SECURITIES AND EXCHANGE COMMISSION	 				 WASHINGTON,	D.C.	20549		 				 FORM	10-Q			 				 	Quarterly Report Under Section 13 or 15(d) 	 of the Securities Exchange Act of 1934 				 For Quarter Ended		 Commission File Number O-6421 September 30, 1997				 				 	SYNERGISTICS, INC.		 				 MASSACHUSETTS	 	04-2283157		 (State of Incorporation)	(IRS Employer ID Number) 				 9 Tech Circle, Natick, MA 	01760	 (Address of Principal Executive Office)	(Zip Code)		 				 Registrant's telephone number,			 including area code		(508) 655-1340	 				 Securities registered pursuant to Section 12(g) of the Act.	 				 Common Stock $0.01 Par Value		 				 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 preceeding 12 months (or 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		 				 There is no public market for, and thus no aggregate market value of the registrants securities.			 				 Indicate the number of shares outstanding of each of the registrant classes of common stock, as of the last practicable date.	 				 Class Outstanding at October 31,1997			 Common Stock, one cent par value	9,507,561		 				 				 NO DOCUMENTS INCORPORATED BY REFERENCE	 				 - ----------------------------------------------------------	 				 SYNERGISTICS, INC.	 	BALANCE SHEET		 				 				 ASSETS				 				 	 (UNAUDITED)		 			 		Sept 30	 	Dec 31 				 	1997	 	1996	 CURRENT ASSETS				 Cash				 $	 55,579		$ 101,550	 Accounts receivable	 	374,480 	527,559 Allowance		 		 (7,253) 	(35,000)	 Inventories		 		290,343	 	239,818 Prepaid expenses			 18,279		 20,710	 		 			-------	 	-------	 TOTAL CURRENT ASSETS	 		731,428	 	854,637	 				 EQUIPMENT, less allowances of $72,963 and $60,363 for depreciation		 	 58,543	 	 62,289	 				 DEFERRED TAXES	 			817,776	 	817,776	 				 ----------	 ---------	 TOTAL ASSETS			 1,607,747	 1,734,702 				 				 	LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY 				 CURRENT	LIABILITIES		 Trade accounts payable 		186,760	 	220,275	 Accrued expenses and other current	 		 58,983	 65,263 Amount due stockholder 	100,047	 	141,297	 		 			-------	 	-------	 TOTAL CURRENT LIABLITIES	 	345,790	 	426,835	 				 STOCKHOLDERS' EQUITY				 Common Stock (9,507,561 shares issued including shares held in Treasury)	 	 95,076	 92,976	 Additional paid-in capital	 6,750,137 6,542,237 Retained earnings (deficit)	 (5,576,121)(5,320,211) 		 		 ----------- -----------	 				 1,269,092 1,315,002 Cost of Common Stock held in			 	 Treasury		 	 (7,135)	 (7,135)	 				 ----------- ----------	 				 1,261,957 1,307,867 				 TOTAL LIABILITIES, PREFERRED STOCK ----------- ----------	 AND SHAREHOLDERS' EQUITY	 $ 1,607,747	 $ 1,734,702 				 =========== ========== - ----------------------------------------------------------	 				 SYNERGISTICS, INC.		 STATEMENT OF OPERATIONS 		 (UNAUDITED) 	Three Months Ending 	Nine Months ending	 September 30, 	September 30, 	 		 	1997 	 1996 	1997 		1996	 Sales		 537,101 527,516	1,609,146	1,668,236	 Other income 		7,577	 7,398	 8,469	 2,342	 	 	 -------- -------	---------	---------	 		 544,678 534,914	1,617,615	1,670,578	 				 Costs and expenses:				 Cost of sales	 408,485 319,436	1,203,199	 977,652	 Selling, general and administrative	 240,048 220,655 669,362	 635,816	 Interest expense	 90	 639	 965 648	 	 -------- ------- 	---------	--------- 		 648,623	 540,739	1,873,526 1,614,116	 				 Net income (loss) (103,945) (5,825)	(255,911) 	56,462	 				 Income (loss) per share of Common Stock		 Assuming no dilution	 (.01)	 (.00)	 ($0.03) 	$0.01	 Assuming full dilution (.01)	 (.00) ($0.03)	 $0.01	 				 - ----------------------------------------------------------	 				 SYNERGISTICS, INC.		 STATEMENT OF CHANGES IN FINANCIAL POSITION	 PERIODS OF NINE MONTHS SEPTEMBER 30, 1997 AND 1996	 				 				 					(UNAUDITED)		 			 		1997 		1996 CASH FLOWS FROM OPERATING ACTIVITIES			 Net income (loss)	 		(255,911) 	56,462 				 Adjustments to reconcile net loss to net cash (used) provided by operating activities:		 Depreciation		 		 12,600 	10,819 (Increase) decrease in: 	accounts receivable	 	 125,332 (12,138) 	inventories		 	 (50,525) (63,666) 	prepaid expenses		 and other assets		 2,431 (18,756) 	accounts payable	 	 (33,515) (39,151) 	accrued expenses and		 other current	liabilities			 (6,280)	 (6,312) 	amounts due to shareholder 		 (41,250) 	(41,249) 		 			 -------- ------- TOTAL ADJUSTMENTS		 	 8,793 (170,453) 				 NET CASH USED BY OPERATING ACTIVITIES	 		(247,118) (113,991) 		 		 CASH FLOWS FROM INVESTING ACTIVITIES			 Capital expenditures		 	 (8,853) 	(24,130) Stock issued		 		 210,000	 0 		 -------- --------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES	 201,147	 (24,130) 				 ------- ------- NET CHANGE IN CASH	 (45,971) (138,121) 				 CASH AT BEGINNING OF YEAR 101,550 	332,151 		 -------- 	-------- CASH AT END OF PERIOD		 55,579 	194,030 				 ======== ======= - ----------------------------------------------------------	 				 SYNERGISTICS, INC.		 	SELECTED	INFORMATION		 				 				 Certain information and	footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's An Report Form 10-K. The results of operations for the period ended September 30, 1997 are not necessarily indicative of the operating results for full year.				 				 Basis of Presentation				 It is the opinion of management that all significant adjustments which are routine recurring adjustments reflected in the accompanying September 30 financial statements which are necessary to present fairly such interim financial statements.				 				 Accounting Policy for Revenues and Costs of Sales		 Revenues are recognized at the time of product shipment. Cost of sales is computed using the "gross profit" method based upon historical results of operations. Other cost, included in costs of sales, are based upon such costs as actually incurred.		 				 Inventories				 Inventories are comprised of the following:		 				 	* 9/30/97	 12/31/96	 				 Raw Materials	 	 72,585	 	 62,170	 Finished Goods & WIP 	217,758	 	177,648	 	 		-------	 	 -------	 Total Inventories 290,343 		239,818	 				 	 *Allocation Based Upon Estimate	 				 (Loss) per Common Share			 The weighted average number of shares of common stock outstanding used in computing (loss) per share does not include the effect of the conversion of the stock options as the exercise price exceeds the current market value of the security.			 				 The following schedule sets forth the number of shares used in	 computing earnings per share:			 				 				 	Period of Nine Months	 		 			Ended Sept 30, 				 		1997	 1996 				 Assuming no dilution				 Common Stock Outstanding October 31, 1997 	9,507,561 9,297,561 Shares held in Treasury				 16,445 16,445 Total Shares Authorized			 12,000,000 12,000,000 				 - ----------------------------------------------------------	 				 PART I	FINANCIAL INFORMATION		 				 ITEM 1.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 	 AND RESULTS OF OPERATIONS	 				 For the nine months ended September 30, 1997, the Company recorded sales of $1,609,146 compared to $1,668,236 for the nine months ended September 30,1996 At September 30, 1997 the Company had a backlog of $88,376 compared to $48,631	at September 30, 1996.		 				 Cost of sales as a percentage of sales increased to 74.8% from 58.6% for the nine months ended September 30, 1997 and 1996, respectively. This increase is due to the development of new products demanded by our customers				 				 For the period of nine months ended September 30, 1997, selling, general and administrative expenses increased by $33,546 over the period of nine months ended September 30, 1996.			 				 				 PART II OTHER INFORMATION		 				 ITEM 1.	LEGAL PROCEEDINGS		 There are currently no pending legal proceedings to which the Company is a party or to which any of its property is subject.	 				 ITEM 2.	CHANGE IN SECURITIES		 There have been no changes in the instruments defining the rights of holders of any class of securities of the Company during the quarter ending September 30, 1997.			 				 ITEM 3.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS There have been no matters submitted for a vote of the security holders during the quarter ending September 30, 1997.			 				 		 				 ITEM 4.	EXHIBITS AND FORM 8-K		 None.				 				 Pursuant to the requirements of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf, undersigned thereunto being duly authorized.		 				 				 DATE_Nov 15, 1997______________	BY/S/WILLIAM M.TETRICK_______________ 		 William M. Tetrick	 		 Chairman of the Board	 				 				 				 DATE_Nov 15, 1997______________	BY_/S/DAVID S. LONGWORTH____________ 		 David S. Longworth	 		 President and Clerk	 				 				 - -------------------------------------------------------------------