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, 1997.
                                
                 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 5, 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                         Nov. 30,     Aug. 31,
____________________________________________             1997         1997
Current assets:                                       ----------   ----------
  Cash and cash equivalents                          $   363,259  $    43,681
  Receivables                                            188,893      406,874
  Inventories                                            536,379      542,226
  Prepaid expenses                                        15,375       20,500
  Deposits                                                11,490        6,850
                                                      ----------   ----------
      Total current assets                             1,115,396    1,020,131
                                                                        
Property and equipment, net                              274,601      280,396
Long-term trade receivables                               68,480       68,480
                                                      ----------   ----------
                                                     $ 1,458,477  $ 1,369,007
                                      
         Liabilities and Stockholders' Equity                               
_____________________________________________
Current liabilities:                                    
  Current portion of long-term debt                  $    74,136  $   251,723
  Current portion of deferred revenue                     62,801       82,850
  Accounts payable                                       297,835      323,918
  Accrued expenses                                       395,079      207,913
                                                      ----------   ----------
      Total current liabilities                          829,851      866,404
                                                      ----------   ----------
Long-term debt                                            69,648       89,697
Deferred revenue                                         124,782      104,733
                                                      ----------   ----------
                                                         194,430      194,430
                                                      ----------   ----------
      Total liabilities                                1,024,281    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                                (19,662,466) (19,784,689)
  Deferred compensation                                 (459,446)    (463,246)
                                                                         
      Less 234,928 shares of treasury stock, at cost     (19,237)     (19,237)
                                                      ----------   ----------
      Total stockholders' equity                         434,196      308,173
                                                      ----------   ----------
                                                     $ 1,458,477  $ 1,369,007
                                                      ==========   ==========
See accompanying notes to financial statements.
<PAGE>
                           BSD MEDICAL CORPORATION
                                      
               Condensed Consolidated Statements of Operations
                                 (Unaudited)
                  Quarters ended November 30, 1997 and 1996



                                                        Nov. 30     Nov. 30
                                                          1997        1996
                                                      ----------   ----------
Product sales                                         $  575,530       73,051
Grant and license revenue                                 67,863      118,666
                                                      ----------   ----------
    Total revenues                                       643,393      191,717
                                                      ----------   ----------
Costs and expenses:                                                   
  Cost of product sales                                  201,263       93,565
  Research and development                                66,539       99,035
  Selling, general, and administrative                   249,438      334,761
                                                      ----------   ----------
    Total costs and expenses                             517,240      527,361
                                                      ----------   ----------
    Operating income (loss)                              126,153     (335,644)
                                                                      
Other income (expense):                                               
  Interest income                                            758        5,735
  Gain on settlement of accounts payable                       -        4,738
  Interest expense                                        (4,738)      (6,764)
  Other, net                                                  50          301
                                                      ----------   ----------
    Total other income (expense)                          (3,930)       4,010
                                                      ----------   ----------
    Net income (loss)                                    122,223     (331,634)
                                                      ==========   ==========
                                                                              
Net income (loss) per common and 
  common equivalent share                             $     0.01         (.02)
                                                      ==========   ==========
Weighted average number of shares outstanding         17,314,726   17,297,067
                                                      ==========   ==========

See accompanying notes to financial statements.
<PAGE>
                           BSD MEDICAL CORPORATION
                                      
               Condensed Consolidated Statements of Cash Flows
                                 (Unaudited)
                  Quarters ended November 30, 1997 and 1996
                                      
                                      
Increase (Decrease) in Cash and Cash Equivalents        Nov. 30     Nov. 30
___________________________________________________       1997        1996
Cash flows from operations activities:                ----------   ----------
Net income (loss)                                     $  122,223     (331,634)
Adjustments to reconcile net income (loss) to net cash              
 (used in) provided by operating activities:              
   Depreciation and amortization                           5,794      163,678
   Deferred compensation                                   3,800            -
   Gain on settlement of accounts payables                     -       (4,738)
   (Increase) decrease in:                                             
     Receivables                                         217,981      492,905
     Inventories                                           5,847      (12,266)
     Prepaid expenses and other assets                       485        9,075
   Increase (decrease) in:                                             
     Accounts payable                                    (26,083)      43,558
     Accrued expenses                                    187,166     (137,869)
     Deferred revenue                                    (20,049)           -
                                                      ----------   ----------
        Net cash (used in) provided by 
         operations activities                           497,164      222,709
                                                      ----------   ----------
Cash flows from investing activities:                              
  Purchase of property and equipment                           -      (46,150)
                                                      ----------   ----------
Cash flows from financing activities:                              
  Net proceeds from (payments on) short-term 
   notes payable                                        (158,103)      (5,626)
  Principal payments on capital lease obligation         (12,659)     (11,160)
  Principal payments on long-term debt obligation         (6,824)      (6,239)
                                                      ----------   ----------
         Net cash used in financing activities          (177,586)     (23,025)
                                                      ----------   ----------
Increase (decrease) in cash and cash equivalents      $  319,578      153,533
Cash and cash equivalents, beginning of period            43,681      381,746
                                                      ----------   ----------
Cash and cash equivalents, end of period              $  363,259      535,279
                                                      ==========   ==========
                                                                   
Supplemental Disclosure of Cash Flow Information
___________________________________________________
Cash paid during the period for interest              $    4,738        6,764
                                      
<PAGE>
                     BSD MEDICAL CORPORATION
      Notes to Condensed Consolidated Financial Statements

Note 1. Basis of Presentation

    The   Condensed   Consolidated  Balance   Sheet   as   of   November   30,
1997,   and   the   Condensed  Consolidated  Statements  of   Operations   and
the    Condensed   Consolidated   Statements   of   Cash    Flow    for    the
quarters   ended   November   30,   1997,  and   November   30,   1996,   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,   1997,
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  November   30,   1997,
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,   1997,   and   November   30,   1996,   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
November  30, 1997, 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
$1,458,477  at  November  30, 1997, an increase  of  $89,470,  or
6.53%,  due to an increase in cash.  Cash increased by  $319,578,
an  increase  of  731.62%,  primarily  caused  by  collection  on
accounts receivable and deposits on future orders.

  Receivables decreased $217,981, a decrease of 53.57%, caused by
collection   on   accounts  receivable  and   periodic   business
fluctuations.   Total inventories decreased by $5,847,  a  slight
decrease of 1.08%, due to periodic business fluctuations.

   Total current liabilities decreased by $36,553, a decrease  of
4.22%.   The  decrease was primarily caused  by  normal  periodic
fluctuations.

   The  Company  has  long  term  receivables  for  field  service
contracts, as of November 30, 1997, of $68,480.

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, 1997

   Net  Sales  for  the  three months ended  November  30,  1997,
increased  by  $502,479, an increase of 687.85% as compared  with
the three months ended November 30, 1996, due to increased 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
February  or  March  1998.)   BSD has received  total  orders  of
$1,631,978  for  sales  of  this new product  line,  and,  as  of
November 30, 1997, has a remaining back-log of $672,604  for  the
new product.

   Gross  profit was $374,267 in the quarter ended  November  30,
1997,  as  compared  to a loss of $20,514 in  the  quarter  ended
November  30, 1996, as a result of the above referenced  increase
in sales.

   Selling,  General  and  Administrative Expenses  decreased  by
$85,323, a decrease of 25.49%, as compared with the corresponding
three  months  in the previous year.  The decrease was  primarily
caused by a significant decrease in deferred compensation related
to vesting of stock options, as compared to the same quarter last
year.

   Research  and  Development Expenses decreased  by  $32,496,  a
decrease of 32.81%.  The decrease was caused by completion of the
BSD-2000-3D product line and near completion of the MR portion of
this sytem.

   Total  Operating Expenses decreased by $10,121, a decrease  of
1.92%,  as  compared with the corresponding three months  in  the
previous fiscal year.  This decrease was primarily caused by  the
aforementioned decreases in Research and Development and Selling,
General and Administrative expenses.

   The  Operating Income for the three months ended November  30,
1997,  was  $126,153,  as compared with  the  Operating  Loss  of
$335,644  for  the  corresponding three months  in  the  previous
fiscal   year.   This  increase  was  primarily  caused  by   the
aforementioned increase in sales and decrease in operating costs.

   Interest Expense in the three months ended November 30,  1997,
was  $4,738, as compared with the $6,764 of Interest  Expense  in
the  three  months  ended November 30, 1996.   The  increase  was
caused by typical periodic business fluctuations.

   The  Net Income for the quarter ending November 30, 1997,  was
$122,223,  as  compared with the Net Loss  of  $331,634  for  the
quarter  ending November 30, 1996.  The primary reason  for  this
increase was the aforementioned increase in sales and decrease in
operating costs.

<PAGE>
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.

   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.  (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.)  The litigation concerns the continued  validity  of
the non-exclusive license (to practice certain patents) granted  by
BSD   to  Urologix  in  settlement  of  prior  patent  infringement
litigation.  In its counterclaim against Urologix, BSD alleged that
Urologix  breached  a  confidentiality  provision  of  the  license
agreement  and  that  the  Company's  termination  of  the  license
agreement  was  therefore proper (see Part I, Item  3,  August  31,
1997, 10-KSB).  The counterclaim also seeks recovery of significant
damages  caused to BSD as a result of Urologix' breach.  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.  The  remaining
issues in the case are set to go to trial on or after February  16,
1998,  at which time BSD will pursue recovery of the damages caused
to it by Urologix' breach of the confidential agreement.

ITEM 5.  OTHER INFORMATION

   Dr.  Michael Nobel has accepted a position as a member of  the
Board of Directors of the Company.  Dr. Nobel is currently CEO of
the  MRAB group, which provides diagnostic imaging services,  and
is either chairman or a member of the board of five international
companies  involved  in medical diagnostics and  treatment.   Dr.
Nobel  participated  in  the introduction of  magnetic  resonance
imaging  (as  European Vice President for Fonar Corporation)  and
has  worked in that field since 1980.  Dr. Nobel is the  Chairman
of  the  Board  of  the  Nobel Family Society  and  is  a  great-
grandnephew  of Alfred Nobel.  He has served as a  consultant  to
Unesco in Paris and the United Nations Social Affairs Division in
Geneva and is Chairman of the American Non-Violence Project Inc.

   On  December 5, 1997, the Company signed a new lease agreement
for  the  Company's facilities with a new owner.  The  new  owner
paid  $700,000  to BSD for the Company's option to  purchase  the
building.   As part of the agreement, the Company will lease  the
building  from the new landlord for an annual rental  expense  of
$78,396.  The Company also has an option to purchase the building
after 18 months for $775,000.

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