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

                                  FORM 10-QSB/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 September 30, 1998

                                       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:  0-1665                                               

                               EXTECH CORPORATION
        (Exact name of small business issuer as specified in its charter)

     Delaware                                           36-2476480            
(State or other jurisdiction                          (I.R.S Employer
of incorporation or organization)                     Identification No.)

90 Merrick Avenue, East Meadow, New York                     11554            
(Address of principal executive offices)                  (Zip Code)

                                 (516) 794-6300
              (Registrant's telephone number, including area code)

              (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

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

     Indicate by check mark whether the  registrant  has filed all documents and
reports  required  to be filed by  Sections  12,  13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by a court. ( )Yes ( ) No

                      APPLICABLE ONLY TO CORPORATE ISSUERS:
     Indicate the number of shares  outstanding of each of the issuer's  classes
of common  stock,  as of the latest  practicable  date:  5,591,367  shares as of
October 20, 1998

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

                  NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997

Results of Operations:

     The  Company's  net loss for the nine months ended  September  30, 1998 was
$75,109 as compared to a net loss of $86,788 for the nine months ended September
30, 1997.  The loss for the nine months ended  September  30, 1998 was caused by
lower room occupancies of $56,208 as compared to the nine months ended September
30, 1997. The reduced loss was partially the result of increased interest income
of  $19,006  as a result  of a loan  made in  November  1997 to  Dealers  Choice
Automotive  Planning Inc. ("DCAP Insurance") which bears interest at the rate of
10% per annum  (see  "Prospects"  below)  and lower  expenses  of  $49,972.  The
foregoing  were  partially  offset by lower room  occupancies of $56,208 for the
nine months  ended  September  30,  1998 as  compared  to the nine months  ended
September 30, 1997.

Liquidity and Capital Resources:

     As of  September  30,  1998,  the  Company  had  $406,275  in cash and cash
equivalents  and a working  capital  surplus of  $1,086,927.  As of December 31,
1997,  the Company had  $1,040,389  in cash and cash  equivalents  and a working
capital surplus of $1,150,732.  The reduction in cash was due primarily to loans
in the  aggregate  amount of  $425,000  made to DCAP  Insurance  during the nine
months ended September 30, 1998 as well as losses from operations.

     Except as described below under  "Prospects,"  the Company did not have any
material commitments for capital expenditures as of September 30, 1998.

     During the eight months ended August 31, 1998, the combined  operating loss
for the DCAP  Companies  (as defined  below) was  $476,394.  In addition,  as of
August 31, 1998, the combined working capital  deficiency for the DCAP Companies
was  $1,465,601.  DCAP has plans to diversify its  operations  into the areas of
premium  financing  and  income tax  preparation,  and to  increase  advertising
efforts in order to grow the combined  operations.  It is contemplated  that, as

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discussed  below under  "Prospects,"  concurrently  with the closing of the DCAP
Agreement,  the Company  will  consummate  the sale of shares of Common Stock to
Eagle  Insurance  Company  and  will  receive  approximately  $1,000,000  in net
proceeds. The Company anticipates that such proceeds,  together with anticipated
revenues from  operations,  will be sufficient to permit the Company to continue
to conduct  operations  in the  manner  currently  conducted  by it and the DCAP
Companies (including the proposed expansion plans).  However, EXTECH anticipates
that  additional  funds in an amount in excess of $1,000,000 will be required to
implement the contemplated  increased  advertising effects that DCAP believes is
necessary for growth. No additional  financing  arrangements are in place and no
assurances  can be  given  that  any  such  financing  will  be  available  upon
commercially reasonable terms or otherwise.

Prospects:

     DCAP:

     On May 8, 1998,  the Company  entered into an agreement with respect to the
acquisition of all of the issued and outstanding Common Shares of DCAP Insurance
as  well as  interests  in  certain  entities  affiliated  with  DCAP  Insurance
(collectively,  the "DCAP Companies")(the "DCAP Agreement").  The DCAP Companies
are  privately-held and are engaged primarily in the following  businesses:  (i)
retail automotive,  motorcycle,  boat, life, business and homeowner's  insurance
brokerage;  (ii) income tax preparation;  and (iii) automobile club for roadside
emergencies.  DCAP Insurance has an aggregate of  approximately 56 wholly-owned,
joint venture and franchise locations in the New York metropolitan area.

     The DCAP Agreement  provides that, in  consideration  for the shares of the
DCAP Companies,  the Company will issue 3,300,000 shares of its Common Stock. In
addition,  the  DCAP  Agreement  contemplates  that  the  shareholders  of  DCAP
Insurance  (the  "DCAP  Shareholders"),   together  with  Morton  L.  Certilman,
President  of EXTECH,  and Jay M. Haft,  Chairman  of the Board of EXTECH,  will
purchase, in the aggregate,  the 1,800,000 shares of Common Stock of the Company
beneficially  owned by Sterling  Foster Holding Corp.  ("Sterling  Foster") (the
"Sterling  Foster  Shares") as well as an aggregate of 1,402,000 other shares of
Common  Stock from the  Company.  Sterling  Foster has entered into an agreement
with each of the DCAP Shareholders and Messrs. Certilman and Haft providing for

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the  purchase  and sale of the  Sterling  Foster  Shares  concurrently  with the
closing of the DCAP  Agreement (the "Sterling  Foster  Agreement").  Each of the
parties has the right to terminate the Sterling Foster  Agreement if the closing
shall not have occurred by December 31, 1998.

     The  DCAP  Agreement  provides  further  that  the  purchases  by the  DCAP
Shareholders  will be made  following  loans of funds  by the  Company  for such
purpose (with respect to the purchases from Sterling  Foster) or by the delivery
of promissory notes as part of the purchase price (with regard to the additional
shares to be acquired from the Company).

     Simultaneously with the signing of the DCAP Agreement, the Company advanced
$311,000 to DCAP Insurance  (increasing its aggregate advances to DCAP Insurance
to $750,000).  The outstanding  advances,  together with interest at the rate of
10% per annum, are payable on December 31, 1998.

     The  consummation of the DCAP Agreement is subject to the satisfaction of a
number  of  conditions,  including  stockholder  and  certain  third  party  and
governmental approvals.  Each of the parties has the right to terminate the DCAP
Agreement  if the  closing  shall not have  occurred by December  31,  1998.  No
assurances  can be given  that the  acquisition  will take  place upon the terms
described above or otherwise.

     Eagle:

     On October 2, 1998,  the  Company  and Eagle  Insurance  Company  ("Eagle")
entered into a Subscription Agreement (the "Eagle Agreement") which provides for
the  issuance  and sale by the  Company to Eagle of  1,486,893  shares of Common
Stock for an aggregate  purchase price of  approximately  $1,000,000 (the "Eagle
Issuance").  The Eagle Issuance is to be made  concurrently  with the closing of
the DCAP  Agreement.  Each of the parties has the right to  terminate  the Eagle
Agreement  if the closing  shall not have  occurred by December  31,  1998.  The
closing of the Eagle Agreement is subject to a number of other conditions.

     Eagle is a New Jersey  insurance  company  wholly-owned  by The Robert Plan
Corporation ("The Robert Plan"). Pursuant to separate agency agreements between

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certain DCAP Companies and certain insurance company  subsidiaries of The Robert
Plan, such DCAP Companies have been appointed agents of the insurance  companies
with regard to the offering of automobile and other insurance products.

     In the event of the  closing of the DCAP  Agreement,  the  Sterling  Foster
Agreement and the Eagle Agreement,  the DCAP  Shareholders will own an aggregate
of approximately  43.8% of the outstanding Common Stock of the Company,  Messrs.
Certilman  and  Haft  will  own  an  aggregate  of  approximately  26%  of  such
outstanding  Common  Stock  and  Eagle  will  own  approximately  12.6%  of such
outstanding Common Stock.

Year 2000:

     The Company's wholly-owned subsidiary, IAH, Inc. ("IAH"), owns and operates
the International Airport Hotel (the "Hotel") at San Juan International Airport,
Puerto  Rico.  IAH  does  not  have  any  information  technology  systems  ("IT
Systems").  Of the non-IT Systems that comprise part of the Hotel's  operations,
the  switchboard is the only such system that contains  imbedded  technology not
Year 2000 ("Y2K") - compliant.  The Hotel has a plan in place, which is designed
to avoid any Y2K  difficulties,  both before and after January 1, 2000. The plan
consists  primarily of a series of physical  and  practical  alterations  in the
Hotel's  switchboard  procedures,  and  does  not  involve  any  replacement  of
equipment  or any  significant  effort or cost.  All other  non-IT  Systems  are
operated manually.

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                                   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.

                                                 EXTECH CORPORATION

   
Dated:  December 23, 1998                        By:/s/ Morton L. Certilman
                                                    -----------------------
                                                    MORTON L. CERTILMAN
                                                    President (Chief
                                                    Operating Officer and
                                                    Principal Financial
                                                    Officer)

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