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 December 31, 1997

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 December 31, 1997
Common Stock ($.05 par value)                  990,213

                          FORM 10-QSB
                TAYCO DEVELOPMENTS, INC. - INDEX


PART I - FINANCIAL INFORMATION
                                                                 
                                                         PAGE NO.

     Item 1.   Financial Statements                              

               Balance Sheets                                   3
               December 31, 1997, and June 30, 1997

               Statement of Income for three months             4
               and six months ended December 31, 1997
               and December 31, 1996                            
              
               Statement of Cash Flows for six months           5
               ended December 31, 1997 and December 31, 1996
              
               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.   Defaults Upon Senior Securities                 10

     Item 4.   Submission of Matters to Vote of Security
               Holders                                         10

     Item 5.   Other Information                               10

     Item 6.   Exhibits                                        10

     SIGNATURES                                                11



                          FORM 10-QSB
                               
           TAYCO DEVELOPMENTS, INC. -  BALANCE SHEET

     ASSETS                                12/31/97      6/30/97
Current
  Cash                                   $   27,450    $   24,006
  Receivables - Affiliates, Current          84,793        63,303
  Prepaid Other Expenses                      8,419        20,108
    Total Current Assets                    120,662       107,417

Investments - Affiliate, at Equity        1,445,861     1,389,971
  Furniture and Equipment - at Cost          73,390        71,771
  Less:  Accumulated Depreciation            61,039        58,639
                                          1,458,212     1,403,103
Other Assets       
  Patents, Net                              131,171       114,400
  Receivables - Affiliates, Long-term           -0-           -0-
  Cash Value - Life Insurance, Net           49,104        49,104
            Total Other Assets              180,275       163,504

TOTAL ASSETS                             $1,759,149    $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                          7,121        3,350
  Accrued Expenses                              5,137       11,069
    Total Current Liabilities                  41,421       43,582
  Long-term Debt                               35,307       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                           967,749      865,207
                                           1,688,050    1,585,508

Less: Cost of Treasury Stock 3,709 shares
        at Cost                                5,629        5,629
   Total Stockholders' Equity              1,682,421    1,579,879

   Total Liabilities and Stockholders'
     Equity                               $1,759,149   $1,674,024


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


                                Six Months        Three Months
                                Ended 12/31        Ended 12/31

                               1997     1996      1997     1996
NET SALES
 Royalties                  $ 62,663 $ 89,893  $ 29,949 $ 44,372
 Research and Development    151,786  118,830    76,174   58,677
      Total Revenues         214,449  208,723   106,123  103,049

EXPENSES
 Research and Development     70,164   62,350    34,562   32,522
 Selling, General
   Administrative             70,733   66,812    37,703   36,413
 Amortization - Patents        7,500    4,500     3,750    2,250
      Total Expenses         148,397  133,662    76,015   71,185 

      Operating Income        66,052   75,061    30,108   31,864

OTHER INCOME/(EXPENSE)           600     (500)     (200)    (770)
Income Before Provision for
   Income Taxes and Equity in
   Net Income of Affiliates   66,652   74,561    29,908   31,094

Provision for Income Taxes    20,000   26,300     9,000   12,150 

Net Income before Equity in
   Net Income of Affiliates   46,652   48,261    20,908   18,944

Equity in Net Income of
   Affiliates                 55,890   55,329    31,480   36,262 

Net Income                  $102,542 $103,590   $52,388  $55,206 

Net Income per Share        $   .104 $   .105   $  .053  $  .056 



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


                                     SIX MONTHS ENDED DECEMBER 31

                                           1997           1996
CASH FLOWS FROM OPERATING ACTIVITIES
 Net Income                             $ 102,542     $  103,590
     Adjustments to Reconcile Net
     Income to Net Cash Provided by
     Operating Activities:
     Amortization - Patents                 7,000          4,500
     Equity in Net Income of Affiliates   (55,890)       (55,329)
 Changes in:
     Receivables - Affiliates             (21,490)        26,914
     Prepaid Expenses                      11,689         (7,428)
     Payables - Trade                         -0-            -0-
              - Affiliates                    -0-            -0-
     Net PPE                                  781         (9,349)
     Accrued Income Taxes                   3,771         15,210
     Accrued Expenses                      (5,932)        (9,143)
     Amounts due to Stockholder           (15,256)       (14,382)
   Net Cash Provided by Operating
     Activities                            27,215         24,163 

CASH FLOWS FROM INVESTING ACTIVITIES
   Acquisition of Patents                  (23,771)       (21,587)
   Net Increase in Cash                     3,444          2,576
Cash Balance, Beginning of Period          24,006         23,473
Cash Balance, End of Period             $  27,450      $  26,049
                            
                               
                          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 December 31, 1997 and December 31, 1996 and the results
     of operations for the three months and six 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 six month periods ended December 31, 1997
     and December 31, 1996, the profit was divided by 990,213 to
     calculate the earnings per share.

4.   The results of operations for the three and six month periods
     ended December 31, 1997, are not necessarily indicative of the
     results to be expected for the full year. 


                           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 are forward-
looking statements.  These forward-looking statements involve risks
and uncertainties including, but not limited to, economic
conditions, product demand and industry capacity, competition, and
other risks.

     A summary of the period to period changes in the principal
items included in the consolidated statements of income is shown
below:

                             Comparisons of six months ended    
                          December 31, 1997 vs. December 31, 1996
                                     Increase  (Decrease)


Royalties                                 $(27,230) 

Research and Development Revenue            32,956

R&D Expense                                  7,814 

SG&A                                         3,921

Amortization                                 3,000 

Operating Income                            (9,099) 

Other Income (Expense)                      (1,100) 

Income Before Taxes and Equity in
  Affiliates                                (7,909) 

Provision for Taxes                          6,300 

Equity in Affiliates                           561 

Net Income                                $ (1,048) 


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


     Revenues and income remained stable for both the six and three
month periods ending December 31, 1997 as revenues from Research
and Development activities offset lower Royalty revenues and higher
expenses.


SIX MONTHS YEAR-TO-DATE

     For the six months year-to-date at 12/31/97 (98YTD), the
Company reported Research and Development revenues of $151,786,
compared to $118,830 for the same period in Fiscal Year 1997
(97YTD).  This increase was due to the rate increase instituted in
QI98 and to a higher amount of hours charged to the Company's
affiliate, Taylor Devices, by the Company's engineers.  Revenue
from Royalties declined in 98YTD as the product mix in Devices'
shipments shifted.  Royalties were $89,893 for 98YTD compared to
$62,663 in 97YTD.  For the combined revenue sources, the total of
$214,449 for YTD98 was up from the figure of $208,723 for YTD97.

     Total Expenses increased to $148,397 for YTD98 versus $133,662
in YTD97.  Factors contributing to this change were:  a higher rate
for workers compensation coverage (the result of a 1997 audit), a
higher accrual rate for patent amortization to better reflect the
activity level, and routine increases associated with personnel
costs.

     Operating income for YTD98 was $66,652 compared to $74,561 in
YTD97.  Equity in the Net Income of Affiliates was almost identical
for the two periods - $55,890 for YTD98 versus $55,329 for YTD97.
Net Income for YTD98 was $102,542, approximately $1,000 less than
the figure of $103,590 for YTD97.


THREE MONTHS ENDED DECEMBER 31, 1997

     Results for the second quarter of FY98 (98QII) were similar to
the comparable period from the prior year, 97QII.  Total Revenues
increased to $106,123 in 98QII from $103,049 in 97QII as the same
factors impacting the six month results (see above section) applied
to the three month period.  Likewise, the increase in Total
Expenses, from $71,185 in 97QII to $76,015 for 98QII was generated
by the same items referenced in the above section.  Net Income for 


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


98QII, reflecting higher revenues, higher expenses and moderately
decreased Income from Affiliate, was $52,388 compared to $55,206
for 97QII.

     The Company's Balance Sheet shows no significant or unexpected
changes for either the three or six month periods, reflecting a
continued stability.

     The Company's engineering staff continue to be engaged in a
number of projects Management believes have the potential for
generating significant future revenues.  A relatively lengthy
effort to improve a machine gun buffer is apparently nearing a
successful conclusion, as is a more recent project to develop an
isolation system for the steel mill crane cabs.  There continues to
be slow but steady progress on the military/aerospace guidance
system isolation project which is now in its fifth year.  The
customer has placed a small pre-production run order with Devices.
The timing and the size of the next order are largely dependent on
the results of some upcoming flight tests.  A project with
applications in both the civilian and military markets, isolation
of a lightweight navigation system, commenced in the second
quarter.

     At the halfway point of Fiscal Year 1998, Management is of the
opinion that, barring an unforeseen event of some significance, the
Company's overall operating results will continue to parallel last
year's, as will those of the Affiliate.  The combination is
anticipated to produce another good year for the Company.
 

                          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 

              1.  The Annual Meeting of Shareholders was held on
     October 30, 1997 and the Company had 990,213 shares
     outstanding at the record date of September 23, 1997.  A total
     of 861,911 proxies were cast .  Management's proposed slate of
     Directors received the following voting results:

                                        VOTES            
                                       WITHHELD       VOTES
                                       /AGAINST        FOR 

              Douglas P. Taylor        107,186       754,450
              David A. Lee                 275       860,229
              Joseph P. Gastel         107,186       754,450
              Paul L. Tuttobene            275       860,229
              Janice M. Nicely             275       860,229

    
     ITEM 5   Other Information - None

     ITEM 6   Exhibits - None


                          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 2/4/98        
        Douglas P. Taylor
     Chairman of the Board of Directors
     President
     (Principal Executive Officer)


          AND


By    /s/Kenneth G. Bernstein                  Date 2/4/98      
     Kenneth G. Bernstein
     Chief Accounting Officer