UNITED STATES
		       SECURITIES AND EXCHANGE COMMISSION
			    Washington, D.C. 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 MARCH 31,
	1998.            



( )     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES 
	EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD
	FROM _____________________________ TO _______________________.



	Commission File Number:  0-17773



___________________________ATS Money Systems, Inc._______________________
   (Exact name of small business issuer as specified in its charter)        



____________Nevada_____________   ___________13-3442314__________________
(State or other jurisdiction of    (I.R.S. Employer Identification No.)
 incorporation or organization)



25 Rockwood Place________Englewood, New Jersey________07631______________
(Address of principal executive offices)           (Zip Code)



________________________201/894-1700___________________________________ 
	       (Issuer's telephone number)


	    
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act 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.     __X__Yes  _____No


State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:


As of  May 14, 1998, - 5,822,731 shares of common stock, $.001
par value.


Transitional Small Business Disclosure Form  Yes _____  No__X__









Part I.  FINANCIAL INFORMATION
Item I.  Financial Statements
<TABLE>
<CAPTION>

					     ATS MONEY SYSTEMS, INC.
					   CONSOLIDATED BALANCE SHEETS

						    MARCH 31   DECEMBER 31
ASSETS:                                               1998       1997
						   (UNAUDITED)
<S>                                               <C>           <C>
CURRENT ASSETS:
 Cash and cash equivalents                        $ 1,658,018   $  424,168
 Trade accounts receivable, less allowance for   
  doubtful accounts of $100,188 in both periods     2,319,288    2,281,677   
 Inventories                                          589,707      562,681  
 Prepaid expenses and other current assets             86,984       83,492                                                         
											    _________   __________ 
     Total current assets                           4,653,997    3,352,018

PROPERTY - At cost:                              
 Office furniture                                      95,994       95,994
 Office machinery and equipment                       219,218      216,267  
											      _________     ________      
	Subtotal                                      315,212      312,261
    Less Accumulated depreciation                     161,823      148,320      
										       _________    _________     
	       Property - net                                153,389      163,941

OTHER ASSETS:      
 Software costs, less accumulated amortization
  of $900,815 in 1998 and $788,531 in 1997          1,581,980    1,519,991  
 Deposits                                              52,280       52,280
											   __________    _________ 

	Total other assets                          1,634,260    1,572,271                                                            
						    _________    _________

TOTAL                                             $ 6,441,646  $ 5,088,230      
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
 Accounts payable - trade                           $ 175,634  $   664,726    
 Accrued expenses                                   1,311,693      794,519
 Deferred revenue                                   1,399,431      206,799
 Deferred income taxes                                 43,561       43,561
 Other liabilities                                    153,213      126,804

						   __________   __________

       Total current liabilities                    3,083,532    1,836,409 

LONG-TERM-Deferred Credit, less amortization of
   $103,372 in 1998 and $96,241 in 1997               181,798      188,926

STOCKHOLDERS' EQUITY:
 Common stock - $.001 par value, 25,000,000 shares 
  authorized, 5,922,731 shares issued at March 31, 
  1998 and December 31, 1997                            5,923        5,923
 Additional paid-in capital                         2,383,033    2,383,033
 Accumulated earnings                                 787,460      674,039 
 Treasury stock - 100,000 shares at par value      (      100)   (     100)

						  ___________  ___________

	Total stockholders' equity                  3,176,316    3,062,895

						  ___________   __________

 TOTAL                                           $  6,441,646  $ 5,088,230



See notes to consolidated financial statements.
</TABLE>




<TABLE>
<CAPTION>
				



				ATS MONEY SYSTEMS, INC.
			  CONSOLIDATED STATEMENTS OF OPERATIONS
		     THREE MONTH PERIODS ENDED MARCH 31, 1998 AND 1997
				     (UNAUDITED)




					     MARCH 31         MARCH 31      
					      1998              1997

<S>                                        <C>             <C> 
REVENUE:
 Equipment and systems sales               $ 2,563,780     $ 1,829,942   
 Equipment maintenance and service revenue     640,551         573,649

					    __________      __________

	Total revenue                        3,204,331       2,403,591


COST AND EXPENSES:
 Cost of goods sold and service expense:
  Equipment and systems                      1,635,854         751,721
  Equipment maintenance and service            279,312         274,583
 Selling, general and administrative 
  expenses                                   1,108,537       1,002,245
					    __________      __________

	Total costs and expenses             3,023,703       2,028,549 
					   ___________      __________

INCOME FROM OPERATIONS                         180,628         375,042 

   

INTEREST INCOME                                  7,793          14,265         


					   ___________       _________  
INCOME BEFORE INCOME TAXES                     188,421         389,307                                  



INCOME TAXES                                    75,000         156,000  

								
					   ___________     ___________

NET INCOME                                 $   113,421    $    233,307                                                    



EARNING PER COMMON SHARE: 
  Basic and diluted                               $.02            $.04





WEIGHTED AVERAGE NUMBER OF SHARES
  OUTSTANDING                                5,903,809       5,970,487



See notes to consolidated financial statements.
</TABLE>



<TABLE>
<CAPTION>

			

			ATS MONEY SYSTEMS, INC.
		   CONSOLIDATED STATEMENTS OF CASH FLOWS
	      THREE MONTH PERIODS ENDED MARCH 31, 1998 AND 1997
			     (UNAUDITED)

					     MARCH 31         MARCH 31       
					       1997             1998        
<S>                                         <C>            <C>                                                                    
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net Income                                 $   113,421    $   233,307   

 Adjustments to reconcile net income to cash
  provided by (used in) operating activities:
  Depreciation and amortization                 118,659         71,918 
  Changes in current assets and liabilities:
   Trade accounts receivable - net           (   37,611)       324,009     
   Inventories                               (   27,026)    (   79,327)
   Prepaid expenses and other current assets (    3,492)       113,890 
   Accounts payable - trade                  (  489,092)    (   44,116) 
   Accrued expenses                             517,174        447,491
   Deferred revenue                           1,192,632      1,393,198         
   Deposits                                        -        (   65,000)
   Other liabilities                             26,409         10,658
					    ___________     __________      
  Net cash provided by operating activities   1,411,074      2,406,028      

							 

CASH FLOWS FROM INVESTING ACTIVITIES:
 Capitalization of software development 
   costs                                     (  174,273)    (  206,497) 
 Additions to property                       (    2,951)    (   11,614)
					     __________     __________

    Net cash used in investing activities    (  177,224)    (  218,111)
							      
					     __________     __________

					     

NET INCREASE IN CASH AND CASH EQUIVALENTS     1,233,850      2,187,917     

CASH AND CASH EQUIVALENTS, BEGINNING OF 
 PERIOD                                         424,168        308,138           

			   
					     __________     __________

CASH AND CASH EQUIVALENTS, END OF PERIOD    $ 1,658,018    $ 2,496,055       



SUPPLEMENTAL DISCLOSURE OF CASH FLOW 
 INFORMATION:
 Cash paid during the period for:
  Interest                                  $       660    $      - 

  
  Income Taxes                           $      250,000    $    33,410                     

See notes to consolidated financial statements.

</TABLE>







			ATS MONEY SYSTEMS, INC.
		 Notes to Consolidated Financial Statements
			     (Unaudited)
			   March 31, 1998



Note 1 - Unaudited Information:

The accompanying unaudited consolidated financial statements have been 
prepared in accordance with generally accepted accounting principles 
for interim financial information and the instructions to Form 10-QSB 
and Item 310(b) of Regulation S-B.  Accordingly, they do not include 
all of the information and footnotes required by generally accepted 
accounting principles for complete financial statements.

In the opinion of management, the accompanying unaudited financial 
statements reflect all adjustments (which comprise only normal 
recurring accruals) necessary to present fairly the Company's 
consolidated financial position as of March 31, 1998, and the results 
of its operations for the three month periods ended March 31, 1998 
and 1997 and its cash flows for the three month periods ended 
March 31, 1998 and 1997.   Information included in the consolidated 
balance sheet as of December 31, 1997 has been derived from the 
Company's audited financial statements contained in its Annual Report 
on Form 10-KSB for the year ended December 31, 1997, to which reference 
is made.  Operating results for the three month period ended March 31,
1998 are not necessarily indicative of the results that may be
expected for the  year ending December 31, 1998.  


Note 2 - Inventories

Inventories are stated at the lower of cost or market.  Cost is
determined by the first-in, first-out method for machine parts
and specific identification for machines held for sale.


Note 3  - Capitalized Software Costs

The Company capitalizes computer software development costs in 
accordance with the provisions of Statement of Financial Accounting 
Standards No. 86, "Accounting for the Costs of Computer Software to 
be Sold, Leased or Otherwise Marketed". Costs incurred to establish 
the technological feasibility of computer software are expensed as 
incurred.  Costs incurred for product enhancements, subsequent to 
establishing technological feasibility, are capitalized and stated 
at the lower of cost or net realizable value.  Capitalized costs 
are amortized using the straight-line method over five years, which 
approximates the estimated remaining useful life of the product.  
It is possible that the estimated economic life of the products and 
related carrying values could be reduced in the near term due to
competitive pressures.  Amortization of computer software costs
amounted to $112,284 and $68,959 for the three month periods
ended March 31, 1998 and 1997, respectively.


Note 4 - Revenue Recognition 

Revenue Recognition - Revenue from equipment and system sales is 
recognized upon shipment to the buyer and satisfaction of related 
obligations by the Company.  Revenue from software licensing is 
recognized on either delivery of the software if collectibility is 
probable or upon completion of the majority of the product, which 
equates to reaching a milestone in accordance with the contract 
agreement and any remaining insignificant obligations of the Company 
are accounted for by deferring a pro rata portion of revenue and 
recognizing it either ratably as the obligations are fulfilled or 
on completion of performance or by recording a current year expense 
for the remaining costs associated with completing the project.  The
Company has completed its analysis of the effect of (SOP) 97-2, "Software
Revenue Recognition" and has determined that this SOP does not have a 
material effect on the consolidated financial statements.



Note 5 - Equipment Maintenance and Service Revenue

Equipment maintenance and service revenue is recognized as
earned over the term of the contract, which is generally a
maximum of one year in length.  Deferred revenue represents the
unearned portion of equipment maintenance and service fees.


Note 6 - Stockholders' Equity

Common Stock - The authorized capital stock of the Company
consists of 25,000,000 shares of noncumulative, voting, common
stock, with a par value of $.001 per share.                     

Common Stock Incentive Plan - In 1993, the Company adopted a common 
stock incentive plan (the "Plan"), which, as amended, authorizes the 
issuance, within ten years, of options covering up to 480,000 shares 
of common stock to certain employees and other individuals of importance 
to the Company.  The Plan is intended to provide incentive to continued 
employment of certain employees and other individuals by enabling them 
to acquire a proprietary interest in the Company.  Options granted under 
the Plan may be either "incentive stock options" or "non-qualified stock 
options."  Incentive stock options, granted only to certain employees of 
the Company, expire within ten years (five years for a 10% beneficial 
owner of the Company's securities) from the date granted and are 
exercisable from time to time, after the first year, in accordance 
with the terms of such options.  The exercise price of an incentive 
stock option must be at least equal to the fair market value of the 
common stock on the date of grant (110% for a 10% beneficial owner of the
Company's securities).  Nonqualified stock options can be granted to 
certain employees of the Company and advisors and consultants to the 
Company. Such  stock options are exercisable on or after the date of 
grant and the exercise price is not limited and may be below fair market 
value.



<TABLE>
<CAPTION>
A summary of the details of stock options granted and
outstanding balances are presented below:

						 
     
		 Option         Options        Options Outstanding      
   Grant          Price   Exercised  Canceled     March 31,  December 31,               
						   1998         1997
  <S>            <C>       <C>         <C>         <C>        <C>
  1993
     140,869     .28125    35,941      4,184         -          - 
			   30,820                  69,924     69,924                
      18,816        .31                            18,816     18,816                            
      15,315     .28125                            15,315     15,315 
			     
			     
  1994                            
      21,000       1.25                 9,000        -          -                              
				       12,000        -          -              
      15,000      1.375                            15,000     15,000       


  1996
      37,626    1.03125                 3,081        -          -                                                        
					4,640      29,905     29,905                   
       8,375     1.1344                             8,375      8,375   
       2,500     1.1344                 2,500        -          -        

 
   1997
      34,000        .71                 6,000      28,000     28,000                
      20,000      .8281                            20,000     20,000     
      10,000      .9109                            10,000     10,000          


   1998
      19,200        .92                            19,200       -         
       6,000       1.01                             6,000       -      
			   ______      _______    _______    _______

   Total                   66,761       41,405    240,535    215,335     
</TABLE>        



Director Stock Plan - In 1995, the Company adopted the 1995 Director 
Stock Plan pursuant to which, as amended, the Company's non-employee 
directors, upon first being elected to the Board, are granted 10,000 
shares of the Company's common stock, and thereafter, on each reelection, 
are granted non-qualified stock options to purchase 10,000 shares of the 
Company's common stock with an exercise price equal to the then fair market 
value of such shares.  In 1995, the non-employee directors were granted
an aggregate of 40,000 shares of common stock under this plan, all of 
which were issued during 1996.  In 1997, the non-employee directors were 
granted non-qualified options under this plan to purchase 20,000 shares 
of common stock at an exercise price of $.8281 per share and 10,000 shares 
of common stock at an exercise price of $.9109 per share.


In connection with the adoption of SFAS 123, "Accounting for Stock-Based 
Compensation," which was effective in 1996, the Company elected to continue 
to account for its stock options using the method prescribed by Accounting 
Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees",
under SFAS 123 would not affect earnings per share.  The proforma effect 
would have reduced net income by approximately $21,600 and $2,500 in 1997 
and 1996, respectively.


Common Stock Warrants - In connection with services to be rendered by an 
investment banker, as of April 7, 1997, the Company granted to the 
investment banker warrants to purchase 80,000 shares of common stock 
exercisable at $.75 per share; agreed to grant to the investment banker 
on April 8, 1998, warrants to purchase an additional 80,000 shares of 
common stock exercisable at $1.25  per share and, unless the agreement is
canceled by the Company before April 8, 1999, agreed to grant to the 
investment banker on such date warrants to purchase an additional 80,000 
shares of common stock exercisable at $1.25 per share.  All of the warrants 
will expire on April 7, 2001, unless exercised prior thereto.  Based upon 
the fair value of the warrants at the grant date, no expense was recognized 
in 1997 or the first Quarter of 1998.



Note 7 - Commitments and Contingencies

At March 31, 1998, the Company was committed under noncancelable, 
operating leases for office space, automobiles and office equipment, 
expiring at various dates through May 2001, requiring minimum rental 
payments as follows:


<TABLE>
<CAPTION>
Year Ending December 31:
      <S>                        <C>
      1998 (Balance of year)     $ 240,276           
      1999                         157,827                                       
      2000                          52,558                 
      2001                           1,998
				 $ 452,659       

</TABLE>
Note 8 - Earnings Per Common Share 

The Company has adopted Statement of Financial Accounting Standards 
(SFAS) No. 128, "Earnings per Share", which was effective for financial 
statements issued after December 31, 1997.  The pronouncement simplifies 
the calculation of earnings per share in that a calculation of "basic" 
earnings per share is reported in lieu of primary earnings per share.  
Basic earnings per share includes only the weighted average number of 
common shares outstanding for the periods and does not consider the
dilutive effect of stock options or warrants.  The effects of dilutive 
stock options and warrants, and the adoption of SFAS No. 128 did not 
change earnings per share.


Note 9 - Other


In June 1997, SFAS No. 131, "Disclosure About Segments of an Enterprise 
and Related Information" was issued.  This Statement is effective for
fiscal years beginning after December 15, 1997.  The Company has determined
that this Statement has no effect on the consolidated financial statements.

In February 1998, SFAS No. 132, "Employer's Disclosures About Pensions and 
Other Postretirement Benefits" was issued.  This Statement revises and
standardizes pension and other benefit plan disclosures that are to be
included in the employer's financial statements.  SFAS No. 132 is effective 
for fiscal years beginning after December 15, 1997.  This Statement will 
not change the measurement or recognition of these costs.






ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION



Reference is made to Item 6 - "Management's Discussion and Analysis or 
Plan of Operation," contained in the Company's Annual Report on Form 
10-KSB for its fiscal year ended December 31, 1997, for a discussion 
of the Company's financial condition as of December 31, 1997, including 
a discussion of the Company's anticipated liquidity and working capital 
requirements during 1998.

This Quarterly Report on Form 10-QSB contains, in addition to historical 
information, certain forward-looking statements that involve significant 
risks and uncertainties.  Such forward-looking statements are based on 
management's belief as well as assumptions made by, and information 
currently available to, management pursuant to the "safe harbor" provisions 
of the Private Securities Litigation Reform Act of 1995.  Forward-looking 
statements can generally be identified as such because the context of the 
statement may include words such as the Company "believes," "expects" or 
words of similar import. Similarly, statements that describe the Company's 
future plans, objectives, estimates or goals are also forward-looking
statements.  Such statements address future events and conditions concerning 
capital expenditures, earnings, sales, liquidity and capital resources, and 
accounting matters.  The Company's actual results could differ materially 
from those expressed in or implied by the forward-looking statements
contained herein.  Factors that could cause or contribute to such 
differences include, but are not limited to, those discussed in 
"Financial Condition" below and in Item 1 - "Description of Business" 
and elsewhere in the Company's Annual Report on Form 10-KSB for the 
year ended December 31, 1997, as well as factors such as future economic 
conditions and economic conditions in the industries in which the Company's 
customers compete, a determination by the Company's customers to prolong
their test cycles of the Company's equipment, software and software 
support services, a determination by the Company's customers to modify 
or change their underlying computer and cash reporting systems, acceptance 
by customers of the Company's products, changes in customer demand, 
legislative, regulatory and competitive developments in markets in which 
the Company operates and other circumstances affecting anticipated revenues
and costs.  The Company undertakes no obligation to release publicly the 
result of any revisions to these forward-looking statements that may be 
made to reflect events or circumstances after the date of this Quarterly 
Report on Form 10-QSB or to reflect the occurrence of other unanticipated 
events.






COMPARISON OF CONSOLIDATED OPERATIONS FOR THE THREE MONTHS ENDED
MARCH 31, 1998 (THE "1998 QUARTER") TO THE THREE MONTHS ENDED
MARCH 31, 1997 (THE "1997 QUARTER").



Total revenues for the 1998 quarter were $3,204,331 compared to
$2,403,591 for the 1997 Quarter.  This was an increase of
$800,740 (33.3%) and was attributable to a 40.1% increase in
equipment and systems sales and an 11.7% increase in maintenance
and service revenues.  The increase in equipment and systems
sales was primarily attributable to sales of hardware to a major
retail customer offset by a decline of revenues from the sale of
software.  Maintenance and service revenues increased as a
result of additional systems being under contract.   



Cost of equipment and system sales increased from 41.1% of
revenues in the 1997 Quarter to 63.8% in the 1998 Quarter
resulting from the change in the mix of products sold during the
1998 Quarter.  The margins on sales of equipment is
significantly lower then on software sales.   The Company has a
third party service contract for equipment maintenance and
service and the cost of such contract is relatively constant.



Selling, general and administrative expenses for the  1998
Quarter amounted to $1,108,537 compared to $1,002,245 in the
1997 quarter.  This increase of $106,292 (10.6%) was comprised
of an increase of ATS Divisional expenses of approximately
$167,000, increased corporate expenses of $54,000 offset by a
reduction of $115,000 of IEI Divisional expenses.  The increase
was primarily due to increased commissions ($90,000) on
increased sales and additional in-house hardware support.



Interest income declined from $14,265 in the 1997 Quarter to
$7,793 in the 1998 Quarter, due to less available cash to be
invested. 



As a result of the foregoing (primarily the change in the mix of
product sales), the income before taxes declined $200,886
(51.6%) from $389,307 in the 1997 Quarter to $188,421 in the
1998 Quarter.  



The tax provision on the decreased income in the 1998 Quarter
was $75,000 compared to $156,000 in the 1997 Quarter - a
decrease of $81,000 (51.9%).



As a result of the foregoing net income for the 1998 Quarter was
$119,886 (51.4%) less than net income for the 1997 Quarter.



Financial Condition:


During the first three months of 1998, operating activities
provided $1,411,074 of net cash, primarily from customers who
prepay their annual maintenance contracts.   Investing
activities used $177,224 of net cash primarily for software
development costs.



In April 1997, First Union National Bank renewed a $750,000
discretionary line of credit for the Company's short-term needs,
at an interest rate equal to such bank's base rate plus 1/2%. 
All advances under this line of credit are required to be
secured by a lien on substantially all of the Company's assets. 
The Company borrowed $240,000 on January 21, 1998, and repaid
it, in full, on February 3, 1998.



The Company believes that its current working capital, together
with anticipated funds from operations, will be sufficient to
meet the Company's projected operating needs and capital
expenditures for the foreseeable future.



The Company leases its facilities.  As of March 31, 1998, the
Company had no material commitments for capital expenditures.



   





			PART II - OTHER INFORMATION





 Item 6.  Exhibits and Reports on Form 8-K.



(a)  Exhibits

 

     10.(a)   Agreement between ATS Money Systems, Inc., and 
	      Alpha Microsystems, dated February 24, 1998.
  

   

      27.  Financial Data Schedule.



(b)  No reports on Form 8-K were filed during the quarter for
which this report is filed.

 


 





				SIGNATURES





In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.





					     ATS Money Systems, Inc.
					       (Registrant)







	     
	    May 14, 1998            
	      (Date)                     Gerard F. Murphy
					 Chief Executive Officer
					  President
					(Principal Executive Officer) 


	   
	   May 14, 1998                
	     (Date)                      Joseph M. Burke
					 Vice President - Finance
					(Principal Accounting and Financial
					      Officer)