant as specified in its charter)


                  Illinois                           36-2307626
        -------------------------------        -----------------------
         (State or other jurisdiction of       (I.R.S. Employer
           incorporation or organization)         Identification No.)



           844 E. Rockland Road, Libertyville, Illinois         60048
        --------------------------------------------------    --------
             (Address of principal executive offices)        (Zip Code)


       Registrant's telephone number, including area code  (847) 680-7400


                                Not Applicable
         -----------------------------------------------------------------
		  Former name, former address and former fiscal year, 
			     if changed since last report.


Indicate by checkmark whether the registrant (1) has filed all reports  
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of  
1934 during the preceding 12 months (or for such shorter period that the 
registrant was required to file such reports), and (2) has been subject to 
such  filing requirements for the past 90 days.  Yes  X   No___    

Indicate the number of shares outstanding of each of the issuer's classes of 
common stock, as of the last practical date.

Common Stock, No Par Value - 3,823,243 Shares as of April 24, 1998

Exhibit Index on Page 9

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                                CORCOM, INC.
                                   INDEX


PART I - FINANCIAL INFORMATION                              Page No.

Item 1.	Financial Statements

        Consolidated Balance Sheets -                           3
        April 4, 1998 (unaudited) and December 31,
        1997

        Consolidated Statements of Income                       4
        (unaudited)--for the 13 weeks ended April 4,
        1998 and March 29, 1997

        Consolidated Statements of Cash Flows                   5
        (unaudited) - for the 13 weeks ended April 4,
        1998 and March 29, 1997

        Notes to Consolidated Financial Statements              6

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

Item 3. Quantitative and qualitative disclosures about          N/A
        market risk 

		     
PART II - OTHER INFORMATION

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

        Signatures                                              9

        Exhibit 10.1 - Revolving Line of Credit Note            10

        Exhibit 27.1 - Financial Data Schedule                  N/A
        (EDGAR ONLY)

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                PART I. FINANCIAL INFORMATION

                           CORCOM, INC.
                   CONSOLIDATED BALANCE SHEETS
                (In thousands, except share data)





                                        April 4, 1998   December 31, 1997
                                         (unaudited)
                                        -------------   -----------------
ASSETS
CURRENT ASSETS
Cash & cash equivalents                       $ 8,151            $8,232
Accounts receivable (net)                       5,250             4,599
Inventories - Note B                            5,883             6,192
Deferred income tax benefit, net                  760               885
Other current assets                              806               596
     Total current assets                      20,850            20,504

PROPERTY, PLANT & EQUIPMENT - AT COST          19,804            19,323
Less accumulated depreciation & amortization   15,156            14,849
                                                4,648             4,474

TOTAL ASSETS                                  $25,498           $24,978


LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt             $    62           $    62
Accounts payable                                1,515               767
Other accrued liabilities                       1,133             2,077
     Total current liabilities                  2,710             2,906

LONG TERM DEBT                                     25                40

STOCKHOLDERS' EQUITY
Common stock, no par value:
Authorized 10,000,000 shares; issued 
3,921,543 shares in 1998 and 3,863,543 
shares in 1997                                 14,217            14,134
Retained Earnings                               9,726             9,026
Accumulated exchange rate adjustments            (335)             (283)
Less cost of common stock in treasury:
98,300 shares in 1998 and 1997                   (845)             (845)
      Total stockholders' equity               22,763            22,032

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY      $25,498           $24,978

See notes to Consolidated Financial Statements

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                            CORCOM, INC.
           CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                 (In thousands, except share data)





                                              Thirteen Weeks Ended
                                        ---------------------------------
                                        April 4, 1998      March 29, 1997
                                        -------------      --------------
Net Sales                                      $9,385             $8,993
Costs and expenses
    Cost of sales                               5,862              5,624
    Engineering expenses                          425                338
    Selling, administrative and other
    expenses                                    2,042              1,976
    Interest expense                                2                  3
    Interest income                              (114)               (49)
                                                8,217              7,892

Income before income tax                        1,168              1,101

Income tax provision                              468                360

Net income                                     $  700             $  741

Weighted avg shares outstanding (Basic)     3,782,425          3,825,708

Weighted avg shares outstanding (Diluted)   3,875,393          3,971,246

Net earnings per share (Basic) - Note C          $.19               $.19

Net earnings per share (Diluted) - Note C        $.18               $.19

Cash dividends have not been declared in the periods covered by these 
statements

See notes to Consolidated Financial Statements

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                              CORCOM, INC.
            CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                             (In thousands)



                                                 Thirteen Weeks Ended
                                            --------------------------------
                                            April 4, 1998     March 29, 1997
                                            -------------     --------------
OPERATING ACTIVITIES
  Net cash flows from operating activities         $ 346             $1,556

INVESTING ACTIVITIES
  Additions to property, plant, & equipment
  (net)                                             (495)              (524)

FINANCING ACTIVITIES
  Stock options exercised                             83                 26
  Repayments of notes payable and long-term
  debt                                               (15)               (16)
TOTAL FINANCING ACTIVITIES                            68                 10



(DECREASE)INCREASE IN CASH AND CASH EQUIVALENTS      (81)             1,042

Cash and cash equivalents at beginning of 
period                                             8,232              4,789

CASH AND CASH EQUIVALENTS AT END OF PERIOD        $8,151             $5,831


See notes to Consolidated Financial Statements

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                               CORCOM, INC.
               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                

NOTE A - BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information in a format provided by the instructions to Form 10-Q
and Rule 10-01 of Regulation S-X.  Accordingly, they do not include all of the 
information and disclosures required by generally accepted accounting
principles for complete financial statements.  In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.  Operating results for
the thirteen weeks ended April 4, 1998 are not necessarily indicative of
the results that may be expected for the year ending December 31, 1998.  For
further information, refer to the consolidated financial statements and
footnotes thereto included in the Company's annual report on Form 10-K for
the year ended December 31, 1997.


NOTE B - INVENTORIES

Major classes of the Company's inventories are as follows (in thousands):

                                    April 4, 1998     December 31, 1997
Finished products                         $1,758               $2,188
Materials and work-in-process              4,125                4,004
                                          $5,883               $6,192


NOTE C - EARNINGS PER SHARE

Basic earnings per share are based upon the weighted average number of shares 
of common stock outstanding during each period.  Diluted earnings per share 
are based upon the weighted average number of shares of common stock and 
common stock equivalents (dilutive stock options) outstanding during the each 
period.

The following is a reconciliation of the numerators and denominators of the 
basic and diluted EPS computation for net income:


                                                    Weighted Avg
                                       Net Income      Shares      Per Share
                                       (Numerator)  (Denominator)   Amounts

Thirteen weeks ended April 4, 1998:
BASIC EPS
Income available to common 
shareholders                            $ 700,000      3,782,425      $.19
Effect of dilutive options                                92,968
DILUTED EPS
Income available to common 
shareholders plus assumed conversions   $ 700,000      3,875,393      $.18


Thirteen weeks ended March 29, 1997:
BASIC EPS
Income available to common 
shareholders                            $ 741,000      3,825,708      $.19
Effect of dilutive options                               145,538
DILUTED EPS
Income available to common 
shareholders plus assumed conversions   $ 741,000      3,971,246      $.19

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NOTE D - INCOME TAXES

The components of the net deferred tax asset, tax effected, recognized in the 
accompanying balance sheet as of April 4, 1998 and December 31, 1997 are as 
follows (in thousands):



                                        April 4, 1998    December 31, 1997
Deferred tax assets                         $  1,148             $  1,273
Less: valuation reserve                         (388)                (388)
Net deferred tax assets                     $    760             $    885


NOTE E - MERGER

On March 10, 1998, the Company entered into an Agreement and Plan of Merger by 
and among Communications Instruments, Inc., a North Carolina corporation 
("CII"), RF Acquisition Corp., an Illinois corporation and wholly owned 
subsidiary of CII ("Merger Sub") and the Company (the "Merger Agreement").  
CII is owned by Code Hennessy & Simmons, LLC, a Chicago based private 
investment firm, and CII management.  Pursuant to the Merger Agreement, (a) 
CII will acquire all of the Company's issued and outstanding shares of common 
stock for $13.00 per share in cash, or approximately $51.2 million, and (b) 
Merger Sub will merge with and into the Company (the "Merger"), with the 
Company being the surviving corporation in the Merger.

The closing of the Merger is subject to the satisfaction of certain 
conditions, including, among other matters, approval by the holders of two-
thirds of the issued and outstanding shares of common stock of the Company, 
certain regulatory approvals and receipt by CII of debt financing necessary to 
consummate the Merger, a commitment for which has been provided by Bank of 
America National Trust and Savings Association. This financing is subject to 
certain conditions, including the execution of a definitive credit agreement 
satisfactory to Bank of America.

CII also entered into an agreement with Werner E. Neuman, the President and 
Chairman of the Board of Directors of the Company, and James A. Steinback, a 
Director of the Company, whereby such individuals agreed to vote in favor of 
the Merger.  These two individuals hold approximately 31% of the shares 
outstanding.



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


Results of Operations - First quarter 1998 vs. first quarter 1997

CORCOM's net sales for the first quarter of 1998 were $9,385,000, an increase 
of 4.4% from the $8,993,000 reported for the first quarter of 1997.  This 
increase was the result of volume increases in the Company's North American 
commercial filter business.  There were no appreciable price changes year to 
year.

Cost of sales for the current quarter were 62.5% of net sales, about the same 
as the year ago period.  A portion of the Company's manufacturing costs are 
Mexican peso-based.  While this currency has been relatively stable over the 
past year versus the US dollar, the Company's manufacturing costs could rise 
if the value of the peso increases relative to the dollar, or if inflation in 
Mexico escalates.

Engineering expenses, at $425,000 in the first quarter of 1998, were 26% 
higher than the $338,000 reported in the first quarter of 1997, the result of 
an increased commitment to new product development.  Selling, administrative 
and other expenses rose in 1998 to $2,042,000 from the $1,976,000 reported in 
the first quarter of 1997.  The largest component of this increase were higher 
commission expenses on the higher level of sales volume.

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Interest income in first quarter of 1998 period was $114,000 compared with 
$49,000 in the first quarter of 1997.  This was the result of higher cash 
investments in the 1998 period.

The Company's pre-tax earnings for the first quarter of 1998 were $1,168,000
as compared with $1,101,000 for the first quarter of 1997.  The reasons for 
the improvement are discussed above.

The Company recorded a provision for income taxes of $468,000, or 40% of 
pretax income, in the first quarter of 1998 as compared to a provision of 
$360,000, or 33% of pretax income, in the first quarter of 1997.

After tax, the Company's net earnings for the first quarter of 1998 were
$700,000 ($.19 per share basic, $.18 per share diluted).  This compares to net 
earnings in the year ago period of $741,000 ($.19 per share basic, $.19 per 
share diluted).


Liquidity and Capital Resources

As of April 4, 1998, the company had cash reserves on hand of $8,151,000 as
compared to $8,232,000 as of December 31, 1997.  In addition to
current cash reserves, the Company's loan agreement with American National
Bank and Trust Company of Chicago is still in place.  This agreement is an 
unsecured line of credit with maximum borrowings of $4,000,000, or 80%
of eligible accounts receivable, whichever is less.  Interest on this loan is 
the Company's choice of either LIBOR plus one hundred fifty basis points, or 
the Bank's prime rate.  This agreement, which was to have expired April 30, 
1998, has been extended through June 30, 1998 (see exhibit 10.1).  There
were no borrowings against this agreement as of April 4, 1998.

The Company does not believe it will need to identify additional sources of
capital over the next year and feels that current cash reserves, cash provided 
by operating activities, and the existing credit facility will be sufficient 
to meet its operating needs and capital resource requirements.


Year 2000 Issues

In 1997, the Company began converting its computer systems to be year 2000 
compliant.  Most of the Company's business software consists of externally 
written, generic "packages" which have already been upgraded to be year 2000 
compliant by their publishers.  These upgraded versions have been made 
available to the Company as part of its normal software licensing and/or 
maintenance agreements.  In certain cases, installation of the upgraded 
systems may require additional purchased hardware or software which would be 
recorded as assets and amortized.  In addition to its main purchased business 
software, but to a much lesser extent, the Company also has some internally 
developed systems and subsystems which are in the process of being made year 
2000 compliant.  The company does not believe it will encounter any material 
problems with this conversion.  Management does not feel that the cost of this 
conversion will be material.

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PART II. OTHER INFORMATION

CORCOM, INC.



Item 6.  Exhibits and Reports on Form 8-K


(a)     Exhibit No.     Description                                     Page
	----------	------------------------------------		----
        10.1            Revolving Line of Credit Note                    10
        27.1            Financial Data Schedule (EDGAR only)             N/A

(b)     The Company filed a Current Report on Form 8-K (date
        of report March 10, 1998) during the thirteen week
        period ended April 4, 1998, covering items 5 and 7
        to report the execution of the Merger Agreement


                             CORCOM, INC.

                              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.



Dated: May 4, 1998


Corcom, Inc.
(Registrant)

s/s Thomas J. Buns
By: Thomas J. Buns
Vice President & Treasurer
(Principal Financial Officer)

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