Xedar Corporation
2500 Central Avenue
Boulder, CO 80301

March 26, 1999

Securities and Exchange Commission
Washington, D.C. 20549

Pursuant to the requirements of the Securities Exchange Act
of 1934, we are transmitting herewith the attached Form
10KSB.
The filing fee of $250.00 has been remitted by wire to the
Mellon Bank for our CIK account.

Sincerely,

Hans R. Bucher

Hans R. Bucher
President



U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
Form 10-KSB
(Mark One):
(x) Annual Report Pursuant to Section 13 or 15(d) of the Securities
    Exchange Act of 1934 for the fiscal year ended
    December 26, 1998

or

( ) Transition Report Under Section 13 or 15(d) of the
    Securities Exchange Act of 1934
    for the transition period from   to

Commission File Number  0-8356

XEDAR CORPORATION
(Exact name of registrant as specified in its charter)

        Colorado

(State or other jurisdiction of incorporation or organization)

             84-0684753
(I.R.S. Employer Identification No.)

        2500 Central Avenue, Boulder, CO            80301
        (Address of principal executive offices)  (Zip Code)

Registrant's telephone number incl. Area code:(303) 443-6441

Securities registered pursuant to Section 12(b) of the Act:  None
Title of each class   Name of each exchange on which registered
                                None


Securities registered pursuant to Section 12(g) of the Act:
Common Stock, No Par Value
(Title of class)


(Title of class)

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 by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K (#229.405 of this chapter) is not contained
herein, and will not be contained, to the best of the registrant's
knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-KSB or
any amendment to this Form 10-KSB. [   ]

The the aggregate market value of the voting stock held by
non-affiliates of the registrant: $328,686 at December 26, 1998.

The number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date: 1,837,224
common shares as of February 28, 1999.

DOCUMENTS INCORPORATED BY REFERENCE

The Company's definitive proxy statement to be filed pursuant to
Regulation 14A relating to the annual meeting of stockholders and
the Articles of Incorporation and Bylaws of the Company are herein
incorporated by reference in Part III and IV of the Form 10-KSB.


PART I

ITEM 1. DESCRIPTION OF BUSINESS

Business Development

Xedar Corporation (hereinafter referred to as the "Company") was
organized as a Colorado corporation on May 6, 1974.

Business of Issuer

 The Company's principal business is the design, development,
fabrication and sale of high technology electro-optical equipment
and related electrical equipment, including devices such as cameras,
video systems, video amplifiers, image systems, electro-optical
transmissions, electrical test equipment, etc.

The Company's primary electro-optical equipment consists of its
line of CCD- ("Charge Coupled Devices") Cameras and related equipment.
These CCD-Cameras are used in medical X-ray diagnostic and procedural
applications as well as in scientific and research applications.
The operation and data display of these cameras is computer controlled
and the information displayed is on a digital computer that can be
computer manipulated.

The Company's other operations include OEM-manufacturing of
CCD-Cameras, engineering programs and single customer programs.

General Production Programs and Products

The major portion of the Company's business includes the design,
development and production of CCD-Cameras for OEM customers.
These programs are in response to customer requirements and the
OEM-Production quantities can range from a few cameras per year to several
hundred per year per customer.

Depending on the application and customer requirements,
the complexity, resolution and data rates of the CCD-Cameras vary.

The Company is presently offering the following range of cameras
in end user and OEM configurations:

Fiber Optic Coupled Cameras - In many applications, the use of
lens coupling from the image to the sensor is not suitable.
This is the case in applications where an image intensifier
output phosphor is to be imaged, or in X-ray imaging systems
where the light output of the X-ray converter screen is to be
imaged.  Lens coupling in these applications is possible, however,
at a great loss of the available light due to the low coupling
efficiency of a lens system.  For such applications, the Company
has developed a low cost technique to bond imaging (fiber-optic)
FO-Tapers or windows directly to the CCD.  The FO-Tapers can have
positive or negative magnification to match the field of view
required.  CCD-Cameras with FO-coupling are for demanding applications
in the scientific and medical field and require low dark current
at long integration times.  The Company has developed methods to
Peltier cool the CCD's working temperatures to as low as
-60 degrees Celsius.

Lens Coupled Cameras - Certain applications require lens coupling
to image the object.  The Company manufactures a wide range of OEM
and end user systems for such applications.  Besides a single board
camera with 1 million pixels of resolution, the Company is
manufacturing a complete camera with 4 million pixels of resolution.

Data Rates - The Company designs and manufactures CCD-Cameras with
readout data rates as low as 10 kHz and as high as 40 MHz.

Dynamic Range - The dynamic range of a camera is its ability to
resolve shades of gray.  This is accomplished by digitizing the
video output signal from the CCD.  The dynamic range of the
CCD-Cameras designed and manufactured by the Company range
from 10 BIT (1000:1 dynamic range) for fast readouts to
16 BIT (6500:1 dynamic range) for scientific application readouts.

Related Engineering - Most applications of CCD-Cameras require
data transmission from the Camera to the computer.
The Company has developed parallel data links to transmit
12 BIT digital information and has developed high speed FO-serial data links.

Engineering Programs

 The Company also develops proposals in response to a set of
specifications submitted by a potential customer for the development
of specific equipment or processes.  This effort may or may not
result in the development of a prototype device, depending on the
nature of the request.  The potential customer generally seeks to
obtain design capabilities for the manufacture of specific
electro-optical or related high technology devices.
Fees for the Company's design and development services are
often contingent upon execution of a contract with the customer for
the creation, production and manufacture of a designed prototype.

Single Customer Production Programs

In addition to its general production program, wherein the
Company manufactures certain of its products for general sale
to the public, the Company also produces specific products for
customers who have executed pre-production contracts or an
engineering contract, wherein the Company will produce the
product which it has developed and designed, which might be a
product which is not available for sale to the general public.

Marketing and Sales

The primary emphasis of the Company's marketing and sales
effort is the sale of OEM cameras and to obtain engineering
and manufacturing contracts in related fields.

Contracts for engineering programs and single customer production
programs are usually negotiated on an ad hoc basis.
Potential customers include past customers, governmental agencies,
national laboratories and third party referrals.


Competition

The Company has experienced and will continue to experience competitive
pressure in all phases of its business.  Potential competitors
are numerous, have substantially more technical resources, and
possess financial, marketing and other resources superior to those
available to the Company.

In connection with the design of electro-optical equipment, numerous
national and multi-national electronic and aerospace companies
maintain in-house capabilities to compete with the Company on a
project basis.  The companies include Martin Marietta,
Ball Corporation, Loral and Philips.  In addition, there are at least
a dozen smaller specialty firms who may compete with the Company on a
contract/bid basis. Although the Company's small size is often a
disadwantage when bidding on substantial projects, there is no objective
manner (price, warranty, services, etc.) to differentiate the Company's
design and development capabilities from those of its competitors.

In connection with the Company's CCD-Cameras, the Company
currently competes with Photometrics, Sierra Scientific,
Princeton Instruments and several others.  The Company
believes that competition in the CCD-Camera industry involves
such factors as performance, price and warranty.  In this
regard, the Company offers competitively priced systems with
state of the art performance from "no frills" subassemblies
to complete systems.

Additional Information

The Company's electro-optical equipment may be assembled from
components produced by various suppliers.  Although the components
are highly sophisticated devices, the Company is not dependent on
any single supplier including the supply of CCDs.

Although the Company requests down payments or earnest money
deposits and periodic performance payments from customers during
the fabrication of its products, there is no assurance that
customers will agree to make such payments.  Therefore,
the substantial period of time between commencement of assembly
and payment upon completion may subject the Company to increased
risks and additional working capital requirements.

For the fiscal years ended December 27, 1997 and
December 26, 1998, the Company expended $49,353 and $102,730
respectively, upon Company-sponsored research and development.
The Company offers research and development services on a fee
basis for its customers' products.  No revenue associated with
such services was earned in 1997 or 1998.

Compliance with federal, state and local provisions which have
been enacted or adopted regulating the discharge of materials
into the environment, or otherwise relating to the protection
of the environment, are not expected to have a material effect
on capital expenditures, earnings or the competitive position of
the Company.

Employees

As of December 26, 1998, the Company employed six persons,
including its president/treasurer, one engineer, two technicians
and two administrative personnel, full time.

ITEM 2. DESCRIPTION OF PROPERTY

The Company leases its office and plant facilities from Central
Avenue Investment, a general partnership, whose partners include
Hans Bucher, the Company's president and a director, and Marlis Bucher,
the Company's secretary.  The Company's facilities are located
at 2500 Central Avenue, Boulder, Colorado 80301 and consist of
approximately 6,895 square feet.  The Company has periodically
renewed and amended this lease and has committed to a three-year
term beginning September 15, 1996 with an option to renew for another
three years.  The monthly rental is $4,050.  On each anniversary date
of the lease, the lease payments will be adjusted for the percentage
increase in the consumer price index.  The Company believes that the
lease is fair and reasonable and on as beneficial terms as could be
obtained from any unaffiliated third party consistent with other
rentals assessed in the market area for similar facilities.


ITEM 3. LEGAL PROCEEDINGS

No material legal proceedings to which the Company is a party or
of which any of its property is the subject are pending and no such
proceedings are known by the Company to be contemplated.
The Company is not presently a party to any litigation or
administrative proceedings with respect to its compliance with
federal, state or local provisions which have been enacted
regarding the discharge of materials into the environment or
otherwise relating to the protection of the environment, and no such
proceedings are known by the Company to be contemplated.


ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matter was submitted during the fourth quarter of the fiscal
year covered by this report to a vote of security holders, through
the solicitation of proxies or otherwise.


PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

(a)      The Company's common stock is traded in the over-the-counter market.
         The price ranges* (in fractions of one dollar) of the bid quotations
         of the Company's common stock during its last two fiscal years,
         as provided to the Company by local stock brokerage firms,
         are set forth below:
                                    1997             1998
     Quarter ended:             High    Low      High    Low
      March 29/March 28        $ 1 1/8   1/2      2/3     1/3
      June 28/June 27             1      1/8      2/3     1/3
      September 27/September 26   2/3    1/3     5/16    3/16
      December 27/December 26     2/3    1/3     5/16    3/16

*   The quotations set forth herein are representative of inter-dealer prices.
    Inter-dealer markets change throughout the day and do not include
    markup, markdown, or commissions.

(b) As of December 26, 1998, there were approximately 150 record holders
    of the Company's common stock.

(c) The Company has not paid any cash dividends to date.


ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Management's Discussion and Analysis of Financial Condition and Results
of Operations

Sales and Gross Profits

During the past fifteen years, the Company had three basic sources
of revenue: commercial products, design and development contracts,
and single customer production programs.

Sales by product lines for 1997 and 1998 were (in thousands):
                                             1997             1998

Commercial Products                         $  30                4
Design and Development Contracts              546              120
Single Customer Production Programs            12               15

                                            $ 588              139
                                            =====             ====

Xedar product sales of $4,000 were 3% of sales in 1998 representing
a decrease of $26,000 as compared to 1997.  The marketing effort for
this product has been reduced since the sales potential for tube
based infrared cameras is insignificant.


Design and development contract sales decreased by $426,000 and
amounted to approximately 86% of sales in 1998 in comparison to 93%
during 1997.  This decrease is primarily due to lower levels of work
on existing engineering contracts and no new contracts.

Single customer production program sales increased in 1998 and
amounted to approximately 11% of 1998 sales in comparison to
2% in 1997.

The gross profit (loss) for 1998 was (114)% as compared to 1% in
1997 due to reduced sales volume and lower absorption of overhead.

Research and Development

A total of $102,730 was expended during 1998, representing
approximately 74% of sales, compared to $49,353 expended in 1997.
The 1998 funds were primarily used for the development of a high-
resolution CCD camera and continued development of flatfielding hardware
that removes defects from digital images.  The 1997 funds were primarily
used to evaluate high-speed amplifiers for various applications and the
CCDs.

Selling, General and Administrative Expenses

Selling, general and administrative expenses in 1998 amounted
to $178,726 as compared to $267,253 in 1997.  These expenses
decreased by $88,527 in 1998 primarily as a result of the termination
of the marketing director and a decrease in support costs.

Interest and Miscellaneous Income

Interest and miscellaneous income was $102,400 for 1998 and
$71,142 for 1997 primarily representing interest earned on
short-term cash investments and an income tax refund received in 1998.

Liquidity and Capital Resources

In recent years, the Company has financed its activities from
cash reserves and operations.  No bank financing has been used
since 1982.  As noted in the statements of cash flows, cash and
cash equivalents decreased from 1997 to 1998.  The net cash used
by operations in 1998 was $248,782.  The cash balance was also
reduced by capital expenditures of $15,446.

The Company has working capital of $853,286 and a current
ratio of approximately 15 to 1 at December 26, 1998.

The Company's liquidity position is necessary to maintain its
ability to conduct in-house research and development enabling it
to compete in single customer contracts and to develop a commercial
product line in a highly volatile high technology market place.


Year 2000 Issue

The Company has assessed "Year 2000" issues within each of its
significant computer systems and applications and concluded that the
software being utilized is not date sensitive and adequately recognizes
a four-digit year.  The Company has not identified any mission critical
systems which are not expected to be compliant or cannot be circumvented
manually.

The failure to correct a material Year 2000 problem could result in an
interruption in, or failure of, certain normal business activities or
operations.  Such failures could materially and adversely affect the
Company's operations, liquidity and financial condition.  Due to the
general uncertainty inherent in the Year 2000 problem, resulting in part
from the uncertainty of the Year 2000 readiness of third party suppliers,
the Company is unable to determine at this time whether the consequences
of Year 2000 failures will have a material impact in the Company's
operations, liquidity or financial condition.  The Company has not
expended any money to rectify Year 2000 issues and expects to not incur
any such expenses in the future.

Forward-Looking Statements

Except for the historical information contained herein, the
matters set forth in this 10-KSB are forward-looking statements
within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995.  These forward-looking
statements are subject to risks and uncertainties that may cause
actual results to differ materially.  These risks are detailed from
time to time in the Company's periodic reports filed with the Securities
and Exchange Commission, including the Company's Annual Report
on Form 10-KSB, Quarterly Reports on Form 10-QSB and other periodic
filings.  These forward-looking statements speak only as of the
date hereof.  The Company disclaims any intent or obligation to
update these forward-looking statements.

ITEM 7. FINANCIAL STATEMENTS


Independent Auditors' Report

The Board of Directors and Stockholders
Xedar Corporation:

We have audited the accompanying balance sheets of Xedar Corporation
as of December 27, 1997 and December 26, 1998, and the related
statements of operations, stockholders' equity, and cash flows
for the 52 weeks ended December 27, 1997 and December 26, 1998.
These financial statements are the responsibility of the Company's
management.  Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with generally accepted
auditing standards.  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating
the overall financial statement presentation.  We believe that
our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of
Xedar Corporation as of December 27, 1997 and December 26, 1998,
and the results of its operations and its cash flows for the
52 weeks ended December 27, 1997 and December 26, 1998 in
conformity with generally accepted accounting principles.


KPMG LLP

Boulder, Colorado
February 12, 1999


XEDAR CORPORATION
Balance Sheets
December 27, 1997 and December 26, 1998


Assets
                                     1997              1998

Current assets:

   Cash and cash equivalents       $ 1,084,315           828,445
        Trade accounts receivable,
        less allowance for doubtful
        accounts of $2,436 in 1997
        and 1998                        12,695            43,826
        Note receivable                 95,000              -
        Interest receivable              4,000             5,000
        Inventories (note 2)            32,603            33,551
        Prepaid expenses                 4,069             4,669
        Refundable income taxes          3,206              -

            Total current assets     1,235,888           915,491

Long-term receivable from
related party (note 3)                 162,879           154,521

Property and equipment, at cost
(note 4)                               139,949           141,307
Less accumulated depreciation         (118,324)         (118,930)
                                        21,625            22,377

Patents, net                            14,477            13,517

                                   $ 1,434,869         1,105,906


Liabilities and Stockholders' Equity


Current liabilities:
        Accounts payable:
              Trade                  $   3,036             9,281
              Related party (note 8)     6,293             4,048
        Accrued liabilities:
              Vacation                  35,027            38,877
              Payroll and commissions    8,540             6,960
              Payroll and other taxes    1,682             3,039

          Total current liabilities     54,578            62,205

Stockholders' equity (note 5):
        Common stock, no par value.
        Authorized 5,000,000 shares;
        issued and outstanding
        1,837,224 shares             1,617,617         1,617,617
        Additional paid-in capital          40                40
        Accumulated deficit           (237,366)         (573,956)

        Total stockholders' equity   1,380,291         1,043,701

Commitments (note 8)


                                   $ 1,434,869         1,105,906


See accompanying notes to financial statements.


XEDAR CORPORATION

Statements of Operations

52 Weeks ended December 27, 1997 and December 26, 1998

                                       1997               1998

Sales (note 6)                       $ 587,874          138,686
Cost of sales                          584,210          296,220

          Gross profit (loss)            3,664         (157,534)

Research and development expenses       49,353          102,730
Selling, general and
  administrative expenses              267,253          178,726

           Operating loss             (312,942)        (438,990)

Interest and miscellaneous income       71,142          102,400

           Net loss                  $(241,800)        (336,590)

Basic and diluted loss per
common share                         $    (.13)            (.18)

See accompanying notes to financial statements.


XEDAR CORPORATION

Statements of Stockholders' Equity

52 Weeks Ended December 27, 1997 and December 26, 1998



                                                     Retained
                                        Additional   earnings      Total
                     Common Stock         paid in  (accumulated  stockholder's
                  Shares       Amount     capital    deficit)      equity
Balances at
Dec. 28, 1996    1,837,224    $ 1,617,617     40       4,434      1,622,091

Net loss             -             -           -    (241,800)      (241,800)

Balances at
Dec. 27, 1997    1,837,224    $ 1,617,617     40    (237,366)     1,380,291

Net loss             -             -           -    (336,590)      (336,590)

Balances at
Dec. 26, 1998    1,837,224    $ 1,617,617     40    (573,956)     1,043,701

See accompanying notes to financial statements.



XEDAR CORPORATION

Statements of Cash Flows

52 Weeks Ended December 27, 1997 and December 26, 1998

                                                  1997         1998

Net loss                                       $(241,800)    (336,590)
Adjustments to reconcile net loss to net cash
used by operating activities:
    Depreciation of property and equipment        16,071       14,694
    Amortization of patents                          526          960
    Loss on write-off of patents                   7,360         -
Changes in operating assets and liabilities:
         Trade accounts receivable               248,481      (31,131)
         Interest receivable                       3,078       (1,000)
         Note receivable                         (95,000)      95,000
         Inventories                              21,426         (948)
         Prepaid expenses                           (164)        (600)
         Refundable income taxes                  74,831)       3,206
         Accounts payable                        (20,383)       4,000
         Accrued liabilities                       4,476        3,627
         Advance billings                        (38,420)        -

    Net cash used by operating
    activities                                  (19,518)    (248,782)

Cash flows used in investing activities:
        Capital expenditures                    (12,468)      (15,446)
        Patent expenditures                      (1,746)         -
        Long-term receivable - related party      7,750         8,358

    Net cash used by investing
      activities                                 (6,464)       (7,088)

Net decrease in cash and cash
  equivalents                                   (25,982)      (255,870)

Cash and cash equivalents
at beginning of year                         1,110,297      1,084,315

Cash and cash equivalents at end of year    $1,084,315        828,445


See accompanying notes to financial statements.



XEDAR CORPORATION

Notes to Financial Statements

December 27, 1997 and December 26, 1998


 (1)    Summary of Significant Accounting Policies

(a)     Nature of Operations

The Company's principal business is the design, development,
fabrication and sale of high technology electro-optical equipment
and related electrical equipment, including devices such as cameras,
video systems, video amplifiers, image systems, electro-optical
transmissions, electrical test equipment, etc.  The Company's products
are used in medical X-ray diagnostic and procedural applications as
well as in scientific and research applications.  The Company's other
operations include OEM-manufacturing of CCD-Cameras, engineering
programs and single customer programs.

The Company's product lines include commercial products, design
and development contracts, and single customer production programs.
Sales for each of these product lines as a percentage of total
sales were 5%, 93% and 2%, respectively, during 1997, and
3%, 86% and 11%, respectively, during 1998.

The Company's customers are located primarily in the United States.

(b)     Revenue Recognition

Sales of the Company's products are recognized upon shipment.
Revenue and the related expense from product development and
similar contracts are recognized when the products have been
delivered or services are performed under the terms of the contracts.
Certain sales which allow for the right of return are recorded as
deferred revenue until such right of return expires.

(c)     Cash and Cash Equivalents

Cash and cash equivalents of $1,084,315 and $828,445 at December 27, 1997
and December 26, 1998, respectively, consist of demand deposits and
certificates of deposit. For purposes of the statements of cash flows, the
Company considers all highly liquid debt instruments with original maturities
of three months or less to be cash equivalents.

(d)     Note Receivable

The note receivable of $95,000 at December 27, 1997 was recorded at
carrying cost of the account receivable when it was converted to a note.
Payment was received in 1998.

(e)     Inventories

Inventories are stated at the lower of cost or market.  Cost is
determined by the first-in, first-out method.  Work in process and
finished goods inventories include charges for direct material,
direct labor, and manufacturing overhead applied in relation to
direct labor and direct material.

(f)     Property and Equipment

Property and equipment are stated at cost.  Depreciation is
computed using the straight-line method over the estimated useful
lives of the respective assets.

(g)     Patents

Costs incurred in obtaining patents are capitalized and amortized
on a straight-line basis over the life of the patent which is
estimated at 17 years.  During 1997,  patents with a book value
of $7,360 were denied by the U.S. Patent Office and were written off.

(h)     Research and Development Expenses

Research and development expenses are charged to operations as incurred.

(i)     Income Taxes

Under the asset and liability method of Statement of Financial
Accounting Standards No. 109 (SFAS) 109), deferred tax assets
and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax
bases.  Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or
settled.  Under SFAS 109, the effect on deferred tax assets and
liabilities of a change in tax rates is recognized in income in the
period that includes the enactment date.

(j)     Loss Per Common Share

For the 52 weeks ended December 27, 1997 and December 26, 1998, basic
and diluted loss per common share were computed by dividing the net
loss by the weighted average number of shares outstanding of
1,837,224.  No options or warrants with a dilutive effect were
outstanding during the 52 weeks ended December 27, 1997 or
December 26, 1998.

(k)     Use of Estimates

The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period.  Actual results could differ from those estimates.

(l)     Impairment of Long-Lived Assets and Long-Lived Assets to
        Be Disposed Of

Long-lived assets are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount of an
asset may not be recoverable.  Recoverability of assets to be held
and used is measured by a comparison of the carrying amount of an
asset to the future net cash flows expected to be generated by
the asset.  If such assets are considered to be impaired, the
impairment to be recognized is measured as the amount by which
the carrying amount of the asset exceeds the fair value of the
asset.  Assets to be disposed of are reported at the lower of
the carrying amount or fair value less costs to sell.

(m)     Fiscal Year

The Company's fiscal year is a 52/53 week year ending on the last
Saturday of December.


 (2)    Inventories

Inventories consist                  December 27,       December 26,
of the following:                       1997                1998

Raw materials                        $  6,714              4,345
Work in process                        25,889             29,206

                                     $ 32,603             33,551

Work in process is presented net of an allowance for obsolete and
excess components of $41,410 in 1997 and 1998.

(3)     Long-Term Receivable From Related Party

During 1985, the Board of Directors approved the purchase of a
split-dollar life insurance plan for the Company's president.
Through December 31, 1992, the annual premiums were paid by the Company.
For years subsequent to 1992, the premiums have been or are
expected to be paid out of the earnings of the plan.
The plan provides a $750,000 death benefit plus a cash surrender value.
The Company is named beneficiary for $250,000 of the death benefit
and does not share in cash surrender value increases.
Amounts paid by the Company on behalf of the Company's president,
prior to 1992, are considered advances to the president and are
repayable without interest.  The advances are secured by the
policy benefits, including the cash surrender value, which
exceeds the carrying value of the long-term receivable
at December 27, 1997 and December 26, 1998.

(4)     Property and Equipment

The cost of major classes of property and equipment is as follows:


                              Estimated      December 27,   December 26,
                             useful lives       1997            1998

Office furniture and
equipment                   5 to 10 years    $ 10,156         10,156
Production, laboratory and
other equipment             3 to 10 years     129,793        131,151

                        Total                $139,949        141,307

Depreciation expense was $16,071 and $14,694 in 1997 and 1998,
respectively.

(5)     Stockholders' Equity

In June 1994, the stockholders approved a nonqualified stock option
plan for the Company's Board of Directors and reserved 50,000
shares for issuance under the plan.  No options have been granted
under this plan.

Under the terms of the Company's Incentive Stock Option plan
(ISO), the Board of Directors has reserved 200,000 shares for grant,
of which 160,000 shares remain available for grant.

There were no stock options issued or exercised during 1997 or 1998.
At December 27, 1997 and December 26, 1998 the Company has no
outstanding stock options.

(6)     Significant Customers

Significant customers have accounted for sales as follows:

                                            1997          1998

       Customer A                            34%            -
       Customer B                             8%           11%
       Customer C                            34%            -
       Customer D                             -            33%
       Customer E                             -            42%

(7)     Income Taxes

The Company recorded no current or deferred income tax benefit in 1997
or 1998.  Income tax benefit differed from the amounts computed by
applying the U.S. federal income tax rate of 34% to loss before income
taxes as a result of the following:

                                              1997          1998
Computed "expected" tax benefit            $ (82,212)      (114,441)
Expenses not deductible for income
  tax purposes                                 2,320          2,292
State taxes, net of federal impact            (6,490)         -
Change in the valuation allowance for
  deferred tax assets                         90,600         54,100
Benefit of tax loss carryback not
  recognized in prior year                       -           58,932
Phase in of graduated income tax rate         (4,100)         -
Other, net                                      (118)          (883)

       Income tax benefit                  $     -            -

The tax effects of temporary differences that give rise to significant
portions of the deferred tax assets and deferred tax liabilities are
presented below:
                                       December 27,       December 26,
                                            1997             1998

Deferred tax assets:
  Accounts receivable, due to allowance
    for doubtful accounts                 $     900              900
  Compensated absences, due to accrual
    for financial statement purposes         13,300           14,800
  Inventory, due to inventory valuation          -            21,000
  Net operating loss carryforwards           90,600          120,700
  Other                                          -             2,300

        Total gross deferred tax assets     104,800          159,700

Less valuation allowance                    (99,600)         (153,700)

       Net deferred tax assets                5,200             6,000

Total deferred tax liabilities - property
  and equipment, due to differences in
    basis and depreciation                   (5,200)           (6,000)

      Net deferred income taxes            $    -                -

A valuation allowance for the gross deferred tax assets has been
provided to recognize no net deferred tax assets.  Due primarily to
the Company's losses in 1997 and 1998, management believes that
deferred tax assets are not more likely than not recoverable.


(8)   Commitments

During 1978, the Company entered into a lease agreement for facilities
with a partnership in which the Company's president and secretary are
partners.  The Company has periodically renewed and amended this lease
and is committed to a three-year term which began September 15, 1996.
On each anniversary date, the lease payments are adjusted for the
percentage increase in the consumer price index.  As of December 26, 1998,
the monthly rental was $4,050.  Unpaid rents were $4,050 at December 27,
1997 and December 26, 1998.

The Company's rental expense for this lease was $49,690 for 1997 and
$48,579 for 1998.  The Company's minimum lease commitment, without
adjustments for increases in the consumer price index, is $36,450 for
1999.

The Company has employed a member of the Board of Directors to perform
financial and accounting services.  Total fees paid to this related
party were $3,615 and $3,325 in 1998 and 1997, respectively.


ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE

None.

PART III

ITEM 9. DIRECTORS , EXECUTIVE OFFICERS, PROMOTERS, AND CONTROL
PERSONS, COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

Information regarding the directors and executive officers of
the Registrant is incorporated by reference to the Company's
definitive proxy statement to be filed pursuant to Regulation
14A relating to the annual meeting of stockholders at which
directors are to be elected, hereinafter referred to as
"the Company's definitive proxy statement."

ITEM 10.        EXECUTIVE COMPENSATION

Information regarding management remuneration and transactions
is incorporated by reference to the Company's definitive proxy
statement.

ITEM 11.        SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
                AND MANAGEMENT

Information regarding the security ownership of certain beneficial
owners and management of the Company is incorporated by reference
to the Company's definitive proxy statement.

ITEM 12.        CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Information regarding certain relationships and related transactions
is incorporated by reference to the Company's definitive proxy statement.

PART IV

ITEM 13.        EXHIBITS AND REPORTS ON FORM 8-K

(a)     The following documents are filed as a part of this report:

1.      Financial Statements

        Independent Auditors' Report
        Balance Sheets - December 27, 1997 and December 26, 1998
        Statements of Operations - 52 weeks ended December 27, 1997
        and December 26, 1998
        Statements of Stockholders' Equity - 52 weeks ended
        December 27, 1997 and December 26, 1998
        Statements of Cash Flows - 52 weeks ended December 27, 1997
        and December 26, 1998
        Notes to Financial Statements

2.      Exhibits: Articles of Incorporation and Bylaws of the Company -
        Incorporated by reference to the Exhibits to the Notification
        under Regulation A filed on December 6, 1974.

(b)     No reports on Form 8-K have been filed during the last quarter
        of the period covered by this report.

SIGNATURES


In accordance with Section 13 and 15(d) of the Exchange Act,
the Registrant caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.



        XEDAR CORPORATION
        (Registrant)


        By: Hans R. Bucher

               Hans R. Bucher, President


        Date: March 26, 1999


In accordance with the Exchange Act, this report has been signed
below by the following persons on behalf of the Registrant and
in the capacities and on the dates indicated.


Signature                   Title                 Date
                        President, Treasurer,
                        Chief Executive and
Hans R. Bucher          Financial Officer and     March 26, 1999
___________________     Director                  __________________
Hans R. Bucher


Michael J. O'Connell    Director                  March 26, 1999
____________________                              __________________
Michael J. O'Connell


Gary A. Agron           Director                  March 26, 1999
____________________                              __________________
Gary A. Agron


Marlis Bucher           Secretary                 March 26, 1999
____________________                              __________________
Marlis Bucher