SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-Q/A
                                 Amendment No. 1
(MARK ONE)

 X      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ---     EXCHANGE ACT OF 1934.

        For the quarterly period ended March 31, 1996

                                            OR

___     TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
        SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________________to________________________

                         COMMISSION FILE NUMBER 1-10113

                             HALSEY DRUG CO., INC.
                             ---------------------
             (Exact name of registrant as specified in its charter)

           New York                                       11-0853640
- -------------------------------------------------------------------------------
    (State or other Jurisdiction of        (I.R.S. Employer Identification No.)
   incorporation or organization)


1827 Pacific Street
Brooklyn, New York                                        11233
- -------------------------------------------------------------------------------
(Address of Principal executive officer)                  (Zip Code)

 (718) 467-7500
- -------------------------------------------------------------------------------
(Registrant's telephone number, including area code)

Not Applicable
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report.)

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 50 days.

YES    X        NO
    -----        ------

As of May 9,1996 the registrant had 9,058,858 Shares of Common Stock, $.01 par
value, outstanding.


                                       

<PAGE>


                         HALSEY DRUG CO., & SUBSIDIARIES
                         -------------------------------

                                      INDEX
                                      -----


        PART I.  FINANCIAL INFORMATION
        ------------------------------

        Item 1. Financial Statements (Unaudited)                       Page #

               Condensed Consolidated Balance Sheets-                     3
               March 31, 1996

               Condensed Consolidated Statements of                       5
               Operations - Three months ended March 31, 1996
               and March 31, 1995

               Consolidated Statements of Cash                            6
               Flows - Three months ended March 31, 1996
               and March 31, 1995

               Consolidated Statements of Stockholders'                   7
               Equity - Three months ended March 31, 1996

               Notes to Condensed Consolidated Financial                  8

               Statements


        Item 2.  Management's Discussion and Analysis of Financial       10
               Condition and Results of Operations


        PART II. OTHER INFORMATION
        --------------------------

        Item 1.  Legal Proceedings                                       14


        Item 2.  Changes in Securities                                   14


        Item 3.  Default upon Senior Securities                          14


        Item 5.  Other Information                                       14


        Item 6.  Exhibits and Reports on Form 8-K                        14

        SIGNATURES                                                       15


                                       2



<PAGE>






                          PART I. FINANCIAL INFORMATION


                          ITEM 1. FINANCIAL STATEMENTS

                     HALSEY DRUG CO., INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS
- --------------------------------------------------------------------------------

<TABLE><CAPTION>
                                                               (UNAUDITED)
          (Amounts in thousands)                                  1996        1995

                                                                 MARCH 31  DECEMBER 31
                                                                 --------  -----------
CURRENT ASSETS


<S>                                                               <C>        <C>    
        Cash .................................................    $   250    $   353

        Accounts Receivable - trade, net of
           allowances for doubtful accounts of $221
           and $ 280 in 1996 and 1995, respectively ..........      1,531      1,689

        Inventories ..........................................      7,907      7,716

        Prepaid insurance and other current assets ...........        609        656
                                                                  -------    -------
          Total current assets ...............................     10,297     10,414

PROPERTY PLANT & EQUIPMENT, NET ..............................      7,157      7,394

OTHER ASSETS .................................................        959      1,054
                                                                  -------    -------

                                                                  $18,413    $18,862
                                                                  =======    =======
</TABLE>


The accompanying notes are an integral part of these statements

                                       3

<PAGE>

<TABLE><CAPTION>

                               HALSEY DRUG CO., INC. AND SUBSIDIARIES

                                CONDENSED CONSOLIDATED BALANCE SHEETS

- ------------------------------------------------------------------------------------------
                                                                                 (UNAUDITED)
   (Amounts in thousands)                                                             1996           1995
                                                                                  MARCH 31    DECEMBER 31
                                                                                  --------    -----------
    LIABILITIES AND STOCKHOLDERS' EQUITY

    CURRENT LIABILITIES

<S>                                                                              <C>          <C>     
         Bank overdraft .....................................................    $    693     $    213
         Due to Banks .......................................................       3,395        3,395
         Current maturities of long-term debt ...............................         200          200
         Convertible Subordinated Debentures ................................       7,367        7,347
         Department of Justice settlement ...................................       2,059        2,000
         Accounts payable ...................................................       2,960        2,546
         Accrued expenses ...................................................       2,034        1,867
         Advances from minority stockholders ................................         206          206
         Income taxes payable ...............................................          13           33
- -----------------------------------------------------------------------------     --------     --------

                    Total current liabilities ...............................      18,927       17,807

    LONG-TERM DEBT ..........................................................       2,621        2,595

    CONTINGENCIES

    STOCKHOLDERS' EQUITY (DEFICIT)

         Common stock - $.01 par value; authorized 20,000,000, shares; issued
             and outstanding 8,540,192 shares at March 31,1996 and 8,973,459
             shares at December
             31, 1995 .......................................................          91           90

         Additional paid-in capital .........................................      14,616       14,459

         Accumulated deficit ................................................     (16,742)     (14,989)
                                                                                  --------     --------
                                                                                   (2,035)        (440)

         Less: Treasury stock - at cost (500,000 shares) ....................       1,100       (1,100)
                                                                                 --------     --------

                    Total stockholders' equity ..............................      (3,135)      (1,540)
                                                                                 --------     ---------

                                                                                 $ 18,413     $ 18,862
                                                                                 ========     ========
</TABLE>


The accompanying notes are an integral part of these statements

                                       4

<PAGE>

<TABLE><CAPTION>
                                   HALSEY DRUG CO., INC. AND SUBSIDIARIES

                              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                (UNAUDITED)

- - - ----------------------------------------------------------------------------------------------

Amounts in thousands except per share data                         For the Three months ended
                                                                   --------------------------
                                                                            March 31
                                                                            --------
                                                                       1996            1995
                                                                       ----            ----
- ----------------------------------------------------------------------------------------------

<S>                                                               <C>             <C>      
Net Sales .....................................................    $     4,166     $     6,873
Cost of goods sold ............................................          3,749           5,114
                                                                   -----------     -----------

   Gross profit ...............................................            417           1,759

Research & Development ........................................            358             156
Selling, general and administrative expenses ..................          1,377           1,538
                                                                   -----------     -----------
   (Loss)earnings from operations .............................         (1,318)          1,765

Interest expense ..............................................           (435)           (226)
Gain on the sale of assets ....................................           --             2,288
                                                                   -----------     -----------
   (Loss) earnings before income taxes ........................         (1,753)          2,127

Provision for income taxes ....................................           --               296

                                                                   -----------     -----------
Net (loss) earnings ...........................................    $    (1,753)    $     1,831
                                                                   ===========     ===========

Net (loss) earnings per common share ..........................    ($     0.22)    $       .23
                                                                   ===========     ===========

Average number of outstanding shares ..........................      7,886,101       7,859,537
                                                                   ===========     ===========
</TABLE>


The accompanying notes are an integral part of these statements

                                       5

<PAGE>

                                     HALSEY DRUG CO., AND SUBSIDIARIES
                                     ---------------------------------

                                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   -------------------------------------

<TABLE><CAPTION>

                                                 (UNAUDITED)
                                                 -----------
- ----------------------------------------------------------------------------------------
        Amounts in thousands                                         THREE MONTHS ENDED
                                                                          MARCH 31
                                                                     1996          1995
                                                                     ----          ----
- ----------------------------------------------------------------------------------------

Cash flows from operating activities

<S>                                                                 <C>         <C>    
 Net (loss) earnings ...........................................    $(1,753)    $ 1,831
                                                                    -------     -------
Adjustments to reconcile net (loss) earnings to net cash used in
operating activities
     Depreciation and amortization .............................        533         419
     Provision for losses on accounts receivable ...............       --             6
     Gain on sale of assets ....................................       --        (2,288)
     Accrued Department of Justice interest ....................         59          30
     Deferred income taxes .....................................       --           296
     Changes in assets and liabilities
        Accounts receivable ....................................        158          58
        Inventories ............................................       (191)       (389)
        Prepaid insurance and other current assets .............         47         213
        Accounts payable .......................................        414      (1,817)
        Accrued expenses .......................................        167         (21)
        Income taxes payable ...................................        (20)        (18)
                                                                    -------     -------
        Total adjustments ......................................      1,167      (3,511)
                                                                    -------     -------

           Net cash used in operating activities ...............       (586)     (1,680)
                                                                    -------     -------
 Cash flows from investing activities

     Capital expenditures ......................................       (188)        (50)
     (Decrease)increase in other assets ........................         33          20
     Proceeds from sale of assets ..............................                  2,000
                                                                    -------     -------
        Net cash provided by investing activities ..............       (155)      1,970
                                                                    -------     -------

Cash flows from financing activities

     Payment of long term debt .................................       --        (1,064)
     Proceeds from issuance of common stock ....................        158         982
     Bank overdraft............................................         480         148
     Advances from former minority stockholder .................       --          (212)
                                                                    -------     -------
        Net cash (used in) provided by financing activities ....        638        (146)
                                                                    -------     -------
     NET INCREASE IN CASH AND CASH EQUIVALENTS .................        103         144

Cash and cash equivalents at beginning of period ...............        353          28
                                                                    -------     -------

Cash and cash equivalents at end of period .....................        250         172
                                                                    =======     =======
</TABLE>

The accompanying notes are an integral part of these statements

                                        6



<PAGE>


                     HALSEY DRUG CO., INC. AND SUBSIDIARIES

                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

                        Three months ended March 31. 1996

Amounts in thousands except per share data

                                   (UNAUDITED)

<TABLE><CAPTION>

- --------------------------------------------------------------------------------------------------------------
                                               Common
                                                Stock
                                              $.01 par           Additional             Treasury stock,
                                               Value              Paid-In  Accumulated     at cost
                                              Shares     Amount   Capital  Deficit     Shares  Amount    Total
                                              ------     ------   -------  -------     ------  ------    ------

<S>                                           <C>         <C>       <C>      <C>        <C>      <C>     <C>      
 Balance at December 31, 1995 ............    8,973,459   $    90   $14,459  ($14,989)  500,000  $1,100  $ (1,540)

 Net loss for the three months
   ended March 31, 1996 ..................                                     (1,753)                     (1,753)

 Exercise of stock options ...............       13,393                  39                                    39

 Exercise of warrants ....................       53,400         1       118                                   119
                                             ----------   -------   -------   --------  -------  ------   -------


 Balance at March 31 , 1996 ................. 9,040,192   $    91   $14,616  ($16,742)  500,000  $1,100   ($3,135)
                                             ==========   =======   =======  =========  =======  ======   ========
</TABLE>



The accompanying notes are an integral part of these statements

                                       7

<PAGE>
- ------------------------------------------------------------------------------
                     HALSEY DRUG CO., INC. AND SUBSIDIARIES

- ------------------------------------------------------------------------------

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                   (UNAUDITED)

NOTE 1 - Basis of Presentation

        The accompanying unaudited condensed consolidated financial statements
of Halsey Drug Co., Inc. and subsidiaries (the "Company") have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Rule 10-01 of Regulation
S-X. 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, all adjustments considered necessary
for the three months ended March 31, 1996 have been made, but the financial
results for the three months period ended March 31, 1996 are not necessarily
indicative of the results that may be expected for the full year ended December
31, 1996. The unaudited condensed consolidated financial statements should be
read in conjunction with the consolidated financial statements and footnotes
thereto for the year ended December 31, 1995 included in the Company's Annual
Report on Form 10-K.

Note 2 -  Inventories

                                                   (Amounts in thousands)

        Inventories consists of the following:

                                       March 31, 1996         December 31, 1995
                                       --------------         -------- --- ----
          Finished Goods                   $2,585                 $2,491
          Work in Process                   1,451                  1,398
          Raw Materials                     3,871                  3,827
                                            -----                  -----
                                           $7,907                 $7,716
                                           ======                 ======

NOTE 3 - Debt

The Company's Credit Agreement with its banks expired on March 31, 1996, at
which time the Company was required to repay all outstanding principal plus any
accrued interest, or approximately $ 3,395,000 and $31,000 of accrued interest.
The Company has not repaid such amount and interest continues to accrue.

Borrowings under long-term debt consist of the following at March 31, 1996 and
December 31, 1995.
                                                         (Amounts in thousands)

                                                         1996            1995

      Convertible subordinated promissory note         $1,422          $1,395

      Subordinated promissory note                      1,400           1,400
                                                        -----           -----
                                                        2,822           2,795
      Less current maturities                          ( 200)           (200)
                                                       ------            ----
                                                       $2,621          $2,595
                                                       ======          ======

                                       8



<PAGE>

NOTE 4 - Contingencies

        The Company currently is a defendant in several lawsuits involving
product liability claims. The Company's insurance carriers have assumed the
defense for all product liability and other actions involving the Company. The
final outcome of these lawsuits cannot be determined at this time, and
accordingly, no adjustment has been made to the consolidated financial
statements.

        A lawsuit has been filed by the minority shareholders of H. R. Cenci
Laboratories, Inc. ("Cenci") and Cenci Powder Products, Inc. ("Cenci Powder")
against the Company and several of the officers of the Company. The lawsuit
alleges that the Company has breached several representations made during the
course of negotiations leading to the Company's purchase of 51% of the stock of
Cenci. This action seeks unspecified compensatory damages, as well as punitive
damages, rescission, specific performance, reformation and a declaration as to
what amount, if any, is owed to plaintiff. The Company has retained California
counsel to represent its interests. The parties have recently concluded
conducting document and deposition discovery. Counsel for the Company moved for
a summary judgment on April 30, 1996. At this preliminary stage the Company is
unable at this time to predict with reasonable certainty the ultimate outcome of
this matter with reasonable certainty and, accordingly, no provision has been
made for any potential costs relating to this matter.

        The Company was named a defendant in a complaint by the Company's labor
union funds which seeks sums, approximately $272,000, allegedly owed to these
funds under the Company's collective bargaining agreement. In April 1996, the
Company and the labor union funds agreed to settle the action which obligates
the Company to remain current on its obligations and to pay portions of the
alleged arreats in installments.

        In April 1996, the Company received two complaints, seeking unspecified
damages, captioned Golovatskaya v. Halsey Drug Co., 96 Civ. 0662 and Petrakova
v. Halsey Drug , 96 Civ. 0660, both filed in the United States District Court
for the Eastern District of New York, alleging employment discrimination and
harassment against the Company. The Company has answered each of the complaints
and denied the material allegations asserted against it. No discovery has taken
place and the Company is unable to predict with reasonable certainty the outcome
of these actions.



                                       9



<PAGE>



                          HALSEY DRUG CO.,INC. AND SUBSIDIARIES

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

<TABLE><CAPTION>
- --------------------------------------------------------------------------------------
                                                  Three months ended
                                                       March 31
                             ---------------------------------------------------------
                                                                  Percentage Change
                                                                     Year-to-Year
                                        Percentage of Net Sales   Increase (decrease)
                                                   -----             ----------

- --------------------------------------------------------------------------------------
                                                                        1996 as
                                                                      compared to

                                                1996         1995        1995
                                                ----         ----        ----
                                                   %            %          %
                                                   -            -          -


<S>                                            <C>          <C>         <C>   
Net Sales                                      100.0        100.0       (39.4)
Cost of goods sold                              90.0         74.4       (26.7)
                                                ----         ----

   Gross profit                                 10.0         25.6       (76.3)

Research & Development                           8.6          2.3        129.5
Selling, general and administrative expenses    33.0         22.4        (10.5)
                                               -----         ----
   (Loss)earnings from operations             (31.6)           .9       (100.0)

Interest expense                                10.4          3.3       (100.0)
Gain on the sale of assets                        --         33.3        100.0
                                               -----         ----

   (Loss) earnings before income taxes        (42.1)         30.9       (182.4)


Provision for income taxes                        --          4.3       (100.0)
                                               -----        -----
Net (loss) earnings                           (42.1)         26.6       (195.7)
                                              ======         ====
</TABLE>


                                       10



<PAGE>


- ------------------------------------------------------------------------------
Three months ended March 31, 1996 vs three months ended March 31, 1995

Net Sales
- ---------

        The Company's net sales for the three months ended March 31, 1996 of
$4,166,0000 represents a decrease of $2,707,000 (39.4%) as compared to net sales
for the three months ended March 31, 1995 of $6,873,000. First quarter sales for
1995 included sales of Oxycodone HCL and Acetaminophen Tablets of approximately
$1,100,000 sold prior to the sale of the Abbreviated New Drug application
("ANDA") to Mallinckrodt Chemical, Inc. ("Mallinckrodt"). Also, included in this
first quarter of 1995 are sales of inventory of approximately $800,000 to
Mallinckrodt. In addition the decrease is attributable to price reductions
effected during the quarter in an effort to meet increased competition.

Cost of Goods Sold
- ------------------

        For the three months ended March 31, 1996, cost of goods sold decreased
by approximately $1,365,000 as compared to the three months ended March 31,
1996. The decrease for 1996 is attributable to the reduction in shipments of
tablet products due to the sale at the end of the first quarter of 1995 by the
Company of the tablets ANDA. In addition price reductions were effected during
the quarter as a result of increased market competition. In an effort to reduce
manufacturing costs, the Company has decreased operating costs through
significant reductions in personnel and other expenses. The Company's gross
margin as a percentage of sales for the three months ended March 31, 1996 was
10.0% as compared to 25.6% for the three months ended March 31, 1996.

Selling, General and Administrative Expenses
- --------------------------------------------

       Selling, general and administrative expenses as a percentage of sales for
the three months ended March 31, 1996 and 1995 were 33.1% and 22.4%,
respectively. These expenses decreased by $161,000 or 10.5% as compared to the
prior year as a result of the Company's effort to reduce expenses through
implementing cost saving measures combined with a reduction in freight cost
associated with a reduced sales volume at the subsidiary locations.

Research and Development Expenses
- ---------------------------------

        Research and development expenses increased by 129.5% as compared to the
first quarter of 1995. The Company is continuing its effort to obtain FDA
clearance for the Brooklyn facility. At the same time it has engaged in a
research and development program which include submissions to the FDA of several
new products as soon as permitted.

GAIN ON SALE OF ASSETS
- ----------------------

    On March 21, 1995, the Company sold the tablets ANDA and certain equipment
used in the production of the Tablets for up to $5.4 million to Mallinckrodt.
The Company received $500,000 of the proceeds in July 1994. Mallinckrodt also
paid the Company $2,000,000 on March 21,1995 and the remainder will be payable
as follows: (i) $1,000,000 upon the Company receiving general clearance from the
FDA for unrestricted operations at its Brooklyn facility and written notice from
the FDA that it is in compliance with certain provisions of the consent decree
dated June 29, 1993 and (ii) $1,900,000 at the earlier of (a) Mallinckrodt
receiving certain authorizations from the FDA or (b) September 21, 1997. 
("Deferred Payments") Mallinckrodt also agreed to defer $1,200,000 of the 
Company's trade debt due to an affiliate of Mallinckrodt. For the six months 
ended June 30, 1995, the Company recorded a gain of $2,288,000 for the sale of 
the ANDA and related equipment net of expenses related to the sale. 

                                       11



<PAGE>

If prior to a the time it is possible for Mallinckrodt to commence production 
under the Tablets ANDA or any new Tablets ANDA at its own facility, and the 
Company ceases or is forced to cease or substantially curtail production under 
the Tablet ANDA, as a consequence of (I) any action or communication by the FDA 
or any other regulatory or governmental authority or (ii) any financial or other
business difficulty, then Mallinckrodt has the right to cancel payment of any 
yet unpaid portion of the Deferred Payment($1.9 million) and shall further have 
the right to a full refund of any portion of the Deferred Payment already made 
to the Company.

The Company has revised the gain recorded on the sale of assets to Mallinckrodt
and will not recognize the Deferred Payment until the earlier of (a)
Mallinckrodt receiving certain authorizations from the FDA or (b) March 31,
1998. The effect of the adjustments on the accompany financial statements is as
follows(In thousands, except for per share amounts):

As of March 31, 1996:

<TABLE><CAPTION>

In thousands exccept for per share                  1996                              1995
amounts
                                       As Previously      As restated     As Previously           As 
                                          reported                           reported           restated
<S>                                         <C>              <C>           <C>           <C>  
Net earnings                                                                        3,731         1,831
Net earnings per common share                                                         .48           .23
Long-term receivable                             1,900            -----             1,900         -----
Accumulated deficit                           (14,842)         (16,742)          (14,842)      (16,742)
</TABLE>


Net Earnings (Loss)
- -------------------

        For the three months ended March 31, 1996, the Company had net loss of
$1,753,000 as compared to net earnings of $1,831,000 for the three months ended
March 31, 1995. This increase in loss is attributable to the reduction in
shipments of tablet products due to the sale at the end of the first quarter of
1995 by the Company of the tablets ANDA combined with price reductions to
compete with increase market competition.



                                       12



<PAGE>


Liquidity and Capital Resources
- -------------------------------

        At March 31, 1996, the Company had cash and cash equivalents of $250,000
as compared to $353,000 at December 31, 1995. The Company had a working capital
deficiency at March 31, 1996 of $8,630,000 and $7,393,000 at December 31, 1995.

        As a result of the decline in shipments of solid dosage products from
the Company's Brooklyn plant following the entry of a consent decree in the
proceeding between the Company and the U.S. Department of Justice, and as a
result of the lack of available borrowing under the Company's credit agreement,
the Company's liquidity position has been materially adversely affected since
June 30, 1993 and the Company's capital resources have been severely limited.
The Company has actively sought to reduce its operating costs at the Brooklyn
plant, where it has made significant reductions in personnel. In addition, the
Company's liquidity position has been affected during the second half of 1995 by
the discontinuance of shipments of liquid products from its Cenci subsidiary as
a result of review completed by the Company of this liquid operation. In an
effort to reduce the loss from lower revenues at this subsidiary, the Company
has reduced its operating costs at Cenci through significant reductions of
personnel and other expenses.

        The Company's Credit Agreement with its banks expired on March 31, 1996,
at which time the Company was required to repay all outstanding principal plus
any accrued interest, or approximately $ 3,395,000 and $31,000 of accrued
interest. The Company has not repaid such amount and interest continues to
accrue.



                                       13


<PAGE>



I
tem 6. Exhibits and Reports on Form 8-K.

        (a) Exhibits - See Exhibit Index.

        Financial Data Schedule

        (b) Reports on Form 8-K - none.








                                       14




<PAGE>




SIGNATURES
- ----------


        Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                                          HALSEY DRUG CO., INC.



Date: October 3, 1996                                  BY: /s/ Rosendo Ferran
                                                          ---------------------
                                                          Rosendo Ferran
                                                          President and Chief
                                                          Executive Officer

Date: October 3, 1996                                 BY: /s/  Robert J. Mellage
                                                          ---------------------
                                                          Robert J. Mellage
                                                          Corporate Controller



                                       15


<PAGE>





                                 EXHIBIT INDEX



Exhibit                Description
No.



27                      Financial Data Schedule, which is submitted
                        electronically to the Securities and Exchange Commission
                        for information only and not filed.






































                                       16







<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Condensed Consolidated Statement of Financial Condition At March 31,
1996 (Unaudited) and the Condensed Consolidated Statement of Income for the 
Three Months Ended March 31, 1996(Unaudited) and is qualified in its entirety 
by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                             250
<SECURITIES>                                         0
<RECEIVABLES>                                    1,752
<ALLOWANCES>                                       221
<INVENTORY>                                      7,907
<CURRENT-ASSETS>                                10,297
<PP&E>                                          18,675
<DEPRECIATION>                                  11,518
<TOTAL-ASSETS>                                  18,413
<CURRENT-LIABILITIES>                           18,927
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            91
<OTHER-SE>                                      14,616
<TOTAL-LIABILITY-AND-EQUITY>                    18,413
<SALES>                                          4,166
<TOTAL-REVENUES>                                     0
<CGS>                                            3,749
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                                 1,735
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 435
<INCOME-PRETAX>                                (1,753)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (1,753)
<EPS-PRIMARY>                                   (0.22)
<EPS-DILUTED>                                        0
        

</TABLE>