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, 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 January 19, 1999
 Common stock, $.01 Par Value                 16,356,640



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 Sheet
                                 (Unaudited)

                        Assets
                                                          Nov. 30,
                                                            1998 
Current assets:                                           ---------
  Cash and cash equivalents                             $ 5,687,095
  Receivables                                               330,036
  Inventories                                               689,817
  Prepaid expenses                                           15,375
  Deposits                                                   38,757
                                                          ---------
     Total current assets                                 6,761,080

Property and equipment, net                                 100,225
Other asset, net                                              2,042
Long-term trade receivables                                  47,486
                                                          ---------
                                                        $ 6,910,833
                                                          =========
         Liabilities and Stockholders' Equity

Current liabilities:
  Accounts payable                                      $   126,917
  Accrued expenses                                          232,097
  Current portion of long-term debt                          35,828
  Current portion of deferred revenue                        71,534
  Current portion of deferred gain on sale - leaseback       46,062
                                                          ---------
    Total current liabilities                               512,438
                                                          ---------
Long-term debt                                                5,422
Deferred revenue                                             99,623
Deferred gain on sale - leaseback                           199,523
                                                          ---------
    Total liabilities                                       817,006
                                                          ---------
Minority interest                                         2,989,039
                                                          ---------
Stockholders' equity:
  Common stock, $.01 par value; authorized 20,000,000
    shares; issued 16,370,052 shares                        163,701
  Additional paid-in capital                             20,531,967 
  Accumulated deficit                                   (17,283,075) 
  Deferred compensation                                    (307,566)

    Less 13,412 shares of treasury stock, at cost              (234)
                                                          ---------
    Total stockholders' equity                            3,104,793
                                                          ---------
                                                        $ 6,910,833 
                                                          =========
See accompanying notes to financial statements.
<PAGE>
                           BSD MEDICAL CORPORATION

               Condensed Consolidated Statements of Operations 
                              (Unaudited)
                  Quarters ended November 30, 1998 and 1997


                                                         Nov. 30    Nov. 30
                                                           1998       1997
                                                        ---------  ---------
Product sales                                          $   79,350    575,530
Grant and license revenue                                       -     67,863
                                                        ---------  ---------
    Total revenues                                         79,350    643,393
                                                        ---------  ---------
Costs and expenses:
  Cost of product sales                                    68,560    201,263
  Research and development                                426,651     66,539
  Selling, general, and administrative                    397,103    249,438
                                                        ---------  ---------
    Total costs and expenses                              892,313    517,240
                                                        ---------  ---------
    Operating income (loss)                              (812,963)   126,153
                                                           
Other income (expense):
  Interest income                                          70,218        758
  Interest expense                                         (1,178)    (4,738)
  Other, net                                               23,046         50
                                                        ---------  ---------
    Total other income (expense)                           92,686     (3,930)
                                                        ---------  ---------
    Net income (loss) before minority interest 
      and income taxes                                   (720,877)   122,223

Benefit for income taxes - current                        171,000          -
                                                        ---------  ---------
    Income (loss) before minority interest               (549,877)   122,223

Minority interest in net loss of subsidiary               160,912          -
                                                        ---------  ---------
    Net income (loss)                                    (388,965)   122,223
                                                        =========  =========

Net income (loss) per common and common 
  equivalent share                                     $    (0.02)      0.01
                                                       ========== ==========
Weighted average number of shares outstanding          16,370,000 17,314,726
                                                       ========== ==========

See accompanying notes to financial statements.
<PAGE>

                      BSD MEDICAL CORPORATION
                                 
               Condensed Consolidated Statements of Cash Flows
                          (Unaudited)
           Quarters ended November 30, 1998 and 1997
                               
                               
Increase (Decrease) in Cash and Cash Equivalents         
                                                          Nov. 30    Nov. 30
                                                           1998       1997 
                                                         ---------  ---------
Cash flows from operations activities:
  Net income (loss)                                    $ (388,965)   122,223
  Adjustments to reconcile net income (loss) 
   to net cash (used in) provided by operating 
   activities:
    Depreciation and amortization                           6,576      5,794
    Deferred compensation                                   3,800      3,800
    Write-off of equipment                                 29,411          -
    Deferred gain on sale of building                     (15,354)         -
    (Increase) decrease in:
      Receivables                                          (9,788)   217,981
      Inventories                                         (32,558)     5,847
      Prepaid expenses and other assets                    37,352        485
    Increase (decrease) in:
      Accounts payable                                     40,369    (26,083)
      Accrued expenses                                   (164,522)   187,166
      Deferred revenue                                    (23,173)   (20,049)
      Minority interest                                  (160,912)         -
                                                         ---------  ---------
            Net cash provided by (used in) operations 
             activities                                  (677,764)   497,164
                                                         ---------  ---------
Cash flows from investing activities:
  Purchase of property and equipment                      (10,696)         -
                                                         ---------  ---------
Cash flows from financing activities:
  Net proceeds from (payments on) short-term 
   notes payable                                                -   (158,103)
  Principal payments on capital lease obligation                -    (12,659)
  Principal payments on long-term debt obligation         (15,560)    (6,824)
                                                         ---------  ---------
             Net cash used in financing activities        (15,560)  (177,586)
                                                         ---------  ---------
Increase (decrease) in cash and cash equivalents      $  (704,620)   319,578

Cash and cash equivalents, beginning of period          6,391,115     43,681
                                                         ---------  ---------
Cash and cash equivalents, end of period              $ 5,687,095    363,259
                                                        ==========  =========
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest              $     1,178      4,738

<PAGE>


                     BSD MEDICAL CORPORATION
      Notes to Condensed Consolidated Financial Statements

Note 1.  Basis of Presentation

   The  Condensed Consolidated Balance Sheet as of  November  30,
1998, and the Condensed Consolidated Statements of Operations and
the  Condensed  Consolidated Statements  of  Cash  Flow  for  the
quarters  ended  November 30, 1998, and November 30,  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 November  30,  1998,
have been made.  BSD currently has fifty-four percent interest in
a  subsidiary, TherMatrx, thus, the financial statements for  the
two  companies have been consolidated.  All material intercompany
balances and transactions have been eliminated.

   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, 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
November  30,  1998,  and November 30, 1997,  are  based  on  the
weighted   average  number  of  shares  outstanding  during   the
respective  periods.   Common stock  equivalents  have  not  been
included  in  the November 30, 1998, quarter, as they  are  anti-
dilutive.


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

Liquidity and Capital Resources

   Consolidated Total assets decreased to $6,910,832 at  November
30,  1998,  a decrease of $724,318, as compared to $7,635,150  at
August  31, 1998.  Non-consolidated Total assets for the  quarter
ended  November 30, 1998, decreased to $3,109,613, a decrease  of
$789,263,  or  20.24%, as compared to $3,898,876  at  August  31,
1998,  primarily  due to a decrease in cash.   Consolidated  Cash
decreased to $5,687,095, as compared to $6,391,115 at August  31,
1998.   Non-consolidated Cash decreased to $2,466,217, a decrease
of  $331,815, or 11.86%, as compared to $2,798,032 at August  31,
1998, primarily due to use of cash for working capital.

   Consolidated  Receivables  increased  to  $330,036,  a  slight
increase  of  $9,788, or 3.06%, as compared to August  31,  1998,
which  was  caused by normal periodic fluctuations.  Consolidated
Total  inventories increased to $689,817, an increase of $32,558,
or  4.95%,  as  compared  to August 31,  1998,  due  to  periodic
business fluctuations.

  Consolidated Total current liabilities decreased to $572,438, a
decrease  of  $178,240,  or 25.81%.  The decrease  was  primarily
caused  by  reductions  in notes payable, deferred  revenue,  and
accrued expenses.

   The  Company  has  long  term  receivables  for  field  service
contracts, as of November 30, 1998, of $47,486.

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  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  inability 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, 1998

   Consolidated Net Sales for the three months ended November 30,
1998,  decreased by $564,043, or 86.67% as compared to the  three
months  ended  November  30, 1997.  The  decrease  was  primarily
caused  by  a delay in receipt and processing of European  orders
while  the Company obtains the CE Mark approval on the  new  BSD-
2000/3D system, now required for sales to all European Union (EU)
countries.   The Company anticipates receipt of CE Mark  approval
by the end of this fiscal year.

   Consolidated Gross profit on product sales was $10,790 in  the
quarter  ended  November  30, 1998, a decrease  of  $363,477,  or
97.12%, as compared to $374,267 in the quarter ended November 30,
1997, as a result of the decrease in sales (see above).

   Consolidated  Selling,  General  and  Administrative  Expenses
totaled $397,103, an increase of $147,665, or 59.20%, as compared
with  the corresponding three months in the previous year.   Non-
consolidated Selling, General and Administrative Expenses totaled
$163,511, a decrease of $85,927, or 34.45%, as compared with  the
corresponding  three months in the previous year.   The  decrease
was  primarily  caused  by a reduction  in  legal  costs  due  to
settlement of the lawsuit with Urologix (see Note 15 to Financial
Statements, August 31, 1998 10-KSB).

    Consolidated   Research  and  Development  Expenses   totaled
$426,650,  an increase of $360,061, or 541.20%.  Non-consolidated
Research  and Development Expenses totaled $110,993, an  increase
of  $44,454,  or  66.80%.  The increase was caused  by  increased
resources devoted to completion of the BSD-2000/3D/MR system, and
costs associated with obtaining CE Mark approval for this system,
as  well  as development of a new, low-cost, PC-based system  for
the   treatment  of  site  specific  tumors,  including  prostate
carcinoma, head and neck tumors, and cervical carcinoma.

   Consolidated  Total  Costs  and  Expenses  were  $892,313,  an
increase of $375,073, or 72.51%, as compared with $517,240 in the
corresponding  three  months in the previous  fiscal  year.  Non-
consolidated Total Costs and Expenses were $361,182,  a  decrease
of  $156,058, or 30.17%.  This decrease was primarily  caused  by
the  aforementioned decrease in legal costs and above  referenced
decrease in sales and thus cost of product sales.

   Consolidated  Interest  Expense  in  the  three  months  ended
November  30,  1998, was $1,178, as compared with the  $4,738  of
Interest  Expense  in the three months ended November  30,  1997.
The  decrease was caused by lower interest costs associated  with
notes  payable  as  they  reach maturity.  Consolidated  Interest
Income in the three months ended November 30, 1998, was $70,218.

  Consolidated Net Loss for the quarter ending November 30, 1998,
was  $388,965, compared with a Net Income for the quarter  ending
November 30, 1997 of $122,223.  Non-consolidated Net Loss for the
quarter  ended November 30, 1998, was $200,066 as compared  to  a
Net  Income of $122,223 for the quarter ended November 30,  1997.
The  difference from 1997 to 1998 was primarily due to a decrease
in sales and an increase in research and development costs.

  YEAR 2000 COMPLIANCE.  All of BSD Medical's systems are fully Year
2000  (Y2K) compliant, with the exception of some BSD-500  and  BSD-
2000  systems  that  use  either a 68000 or 68020  computer  system.
Beginning  January  1,  2000, these systems will  display  an  error
message when the system is first started, indicating the system  has
an  invalid  date.  The Company is in the process of  rewriting  the
software  for  both  of these systems, which  will  allow  usage  to
continue  until the end of 2099.  The cost to BSD Medial to  address
this  issue  is not material - less than $10,000.  The new  software
will  be available for customer purchase by March 1, 1999.   In  the
event  that a customer elects not to purchase the updated  software,
their  system  can  still be operated by manually  entering  a  year
between  1985  and 1999.  The system operations and calculations  do
not include any date driven functions and therefore 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  is
dependent  on  other customers and vendors.  The  Company  has  been
talking  to  our  vendors and customers but has  not  been  able  to
determine the Y2K readiness of these entities.


PART II - OTHER INFORMATION

ITEM  6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits

  The following exhibits are 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 19, 1999                 by: /s/  Paul F. Turner
                                          Paul F. Turner
                                          Chairman of the Board, 
                                          Acting President, and
                                          Senior Vice President of Research