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, 	1997.  

( )     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 1, 1997, - 5,791,911 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
						  1997             1996
					       (UNAUDITED)
ASSETS:
<S>                                             <C>              <C>  
CURRENT ASSETS:

 Cash and cash equivalents                      $  2,496,055     $   308,138
 Trade accounts receivable, less allowance for 
  doubtful accounts of $74,183 in 1997 and 1996      940,512       1,264,521 
 Inventories                                         646,747         567,420
 Prepaid expenses and other current assets            80,533         219,922
    
	Total current assets                              4,163,847       2,360,001

PROPERTY - At cost:
 Office furniture                                     94,512          91,011
 Office machinery and equipment                      154,134         146,021                           

	Subtotal                                            248,646         237,032
    
    Less Accumulated depreciation                    112,520         102,432 
   
	Property - net                                      136,126         134,600        

OTHER ASSETS:
 Software costs, less accumulated amortization
  of $580,749 in 1997 and $511,790 in 1996         1,046,124         908,586
 Deposits                                             76,176          50,677
                                          						   _________       _________

	Total other assets                                1,122,300         959,263    
						                                             _________       _________  
				    
TOTAL                                           $  5,422,273     $ 3,453,864 

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
 Accounts payable - trade                       $    104,805     $   148,921 
 Accrued expenses                                    657,651         210,160
 Deferred revenue                                  1,715,323         322,125
 Deferred income taxes                                 4,732           4,732
 Other liabilities                                   107,624         161,963
                                          						 ___________      __________

	 Total current liabilities                        2,590,135         847,901                                                 

LONG-TERM-Deferred Credit, less amortization of
   $74,856 in 1997 and $67,727 in 1996               210,311         217,440 

STOCKHOLDERS' EQUITY:
 Common stock - $.001 par value, 25,000,000 
  shares authorized, 5,891,911 shares issued 
  at March 31, 1997 and December 31, 1996              5,892           5,892
 Additional paid-in capital                        2,374,397       2,374,397
 Accumulated earnings                                241,638           8,334 
 Treasury stock - 100,000 shares at par value     (      100)     (      100)
                                          						  __________      __________
	 Total stockholders' equity                       2,621,827       2,388,523 
	 
		                                          				 ___________     ___________
TOTAL                                           $  5,422,273     $ 3,453,864

See notes to consolidated financial statements.
</TABLE>
<TABLE>
<CAPTION>
	 
                          			ATS MONEY SYSTEMS, INC.
		                    CONSOLIDATED STATEMENTS OF OPERATIONS
	                THREE MONTH PERIODS ENDED MARCH 31, 1997 AND 1996
				                            (UNAUDITED)
			
			                                        			 MARCH 31       MARCH 31     
						                                           1997          1996
<S>                                             <C>              <C>
REVENUE:
 Equipment and systems sales                    $  1,829,942     $ 1,526,515   
 Equipment maintenance and service revenue           573,649         644,618
                                          						  __________      __________                                                    

	Total revenue                                     2,403,591       2,171,133

COST AND EXPENSES:
 Cost of goods sold and service expense:
   Equipment and systems                             751,721         635,820
   Equipment maintenance and service                 274,583         257,963 
 Selling, general and administrative expenses      1,002,245         962,310
                                          						  __________      __________
      Total costs and expenses                     2,028,549       1,856,093                  

                                          						  __________      __________
INCOME FROM OPERATIONS                               375,042         315,040


INTEREST INCOME                                       14,265           3,684
						   
                                          						  __________      __________ 
INCOME BEFORE INCOME TAX EXPENSE                     389,307         318,724


INCOME TAX EXPENSE                                   156,000         121,000 

                                          						  __________      __________
NET INCOME                                      $    233,307     $   197,724    
                                          						  ==========      ==========

EARNING PER COMMON SHARE: 
 Primary and fully diluted                              $.04            $.03
                                          						  ==========      ==========

WEIGHTED AVERAGE NUMBER OF SHARES
  OUTSTANDING                                      5,970,487       5,883,836
						   
                                          						 ===========      ==========


See notes to consolidated financial statements.
</TABLE>
<TABLE>
<CAPTION>
	 
                         			ATS MONEY SYSTEMS, INC.
	                     	CONSOLIDATED STATEMENTS OF CASH FLOWS
	                THREE MONTH PERIODS ENDED MARCH 31, 1997 AND 1996
			                               (UNAUDITED)

                                         						 MARCH 31       MARCH 31  
						                                            1997           1996
<S>                                             <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net Income                                     $    233,307      $  197,724
 Adjustments to reconcile net income to cash
  provided by (used in) operating activities:
  Depreciation and amortization                       71,918          47,024 
  Changes in current assets and liabilities:
    Compensation expense recorded for common stock
     issued under Director Stock Plan                      -          50,000 
   Trade accounts receivable - net                   324,009      (  894,894)
   Inventories                                    (   79,327)     (    5,766) 
   Prepaid expenses and other assets                 113,890      (  252,406)
   Accounts payable - trade                       (   44,116)     (   20,770)   
   Accrued expenses                                  447,491         416,898 
   Deferred revenue                                1,393,198       1,306,378  
   Deposits                                       (   65,000)            198
   Other liabilities                                  10,658          18,646       
						                                            __________      __________
      Net cash provided by operating activities    2,406,028         863,032


CASH FLOWS FROM INVESTING ACTIVITIES:
 Capitalization of software development costs    (   206,497)    (    74,757)
 Additions to property                           (    11,614)    (    33,756)
                                          						 ___________     ___________

	Net cash used in investing activities           (   218,111)    (   108,513)
						                                           -----------     -----------


NET INCREASE IN CASH AND
 CASH EQUIVALENTS                                  2,187,917         754,519   


CASH AND CASH EQUIVALENTS,
 BEGINNING OF PERIOD                                 308,138         164,548 

                                          						  __________      __________
CASH AND CASH EQUIVALENTS, END OF PERIOD        $  2,496,055     $   919,067     
						                                            ==========      ==========


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

 Income Taxes                                   $     33,410     $    90,000   
                                          						  ==========      ==========
     

See notes to consolidated financial statements.
</TABLE>



	
                           			ATS MONEY SYSTEMS, INC.
		                      Notes to Consolidated Financial Statements
			                               (Unaudited)
                          			    March 31, 1997



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, 1997, and the results 
of its operations and cash flows for the three month periods ended 
March 31, 1997 and 1996. Information included in the consolidated 
balance sheet as of December 31, 1996 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, 1996, to which reference 
is made.  Operating results for the three month period ended March 31,
1997 are not necessarily indicative of the results that may be
expected for the fiscal year ending December 31, 1997.  

Certain prior year amounts have been reclassified in order to
conform with the 1997 financial statement presentation. 


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.  Amortization of computer software costs amounted to 
$68,959 and $47,255 for the three month periods ended March 31, 1997 
and 1996, respectively. 


Note 4 - Revenue Recognition 

Revenue from equipment and systems sales is recognized upon shipment 
to the buyer and satisfaction of related obligations by the Company.  
Revenue from software licensing is recognized on delivery of the software 
if collectibility is probable, 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.


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.

On September 14, 1993, when the fair market value of the common stock 
was $.28125 per share, the Company granted 159,685 incentive stock 
options at such price ($.31 per share for one employee) and 65,315 
nonqualified stock options (15,315 granted at $.28125 per share and 
50,000 granted at $.001 per share).  During 1993, 50,000 nonqualified 
options were exercised at a price of $.001 per share.

During 1994, the Company granted 36,000 incentive stock options (21,000 
granted at $1.25 per share and 15,000 granted at $1.375 per share).  
Also during 1994, 4,171 options were exercised at a price of $.28125  
per share.

The Company did not grant any options in 1995.  During 1995,
15,653 options were exercised at a price of $.28125 per share.

On February 2, 1996, the Company granted 46,001 incentive stock options 
(37,626 granted at $1.03125 per share and 8,375 granted at $1.1344 
per share).  On June 4, 1996, the Company granted 2,500 incentive stock 
options at $1.344 per share.  Also during 1996, 16,117 options were 
exercised at a price of $.28125 per share.

At December 31, 1996, there were 207,295 options outstanding at prices 
ranging from $.28125 to $1.375 per share, of which 165,619 were then 
exercisable.

On February 14, 1997, the Company granted 34,000 incentive stock
options at $.71 per share.

As of March 31, 1997, there were 240,375 options outstanding at prices 
ranging from $.28125 to $1.375 per share, of which 180,168 were then 
exercisable.


Note 7 - Commitments and Contingencies

At March 31, 1997, the Company was committed under noncancelable, 
operating leases for office space, automobiles and office equipment, 
expiring at various dates through April 2000, requiring minimum rental 
payments as follows:
<TABLE>
<CAPTION>

Year Ending December 31:
	<S>                          <C>
	1997 (balance of year)       $  228,667                        
	1998                            293,908                                    293,908                
	1999                            132,705                  
	2000                             34,184                       
                     				       ________
				                          $  689,464

</TABLE>
Note 8 - Earnings Per Common Share 

For purposes of calculating earnings per common share, the Company used 
the weighted average number of shares of common stock outstanding during 
the year applied to the net income. The exercise of stock options (See 
Note 6) was assumed in the calculation.  In February 1997, the Financial 
Accounting Standards Board issued Statement of Financial Accounting 
Standards ("SFAS 128"), "Earnings per Share", which is effective for 
periods ending after December 15, 1997.  This statement establishes 
standards for computing and presenting earnings per share and applies 
to entities with publicly held common stock or potential common stock.  
The adoption of SFAS 128 is not expected to have a material effect on 
the Company's financial statements.

For the three month's ended March 31, 1996, the weighted average number 
of shares outstanding (both primary and fully diluted) were reported 
incorrectly, which did not affect the per share earnings. 






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, 1996 for a discussion of 
the Company's financial condition as of December 31, 1996, including a 
discussion of the Company's anticipated liquidity and working capital 
requirements during 1997.


COMPARISON OF CONSOLIDATED OPERATIONS FOR THE THREE MONTHS ENDED
MARCH 31, 1997 TO THE THREE MONTHS ENDED MARCH 31, 1996.

Total revenues for the first quarter of 1997 were $2,403,591, which was 
an increase of $232,458 (10.7%) over the first three month of 1996.  
System and equipment sales increased $303,427 (19.9%) to $1,829,942 for 
the quarter.  This increase was comprised of ATS Money Systems, Inc. 
(parent company) with an increase of $263,254 (33.6%) and Innovative 
Electronics, Inc., with an increase of $40,173 (5.4%).  Maintenance 
revenues were $573,649 for the first quarter of 1997.  This was a 
decrease of $70,969 (11.0%) from the prior year's first quarter and was
primarily due to the loss of an equipment hardware maintenance contract 
after the first quarter of 1996.

Cost of equipment and system sales remained fairly constant at 41.7% of 
sales in the first three months of 1996 and 41.1% in the current period.  
Cost of maintenance increased from 40.0% of revenues in the first quarter 
of 1996 to 47.9% in the first three months of 1997 primarily due to a 
larger proportion of maintenance revenues attributable to ATS Money 
Systems, Inc.  The costs attributable to ATS Money Systems, Inc. 
maintenance obligations is higher than such costs attributable to 
Innovative Electronics, Inc. maintenance obligations.

Selling, general and administrative expenses were $1,002,245 in the 
first quarter of 1997 compared to $962,310 in the comparable period of 
1996.  This is an increase of $39,935 (4.2%) and is comprised of a 
$10,575 increase at ATS Money Systems, Inc., and a $29,360 increase 
at Innovative Electronics, Inc.  Most of the increase comes from 
salary and travel expenditures.

Interest income for the first quarter of 1997 was $14,265 compared to 
$3,684 in the first quarter of 1996.  This increase of $10,581 (287.2%) 
was due to greater amounts available for investment, primarily due to 
prepayments by customers of their annual maintenance contracts.

As a result of the foregoing, the first three months of 1997 produced 
income before taxes of $389,307 compared to $318,724 in the first 
quarter of 1996.  The provision for income taxes in the current quarter 
was $156,000, with an after tax profit of $233,307, compared to a tax 
provision of $121,000 and an after tax profit of $197,724 in the 
comparable three months of 1996.


Financial Condition

At March 31, 1997, cash and cash equivalents amounted to approximately 
$2,496,000 and, in addition, the Company did not have any outstanding 
borrowings.  During the first three months of the year, many customers 
prepay their annual maintenance contracts which increases the Company's 
cash and, correspondingly, its deferred revenue liability.

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 has not drawn against this line of 
credit.






		PART II - OTHER INFORMATION



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


(a)  Exhibits


     11. Computation of Per Share Earnings.
     

     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 5. 1997________________  ________________________________
      	     (Date)                        Gerard F. Murphy
				                                  	   Chief Executive Officer
				                                  	   President
					                                     (Principal Executive Officer) 



___________May 5. 1997________________  ________________________________
       	     (Date)                        Joseph M. Burke
					                                      Vice President - Finance
					                                      (Principal Accounting and 
					                                       Financial Officer)