10QSB/A

   1

                                UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C.  20549

                                 FORM 10-QSB
                               AMENDMENT NO. 2

[ X ]    QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE 
         SECURITIES EXCHANGE ACT OF 1934

         For the Quarterly Period Ended May 31, 1995 
                                        ------------

[   ]    TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE
         EXCHANGE ACT


         For the transition period from ______________ to _______________

         Commission File No.                0-5954                     

                            COMPUTER RESEARCH, INC.
       -----------------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)

          Pennsylvania                                      25-1201499     
          ------------                                      ----------
(State or other jurisdiction of                           I.R.S. Employer
incorporation or organization)                           Identification No.


 Cherrington Corporate Center, Building 200, Coraopolis, Pennsylvania    15108
 -----------------------------------------------------------------------------
                   (Address of principal executive offices)

                                (412) 262-4430
                          ---------------------------
                          (Issuer's telephone number)


________________________________________________________________________________
             (Former name, former address and former fiscal year,
                        if changed since last report)


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.   Yes   X     No
                                                                 ---       ---

               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.   Yes _____      No _____

                      APPLICABLE ONLY TO CORPORATE ISSUERS

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

       3,883,895                       
- ----------------------
   2





                                  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.



                                        COMPUTER RESEARCH, INC. 
                                        -----------------------
                                             (Registrant)



Date  September 25, 1995                     JAMES L. SCHULTZ
     -------------------                 --------------------------
                                             James L. Schultz, 
                                           President & Treasurer





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                                EXHIBIT INDEX


EXHIBIT
NUMBER
- -------
  27             Financial Data Schedule

EX-27

 

<ARTICLE> 5
<CIK> 0000201511
<NAME> COMPUTER RESEARCH, INC.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          AUG-31-1995
<PERIOD-START>                             SEP-01-1994
<PERIOD-END>                               MAY-31-1995
<EXCHANGE-RATE>                                      1
<CASH>                                         650,462
<SECURITIES>                                         0
<RECEIVABLES>                                  857,350
<ALLOWANCES>                                  (30,000)
<INVENTORY>                                    102,126
<CURRENT-ASSETS>                             1,632,832
<PP&E>                                       5,057,963
<DEPRECIATION>                               4,847,550
<TOTAL-ASSETS>                               1,844,586
<CURRENT-LIABILITIES>                          813,019
<BONDS>                                              0
<COMMON>                                         3,107
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<OTHER-SE>                                   1,005,500
<TOTAL-LIABILITY-AND-EQUITY>                 1,844,586
<SALES>                                         70,083
<TOTAL-REVENUES>                             4,462,164
<CGS>                                           45,322
<TOTAL-COSTS>                                4,260,459
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                10,000
<INTEREST-EXPENSE>                               8,581
<INCOME-PRETAX>                                201,705
<INCOME-TAX>                                     9,000
<INCOME-CONTINUING>                            192,705
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   192,705
<EPS-PRIMARY>                                      .05
<EPS-DILUTED>                                      .05