SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-QSB

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

                         For the quarterly period ended
                               September 30, 1995

                                       OR

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

        For the transition period from _____________ to _________________


                         Commission File Number: 0-10329

                            AW COMPUTER SYSTEMS, INC.
                            -------------------------
             (Exact name of registrant as specified in its charter)


               New Jersey                                   22-1991981
    (State or other jurisdiction of                      (IRS Employer
     incorporation or organization)                    Identifications No.)


           9000A Commerce Parkway, Mt. Laurel, New Jersey 08054 08054
           ----------------------------------------------------------
               (Address of principal executive offices)(Zip Code)

                                  609-234-3939
                                  ------------
              (Registrant's telephone number, including area code)

                                       N/A
                                       ---
   (Former name, address and former fiscal year, if changed since last report)

     Indicate  by check  mark  whether  the  issuer  (1) has filed  all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 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

     As of November 10, 1995, there were issued and outstanding 4,442,544 Class
A Common Shares of the Company.

       Traditional Small Business Disclosure Format (Check One): Yes X No


                                       1
<PAGE>

                                     PART I

                              FINANCIAL INFORMATION
                                   (UNAUDITED)

Item 1.   Interim Financial Statements

          Contents:

               Statements of Operations for three and nine month periods ended
               September 30, 1995 and 1994.

               Balance Sheets as of September 30, 1995 and December 31, 1994.

               Statements of Cash Flow for three and nine month periods ended
               September 30, 1995 and 1994.

               Notes to Interim Financial Statements.

                                       2
<PAGE>

                            AW COMPUTER SYSTEMS, INC.
                      COMPARATIVE STATEMENTS OF OPERATIONS
          FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 1995
                                    AND 1994
                                   (UNAUDITED)
<TABLE>
<CAPTION>

         Three Months                                     Nine Months
     1995          1994                                1995          1994
<S>            <C>            <C>                 <C>            <C>

$   878,317    $   790,103    Revenues            $ 3,131,765    $ 3,443,930

    600,828        590,909    Costs of revenues     2,040,563       2,191,156
    -------        -------                          ---------       ---------

    277,489        199,194                          1,091,202       1,252,774
    -------        -------                          ---------       ---------

                              Selling, general &
    787,130        832,566     administrative       2,675,991       2,597,995

     51,114        156,079    Development             108,202         227,002

     20,099         21,383    Interest                 78,423          40,351
    -------        -------                            -------         -------

    858,343      1,010,028                          2,862,616       2,865,348
    -------      ---------                          ---------       ---------

      8,558         15,334    Interest income          38,567          32,362

                              Loss before income
   (572,296)      (795,500)    taxes               (1,732,847)     (1,580,212)

      ---         (248,217)   Income tax benefit     (319,758)       (482,331)
    -------        -------                            -------         -------

$  (572,296)   $  (547,283)   Net loss            $(1,413,089)   $ (1,097,881)
===========    ===========                        ===========    ============


    ($0.14)        ($0.14)    Net loss per share     ($0.34)         ($0.29)
                              Average shares
3,989,957       3,856,844       outstanding         4,109,813       3,847,011

<FN>

    The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>

                                       3
<PAGE>

                            AW COMPUTER SYSTEMS, INC.
                           CONSOLIDATED BALANCE SHEETS
                    SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
                                   (UNAUDITED)
<TABLE>

<CAPTION>
                                     ASSETS

                                             1995           1994
                                             ----           ----

<S>                                          <C>            <C>

Current assets:
 Cash and cash equivalents                   $   539,716    $ 1,468,778
 Accounts and contract receivables,
  less allowance for doubtful accounts
  $488,302 and $231,000 in 1995 and 1994       1,312,742        521,899
 Costs and estimated earnings in excess
  of billings on uncompleted contracts           909,264      1,418,792
 Inventories                                     598,714        746,254
 Income taxes receivable                         280,322        574,533
 Prepaid and other current assets                 33,165         86,808
                                                  ------         ------
    Total current assets                       3,673,923      4,817,064
                                               =========      =========

Property and equipment, net                      750,143        902,742
Computer software, net                           296,532        112,814
Other assets                                      52,106         51,202
                                                  ------         ------
  Total Assets                               $ 4,772,704    $ 5,883,822
                                               ---------     ----------
                                               ---------     ----------
<CAPTION>

                    LIABILITIES AND SHAREHOLDERS' EQUITY

<S>                                          <C>             <C>
Current Liabilities:
 Line of credit                                    ---       $  550,000
 Current portion of long-term debt               291,667        633,333
 Current portion of lease obligations              7,697         16,341
 Accounts payable                                209,020        208,726
 Accrued liabilities                             163,056        122,218
 Billings in excess of costs and
  estimated earnings on uncompleted
  contracts                                        ---            8,582
 Accrued contract costs                          294,524         59,525
 Other current liabilities                       119,707         87,383
                                                 -------         ------
  Total current liabilities                    1,085,671      1,686,108
                                               ---------      ---------

Long-term debt                                   550,000          ---
Capitalized lease obligations                      9,558         15,461
Pension costs                                    135,258        108,206

Shareholder's Equity
 Common shares:
  Class A, $.01 par; authorized 10,000,000
   shares; 4,441,514 and 3,898,044 issued and
   outstanding in 1995 and 1994, respectively     44,415         38,980
 Additional paid-in capital                    1,895,032      1,564,695
 Retained earnings                             1,109,283      2,522,372
 Deferred compensation                           (56,513)       (52,000)
                                                 -------        -------
 Total shareholders' equity                    2,992,217      4,074,047
                                               ---------      ---------
 Total liabilities and shareholders'
   equity                                    $ 4,772,704    $ 5,883,822
                                             ===========    ===========
<FN>

    The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>


                                       4
<PAGE>

                            AW COMPUTER SYSTEMS, INC.
                            STATEMENTS OF CASH FLOWS
         FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 1995
                                    AND 1994
                                   (UNAUDITED)
<TABLE>

<CAPTION>
       Three Months                                                     Nine Months
   1995           1994                                             
                                                                   1995      1994
<S>             <C>          <C>                                 <C>                 <C>

                             Cash flows, operating
                               activities:
$  (572,296)    $  (547,283)  Net loss:                          $(1,413,089)        $(1,097,881)
                             Adjustments to reconcile
                              net loss to net cash
                              provided by/(used) in
                              operating activities:
                               Depreciation and
    102,435          84,846     amortization                         287,354             238,547 
                                Amortization of unearned
      8,437         (11,547)   unearned compensation                  29,237              (5,629)
       ---           (3,820)   Deferred income taxes                    ---              (24,992)
                                Decrease (increase)in:
    341,532         631,892      Accounts receivable                (790,843)          1,862,394
                                 Costs and estimated
                                  earnings on uncompleted
     (8,072)        125,266       contracts                          509,528            (207,176)
     68,008          51,735      Inventories                         147,540            (272,884)
       ---         (248,217)     Income tax receivable               325,678            (482,331)
      9,638          89,139      Prepaid expenses                     21,272             (27,349)
                                Increase (decrease) in:  
    145,594         (17,962)     Accounts payable                        294            (226,078)
     62,297        (121,726)     Accrued liabilities                 116,572             (98,717)
     81,565           ---        Accrued cost                        234,999               ---
                                 Billing in excess of cost 
                                  and estimated earnings on
   (224,391)        (17,768)      uncompleted contracts               (8,582)            (56,696)
    (37,348)        162,047      Other current liabilities           (16,360)            245,050
    -------         -------                                          -------             -------
                              Net cash provided by (used in) 
    (22,601)        176,602    operating activities                 (556,400)           (153,742)
    -------         -------                                         --------            -------- 
                              Cash flows, investing
                               activities:
    (23,732)        (39,238)   Capital expenditures                  (77,103)           (329,903)
    (77,795)          ---      Computer software capitalized        (241,368)             (2,223)
    -------          ------                                         --------              ------ 
                              Net cash (used in) investing
   (101,527)        (39,238)   activities                           (318,471)           (332,126)
   --------         -------                                         --------            -------- 
                              Cash flows, financing
                               activities:
                               Net borrowing (payments):
                                Long-term debt and lease      
   (230,710)        495,397      obligations                        (356,213)            930,782
                               Proceeds from issuance
       ---           28,658     of common shares                     302,022              35,758
    -------          ------                                          -------              ------
                              Net cash provided by (used in)
   (230,710)        524,055    financing activities                  (54,191)            966,540
   --------         -------                                          -------             -------
                              Increase (decrease), cash and
   (354,838)        661,419    cash equivalents                     (929,062)            480,672
                              Cash and cash equivalents:
   (894,554)      1,273,248    Beginning of period                 1,468,778           1,453,995
   --------       ---------                                        ---------           ---------
$  (539,716)    $ 1,934,667    End of period                     $   539,716         $ 1,934,667
===========     ===========                                      ===========         ===========

<FN>
                                                      7
    The accompanying notes are an integral part of the financial Statements.
</FN>
</TABLE>

                                       5
<PAGE>

                            AW COMPUTER SYSTEMS, INC.
                      NOTES TO INTERIM FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1995
                                   (UNAUDITED)


1.   The  consolidated financial statements include the  accounts
     of  the  Company  and  its  wholly-owned   subsidiary.   All
     significant intercompany transactions and balances have been
     eliminated.   All  adjustments  consisting  only  of  normal
     recurrent  adjustments which, in the opinion of  management,
     are  necessary for a fair statement of the results for  this
     interim period have been made.

2.   Prior  year  balance  sheet  and  cashflow  statements   are
     restated to conform to present year presentation.

3.   The  Company  failed  to meet the net profit  debt  covenant
     under  its Loan Agreements as of December 31, 1994  and  the
     Company  failed to repay the $550,000 Grid Note due  on  May
     30,  1995.   The  Bank  and  the  Company  have  agreed   to
     restructure the debt as follows:  the outstanding balance of
     the  $400,000  Term Note of $125,000 was  paid  in  full  on
     August  1,  1995.   The  $500,000 Fixed  Rate  Note  bearing
     interest   of   7.95%  will  be  paid  in   eleven   monthly
     installments  of $33,333 beginning August  1,  1995  with  a
     final payment of $25,000 on July 1, 1996.  The Company  will
     continue to make interest payments on the $550,000 Grid Note
     at  one  and  one-half percent above the bank's  prime  rate
     (9.75% on September 30, 1995).  The Grid Note will mature on
     December  31, 1996.  The Agreement prohibits the payment  of
     dividends  and requires the Company to maintain a net  worth
     of  $2,500,000  and  working  capital  of  $1,000,000.   The
     covenant requiring a ratio of net profit after depreciation,
     amortization  and interest to current portion of  long  term
     debt of at least 1.25 to 1 has been permanently waived.

4.   In  order to raise funds for the development of new products
     and  for the support of ongoing operations, on May 15,  1995
     certain  officers  and directors of the  Company  and  other
     individuals  purchased a total of 394,000 units,  each  unit
     consisting  of  one share of the Company's  Class  A  Common
     Stock and one warrant to purchase an additional share of Class
     A Common Stock at an exercise price of $2.00 per share.  The warrants
     are  exercisable for five years from the date of grant.  The
     purchase price was $.55 per unit.  The total proceeds to the
     Company,  net  of expenses, were $206,000.   The  securities
     sold are not registered for public sale under the Securities
     Act  of  1933 or any state securities law and the purchasers
     acquired no registration rights with respect thereto.

                                      6
<PAGE>

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


     AW's   success  depends upon  the  number  of  new  computer
systems  which  the  Company is able to  develop,  customize  and
deliver  to  retailers  who  wish to use  existing  point-of-sale
("POS")   equipment   in  conjunction  with   the   POS   systems
manufactured and sold by the three major suppliers in the  United
States;  IBM, the Global Information Solutions division  of  AT&T
("ATT/GIS"  formerly  NCR), or Fujitsu-ICL  Systems,  Inc.  ("FJ-
ICL").  Because these systems are critical to the information and
customer service systems of AW's clients, they take care, through
extensive  evaluation and testing, to ensure operation compatible
with  the  needs of their organizations.  Therefore, the  selling
cycle  frequently  takes  over  a  year  to  complete  from   the
introductory marketing through customization and in-store "Pilot"
system  testing to the multiple store implementation or "Rollout"
of the system

     As  of  November 11, 1995, AW  had a  backlog of firm orders
for  delivery within one year of $814 thousand compared  to  $2.3
million on November 15, 1994.  Because of the size of the backlog
and  the length of the selling cycle described above, the Company
believes  that  the  volume  of operations  will  remain  at  the
relatively low level experienced in the first nine months of this
year until its sales efforts can generate an increase in the flow
of  revenues.   The  Company  is  making  arrangements  with  its
customers  to  perform  special programming  tasks  in  order  to
generate  revenues  quickly.  Although sales  efforts  have  been
intensified,  there is no assurance that these  efforts  will  be
successful.   

     Continuation of Company operations beyond the first quarter of
1996 will be dependent on the successful completion of either or both
of the Company's new products:  The Checker Productivity Analzyer
("CPA") and The Wizard of Point-of-Sale ("Wizard").  The CPA Project,
being developed under contract with a large supermarket chain, which
does not include any guaranteed minimum purchase, is designed to
enhance the economic efficiency in the handling of goods by super-
market operators.  CPA has been installed at a Pilot Store and is
expected to begin testing in December.

     The Wizard brings the familiarity of Microsoft's graphical
Windows environment to the retail Point-of-Sale operation.  Unlike
existing graphical POS systems that demand total replacement of a 
retailer's hardware and software, the Wizard adds graphical capability
to existing environments.  The Tudor version of Wizard has been
installed at a Pilot Store and is being testing.

     Operations

     For the nine months ended September 30, 1995, revenues  were
$3,132,000,  9%  lower  than the same  period  in  1994,  due  to
virtually  no  revenue  generation by the CPA  Project  partially
offset  by  increases  in  software services  revenue.   For  the
quarter   ended  September  30,  1995,  revenues  were  $878,000,
compared  with  $790,000 in 1994, an increase of  11%  due  to  a
significant  increase  in  software  services  revenue  for   the
quarter.

                                       7
<PAGE>

      Gross  profit for the nine months ended September 30,  1995
was  $1,091,000 or 35% of Revenues compared to $1,253,000 or  36%
in  the same period last year.  During the third quarter of  1995
Gross  profit was $277,500 or 32% compared to $199,000 or 25%  in
the prior year third quarter.  Gross profit margins were negatively
effected by the CPA Project.  The Project has exceeded its $1.7
million contractual budget, as such, the  Company  has booked a 
loss  provision  of  $175  thousand  representing  the estimated
cost to complete the project.  This loss provision  was offset by
the reversal of accrued contract costs of $125 thousand pertaining
to  the cancellation of an unrelated contract  during the 
quarter,  the  canceled  contract  provided  for  guaranteed
minimum payments which have been received, therefore, there is no
negative impact on revenues as a result of the cancellation.  The
loss  provision was further offset by a significant  increase  in
high margin software services revenue in the third quarter.

      During the first quarter, the Company set aside $143,000 of
inventory and incurred $42,000 of labor cost in preparing to ship
an  Aware  system  pursuant to a letter of intent  from  a  large
foreign retail chain.  Although the letter of intent contemplated
delivery prior to April 30, 1995, management of the retail  chain
has  advised the Company that the decision on the Aware  purchase
will  be  made  by  the foreign entities American  Joint  Venture
Partner.   As a result of this event, there is no assurance  that
the contract will be awarded to AW.

      For  the  nine  months ended September 30,  1995,  selling,
general and administrative (S.G.&A.) costs increased $78,000 (3%)
over  the  same  period  in 1994.  For the year-to-date  periods,
S.G.&A  represented 85% of revenues compared with  75%  in  1994.
During  the  quarter ended September 30, 1995, S.G.&A.  decreased
$45,000  or  5% over the same period in 1994.  These changes  are
primarily  due to a $213 thousand provision for bad debt  related
to  a  development  contract for one of  the  Company's  business
partners  that  had difficulties selling its product,  offset  by
decreased compensation costs related to a staff reduction of  15%
on  May 15, 1995.  At September 30, 1995, AW had 49 employees,  a
decrease of eleven from the same period in 1994.

      Development expense for the three and nine months  in  1995
was  $105,000  and $119,000 less than the comparable  periods  in
1994.   During  the  third  quarter of  1994  the  Company  began
research and development on new products, since that time one  of
the Company's new products "The Wizard" has reached technological
feasibility, as such , expenses in the amount of $171,000 related
to  this  project have been capitalized during 1995 in accordance
with Generally Accepted Accounting Principles.

      Interest  expense was higher in 1995 due  to  the  interest
associated  with  the term loan and line of  credit  borrowed  in
first  half  of  1994.  Interest income was lower  due  to  lower
balances on the company's interest bearing cash accounts.

                                       8
<PAGE>

          Loss before income taxes decreased for the three months
ended  September 30, 1995 compared to the same period in 1994  by
$223,000 from a loss of $795,500 to a loss of $572,300 while  the
loss  increased $153,000 for the nine months ended September  30,
1995  compared  to same period last year.   In the third  quarter
and  first  nine months of 1995 the effective income tax  benefit
was 0% and 18% of the Net loss before income taxes compared to an
effective  tax rate of 31% for the same periods of  1994.   These
effective tax rates vary from the 34% corporate income  tax  rate
due  primarily to the lack of a net loss carryback  provision  in
the  New  Jersey  State  Income Tax Code  and  the  inability  to
carryback any additional losses to offset past income for Federal
Income Tax purposes.

     Liquidity

      From  December  31,  1994 to September  30,  1995,  working
capital decreased $543 thousand to $2,588 thousand or 136 days of
costs  and  expenses compared to $3,131 thousand or 157  days  of
costs   and  expenses  at  December  31,  1994.   Current  assets
decreased  $1,143  thousand  due to decreases  in  inventory  and
income  taxes  receivable  of $148 thousand  and  $294  thousand,
respectively.  Additionally, as a result of progress billings  on
revenue contracts, costs in excess of billings decreased by  $510
thousand  which  accounts for most of the  increase  in  accounts
receivable of $791 thousand.  Current liabilities decreased  $600
thousand  over  the period due to a decrease in current  debt  of
$892  thousand as a result of the debt restructuring in July 1995
(see  footnote  3),  and  a decrease of $16  thousand  in  leases
payable  and  billings in excess of cost.  These  decreases  were
offset by an increase of $235 thousand in accrued contract  costs
and an increase of $73 thousand in other accrued liabilities.

     During this same period, cash and cash equivalents decreased
by  $929  thousand.  The primary factors for this  decrease  were
$556 consumed by operations, $319 thousand of investments in non-
current  assets,  and $356 thousand in debt reduction  offset  by
$302 thousand in proceeds from the sale of common stock.  Cash and
cash equivalents beyond the first quarter of 1996 will be dependent
on the successful completion and roll out of the CPA or Wizard 
Projects.

     Financial Resources

       The primary source of funds in the near future is expected
to be the Company's operations, cash and accounts receivable.  At
September  30,  1995 the Company had $1.85 million  in  cash  and
accounts   receivable  compared  to  $1.78   million   in   total
liabilities.   The Company's principle fixed payment  obligations
at  September 30, 1995 were the lease for its facilities and  the
payments  on the bank loans which are approximately $615 thousand
over  the next 12 months.  The Company intends to continue making
additional  expenditures  for  capital  equipment  and   software
development in the future.

      In order to raise funds for the development of new products
and  for  the  support of ongoing operations,  on  May  15,  1995
certain   officers  and  directors  of  the  Company  and   other
individuals  purchased a total of 394,000 units, each  consisting
of  one  share  of  the Company's Class A Common  Stock  and  one
warrant  to purchase an additional share of Class A Common  Stock
at  an  exercise  price  of $2.00 per share.   The  warrants  are
exercisable for five years from the date of grant.  The  purchase
price was $.55 per unit.  The total proceeds to the Company,  net
of   expenses,  were  $206,000.   The  securities  sold  are  not
registered  for public sale under Securities Act of 1933  or  any
state  securities law and the purchasers acquired no registration
rights with respect thereto.

                                       9
<PAGE>

                                     PART II

                                OTHER INFORMATION


Item 1.    Legal Proceedings - None.

Item 2.    Changes in Securities - None.

Item 3.    Defaults Upon Senior Securities - None.

Item 4.    Submission of Matters to a  Vote of Security Holders -
None.

Item 5.    Other Information - None.

Item 6.    Exhibits and Reports on Form 8-K - None.


                                       10
<PAGE>


                                   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: November 13, 1995           AW COMPUTER SYSTEMS, INC.








                                   /s/Charles W. Welch
                                   Charles W. Welch
                                   CEO/President






                                   /s/Robert O'Connor
                                   Robert O'Connor
                                   Controller-Treasurer

                                       11
<PAGE>


                                  EXHIBIT INDEX

<TABLE>
<CAPTION>

                                                    Rule 0-3(b) Page
   Exhibit             Description                  Number Where the
   Number                                          Exhibit can be Found

    <S>        <C>                                          <C>

    20-A       Post-Effective Amendment #1 to Form S-8      ?
               (Registration Statement No. 33-64686)

    20-B       Registration on Form S-8                     ?

</TABLE>
                                       12
<PAGE>