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 February 28, 1998
                                
                 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 April 13, 1998
 Common stock, $.01 Par Value                  16,176,980


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

<PAGE>
PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                           BSD MEDICAL CORPORATION
                                      
                    Condensed Consolidated Balance Sheets
                                 (Unaudited)

                  Assets                          Feb. 28,        Aug. 31,
                                                    1998            1997
                                                 ----------     ----------
Current assets:                                                     
Cash and cash equivalents                       $   504,797     $   43,681
Receivables                                         194,644        406,874
Inventories                                         660,305        542,226
Prepaid Expenses                                     10,250         20,500
Deposits                                              7,969          6,850
                                                 ----------     ----------
     Total current assets                         1,377,965      1,020,131
                                                 ----------     ----------
                                                                     
Property and equipment, net                          57,788        280,396
Long-term trade receivables                          77,080         68,480
                                                 ----------     ----------
                                                  1,512,833      1,369,007
                                                 ==========     ==========

   Liabilities and Stockholders' Equity                                  

Current liabilities:                                                            
Current installments of long-term debt               20,709        251,723
Current installments of deferred revenue             50,292         82,850
Accounts payable                                    301,050        323,918
Accrued expenses                                    493,866        207,913
                                                 ----------     ----------
     Total current liabilities                      865,917        866,404
                                                 ----------     ----------
Long-term debt                                       64,549         89,697
Deferred revenue                                    386,162        104,733
                                                 ----------     ----------
                                                    450,711        194,430
                                                 ----------     ----------
     Total liabilities                            1,316,628      1,060,834
                                                 ----------     ----------
Stockholders' equity:                                                           
Common stock, $.01 par value; authorized                            
  20,000,000 shares; issued and outstanding
  16,176,980 shares                                 161,770        161,770
Additional paid-in capital                       20,413,575     20,413,575
Accumulated deficit                             (19,900,458)   (19,784,689)
Deferred compensation                              (459,445)      (463,246)
Common stock in treasury, 240,340 shares, at        (19,237)       (19,237)
  cost                                           ----------     ----------
                                                                    
     Net stockholders' equity                       196,205        308,173
                                                 ----------     ----------
                                                $ 1,512,833    $ 1,369,007

<PAGE>
                           BSD MEDICAL CORPORATION
                                      
               Condensed Consolidated Statements of Operations
                                 (Unaudited)
           Quarters ended February 28, 1998 and February 28, 1997



                                    Three Months             Six Months
                                       Ended:                   Ended:
                               Feb. 28,     Feb. 28,     Feb. 28,     Feb. 28,
                                 1998         1997         1998         1997
                              ----------   ----------   ----------   ----------
Product sales                $   185,326      158,048  $   760,856      231,100
Grant and license revenue         65,310      165,515      133,173      284,181
                              ----------   ----------   ----------   ----------
     Total revenues              250,636      323,563      894,029      515,280
                              ----------   ----------   ----------   ----------

Costs and expenses:                                                  
Cost of product sales            108,558       97,819      309,822      191,384
Research and development          77,685       79,127      144,223      178,162
Selling, general, and            345,606      222,479      595,044      557,240
  administrative              ----------   ----------   ----------   ----------
                                                                      
     Total costs and expenses    531,849      399,425    1,049,089      926,786
                              ----------   ----------   ----------   ----------
                                                                      
     Operating loss             (281,213)     (75,861)    (155,060)    (411,505)
                                                                     
Other income (expense):                                              
Interest income                    3,229        3,373        3,987        9,108
Gain on settlement of accounts     7,103        3,779        7,103        8,517
  payable
Interest expense                  (1,505)      (6,476)      (6,243)     (13,240)
Other, net                        34,394        1,886       34,444        2,187
                              ----------   ----------   ----------   ----------
     Total other income           43,221        2,563       39,291        6,572
                              ----------   ----------   ----------   ----------
     Net loss                $  (237,992)     (73,298)    (115,769)    (404,933)
                              ==========   ==========   ==========   ==========
                                                                            
Net income (loss) per common and                                          
  common equivalent share    $     (0.01)        0.00  $     (0.01)       (0.02)
                              ==========   ==========   ==========   ==========

Weighted average number of    16,177,000   16,177,000   16,177,000   16,177,000
  shares outstanding          ==========   ==========   ==========   ==========



See accompanying notes to financial statements.

<PAGE>
                           BSD MEDICAL CORPORATION
                                      
               Condensed Consolidated Statements of Cash Flows
                                 (Unaudited)
          Six Months ended February 28, 1998, and February 28, 1997
                                      
                                      
Increase (Decrease) in Cash and Cash Equivalents        Feb. 28,    Feb. 28,
                                                          1998        1997
                                                      ----------   ----------
Cash flows from operating activities:                              
Net income (loss)                                    $ (115,769)    (404,933)
Adjustments to reconcile net income (loss) to
  net cash provided by operating activities:                                  
    Depreciation and amortization                         9,902      174,851
    Gain on settlement of accounts payables              (7,103)      (8,517)
    Deferred compensation                                 3,800            -
    Deferred gain on sale of asset                     (291,647)           -
    Recognized gain on sale of asset                    (33,837)           -
    (Increase) decrease in:                                              
      Receivables                                       203,630      512,259
      Inventories                                      (118,079)     (21,390)
      Prepaid expenses and deposits                       9,131        6,722
    Decrease (Increase) in:                                             
      Accounts payable                                  (15,765)       6,754
      Accrued expenses                                  285,954     (218,166)
      Deferred Income                                   277,110        9,416
                                                      ----------   ----------
       Net cash provided by operating activities        207,327       56,996
                                                      ----------   ----------
Cash flows from investing activities:                               
  Purchase of property and equipment                     (2,067)     (50,059)
  Proceeds from sale of fixed asset                     446,545            -
                                                      ----------   ----------
       Net cash provided by (used in) investing 
         activities                                     444,478      (50,059)
                                                                       
Cash flows from financing activities:
  Net proceeds from (payments on) short-term notes 
    payable                                            (164,227)     (11,375)
  Principal payments on capital lease obligation        (12,659)     (22,342)
  Principal payments on long-term debt obligation       (13,803)     (12,619)
                                                      ----------   ----------
                                                                    
       Net cash used in financing activities           (190,689)     (46,336)
                                                      ----------   ----------
                                                                    
Increase in cash and cash equivalents                   461,116      (39,399)
Cash and cash equivalents, beginning of period           43,681      381,746
                                                      ----------   ----------
Cash and cash equivalents, end of period             $  504,797      342,347
                                                      ==========   ==========
Supplemental Disclosure of Cash Flow Information
  Cash paid for interest during period               $    6,243       13,240
                                                                   
                                      
<PAGE>
                     BSD MEDICAL CORPORATION
      Notes to Condensed Consolidated Financial Statements

Note 1.  Basis of Presentation

    The   Condensed   Consolidated  Balance   Sheet   as   of   February   28,
1998,   and   the   Condensed  Consolidated  Statements  of   Operations   for
the   three  months  and  six  months  ended  February  28,  1998,   and   the
Condensed   Consolidated  Statements  of  Cash  Flow  for   the   six   months
ended    February   28,   1998,   and   February   28,   1997,    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   February   28,   1998,
have been made.

    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  February   28,   1998,
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
February   28,   1998,   and   February   29,   1997,   are   based   on   the
weighted    average    number    of    shares    outstanding    during     the
respective periods.

Note 3. Federal Income Taxes

   No  provision  has  been made for income tax  expense  in  the
February  28, 1998, financial statements because of the reduction
in the valuation allowance for deferred taxes.


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

Liquidity and Capital Resources

   Total assets increased from $1,369,007 at August 31, 1997,  to
$1,512,833  as of February 28, 1998, an increase of $143,826,  or
10.51%,  due  to  an  increase  in cash  and  inventories.   Cash
increased  by $461,116, an increase of 1,055%, primarily  due  to
the  Company  signing  a new lease agreement  for  the  Company's
facilities which provided net proceeds totaling $446,545  to  BSD
for  purchase  of the Company's option to purchase  the  building
(see November 30, 1997, 10-QSB, page 7).

   Receivables  decreased  by $212,230,  a  decrease  of  52.16%,
primarily  caused  by  collection of  prior  receivables.   Total
inventories  increased  by  $118,079,  an  increase  of   21.78%,
primarily  due  to  purchase of materials  needed  for  shipments
scheduled for the third quarter of fiscal year 1998.

   Total  current liabilities decreased by $487,  a  decrease  of
0.06%.  The decrease was caused by normal periodic fluctuations.

   The  Company  has  long  term receivables  for  field  service
contracts, as of February 28, 1998, of $77,080.

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 risks 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:

Six Months ended February 28, 1998

   Product Sales increased from $231,100 in the six months  ended
February  28, 1997, to $760,856 in the six months ended  February
28,  1998, an increase of $529,756, or 229.23% due to orders  for
the  Company's new product line, the BSD-2000/3D/MR.  (The  first
BSD-2000/3D was installed in August 1997.  BSD is completing  the
modifications required for the installation of the MR portion  of
this system, which is projected for installation in Spring 1998).
BSD has received total orders of $1,631,978 for sales of this new
product line, and, as of February 28, 1998, has a remaining back-
log of $618,042 for the new product.

  Gross profit on product sales increased from $39,716 in the six
months  ended  February 28, 1997, to $451,034 in the  six  months
ended  February 28, 1998, as a result of an increase  in  product
sales.

   Selling,  General and Administrative Expenses  increased  from
$557,240  in the six months ended February 28, 1997, to  $595,044
in  the  six  months  ended February 28,  1998,  an  increase  of
$37,804,  or  6.78%.   During the six months ended  February  28,
1998,   there  was  a  decrease  in  deferred  compensation   for
amortization of options issued to employees and non-employees  to
purchase  shares of the Company's common stock  (see  Note  6  to
Financial  Statements, August 31, 1997 10-KSB),  which  caused  a
decrease   in  Selling,  General  and  Administrative   Expenses,
combined  with  an  increase in legal expenses for  the  Urologix
lawsuit  (see  Part II, Item 1 below), which resulted  in  a  net
increase  of  $37,804  in  Selling,  General  and  Administrative
Expenses.

   Research and Development Expenses decreased from $178,162  for
the  six  months ended February 28, 1997, to $144,223 in the  six
months ended February 28, 1998, a decrease of $33,939, or 19.05%.
The  decrease was caused by completion of the BSD-2000/3D product
line and near completion of the MR portion of this system.

   Total Operating Expenses increased by $122,303, an increase of
13.20%, primarily caused by the increase in Cost of Product Sales
as a result of higher product sales.

   The  Operating Loss decreased from $411,505 in the six  months
ended  February  28, 1997, to $155,060 in the  six  months  ended
February   28,   1998.   This  decrease   was   caused   by   the
aforementioned increase in gross profit.

  Interest Expense in the six months ended February 28, 1998, was
$6,243, as compared with the $13,240 of Interest Expense  in  the
six  months ended February 28, 1997.  The decrease was caused  by
typical periodic business fluctuations.

   The Net Loss for the six months ending February 28, 1998,  was
$115,769, as compared with the Net Loss of $404,933 for  the  six
months  ending  February 28, 1997.  The primary reason  for  this
decrease was the aforementioned increase in gross profit.

Three Months ended February 28, 1998

  Product Sales increased from $158,048 in the three months ended
February  28,  1997,  to  $185,326 for  the  three  months  ended
February 28, 1998, a small increase of $27,278, or 17.26%.

   Gross  profit  was $76,768 in the quarter ended  February  28,
1998,  as  compared to $60,299 in the quarter ended February  28,
1997, as a result of a small increase in product sales.

   Selling,  General  and  Administrative Expenses  increased  by
$123,127,   an   increase  of  55.34%,  as  compared   with   the
corresponding three months in the previous year. The increase was
primarily  caused by an increase in legal expenses  required  for
the Urologix lawsuit (see Part II, Item 1 below).

   Research  and  Development Expenses  decreased  by  $1,442,  a
decrease of 1.82%.  The decrease was caused by completion of  the
BSD-2000/3D product line and near completion of the MR portion of
this system.

   Total Operating Expenses increased by $132,424, an increase of
33.15%,  as compared with the corresponding three months  in  the
previous fiscal year. This increase was primarily caused  by  the
aforementioned  increase in Selling, General  and  Administrative
expenses.

   Operating Loss  for the three months ended February 28,  1998,
was  $281,213, as compared with the Operating Loss of $75,861 for
the  corresponding  period  in the  previous  fiscal  year.  This
increase  was primarily caused by the aforementioned increase  in
Selling,  General  and Administrative expenses  combined  with  a
reduction  in  grant and license revenue due to completion  -  in
June 1997 - of BSD's National Cancer Institute grant project.

   Interest Expense in the three months ended February 28,  1998,
was  $1,505, as compared with the $6,476 of Interest  Expense  in
the  three  months  ended February 28, 1997.   The  decrease  was
caused by typical periodic business fluctuations.

   The  Net  Loss for the quarter ending February 28,  1998,  was
$237,992,  as  compared  with the Net Loss  of  $73,298  for  the
quarter  ending February 28, 1997.  The primary reason  for  this
increase  was  the aforementioned increase in operating  expenses
combined  with the aforementioned reduction in grant and  license
revenue.


PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

UROLOGIX,  INC.  VS.  BSD  MEDICAL  CORPORATION,  United   States
District Court for the District of Minnesota, Civil Action No. 4-
96-647.

   BSD  is  currently involved in litigation with Urologix,  Inc.
regarding the continued validity of the non-exclusive license (to
practice   certain  patents)  granted  by  BSD  to  Urologix   in
settlement of prior patent infringement litigation (see  Part  I,
Item  3,  August 31, 1997, 10-KSB).  In its counterclaim  against
Urologix,  BSD  alleged that Urologix breached a  confidentiality
provision of the license agreement and that BSD's termination  of
the  license  agreement, based on that breach, was  proper.   The
counterclaim also seeks recovery of damages caused to  BSD  as  a
result  of  Urologix' breach.  On December 22, 1997,  the  United
States  District  Court for the District of  Minnesota  issued  a
significant   ruling  in  the  litigation  between  BSD   Medical
Corporation and Urologix, Inc.  In ruling on the parties'  cross-
motions for summary judgment, the District Court denied Urologix'
motion  and  granted  BSD's  motion, finding  that  Urologix  had
breached  the  license agreement by disclosing  the  confidential
financial  terms  to a third party.  The case went  to  trial  on
March  25,  1998,  to  determine the remaining  issues  regarding
termination and damages.  The trial ended on April 3,  1998.   No
ruling  has been made by the Court as of the filing of  this  10-
QSB.   (At  Urologix' request, the lawsuit is under seal  by  the
Court;  therefore, only limited information about the  litigation
and the Court's ruling can be provided.)

ITEM 5.  OTHER INFORMATION

   On  September 15, 1996, Medizintechnik (a company owned by Dr.
Gerhard  Sennewald, a member of BSD's Board of  Directors  and  a
major stockholder of the Company) obtained a worldwide fully paid
software      license      from     Konrad-Zuse-Zentrum      fuer
Informationstechnik (ZIB) of Berlin for a three-dimensional  (3D)
hyperthermia treatment planning software - HYPERPLAN -  developed
by  ZIB.  On January 21, 1998, BSD entered into an agreement with
Medizintechnik  wherein Medizintechnik irrevocably  assigned  the
worldwide rights under the ZIB software license agreement to BSD,
with  the sole exception of Europe, where Medizintechnik retained
these  rights  itself.  In consideration for this  assignment  of
rights,  BSD  agreed  to  supply, at  no  charge,  one  Sigma-Eye
applicator (not an MR compatible version) to Medizintechnik,  who
will  forward  this applicator to Strahlenklinik and  Poliklinik,
Virchow-Klinikum  of the Humboldt-Universitaet  of  Berlin.   BSD
also  agreed  to inform Medizintechnik on a regular  basis  about
software   sales  to  final  customers  and  to  pay  timely   to
Medizintechnik  the software license fee (8% of the  sales  price
for the HYPERPLAN software or a minimum of DM 6,000) which, under
the  terms of the ZIB agreement, is due to ZIB for each  software
sale.

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 -- The Company filed a report on Form  8-K
   on  January  14, 1998, which reported the appointment  of  Dr.
   Michael  Nobel  to  the Company's Board  of  Directors  and  a
   significant ruling in the Urologix lawsuit.



<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:  April 13, 1998           by:  /s/  Paul F. Turner
                                Paul F. Turner
                                Chairman of the Board, Acting President,
                                 and  Senior  Vice  President  of Research