SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549
                          FORM 10-QSB

       QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934


For quarter ended March 31, 1998

Commission File Number 2-15966  


                         TAYCO DEVELOPMENTS, INC.                 
     (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)



            NEW YORK                             16-0835557       
(State or other Jurisdiction of               (I.R.S. Employer
  incorporation or organization)             Identification Number)



100 TAYLOR DRIVE, NORTH TONAWANDA, NEW YORK            14120-0748
  Address of principal executive offices                 Zip Code

Registrant's telephone number, including area code -   716-694-0877

Indicate by check mark whether the registrant (1) has filed all
annual, quarterly, and other reports required to be filed with all
the Commission and (2) has been subject to the filing requirements
for at least the past 90 days.  

Yes  X   No    

Indicate the number of shares outstanding, of each of the Issuer's
classes of common stock as of the close of the period covered by
this report.



           CLASS                    Outstanding at March 31, 1998
Common Stock ($.05 par value)                  990,213 
<PAGE>
                          FORM 10-QSB
                TAYCO DEVELOPMENTS, INC. - INDEX


PART I - FINANCIAL INFORMATION
                                                                  
                                                         PAGE NO.

     Item 1.   Financial Statements                              

               Balance Sheets                                   3
               March 31, 1998, and June 30, 1997

               Statement of Income for three months and         4
               nine months ended March 31, 1998 and 
               March 31, 1997                     
               
               Statement of Cash Flows for nine months          5
               ended March 31, 1998 and March 31, 1997
               
               Notes to Consolidated Condensed Financial        6
               Statements
          
     Item 2.   Management's Discussion and Analysis of the      7
               Financial Condition and Results of Operations     


PART II - OTHER INFORMATION

     Item 1.   Legal Proceedings                               10

     Item 2.   Changes in Securities                           10

     Item 3.   Submission of Matters to Vote of Security       10
               Holders

     Item 4.   Other Information                               10

     Item 5.   Exhibits                                        10

     SIGNATURES                                                11





                          FORM 10-QSB
                                
            TAYCO DEVELOPMENTS, INC. -  BALANCE SHEET
     ASSETS                              3/31/98        6/30/97
Current
  Cash                                 $   28,232     $   24,006
  Receivables - Affiliates, Current       115,678         63,303
  Prepaid Other Expenses                    6,039         20,108
    Total Current Assets                  149,949        107,417

Investments - Affiliate, at Equity      1,483,088      1,389,971
  Furniture and Equipment - at Cost        73,390         71,771
  Less:  Accumulated Depreciation          62,239         58,639
                                        1,494,239      1,403,103
Other Assets        
  Patents, Net                            136,659        114,400
  Receivables - Affiliates, Long-term       - 0 -          - 0 -
  Cash Value - Life Insurance, Net         49,104         49,104
      Total Other Assets                  185,763        163,504

TOTAL ASSETS                           $1,829,951     $1,674,024

     LIABILITIES AND STOCKHOLDERS' EQUITY
Current
  Payables - Trade                     $    - 0 -     $    - 0 -
  Payables - Affiliate                      - 0 -          - 0 -
  Current Portion of Long Term Debt        29,163         29,163
  Accrued Income Taxes                     12,006          3,350
  Accrued Expenses                         10,015         11,069
    Total Current Liabilities              51,184         43,582
  Long-term Debt                           27,705         50,563

Stockholders' Equity
  Common Stock, par value $.05 per
  share, 1,000,000 shares authorized,
  990,213 issued and outstanding           49,696         49,696
  Paid - In Capital                       670,605        670,605
  Retained Earnings                     1,036,390        865,207
                                        1,756,691      1,585,508
Less: Cost of Treasury Stock
        3,709 shares at Cost                5,629          5,629
   Total Stockholders' Equity           1,751,062      1,579,879

   Total Liabilities and 
      Stockholders' Equity             $1,829,951     $1,674,024

                          FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
           CONSOLIDATED CONDENSED STATEMENT OF INCOME


                                Nine Months      Three Months
                                Ended 3/31        Ended 3/31

                               1998     1997     1998     1997
NET SALES
Royalties                    $104,028 $130,007  $41,365  $40,114
Research and Development      227,105  175,880   75,319   57,050
 Total Revenues               331,133  305,887  116,684   97,164

EXPENSES
Research and Development      106,872   91,208   36,708   28,858 
Selling, General
 Administrative               103,585  104,252   32,852   37,440
Amortization - Patents         11,250    6,750    3,750    2,250
 Total Expenses               221,707  202,210   73,310   68,548

 Operating Income             109,426  103,677   43,374   28,616 
 
OTHER INCOME/(EXPENSE)          1,640   (1,030)   1,040     (530)
Income Before Provision for 
 Income Taxes and Equity in
 Net Income of Affiliates     111,066  102,647   44,414   28,086 
   
Provision for Income Taxes     33,000   30,600   13,000    4,300

Net Income before Equity in 
 Net Income of Affiliates      78,066   72,047   31,414   23,786 

Equity in Net Income of 
 Affiliates                    93,117   91,208   37,227   35,879

Net Income                   $171,183 $163,255  $68,641  $59,665

Net Income per Share         $   .173 $   .165  $  .070  $  .060





                                

                          FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
           STATEMENT OF CHANGES IN FINANCIAL POSITION


                                       NINE MONTHS ENDED MARCH 31
                                               1998       1997
CASH FLOWS FROM OPERATING ACTIVITIES
   Net Income                               $ 171,183  $ 163,255
   Adjustments to Reconcile 
     Net Income to Net Cash 
     Provided by Operating 
     Activities:
     Amortization - Patents                     7,650      6,750
     Equity in Net Income of Affiliates        (93,117)   (91,208)
   Changes in:
     Receivables - Affiliates                 (52,375)    16,959
     Prepaid Expenses                          14,069     (6,125)
     Payables - Trade                           - 0 -      - 0 -
              - Affiliates                      - 0 -      - 0 - 
     Accrued Income Taxes                       8,656    (22,291)
     Accrued Expenses                           (1,054)    (5,343)
     Amounts due to Stockholder               (22,858)   (24,560)
   Net Cash Provided by Operating 
     Activities                                32,154     37,437 

CASH FLOWS FROM INVESTING ACTIVITIES
   Acquisition of Patents/PPE                  (27,928)   (34,423)
   Net Increase in Cash                         4,226      3,014
Cash Balance, Beginning of Period              24,006     23,473
Cash Balance, End of Period                  $ 28,232   $ 26,487

<PAGE>
                          FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
      NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENT


1.   In opinion of the Company, the accompanying unaudited
     consolidated condensed financial statements contain all
     adjustments necessary to present fairly the financial
     position as of March 31, 1998 and March 31, 1997 and
     the results of operations for the three months and nine
     months then ended.

2.   There is no provision nor shall there be any provision for
     profit sharing, dividends, or any other benefits of any
     nature at any time for this fiscal year.

3.   For the three and nine month periods ended March 31, 1998
     and March 31, 1997, the profit was divided by 990,213.

4.   The results of operations for the three and nine month periods
     ended March 31, 1998, are not necessarily indicative of the
     results to be expected for the full year. 
<PAGE>
                          FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
          MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     The following is Management's discussion and analysis of
certain significant factors which have affected the Company's
earnings during the periods included in the accompanying
consolidated condensed statements of income.

     The Private Securities Litigation Reform Act of 1995 provides
a "safe harbor" for forward-looking statements.  Certain matters
discussed in this section and elsewhere in this report, which are
not historical facts, are forward-looking statements.  As such,
these statements involve risks and uncertainties including, but not
limited to, economic conditions, product demand and industry
capacity, competition, pricing pressures, the need for the Company
to keep pace with customer needs and technological developments,
and other factors.

     A summary of the period to period changes in the principal
items included in the consolidated statements of income is shown
below:
                                Comparisons of nine months ended
                                March 31, 1998 vs. March 31, 1997
                                          Increase  (Decrease)

Royalties                                     $ (25,979) 

Research and Development Revenue                 51,225

R&D Expense                                      15,664 

SG&A                                               (667)

Amortization                                      4,500 

Operating Income                                  5,749 

Other Income (Expense)                            2,670 

Income Before Taxes and Equity in Affiliates      8,419

Provision for Taxes                               2,400 

Equity in Affiliates                              1,909 

Net Income                                       $7,928



                           FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
                 MANAGEMENT'S DISCUSSION (CONT'D)

     For the nine months ending March 31, 1998, financial results
reflect continued strong Research and Development revenues and
improving Royalties.

NINE MONTH RESULTS

     In the nine month period ending March 31, 1998 ("98YTD"), the
Company established a record Total Revenues figure of $331,133,
approximately 8.2% higher than the previous record figure of
$305,887 recorded at March 31, 1997 ("97YTD").  (Note:  these
comparisons apply only to the period subsequent to the 1991
restructuring of the Company.)  Total expenses increased by
approximately 9.6%, from $202,210 in 97YTD to $221,707 in 98YTD as
the Company continued its program of obtaining materiel and patents
required to support increased activity.

     Operating Income and Net Income before Equity in the Net
Income of Affiliates were both approximately $6,000 higher in 98YTD
than 97YTD.  Equity in the Net Income of the Company's affiliate,
Taylor Devices, Inc. ("Devices") increased from $91,208 in 97YTD to
$93,117 in 98YTD as Devices reported steady results.  Net Income
for 98YTD was $171,183, approximately $8,000 and 4.8% higher than
results for 97YTD.  Earnings per share increased from $.165 for
97YTD to $.173 for 98YTD.

THREE MONTH RESULTS

     For the three months ending March 31, 1998 ("98Q3"), Total
Revenues were up by $19,530 and 20% over results for the similar
period in Fiscal Year 1997 ("97Q3") as R&D revenues continued at a
high rate and Royalties returned to more favorable levels.  Total
expenses increased by approximately $5,000 and 7% for reasons
referenced in the above paragraphs.  Net Income before Equity in
the Net Income of Affiliates increased by approximately $7,600 and
32% from year-to-year.  The Equity Income from Devices improved
from $35,879 in 97Q3 to $37,227 in 98Q3, contributing to an
increase of approximately $9,000 in Net Income between the two
periods being reviewed.  Reported Net Income for 98Q3 was $68,641
and $.07 per share compared to $59,665 and $.06 per share for 97Q3.

     
                           FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
                 MANAGEMENT'S DISCUSSION (CONT'D)


REMAINDER OF FY98

     Year-to-date, the Company is combining improved financial
performance with continuing progress in development projects. 
Currently, the Company is awaiting the scheduled THAADs launch in
June 1998 to see whether its next level of participation is further
development or a small production run.  Work continues on a new
generation of struts for commercial/military gyroscopes/navigators
being developed by a long-time customer.  Activity has also
increased on some new approaches for bumpers on aircraft simulators
and virtual reality rides.  The Company's equipment will also
participate in another June 1998 aerospace event - a Shuttle
mission featuring a new boom damper.  Just getting underway is the
development of a conversion program which will allow the Company's
engineers to recommend tangible physical solutions to structural
damping problems based on the theoretical spectral results provided
by potential customers.  Near the end of the quarter, the Company
also began work on a combined development/licensing agreement with
a well-known national manufacturer of recreational equipment.  The
arrangement is based upon use of a patent granted to the Company in
1993.

     At the nine month benchmark point in Fiscal Year 1998, the
Company's Management believes that FY98 will be a good year in
terms of financial results and continued development of future
revenue streams from existing patents, new patents, and new
techniques.
<PAGE>
                          FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.


PART II - OTHER INFORMATION

     ITEM 1   Legal Proceedings
              The Company is not currently engaged in any
              litigation.


     ITEM 2   Changes in Securities - None


     ITEM 3   Defaults Upon Senior Securities - None


     ITEM 4   Submission of Matters to Vote of Securities Holders 
              - None


     ITEM 5   Other Information - None


     ITEM 6   Exhibits

              None<PAGE>
                          FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
                                                                
                                
                           SIGNATURES
                                

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



TAYCO DEVELOPMENTS, INC.
(Registrant)



By  /s/Douglas P. Taylor                       Date   5/12/98     
     Douglas P. Taylor
     Chairman of the Board of Directors
     President
     (Principal Executive Officer)

          AND

By /s/Kenneth G. Bernstein                     Date   5/12/98     
     Kenneth G. Bernstein
     Chief Accounting Officer