10QSB/A

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


                            Form 10-QSBA


(Mark One)

[X]     Quarterly report pursuant to Section 13 or 15(d) of the Securities
        Exchange Act of 1934 For the period ended March 31, 1996
        OR
[ ]     Transition report pursuant to Section 13 or 15(d) of the Securities
        Exchange Act of 1934 Commission File Number: 0-25678


                          MUSTANG SOFTWARE, INC.
        (Exact name of registrant as specified in its charter)

                              California
                        (State of incorporation)

                              77-0204718
                           (I.R.S.  employer
                        identification number)

                         6200 Lake Ming Road
                    Bakersfield, California 93306
              (Address of principal executive offices)

                           (805) 873-2500
         (Registrant's telephone number, including area code)

	Indicate by check mark whether the registrant (1) has filed all reports
        required to be filed by Section 13 or 15(d) of the Securities Exchange
        Act of 1934 during the preceding 12 months (or for such shorter period
        that the registrant was required to file such reports), and (2) has
        been subject to such filing requirements for the past 90 days:

                        Yes       [ X ]        No    [ ]            

        As of May 5, 1996, there were 3,358,200 shares of the Registrant's
        Common Stock outstanding.





===============================================================================






                                SIGNATURES

	In accordance with the requirements of the Securities Act of 1934, the
        Registrant has duly caused this report to be signed on its behalf by
        the undersigned, thereunto duly authorized.  

    Signature                   Title                           Date

   /s/ James A. Harrer
   -------------------------
    James A. Harrer             President and Chief Executive
                                Officer (Principal Executive 
                                Officer) and a Director         August 13, 1996
   /s/ Donald M. Leonard
   -------------------------
   Donald M. Leonard            Vice President Finance and
                                Chief Financial Officer
                                (Principal Financial and
                                Accounting Officer)             August 13, 1996

EX-11

 1                                                 EXHIBIT 11.

MUSTANG SOFTWARE, INC.

COMPUTATION OF EARNINGS PER SHARE
(In thousands, except earnings per share) (Unaudited)
- - -----------------------------------------------------------------------------


                                                        Three Months Ended  
                                                        Mar 31,              
                                                        1995       1996     
- - -----------------------------------------------------------------------------
                                                                  
Weighted average number of common shares outstanding     2,106     3,358    
Common stock equivlents from outstanding stock options      25         0    
- - -----------------------------------------------------------------------------
Average common and common stock equivalents outstanding  2,131     3,358   
===============================================================================
Net Income                                               $  12    $ (651)    	
===============================================================================
Earnings per share (1)                                   $ .01    $ (.19)   
===============================================================================


(1) Fully diluted earnings per share have not been presented because the effects
are not material.
- - -----------------------------------------------------------------------------


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

EX-27

 

<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ACCOMPANYING FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMETENTS.

<MULTIPLIER> 1

        

				                                
<PERIOD-TYPE>                           3-MOS
<FISCAL-YEAR-END>                       DEC-31-1996
<PERIOD-END>                            MAR-31-1996
<CASH>                                   $5,037,683
<SECURITIES>                                      0
<RECEIVABLES>                             1,289,251	
<ALLOWANCES>                                825,000	
<INVENTORY>                                 324,964
<CURRENT-ASSETS>                          6,235,917
<PP&E>                                    1,303,424
<DEPRECIATION>                              318,653
<TOTAL-ASSETS>                            7,267,536
<CURRENT-LIABILITIES>                     1,281,233
<BONDS>                                     385,557
<PREFERRED-MANDATORY>                             0
<PREFERRED>                                       0
<COMMON>                                  6,601,633 	
<OTHER-SE>                               (1,000,887)
<TOTAL-LIABILITY-AND-EQUITY>              7,267,536
<SALES>                                   1,203,354
<TOTAL-REVENUES>                          1,203,354	
<CGS>                                       217,736
<TOTAL-COSTS>                               217,736 	
<OTHER-EXPENSES>                          1,711,555	
<LOSS-PROVISION>                                  0
<INTEREST-EXPENSE>                           11,254	
<INCOME-PRETAX>                            (651,370)
<INCOME-TAX>                               (651,370)	
<INCOME-CONTINUING>                        (651,370)
<DISCONTINUED>                                    0
<EXTRAORDINARY>                                   0
<CHANGES>                                         0	
<NET-INCOME>                               (651,370)	
<EPS-PRIMARY>                                  (.19)
<EPS-DILUTED>                                  (.19)