U.S. SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, D.C.  20549


                          FORM 10 - QSB


       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
               THE SECURITIES EXCHANGE ACT OF 1934

        For the Quarterly Period Ended November  30, 1999

                 Commission file number 0-10783


                     BSD MEDICAL CORPORATION


           DELAWARE                     75-1590407
   (State of Incorporation)(IRS Employer Identification Number)


     2188 West 2200 South
     Salt Lake City, Utah                         84119
(Address of principal executive offices)       (Zip Code)

Registrant's telephone number:  (801) 972-5555


Indicate  by check mark 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 latest practicable date.


            Class                Outstanding as of January 11, 2000
 Common stock, $.01 Par Value               16,698,975



Transitional Small Business Disclosure Format
(Check one):  Yes [ ]   No [X]
<PAGE>

PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                     BSD MEDICAL CORPORATION

                    Condensed Balance Sheets
                           (Unaudited)
                Assets                    November 30,
                ------                       1999
Current assets:                           -----------
  Cash and cash equivalents               $ 1,402,841
  Receivables                                  81,410
  Inventories                               1,139,393
  Prepaid Expenses                             15,375
  Deposits                                     17,342
                                          -----------
    Total current assets                    2,656,361
                                          -----------

Property and equipment, net                    92,423
Long-term trade receivables                    12,740
Patents, net                                   13,860
                                          -----------
                                          $ 2,775,384
                                          -----------
 Liabilities and Stockholders' Equity
 ------------------------------------
Current liabilities:
  Accounts payable                             93,545
  Accrued expenses                            905,752
  Current portion of long-term debt            11,730
  Current portion of deferred revenue          71,712
  Current portion on deferred gain on          61,416
   sale-leaseback                         -----------

    Total current liabilities               1,144,155
                                          -----------

Long term liabilities
  Deferred revenue                             24,717
  Deferred gain on building transaction       122,753
                                          -----------

    Total liabilities                       1,291,625
                                          -----------

Stockholders' equity:
  Common stock, $.01 par value; authorized    166,940
   20,000,000 shares; issued and
   outstanding 16,693,975, shares
  Additional paid-in capital               20,688,109
  Deferred compensation                      (155,686)
  Accumulated deficit                     (19,215,370)
  Common stock in treasury 13,412 shares,        (234)
   at cost                                -----------

    Net stockholders' equity                1,483,759
                                          -----------

                                          $ 2,775,384
                                          ===========
<PAGE>


                     BSD MEDICAL CORPORATION

               Condensed Statements of Operations
                           (Unaudited)
                   Periods ended November 30,



                                   1999         1998
                                ----------   ----------
Product sales                   $   80,930   $  107,692
Grant and license revenue          112,036            -
                                ----------   ----------

    Total revenues                 192,966      107,692
                                ----------   ----------
Costs and expenses:
  Cost of product sales             36,223       86,678
  Research and development         125,051      105,693
  Selling, general, and            327,411      230,443
   administrative               ----------   ----------

    Total costs and expenses       488,685      338,135
                                ----------   ----------

    Operating loss                (295,719)    (230,444)


Other income (expense):
  Interest income                   17,792       31,556
  Interest expense                    (284)      (1,178)
  (Loss) income in joint venture  (114,999)    (122,231)
                                ----------   ----------
    Total other income (expense)   (97,491)     (91,853)
                                ----------   ----------
    Net loss                    $ (393,210)  $ (322,296)
                                ==========   ==========

Basic net income (loss) per
 common and common equivalent   $     (.02)  $     (.02)
 share                          ----------   ----------

Diluted net income (loss) per
 common and common equivalent   $     (.02)  $     (.02)
 share                          ----------   ----------

Weighted average number of
 shares outstanding
   Primary                      16,694,000   16,370,000
                                ----------   ----------
   Diluted                      16,694,000   16,370,000
                                ----------   ----------


See accompanying notes to financial statements.
<PAGE>


                     BSD MEDICAL CORPORATION

         Condensed Statements of Cash Flows (Unaudited)
                 Three Months ended November 30,

Increase (Decrease) in Cash and Cash
Equivalents                                   1999         1998
--------------------------------------     ----------   ----------
Cash flows from operating activities:
  Net loss                                 $ (393,210)    (322,296)
  Adjustments to reconcile net loss to
  net cash used in operating activities:
    Depreciation and amortization               5,178        4,634
    Deferred gain on sale of building         (15,354)     (15,354)
    Deferred compensation                       3,800        3,800
    (Increase) decrease in:
      Receivables                             (22,144)      (4,251)
      Inventories                            (231,152)     (53,076)
      Prepaid expenses and deposits             8,831        7,625
    Increase (decrease) in:
      Accounts payable                         62,756       29,598
      Accrued expenses                        233,281      (92,816)
      Deferred Income                         (14,613)      14,340
      Loss (income) from equity investment    114,999      122,231
                                           ----------   ----------
        Net cash used in operating           (247,628)    (305,565)
         activities                        ----------   ----------

Cash flows from investing activities:
  Purchase of property and equipment          (10,439)     (10,689)
  Purchase of patent license                  (13,929)           -
                                           ----------   ----------
        Net cash used in investing            (24,368)     (10,689)
         activities

Cash flows from financing activities:
  Principal payments on long-term debt        (14,192)     (15,560)
   obligation                              ----------   ----------
        Net cash used in financing            (14,192)     (15,560)
         activities                        ----------   ----------

Decrease in cash and cash equivalents      $ (286,188)    (331,815)
Cash and cash equivalents, beginning of     1,689,029    2,798,032
 period                                    ----------   ----------
Cash and cash equivalents, end of period   $1,402,841    2,466,217
                                           ==========   ==========
Supplemental Disclosure of Cash Flow
 Information
--------------------------------------
  Cash paid for interest during period     $      284        1,178

<PAGE>


                     BSD MEDICAL CORPORATION
             Notes to Condensed Financial Statements

Note 1. Basis of Presentation

   The  Condensed  Balance  Sheet as of November  30,  1999;  the
Condensed  Statements of Operations for the  three  months  ended
November  30,  1999, and 1998; the Condensed Statements  of  Cash
Flows  for  the three months ended November 30, 1999,  and  1998,
have  been prepared by the Company without audit.  In the opinion
of  management, all adjustments to the books and accounts  (which
include  only normal recurring adjustments) necessary to  present
fairly the financial position, results of operations, and changes
in  financial  position of the Company as of November  30,  1999,
have been made.  During the period ended May 31, 1999, TherMatrx,
Inc.  received  an  additional capital  infusion  from  TherMatrx
Investment Holdings, LLC (assignee of Oracle Strategic  Partners,
L.P. and Charles Manker).  This infusion was based on TherMatrx's
achievement   of   key  success  milestones   in   the   clinical
investigation  of  a  new  therapy to treat  BPH  with  microwave
energy.   This  infusion decreased BSD's ownership  of  TherMatrx
from 54% to 34%.  During the period ending November 30, 1998, BSD
presented  consolidated financials; however,  BSD  has  become  a
minority shareholder in TherMatrx and thus has changed the method
of accounting from a consolidation method to an equity method for
the  investment  in  TherMatrx.   The  financial  statements  for
November  30,  1998,  have  been  restated  to  reflect  the  34%
ownership.

   Certain information and footnote disclosures normally included
in  financial  statements prepared in accordance  with  generally
accepted  accounting principles have been condensed  or  omitted.
The results of operations for the period ended November 30, 1999,
are  not necessarily indicative of the results to be expected for
the full year.

Note 2.  Net Income (Loss) Per Common Share

   Net  Income  (Loss)  per common share for the  quarters  ended
November  30,  1999,  and November 30, 1998,  are  based  on  the
weighted   average  number  of  shares  outstanding  during   the
respective periods.


ITEM 2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL
  CONDITION AND RESULTS OF OPERATIONS

Liquidity and Capital Resources
-------------------------------

   Total assets decreased from $2,797,917 at August 31, 1999,  to
$2,775,384 at November 30, 1999, a decrease of $22,533, or .008%,
primarily due to a decrease in cash.  Cash decreased by $286,188,
a  decrease  of 16.94%, primarily due to use of cash for  working
capital.

   Receivables  increased  by $22,144,  an  increase  of  37.36%,
primarily  due  to normal periodic business fluctuations.   Total
inventories increased by $231,152, an increase of 25.45%, due  to
purchase of materials for future shipments.

  Total current liabilities increased by $382,231, an increase of
50%.   This increase was primarily caused by increases in accrued
expenses,   principally  customer  deposits,  and  increases   in
accounts  payable,  combined with the equity loss  in  TherMatrx,
Inc.

   The  Company  has  long  term receivables  for  field  service
contracts of $12,740, as of November 30, 1999.

Fluctuations in Operating Results
---------------------------------

   The  Company's  sales and operating results historically  have
varied (and will likely continue to vary) greatly on a quarter-to-
quarter  and a year to year basis due to volatilities  associated
with  international operations; budgeting considerations  of  the
Company's  customers; the nature of the medical capital equipment
market;  the  ability  of the Company to predict  the  timing  of
various  approvals required from the Food and Drug Administration
and  other governmental agencies; the relatively large  per  unit
sales  prices of the Company's products; the typical fluctuations
in   the   mix  of  orders  for  different  systems  and   system
configurations;  the  limited unit sales volumes;  the  Company's
limited cash resources; changes in Medicare and other third-party
reimbursement  policies; competition;  and  other  factors.   For
these  and  other  reasons,  the  results  of  operations  for  a
particular fiscal period may not be indicative of results for any
other period.

Results of Operations:
----------------------

Three Months ended November 30, 1999

   Product Sales were $80,930 for the three months ended November
30,  1999,  a  decrease  of $26,761, or 24.85%,  as  compared  to
$107,692  for the three months ended November 30, 1998, primarily
due to a delay in processing of European orders while the Company
obtains  CE Marking approval on the new BSD-2000/3D system.   The
CE  Marking is now required for sales to all European Union  (EU)
countries.   The Company anticipates receipt of CE Mark  approval
by  the end of January 2000.  (As of January 11, 2000, BSD has  a
backlog of $1,747,750.)

   Gross  profit  on product sales increased to $44,707  for  the
three months ended November 30, 1999, as compared to $21,014  for
the  three months ended November 30, 1998, as a result of reduced
material  and  indirect  labor costs and  an  adjustment  in  the
manufacturing rate for labor and overhead.

   Selling, General and Administrative Expenses were $327,411 for
the three months ended November 30, 1999, an increase of $95,211,
or  41.32%,  as compared to $230,443 for the three  months  ended
November  30, 1998, primarily as a result of increased sales  and
marketing expenditures.

  Research and Development Expenses increased to $125,051 for the
three months ended November 30, 1999, as compared to $105,693 for
the three months ended November 30, 1998, an increase of $19,358,
or  18.32%.  The increase was due to increased resources  devoted
to  completion of the BSD-2000/3D system and the costs associated
with obtaining CE Marking approval for this system.

   Total Costs and Expenses increased by $148,792, an increase of
44%, primarily caused by the aforementioned increases in Selling,
General and Administrative and Research and Development Expenses.

   Interest Expense for the three months ended November 30, 1999,
was $284, as compared to $1,178 of Interest Expense for the three
months  ended November 30, 1998.  The decrease was caused by  the
lower  interest costs associated with notes payable as the  notes
reach maturity.

  The Net Loss for the three months ending November 30, 1999, was
$393,210,  as compared with a Net Loss of $322,296 for the  three
months  ending  November 30, 1998.  The primary reason  for  this
decrease  was the decrease in product sales, increase in selling,
general  and  administrative expenses, and  the  equity  loss  in
TherMatrx.

   YEAR  2000 COMPLIANCE. All of BSD Medical's systems are  fully
Year 2000 (Y2K) compliant, with the exception of the BSD-500  and
some  BSD-2000 systems.  To make these systems Y2K compliant  and
permit  unrestricted use, the Company has rewritten the  software
for  the  BSD-2000  and BSD-500 systems, which is  available  for
purchase.  The cost to BSD Medical to address this issue  is  not
material  -  less  than $10,000.  In the event  that  a  customer
elects  not  to purchase the updated software, their  system  can
still  be  operated by making a one time entry of a year  between
1985  and  1999.  The system operations and calculations  do  not
include any date driven functions and therefore the systems  will
not  exhibit any change in performance due to the arrival of  the
year  2000; rather the date is used only as a method to  identify
the  treatment record.  Thus, the use of an invalid date does not
create  any  material risks.  These systems are not connected  to
any other computer systems, as they are stand-alone systems.

   The Company has installed software upgrades for its accounting
and manufacturing systems that are warranted by the vendors to be
Y2K  compatible.  The Company is currently evaluating  its  other
computerized systems.  The aggregate costs to upgrade systems for
Y2K  compliance appear to be below $13,000, and these costs  will
be  amortized  over five years.  There do not appear  to  be  any
other  material  internal issues at this time.   The  Company  is
unaware  of any problems with its computerized systems after  the
occurrence of Y2K.

   FORWARD OUTLOOK AND RISKS.  From time to time, the Company may
publish  forward-looking statements relating to such  matters  as
anticipated    financial   performance,    business    prospects,
technological development, new products, research and development
activities   and   similar  matters.   The   Private   Securities
Litigation Reform Act of 1995 provides a safe harbor for forward-
looking  statements.  In order to comply with the  terms  of  the
safe  harbor,  the Company notes that a variety of factors  could
cause  the  Company's  actual results and  experience  to  differ
materially  from  the anticipated results or  other  expectations
expressed in any of the Company's forward-looking statements.

  This form 10-QSB contains and incorporates by reference certain
"forward-looking statements" within the meaning of Section 27A of
the  Securities  Act  and Section 21E of the  Exchange  Act  with
respect  to results of operations and businesses of the  Company.
All  statements,  other  than  statements  of  historical  facts,
included  in  this Form 10-QSB, including those regarding  market
trends,  the  Company's  financial position,  business  strategy,
projected  costs,  and  plans and objectives  of  management  for
future operations, are forward-looking statements.  These forward-
looking   statements   are  based  on   the   Company's   current
expectations.    Although   the   Company   believes   that   the
expectations  reflected  in such forward-looking  statements  are
reasonable, there can be no assurance that such expectations will
prove to be correct.

   CHANGING  REGULATORY ENVIRONMENT.  The Company's  business  is
subject   to  extensive  federal,  state  and  local  regulation.
Political, economic and regulatory influences are subjecting  the
health  care industry in the United States to fundamental change.
See "Government Regulation" in the Company's fiscal 1999 10-KSB.


PART II - OTHER INFORMATION

ITEM  6.  EXHIBITS  AND REPORTS ON FORM 8-K

(a)  Exhibits

  The following exhibit is filed as part of this report:

Exhibit                           Description
Number
---------                       -----------------
  27                            Financial Data Schedule.

b) Reports  on Form 8-K - During the quarter, no reports on  Form
   8-K were filed by the Company.



<PAGE>

SIGNATURE


   Pursuant to the requirements of the Securities Exchange Act of
1934,  BSD  Medical Corporation, the registrant, has duly  caused
this  report  to  be  signed on its behalf  by  the  undersigned,
thereunto duly authorized.


                              BSD MEDICAL CORPORATION



Date: January 11, 2000        /s/ Hyrum A. Mead
                              -----------------------
                              Hyrum A. Mead
                              President