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



                               FORM 10-QSB


(Mark One)

/x/  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities 
     Exchange Act of 1934

               For the quarterly period ended September 30, 1996

OR

/ /  Transition Report Pursuant to Section 13 or 15(d) of the 
     Securities Exchange Act of 1934

    For the transition period from _______________ to _______________


                      Commission file number 0-17219


                    GENTNER COMMUNICATIONS CORPORATION
          (Exact name of registrant as specified in its charter)


             Utah                                        87-0398877
  (State or other jurisdiction of                      (IRS Employer
   incorporation or organization)                    Identification No.)

  1825 Research Way, Salt Lake City, Utah                  84119
  (Address of principal executive offices)               (Zip Code)


   Registrant's telephone number, including area code:  (801) 975-7200


                              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 90 days.

                           /x/  Yes     / /  No

      Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of the latest practicable date.

      Class of Common Stock                           November 10, 1996
         $0.001 par value                              7,662,375 shares





                      GENTNER COMMUNICATIONS CORPORATION

                                BALANCE SHEETS


                                                     (Unaudited)
                                                    September 30,   June 30,
                                                        1996          1996
                                                     ----------    ----------
                           ASSETS
Current assets:
  Cash and cash equivalents . . . . . . . . . . . . $   248,325  $    213,763
  Accounts receivable . . . . . . . . . . . . . . .   1,520,742     1,556,436
  Inventory . . . . . . . . . . . . . . . . . . . .   2,948,735     3,229,765
  Other current assets. . . . . . . . . . . . . . .     343,976       111,743
                                                     ----------    ----------
    Total current assets. . . . . . . . . . . . . .   5,061,778     5,111,707

Property and equipment, net . . . . . . . . . . . .   1,788,440     1,514,629
Other assets, net . . . . . . . . . . . . . . . . .     177,074       153,874
                                                     ----------    ----------
    Total assets. . . . . . . . . . . . . . . . . . $ 7,027,292  $  6,780,210
                                                     ==========    ==========

            LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Notes payable . . . . . . . . . . . . . . . . . . $   863,949  $    916,041

  Accounts payable. . . . . . . . . . . . . . . . .     785,480       503,168
  Accrued expenses. . . . . . . . . . . . . . . . .     233,658       294,729
  Current portion of long-term debt . . . . . . . .     155,095       163,314
  Current portion of capital lease obligations. . .     188,620       138,787
                                                     ----------    ----------
    Total current liabilities . . . . . . . . . . .   2,226,802     2,016,039

Long-term debt. . . . . . . . . . . . . . . . . . .     394,124       427,250
Capital lease obligations . . . . . . . . . . . . .     360,986       163,163
                                                     ----------    ----------
    Total liabilities . . . . . . . . . . . . . . .   2,981,912     2,606,452


Shareholders' equity:
  Common stock, 50,000,000 shares authorized, par value
   $.001, 7,662,375 shares issued and outstanding .       7,662         7,662
  Additional paid-in capital. . . . . . . . . . . .   4,422,747     4,422,747
  Accumulated deficit . . . . . . . . . . . . . . .    (385,029)     (256,651)
                                                     ----------    ----------
    Total shareholders' equity. . . . . . . . . . .   4,045,380     4,173,758
                                                     ----------    ----------
    Total liabilities and shareholders' equity. . . $ 7,027,292  $  6,780,210
                                                     ==========    ==========





                      GENTNER COMMUNICATIONS CORPORATION

                           STATEMENTS OF OPERATIONS


                                                           (Unaudited)
                                                        Three Months Ended
                                                           September 30,
                                                     ------------------------
                                                        1996          1995
                                                     ----------    ----------
Net sales. . . . . . . . . . . . . . . . . . . . . .$ 2,940,205  $  2,787,149
Cost of goods sold . . . . . . . . . . . . . . . . .  1,581,985     1,440,326
                                                     ----------    ----------
    Gross profit . . . . . . . . . . . . . . . . . .  1,358,220     1,346,823

Operating expenses:
  Marketing and selling. . . . . . . . . . . . . . .    777,172       564,881
  General and administrative . . . . . . . . . . . .    436,152       336,284
  Product development. . . . . . . . . . . . . . . .    237,574       217,991
                                                     ----------    ----------
    Total operating expenses . . . . . . . . . . . .  1,450,898     1,119,156
                                                     ----------    ----------
    Operating income (loss). . . . . . . . . . . . .    (92,678)      227,667

Other income (expense):
  Interest income. . . . . . . . . . . . . . . . . .      -               862
  Interest expense . . . . . . . . . . . . . . . . .    (35,811)      (50,147)
  Other, net . . . . . . . . . . . . . . . . . . . .        111         -
                                                     ----------    ----------
    Total other income (expense) . . . . . . . . . .    (35,700)      (49,285)
                                                     ----------    ----------
Income (loss) before income taxes. . . . . . . . . .   (128,378)      178,382

Provision for income taxes . . . . . . . . . . . . .      -            26,757
                                                     ----------    ----------
    Net income (loss). . . . . . . . . . . . . . . .$  (128,378) $    151,625
                                                     ==========    ==========




Net earnings (loss) per common share . . . . . . . .$     (0.02) $       0.02
                                                     ==========    ==========





                      GENTNER COMMUNICATIONS CORPORATION

                      CONDENSED STATEMENTS OF CASH FLOWS

                                                           (Unaudited)
                                                       Three Months Ended
                                                          September 30,
                                                    -------------------------
                                                       1996           1995
                                                    ----------     ----------
Cash flows from operating activities:
  Cash received from customers . . . . . . . . . .$  2,927,293  $   3,016,895
  Cash paid to suppliers and employees . . . . . .  (2,578,655)    (2,792,477)
  Interest received. . . . . . . . . . . . . . . .      -                 862
  Interest paid. . . . . . . . . . . . . . . . . .     (36,497)       (50,425)
  Income taxes refunded (paid) . . . . . . . . . .      19,900         (5,900)
                                                    ----------     ----------
    Net cash provided by operating activities. . .     332,041        168,955
                                                    ----------     ----------
Cash flows from investing activities:
  Purchases of property and equipment. . . . . . .    (124,480)       (28,640)
  Decrease (increase) in other assets. . . . . . .     (33,517)        14,451
                                                    ----------     ----------
    Net cash used in investing activities. . . . .    (157,997)       (14,189)
                                                    ----------     ----------
Cash flows from financing activities:
  Proceeds from employee stock option exercises. .      -             137,500
  Net borrowings (repayments) under line of credit     (52,092)      (398,000)
  Principal payments of short-term notes to vendors     -            (256,937)
  Proceeds from issuance of long-term debt . . . .      -             400,000
  Principal payments of capital lease obligations.     (46,045)       (35,428)
  Principal payments of long-term debt . . . . . .     (41,345)       (20,780)
                                                    ----------     ----------
    Net cash used in financing activities. . . . .    (139,482)      (173,645)
                                                    ----------     ----------
Net increase (decrease) in cash. . . . . . . . . .      34,562        (18,879)
Cash at the beginning of the year. . . . . . . . .     213,763        119,238
                                                    ----------     ----------
Cash at the end of the period. . . . . . . . . . .$    248,325  $     100,359
                                                    ==========     ==========


Supplemental disclosure of cash flow information:
Property and equipment financed by capital leases $    293,701  $      -
                                                    ==========     ==========





                      GENTNER COMMUNICATIONS CORPORATION

                         NOTES TO FINANCIAL STATEMENTS
                              September 30, 1996
                                  (Unaudited)

1. Basis of Presentation

      The accompanying unaudited financial statements have been prepared in 
accordance with generally accepted accounting principles for interim financial 
information and with the instructions to Form 10-QSB of Regulation S-B.  
Accordingly, certain information and footnote disclosures normally included in 
complete financial statements have been condensed or omitted.  These financial 
statements should be read in conjunction with the financial statements and 
footnotes thereto included in the Company's 1996 Annual Report on Form 10-KSB.

      In the opinion of management, all adjustments (consisting of normal 
recurring adjustments) considered necessary for a fair presentation have been 
included.  The results of operations for interim periods are not necessarily 
indicative of the results of operations to be expected for the full year.


2. Earnings (Loss) Per Common Share

      Earnings (loss) per common share was calculated using the modified 
treasury stock method.  The weighted average number of common shares 
outstanding for the three months ended September 30, 1996 and 1995 were 
7,662,375 and 7,338,375, respectively.  Stock options and warrants to purchase 
common stock have been excluded from the presented computation of per share 
amounts for all periods inasmuch as the effects were antidilutive.


3. Inventory

      Inventory is summarized as follows:

                                                      (Unaudited)
                                                     September 30,  June 30,
                                                         1996         1996
                                                      ----------   ----------
      Raw materials . . . . . . . . . . . . . . . . $    933,709 $    962,504
      Work in progress. . . . . . . . . . . . . . .    1,012,159      866,279
      Finished goods. . . . . . . . . . . . . . . .    1,002,868    1,400,982
                                                      ----------   ----------
                    Total inventory . . . . . . . . $  2,948,735 $  3,229,765
                                                      ==========   ==========





 
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS



RESULTS OF OPERATIONS

     Sales for the three months ended September 30, 1996 increased 5% compared 
to the same period during the prior fiscal year.  The primary reason for the 
increase were sales of new Broadcast and Teleconferencing products.  Sales of 
existing Broadcast and Assistive Listening System ("ALS") products also 
experienced increases during the quarter.

     Broadcast sales increased 7% during the first quarter of fiscal 1997, as 
compared to the same quarter during the previous fiscal year.  The Company had 
higher sales of its TS612 multi-line talk show product line, due to new 
additions and network connection enhancements introduced over the last nine 
months.  Broadcast sales also grew as a result of the Company beginning 
shipments to selected customers of its new GSC3000 product series.  Introduced 
in April of 1996, the new product line is expected to significantly grow sales 
of the Company's Site Control line of products.  Regular shipments are 
expected to begin during the quarter ending December 31, 1996.  Site Control 
products help broadcasters fulfill legal requirements for monitoring and 
controlling remote transmitter sites.  The new GSC line will allow station 
managers to monitor several different sites using one networked system.

     Sales to the audio segment of the Teleconferencing market (the 
"Audioconferencing" market) decreased 8% during the three-month period as 
compared to the previous fiscal year.  The decline was due to lower sales of 
the Company's older line of  audioconferencing room system products.  Many of 
the features of these systems have been improved and incorporated into the new 
GT724 teleconferencing system.  This product began shipping at the beginning 
of the first quarter ended September 30, 1996, and carries a lower sales price 
and has more integrated components than most of the older systems.  As a 
result, customers have shown a preference for the newer systems over the older 
units which were brought to market in 1993.  Although affecting sales of the 
older systems in its introductory quarter, the Company believes that sales of 
the new GT724 will grow to more than offset the decrease due to the product's 
strong customer appeal and much wider potential use in teleconferencing 
applications.  Recently, the product won the annual special recognition award 
for Most Significant Advance awarded by Teleconference magazine.  In addition, 
several distance learning and telemedicine organizations have named the GT724 
as the product of choice to be included with their systems.  The Company is 
also devoting resources to the development of additional new audioconferencing 
system products anticipated to be introduced by the end of the current fiscal 
year.

     Contributing to the overall sales increase for the quarter were higher 
sales of  ALS products, due partially as a result of sales of the new PTX 
portable transmitter introduced last year.  ALS products represent one of the 
Company's fastest growing product segments, growing 84% during the three 
months ended September 30, 1996, as compared to the same period of the 
previous fiscal year.

     During the quarter ended June 30, 1996, the Company began significant new 
initiatives to augment its efforts in the areas of marketing and sales.  These 
activities carried over into the first quarter of fiscal 1997 as well.  In 
September 1996, the Company hired its first Vice President of Sales and 
Marketing.  Management believes this new position is key to serving the 
Company's markets and positioning the Company for additional sales growth and 
profitability.  The Company also plans to devote additional sales and 
marketing resources to all market areas.  In addition, several new sales 
employees, including a new sales director, have been hired to focus 
exclusively on the Company's teleconferencing service.  The Company recently 
launched a new national marketing campaign for this service, which has been 
renamed 1.800.LETS MEET.  The Company has already begun to see the positive 
results from these efforts and anticipates significant growth in the service 
segment of its business, as well as sales growth overall during the current 
fiscal year.

     The Company's gross profit margin percentage during the three months 
ended September 30, 1996, was 46% as compared to last year's first quarter 
when the gross margin percentage was 48%.  The difference was mainly 
attributable to the varied product mix in effect during the respective 
periods.

     Operating expenses for the first quarter increased by 30% compared to 
last year.  The higher costs were due primarily to a 38% jump in sales and 
marketing costs as previously mentioned above.  These cost increases resulted 
from hiring additional sales employees, developing new advertising campaigns, 
and conducting new research of the Teleconferencing market.  General and 
administrative expenses also rose during the quarter as compared to the same 
period during the prior fiscal year.  The higher amounts are due mainly to 
additional employees hired since a year ago, who focus primarily on human 
resource and information systems management.  These additional resources are 
anticipated to be essential for the Company to successfully implement its 
growth plans for the current fiscal year.  Product development costs also rose 
9% as a result of additional activities involved in bringing the new Site 
Control products to market, along with establishing engineering groups focused 
on specific product areas.  The Company has entered into an investment phase 
for the near future, and anticipates these increases in overhead expenses to 
continue.  However, the Company also expects these moves will increase sales 
and profitability in the long-term.

     The differences in interest expense incurred during the respective three-
month periods ended September 30, 1996 and 1995 stemmed mostly from 
differences in usage of the Company's line of credit facility.


FINANCIAL CONDITION AND LIQUIDITY

     The Company's current ratio decreased from 2.5:1 to 2.3:1 during the 
three months since June 30, 1996.  The factor contributing most to the change 
was a 56% increase in the accounts payable balance, due primarily to the 
purchase of GSC-related raw materials toward the end of the quarter.  
Offsetting somewhat the effect of this increase was a 9% decrease in inventory 
amounts.  Over the last two years, the Company has concentrated on better 
inventory management and purchasing efficiencies.  Positive results began to 
show during fiscal 1996's second quarter, and have continued ever since.  Over 
the last six months the Company has specifically focused on strategic levels 
of finished goods in relation to anticipated sales.  Those efforts resulted in 
a 28% finished goods inventory decline during the quarter ended September 30, 
1996.

     In October 1996, the Company renewed its line of credit arrangement 
($863,949 outstanding at September 30, 1996) with a different commercial bank.
The terms of the new lending arrangement are for a maximum amount outstanding 
of $2.5 million at an interest rate which is variable, depending on various 
financial ratios.  Specifically, the rate can range from three to five basis 
points over the London Interbank Offered Rate (LIBOR).  Currently, the rate is 
8.8%.  The loan is secured by accounts receivable and inventory, and is 
scheduled to mature at the end of October 1997.

     The Company has been successful in improving cash flows during the prior 
fiscal year and those efforts have carried into fiscal 1997's first quarter.  
By reducing its short-term debt, the Company has been able to increase 
available cash reserves.  The Company's cash flow position has also improved 
as a result of implementing successful inventory management programs.  Already 
the Company has seen the positive operational cash flow results from this 
course of action.  This will allow the Company to pursue its plans for fiscal 
1997 of enhancing marketing and sales activities to achieve sales growth.  As 
sales continue to increase and inventory management processes continue, the 
Company anticipates that it can achieve its business plan through a 
combination of internally generated funds, and short term and/or long-term 
borrowing, if necessary.

     To the extent any statement presented herein deals with information that 
is not historical, such statement is necessarily forward-looking.  As such, it 
is subject to the occurrence of many events outside of the Company's control 
that could cause the Company's results to differ materially from those 
anticipated.





 
                         PART II - OTHER INFORMATION



  Item 6. Exhibits and Reports on Form 8-K

         (a) Exhibits
               EX-27 Financial Data Schedule

         (b) Reports on Form 8-K
               The Company filed a Form 8-K, dated August 7, 1996, that
               reported the Board of Directors of the Company had extended the
               exercise date of the Company's outstanding warrants for one
               year from September 22, 1996 to September 22, 1997.





                                  SIGNATURES

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



                                            GENTNER COMMUNICATIONS CORPORATION



                                            /s/  David L. Harmon
                                            ------------------------
                                            David L. Harmon
                                            Chief Financial Officer





Date: November 13, 1996






<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>

THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
FINANCIAL STATEMENTS AND FOOTNOTES INCLUDED IN FORM 10-QSB FOR THE QUARTER
ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.

</LEGEND>
       
<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JUN-30-1997
<PERIOD-END>                               SEP-30-1996
<CASH>                                         248,325
<SECURITIES>                                         0
<RECEIVABLES>                                1,520,742
<ALLOWANCES>                                         0
<INVENTORY>                                  2,948,735
<CURRENT-ASSETS>                             5,061,778
<PP&E>                                       1,788,440
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                               7,027,292
<CURRENT-LIABILITIES>                        2,226,802
<BONDS>                                        755,110
<COMMON>                                         7,662
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<OTHER-SE>                                   4,422,747
<TOTAL-LIABILITY-AND-EQUITY>                 7,027,292
<SALES>                                      2,940,205
<TOTAL-REVENUES>                             2,940,205
<CGS>                                        1,581,985
<TOTAL-COSTS>                                1,581,985
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              35,811
<INCOME-PRETAX>                              (128,378)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                          (128,378)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 (128,378)
<EPS-PRIMARY>                                   (0.02)
<EPS-DILUTED>                                   (0.02)
        

</TABLE>