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


                                    FORM 10-Q

(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
     ACT OF 1934

     For the quarterly period ended June 30, 1999

                                            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: 0-8125


                          ----------------------------


                             DETECTION SYSTEMS, INC.
             (Exact name of registrant as specified in its charter)


State of New York                                             16-0958589
(State or other jurisdiction                                  (I.R.S. Employer
of incorporation or organization)                    Identification No.)

                 130 Perinton Parkway, Fairport, New York 14450
               (Address of principal executive offices) (Zip Code)

                                                            (716) 223-4060
              (Registrant's telephone number, including area code)

                          ----------------------------


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 the  filing
requirements for the past 90 days. Yes __X__ No _____


As of August 9, 1999 there were outstanding 6,350,213 shares of the registrant's
common stock, par value $.05 per share.






<PAGE>


                          PART I FINANCIAL INFORMATION
                    DETECTION SYSTEMS, INC. AND SUBSIDIARIES
                           Consolidated Balance Sheet
                      (in thousands, except per share data)
<TABLE>
<CAPTION>

Assets                                        June 30, 1999    March 31, 1999
Current assets:                                 (Unaudited)
<S>                                                 <C>               <C>
Cash and cash equivalents                           $ 7,510           $ 4,414
Accounts receivable, less allowance for
  doubtful accounts ($1,023 and $1,006,
  respectively)                                      22,781            20,916
Inventories, net                                     33,669            37,762
Other current assets                                  3,293             3,249
                                                     ------            ------
                                                     67,253            66,341
                                                     ------            ------
Fixed assets, net                                    12,550            12,420
Goodwill, net                                         9,209             9,381
Other assets                                          5,196             4,670
                                                     ------            ------
                                                    $94,208           $92,812
                                                     ======            ======
Liabilities
Current liabilities:
    Short term borrowings                            $1,518           $ 1,416
    Current portion of long term debt                 1,281               647
    Accounts payable                                  7,878             7,076
    Accrued payroll and benefits                      2,176             1,863
    Income taxes payable                              1,754             2,108
    Other current liabilities                         3,391             4,134
                                                     ------            ------
                                                     17,998            17,244

Other liabilities                                     2,659             2,645
Long term debt                                       16,451            17,179

Shareholders' equity:
   Common stock, par value $.05 per share;
    Authorized - 12,000 shares; Issued -
    6,576 shares and 6,562 shares,
    respectively                                        329               328
Capital in excess of par value                       45,128            45,073
Other accumulated comprehensive loss                   (323)             (310)
Retained earnings                                    15,868            14,447
                                                     ------            ------
                                                     61,002            59,538
Less - Treasury stock, at cost                       (3,854)           (3,780)
  Notes receivable for stock purchases                  (48)              (14)
                                                     ------            ------
                                                     57,100            55,744
                                                     ------            ------
                                                    $94,208           $92,812
                                                     ======            ======
</TABLE>

                (See accompanying notes to financial statements)


<PAGE>


                    DETECTION SYSTEMS, INC. AND SUBSIDIARIES
     Consolidated Statement of Operations and Retained Earnings (Unaudited)
                      (in thousands, except per share data)
<TABLE>
<CAPTION>

                                            June 30, 1999         June 30, 1998
For the Three Months Ended:                 (Current Year)      (Preceding Year)
                                           --------------       ---------------
<S>                                               <C>                   <C>
Net sales                                         $34,766               $33,808

Costs and expenses:
 Production                                        20,964                21,038
 Research and development                           2,293                 2,134
 Marketing, administrative and general              9,059                 8,876
                                                   ------                ------
Total costs and expenses                           32,316                32,048

Operating income                                    2,450                 1,760
Other income (expense)
 Net interest (expense)                              (220)                 (355)
 Other income (expense)                                40                   (42)
                                                   ------                ------
Income before income taxes                          2,270                 1,363
Provision for income taxes                            849                   531
                                                   ------                ------
Net income                                          1,421                   832
Other comprehensive (loss)
  Foreign currency translation adjustment             (13)                 (115)
                                                   ------                ------
Total comprehensive income                          1,408                   717

Retained earnings at beginning of period           14,447                 9,976
Less: other comprehensive loss                         13                   115
                                                   ------                ------
Retained earnings at end of period                $15,868               $10,808
                                                   ======                ======
Earnings per share
 Basic                                              $0.22                 $0.13
                                                     ====                  ====
 Diluted                                            $0.21                 $0.12
                                                     ====                  ====
</TABLE>

                (See accompanying notes to financial statements)



<PAGE>


                    DETECTION SYSTEMS, INC. AND SUBSIDIARIES
                Consolidated Statement of Cash Flows (Unaudited)
                            (in thousands of dollars)
<TABLE>
<CAPTION>

For the Three Months Ended June 30,                            1999        1998
Cash flows from operating activities:                          ----        ----
<S>                                                         <C>         <C>
Net income                                                  $ 1,421     $   832
                                                            -------     -------
Adjustments to reconcile net income to net
    cash provided by operating activities:
    Depreciation and amortization                               651         924

Changes in assets and liabilities:
    Accounts receivable                                      (1,865)       (158)
    Inventories                                               4,093      (2,313)
    Accounts payable                                            802      (1,299)
    Accrued payroll and benefits                                313         124
    Other assets & liabilities                               (1,452)        533
                                                            -------     -------
Total adjustments                                             2,542      (2,189)
                                                            -------     -------
    Net cash provided by (used in) operating
     activities                                               3,963      (1,357)

Cash flows from investing activities:
    Capital expenditures                                       (810)       (831)
    Acquisition of businesses                                  --          (473)
                                                            -------     -------
    Net cash used in investing activities                      (810)     (1,304)

Cash flows from financing activities:
    Proceeds from borrowings                                    102       2,095
    Principal payments on debt and
      capital lease obligations                                 (94)       (641)
    Common stock transactions, net                              (52)          7
                                                            -------     -------
    Net cash (used in) provided by financing
     activities                                                 (44)      1,461

Effect of exchange rates                                        (13)       (114)
                                                            -------     -------
Net increase (decrease) in cash and cash equivalents          3,096      (1,314)

Cash and cash equivalents at beginning of period
                                                              4,414       3,160
                                                            -------     -------
Cash and cash equivalents at end of period                    7,510     $ 1,846
                                                            =======     =======
Cash paid during the year for:
    Interest                                                $   375     $   419
                                                            =======     =======
    Income taxes                                            $ 1,400     $   313
                                                            =======     =======
</TABLE>

                (See accompanying notes to financial statements)



<PAGE>


                    DETECTION SYSTEMS, INC. AND SUBSIDIARIES
                          NOTES TO FINANCIAL STATEMENTS
                THREE MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
                                   (Unaudited)


NOTE 1. GENERAL

The accompanying  unaudited interim consolidated  financial statements have been
prepared in accordance  with the rules and  regulations  of the  Securities  and
Exchange Commission (SEC). The interim consolidated financial statements include
the  consolidated  accounts of Detection  Systems,  Inc. and its  majority-owned
subsidiaries  (collectively,  "the Company") with all  significant  intercompany
transactions  eliminated.   In  the  opinion  of  management,   all  adjustments
(consisting only of normal recurring adjustments) necessary for a fair statement
of the financial position,  results of operations and cash flows for the interim
periods  presented  have been made.  Certain  prior  period  balances  have been
reclassified to conform with the current period  presentation.  Certain footnote
disclosures  normally  included in financial  statements  prepared in accordance
with  generally  accepted  accounting  principles  (GAAP) have been condensed or
omitted pursuant to such SEC rules and regulations.  These financial  statements
should be read in conjunction  with the Company's Annual Report on Form 10-K for
the year ended March 31, 1999.

Cash flow statement -- Non-cash  transactions during the first quarter of fiscal
1999  consisted  of the  acquisition  of certain  businesses  with shares of the
Company's common stock. See Note 3.

NOTE 2. INVENTORIES

Major classifications of inventory follow (in thousands):

                                      June 30, 1999              March 31, 1999
                                      -------------              --------------
Component Parts                             $11,790                     $14,838
Work In Process                               2,059                       2,464
Finished Products                            19,820                      20,460
                                             ------                      ------
                                            $33,669                     $37,762
                                             ======                      ======

NOTE 3. ACQUISITIONS

Fiscal  1999  Acquisitions  - In June  1998,  the  Company  acquired  all of the
outstanding shares of Efsec AB("Efsec")for  approximately $1,250,000,  comprised
of cash and 28,161 shares of its common stock. Efsec is a Swedish distributor of
electronic security equipment with annual net sales of approximately  $3,000,000
prior to its acquisition.

In June 1998, the Company acquired all of the outstanding  stock of Alarm Center
Kft  ("Alarm  Center")  for  $135,000  in  cash.  Alarm  Center  is a  Hungarian
distributor  of  electronic   security   equipment  with  annual  net  sales  of
approximately $500,000 prior to its acquisition.

These  transactions have been accounted for as purchases and,  accordingly,  the
results  of  these  businesses  are  included  in  the  consolidated   financial
statements as of the date of acquisition.  The financial  statements reflect the
final allocation of the purchase price for each business.


NOTE 4 - EARNINGS PER SHARE

There are no  significant  reconciling  items between net income as presented in
the  consolidated  statement of  operations  and net income  available to common
stockholders  used in the calculation of earnings per share.  Reconciling  items
between  the  number  of shares  used in the  calculation  of basic and  diluted
earnings per share relate to deferred  compensation plans, options and warrants,
as follows (in thousands):

                                                            Three months
                                                            Ended June 30,
                                                     1999                 1998
                                                     ----                 ----
Weighted average number of shares outstanding       6,336                6,291

Shares associated with deferred compensation,
option and warrant plans                              482                  524



NOTE 5 - RESTRUCTURING

The Company recorded a restructuring charge of approximately $400,000 during the
first quarter of fiscal 1999 for severance  costs related to the  termination of
employees at the Fairport, New York and Southall, England facilities. The charge
has been included in the results from  continuing  operations and had a material
impact on operating results in the first quarter of 1999.

NOTE 6 - GEOGRAPHIC INFORMATION

The Company's  operating  structure  includes  operating  segments in the United
States,  Asia Pacific and Europe.  Management  evaluates the  performance of its
operating  segments  separately  to  monitor  the  different  factors  affecting
financial performance in the different regions.  Segment profit or loss includes
substantially  all  of the  segment's  costs  of  production,  distribution  and
administration.  The Company  manages income taxes on a global basis,  thus, the
Company  evaluates  segment  performance  based on profit or loss before  income
taxes.

The following  table presents net sales and income (loss) before income taxes of
the  Company's  domestic  and foreign  operations.  Net sales and income  (loss)
before income taxes of the Company's  domestic  operations include the impact of
export sales.  Inter-area sales are presented on a basis intended to reflect the
market value of the products as nearly as possible.

<PAGE>

<TABLE>
<CAPTION>

For the Three Months Ended June 30,               1999                   1998
                                                  ----                   ----
                                                     (in thousands)
Sales to unaffiliated customers
<S>                                            <C>                      <C>
       United States operations                $21,223                  $22,032
       Asia Pacific operations                   5,653                    4,774
       European operations                       7,890                    7,002
                                               -------                  -------
                                               $34,766                  $33,808
                                               =======                  =======
Sales between affiliates
       United States operations                 $2,262                   $1,797
       Asia Pacific operations                   7,250                    7,688
       European operations                         117                       90
                                                ------                   ------
                                                $9,629                   $9,575
                                                ======                   ======
Income (loss) before income taxes
       United States operations                 $1,070                   $1,275
       Asia Pacific operations                     874                      725
       European Operations                        (205)                    (318)
       Eliminations                                531                     (319)
                                                 -----                    -----
                                                $2,270                   $1,363
                                                 =====                    =====
</TABLE>


NOTE 7 - OTHER MATTERS

The  Company's  Board  of  Directors  has  authorized  the  repurchase  of up to
$10,000,000 of the Company's common stock in open market transactions.


<PAGE>


                    DETECTION SYSTEMS, INC. AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

Overview


      The  Company is a  supplier  of  equipment  to the  electronic  protection
industry.  The Company designs,  manufactures and markets electronic  detection,
control and  communication  equipment  for  security,  fire  protection,  access
control and closed circuit television ("CCTV")  applications,  offering products
primarily for the  commercial and mid- to high-end  residential  portions of the
market.  From its  founding  in 1968 until 1995,  the  Company  was  primarily a
provider of  security  sensor  devices for the  domestic  market.  In 1995,  the
Company adopted a strategy designed to expand its product  offerings,  establish
an international sales presence, increase its manufacturing capacity and improve
its overall cost structure. The Company has since made nine acquisitions, opened
four sales  offices and  established  a  manufacturing  facility in Asia.  These
initiatives have enabled the Company to significantly expand its product catalog
and market reach and to increase its net sales from  $34,336,000  in fiscal 1995
to $138,045,000 in fiscal 1999.

      The Company  recognizes  net sales upon shipment of products to customers.
Production expenses include materials,  direct labor and manufacturing  overhead
as well as an allocated portion of indirect overhead.  Outgoing freight, customs
and other costs associated with delivery of products to customers are classified
under marketing,  administrative and general expenses.  Research and development
expenses  include  costs  associated  with  salaries  and  benefits  for certain
engineering employees,  supplies, agency approvals,  depreciation and occupancy,
as well as charges for independent  testing and independent  contractors engaged
for specific  projects.  Marketing,  administrative and general expenses include
costs  related  to  the  Company's  sales  efforts  and  corporate  and  general
administrative functions, including costs of executive, administrative and sales
personnel,    marketing/selling   supplies,   advertising,    depreciation   and
professional fees.



<PAGE>


Results of Operations

      The following table sets forth, for the periods indicated, the percentages
which certain items of income and expense bear to net sales:
<TABLE>
<CAPTION>
                                                                   (Unaudited)
                                   Fiscal Year Ended          Three Months Ended
                                        March 31,                  June 30,
                                 1999        1998             1999        1998

<S>                             <C>         <C>              <C>          <C>
Net sales                       100.0%      100.0%           100.0%       100.0%
Costs and expenses:
 Production                      61.7        65.6             60.3         62.2
 Research and development         6.1         6.8              6.6          6.3
 Marketing, administrative
  and general                    25.9        23.8             26.1         26.3
                                 ----        ----             ----         ----
Operating income                  6.3         3.8              7.0          5.2

Net interest expense             (1.1)       (1.6)            (0.6)        (1.1)
Other income (expense)            0.1        (0.4)             0.1         (0.1)
                                 ----        ----             ----         ----
Income before income taxes
                                  5.3         1.8              6.5          4.0
Provision for income taxes        2.1         0.7              2.4          1.6
                                 ----        ----             ----         ----
 Net income                       3.2%        1.1%             4.1%         2.4%
                                  ===         ===              ===          ===

</TABLE>

Three Months Ended June 30, 1999 Compared to Three Months Ended June 30, 1998

      The Company's net sales increased 2.8% to $34,766,000 in the first quarter
of fiscal 2000 from $33,808,000 in the comparable period in fiscal 1999. The net
sales of acquired businesses accounted for $550,000 of this increase while sales
from on-going operations accounted for $408,000. Net sales during this period by
the Company's  on-going  operations have been favorably impacted compared to the
year ago period by strong  sales in the  Asia-Pacific  region,  which  increased
18.0%.  Sales by on-going  operations in the Unites States and European  regions
were consistent with the year ago period.

      Production  expenses  decreased  0.4% to  $20,964,000  in the fiscal  2000
period from $21,038,000 in the comparable period in fiscal 1999. As a percentage
of net sales,  production  expenses decreased to 60.3% in the fiscal 2000 period
compared  to 62.2% in the  comparable  period in fiscal  1999.  The  decrease in
production  expenses  in the  aggregate  and as a  percentage  of net  sales was
primarily due to improvements in the Company's manufacturing cost structure.

      Research and  development  expenses  increased  7.5% to  $2,293,000 in the
fiscal 2000 period from $2,134,000 in the comparable period in fiscal 1999. As a
percentage of net sales,  research and development expenses increased to 6.6% in
the fiscal 2000 period from 6.3% in the comparable  period in 1999. The increase
in  research  and  development  expenses  is  primarily  attributable  to modest
increases  in  headcount  to support  the  Company's  research  and  development
efforts.

      Marketing,   administrative   and  general  expenses   increased  2.1%  to
$9,059,000 in the fiscal 2000 period from $8,876,000 in the comparable period in
fiscal  1999.  The year ago period  included a  $400,000  restructuring  charge.
Excluding  the impact of this  charge,  marketing,  administrative  and  general
expenses increased 6.9%.  Approximately $400,000 of this increase relates to the
acquisition  of Efsec and Alarm Center (See Note 3). The  remaining  increase is
attributable   to  the  addition  of  personnel  in  our  sales  and   marketing
departments. As a percentage of net sales, marketing, administrative and general
expenses  decreased  to  26.1%  in the  fiscal  2000  period  from  26.3% in the
comparable period in fiscal 1999.

      Net interest expense  decreased to $220,000 in the fiscal 2000 period from
$355,000 in the comparable period in 1999, as borrowings  outstanding were lower
during the current period.

      The  Company's  effective  income tax rate for the fiscal  2000 period was
37.4% compared to 39.0% for the comparable period in fiscal 1999.

Liquidity and Capital Resources

      The Company  considers  liquidity  to be its ability to meet its long- and
short-term cash  requirements.  Prior to 1996, those requirements were primarily
met by cash generated by the Company's  operating  activities and cash reserves.
Since the  implementation  of the  Company's  strategy  designed  to enhance its
product  offerings,   manufacturing   capacity  and  international   operations,
particularly  its  acquisitions  and the  development of the Asia facility,  the
Company has required  external  sources of  financing  to satisfy its  liquidity
needs.

      Three Months  Ended June 30, 1999.  During the three months ended June 30,
1999, the Company's  operating  activities provided $3,963,000 of operating cash
flow. Net income,  depreciation and amortization provided $2,072,000. A decrease
in inventories  provided  $4,093,000.  An increase in accounts  payable provided
$802,000, while an increase in accounts receivable used $1,865,000.
Other account changes used $1,139,000 of operating cash flow.

      During the three  months  ended  June 30,  1999,  cash used for  investing
activities was $810,000, relating to capital expenditures.

      During  the three  months  ended  June 30,  1999,  cash used in  financing
activities was $44,000, primarily representing principal repayments of debt.

      Capital  Resources.  On June 30,  1999,  the Company had cash  balances of
$7,510,000.  On that  date,  the  Company  had a  $17,000,000  revolving  credit
facility that was not drawn.  This credit  facility  bears  interest  based upon
either the  federal  funds  rate,  the prime rate or LIBOR,  each  adjusted by a
factor  which  varies  based upon the rates of funded  debt to  earnings  before
interest, tax, depreciation and amortization, and matures on July 31, 2000.

      The  Company   expects  to   continue   to  pursue   expansion/acquisition
opportunities  and the  development  of new products  and  markets.  Significant
expenditures will also include continued research and development  investment in
detection,  control  and  communication  projects.  The  Company  also  plans to
continue its efforts to market its products internationally.

      The Company's  Board of Directors has  authorized  the repurchase of up to
$10,000,000 of the Company's common stock in open market transactions.

      The Company  believes that the  combination  of its current cash balances,
cash flows from operations and existing credit  facilities will be sufficient to
fund its  planned  operations  during  fiscal  2000.  However,  there  can be no
assurance  that  existing  cash flow will be  sufficient  to fund the  Company's
on-going operations.

Year 2000.  The  Company  has  appointed a team to assess the impact of the year
2000 on its information systems,  products, and business. This team includes two
members of senior management and is led by the Vice President of Operations.  To
ensure year 2000 compliance,  the Company has established specific categories to
be reviewed:

Products.  The Company  places a high priority on ensuring its products are year
2000 ready.  The  Company  has  completed  its review of all  products  that are
manufactured  domestically  and at its Asia  manufacturing  facility  as well as
products purchased for resale by its domestic  businesses.  The Company believes
these  products  to be year 2000  compatible.  The  Company  is  completing  its
assessment of year 2000 compatibility of products manufactured and purchased for
resale  at  its  other  foreign  subsidiaries.   The  Company  does  not  expect
significant  issues with year 2000  readiness  of  products  sold by its foreign
subsidiaries  as  products  sold  by  the  Company  generally  do not  use  date
information for calculations or comparisons.

Manufacturing.  Some of the tools and equipment  (hardware and software) used to
develop and manufacture the Company's products are  date-sensitive.  The Company
believes that the  date-sensitive  tools and equipment used by it to manufacture
products are now year 2000  compatible.  As a result the Company does not expect
significant  interruption  to  its  manufacturing  capabilities  because  of the
failure of tools and/or equipment.

Non-Manufacturing Business Applications. The Company is in the process of fixing
and testing all  non-manufacturing  business applications such as core financial
information and reporting systems, procurement, human resources/payroll, factory
applications, customer service systems, and revenue systems, and does not expect
any significant year 2000 problems in this area.

The  Company's  domestic  business  information  systems  required  upgrades and
enhancements to be made year 2000 compatible.  These upgrades have been made and
are currently being tested.  Necessary upgrades to other information  technology
infrastructure  have been identified and  remediation is in process.  Testing of
year 2000 upgrades is expected to be completed prior to the year 2000.

Most of the Company's non-US  subsidiaries'  information systems require various
degrees of upgrade or  replacement  to be capable of  handling  year 2000 issues
(excluding  the Hong Kong  subsidiary,  which  utilizes the  Company's  domestic
information  system).  The  Company  has  purchased  a new  enterprise  resource
planning  system  capable  of  handling  the year 2000 that is  currently  being
implemented at its foreign  subsidiaries.  This implementation is expected to be
complete at all locations  prior to December 31, 1999. The Company expects to be
capable  of  handling  the  year  2000  at  all  locations  without  significant
interruption to business activity.

Facilities  and  Infrastructure.  The Company has evaluated its  facilities  and
infrastructure   (health,    safety   and   environment   systems,    buildings,
security/alarms/doors, desktop computers, networks) to ensure they are year 2000
compatible. Upgrades are being implemented where needed and the Company does not
expect significant  interruption to its operations because of year 2000 problems
with its facilities and infrastructure.

Logistics.  Of  importance  to the  Company  for year 2000 is the  readiness  of
suppliers  and the  products  the Company  procures  from  suppliers  as well as
customers  and service  providers.  The Company has a  comprehensive  program to
identify and obtain year 2000 information from its critical suppliers, customers
and service providers.  The program includes awareness letters,  questionnaires,
and a review of year 2000 web-sites.  The Company has mailed a questionnaire  to
substantially all suppliers, customers and service providers regarding year 2000
readiness.   Responses  are  currently  being  received  and  evaluated  and  no
significant issues have been noted as of the date of this report. If a supplier,
customer or service  provider is of concern  regarding year 2000 readiness,  the
Company will develop contingency plans to minimize the year 2000 risk.

The Company  estimates that its aggregate  costs for year 2000  activities  from
1997  through  2000 will be  approximately  $875,000.  External  costs  incurred
through December 31, 1998 were  approximately  $795,000 and primarily related to
computer  hardware and software.  It is anticipated that the remaining year 2000
costs will relate to computer  software,  computer hardware and consulting fees.
The Company does not separately  track internal costs relating to the year 2000,
and they are not included in the  Company's  estimate of year 2000 costs.  These
costs do not include  estimates for potential  litigation,  which at the present
time is not viewed as a significant  risk. The Company  reviews and updates data
for costs incurred and forecasted  costs each quarter.  These costs are based on
management's  estimates,  which were  determined  based on assumptions of future
events,  some within the  Company's  control,  but some  outside  the  Company's
control.

Management's estimate of the costs and completion dates are dependent on various
factors  including  the  availability  of skilled  resources  and the ability to
locate and modify all  relevant  software  code.  No amount of  preparation  and
testing can guarantee year 2000 compliance. Nevertheless, the Company recognizes
that failing to resolve its year 2000 issues on a timely basis would, in a worst
case scenario, significantly limit its ability to manufacture and distribute its
products  and  process  its daily  business  transactions  for a period of time,
especially  if such  failure  is  coupled  with  third  party or  infrastructure
failures.  Similarly, the Company could be significantly affected by the failure
of  one  or  more   significant   suppliers,   customer  or  components  of  the
infrastructure to conduct their respective operations without interruption after
1999.  Because of the  difficulty of assessing the year 2000  compliance of such
third parties,  the Company considers the potential  disruptions  caused by such
parties to present the most  reasonably  likely  worst-case  scenarios.  Adverse
effects on the Company could include business disruption,  increased costs, loss
of sales and other similar  ramifications.  However,  the Company believes it is
taking  appropriate  preventive  measures and will be successful in avoiding any
material adverse effect on the Company's operations or financial condition.

For additional  information  regarding the risks  associated  with the Company's
compliance  with  year  2000,  see  "Risk  Factors-Year  2000"  in Item 1 of the
Company's Form 10-K for the year ended March 31, 1998.

      Euro  Conversion.  The Company is assessing the potential  impact that may
result  from  the  completion  of the euro  conversion  in a  number  of  areas,
including the following:  (1)  accounting  and tax; (2)  management  information
systems required to accommodate euro-denominated transactions; (3) the impact on
currency  exchange costs and currency exchange rate risk,; and (4) the impact on
existing  contracts.  There  has  been  no  significant  impact  to the  Company
resulting from the initial transition to the euro.

      Dividend Policy.  The Company is dedicated to promoting  shareholder value
through  long  term   profitability  and  growth  and  believes  that  continued
investments in future product  development  are essential to this goal. For this
reason, it has been the Company's policy to not pay cash dividends.

Forward-Looking Statements

      This quarterly report contains certain "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended and Section
21E of the  Securities  Exchange Act of 1934,  as amended,  which  represent the
Company's  expectations or beliefs,  including,  but not limited to,  statements
concerning  industry  performance,   the  Company's   operations,   performance,
financial condition,  growth and acquisition  strategies,  margins and growth in
sales of the Company's products.  For this purpose,  any statements contained in
this quarterly  report that are not statements of historical  fact may be deemed
to be  forward-looking  statements.  Without  limiting  the  generality  of  the
foregoing,   words  such  as  "may,"  "will,"   "expect,"   "believe,"   "plan,"
"anticipate," "intend," "could," "estimate," "continue," "goal" or "strategy" or
the negative or other variations thereof or comparable  terminology are intended
to identify forward-looking statements. These statements by their nature involve
substantial risks and  uncertainties,  certain of which are beyond the Company's
control,  and actual  results may differ  materially  depending  on a variety of
important  factors,  including those described  previously in the "Risk Factors"
section of the Company's 1999 Form 10-K for the year ended March 31, 1999.


<PAGE>


                            PART II OTHER INFORMATION



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

              At the Annual Meeting of Shareholders held on August 12, 1999, the
              following individuals were elected to the Board of Directors:
<TABLE>
<CAPTION>

              Nominated Director           FOR            WITHHELD     ABSTAINED
              ------------------           ---------      ---------    ---------

              <S>                          <C>            <C>              <C>
              Donald R. Adair              4,508,711      1,414,081        0
              Mortimer B. Fuller III       4,508,736      1,414,056        0
              Karl H. Kostusiak            4,508,669      1,414,123        0
              David B. Lederer             4,508,736      1,414,056        0
              Edward C. McIrvine           4,508,736      1,414,056        0
</TABLE>
<TABLE>
<CAPTION>

              The following proposals were also approved:


                                               FOR           WITHHELD  ABSTAINED
                                               ---------     --------  ---------
              <S>                               <C>         <C>           <C>

              Amend the Company's 1997 Stock
              Option Plan to increase the
              number of shares authorized for
              options under the Plan           4,120,278    1,599,443     44,017

                                               FOR           WITHHELD  ABSTAINED
                                               ---------     --------  ---------
              Adopt the Company's Non-
              Employee Director Stock Option
              Plan and to ratify options
              granted pursuant to the Plan     4,124,604    1,593,965     45,169

                                               FOR           WITHHELD  ABSTAINED
                                               ---------     --------  ---------

              Amend the Company's Certificate
              of  Incorporation  to  achieve
              consistency with recent changes
              in New York Business
              Corporation Law concerning
              approval of loans to directors   5,515,404      209,576     38,758

                                               FOR           WITHHELD  ABSTAINED
                                               ---------    ---------  ---------

              PricewaterhouseCoopers LLP be
              retained as independent
              auditors of the Company for the
              fiscal year ending March 31,
              2000                             5,791,870       97,399     33,523


</TABLE>



Item 5.       Other Information

A.       Shareholder Proposals - Deadline for Inclusion in Proxy Materials
                  As set forth in the  Company's  Proxy  Statement  for the 2000
                  Annual Meeting of Stockholders,  any proposal by a stockholder
                  of the  Company  intended to be  presented  at the 2000 Annual
                  Meeting of Stockholders  must be received by the Company on or
                  before March 11, 2000 to be included in the proxy materials of
                  the Company relating to such meeting.

B.       Shareholder Proposals - Discretionary Voting of Proxies
                  In accordance  with recent  amendments to Rule 14a-4 under the
                  Securities  Exchange Act of 1934, if notice of a proposal by a
                  shareholder  of the Company  intended to be  presented  at the
                  2000 Annual Meeting of Shareholders is received by the Company
                  after May 25, 2000, the persons authorized under the Company's
                  management  proxies may  exercise  discretionary  authority to
                  vote or act on such  proposal if the proposal is raised at the
                  2000 Annual Meeting of Shareholders.

Item 6.  Exhibits and Reports for Form 8-K.

              A. Exhibits

                  See Exhibit Index

B.       Reports on Form 8-K

              No reports on Form 8-K were filed during the quarter.




<PAGE>


                                   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.

                                           DETECTION SYSTEMS, INC.
                                           Registrant

DATE: August 16, 1999                      By: /s/ Karl H. Kostusiak
                                           Karl H. Kostusiak, President


                                           By: /s/ Frank J. Ryan
                                           Frank J. Ryan, Vice President,
                                           Secretary and Treasurer
                                            (Principal Financial Officer)


                                           By: /s/ Christopher P. Gerace
                                           Christopher P. Gerace, Vice President
                                           Chief Accounting Officer
                                            (Principal Accounting Officer)








<PAGE>


                                  EXHIBIT INDEX

Item
No.              Exhibits                                         Location

3(a)    Detection Systems, Inc.                Incorporated by reference to
        Certificate of                         Exhibit 3 of the Company's
        Incorporation as amended               Quarterly Report on Form 10-Q for
                                               the quarter ended 9/30/98

3(b)    Detection Systems, Inc.                Incorporated by reference to
        By-Laws as amended                     Exhibit 3(b) of the Company's
                                               1997 Annual Report on Form 10-K

10(a)   Medical reimbursement plan             Incorporated by reference to
                                               Exhibit 10(b) of the Company's
                                               1997 Annual Report on Form 10-K

10(b)   Employee stock purchase plan           Incorporated by reference to
                                               Exhibit 10 of the Company's 1994
                                               Annual Report on Form 10-K

10(c)    Fleet Amended & Restated              Incorporated  by reference to
         Credit Facility Agreement             Exhibit 10(c) of the Company's
         dated September 30,1998               Quarterly Report on Form 10-Q for
                                               the quarter ended 9/30/98

10(d)   Deferred Compensation Plan             Incorporated by reference to
        and Deferred Bonus Plan                Exhibit 10(c) to the Company's
                                               Quarterly Report on Form 10-Q for
                                               the quarter ended 12/31/97

10(e)   1992 Restated Stock Option             Incorporated by reference to
        Plan                                   Exhibit 22 of the Company's 1995
                                               Annual Report on Form 10-K

10(f)   1997 Stock Option Plan                 Incorporated by reference to
                                               Exhibit 10(o)of the Company's
                                               Registration Statement on Form S-
                                               2 (No. 333-31951) filed on
                                               7/24/97.

10(g)   Non-Employee Director Stock            Incorporated by reference to
        Option Plan                            Exhibit 10(m) of the Company's
                                               Quarterly Report on Form 10-Q for
                                               the quarter ended 9/30/98

10(h)   Executive Officer Cash                 Incorporated by reference to
        Bonus Plan                             Exhibit 10(h)of the Company's
                                               1999 Annual Report on Form 10-K

10(i)   Executive employment                   Included as Exhibit 10(i) of this
        contract with Karl H.                  Quarterly Report on Form 10-Q
        Kostusiak

10(j)   Executive employment                   Included as Exhibit 10(j) of this
        contract with David B.                 Quarterly Report on Form 10-Q
        Lederer

10(k)   Stock Purchase Agreements              Incorporated by reference to
        with Karl H. Kostusiak and             Exhibit 10(n) of the Company's
        David B. Lederer                       1997 Annual Report on Form 10-K

11      Statement re: Computation              Included as Exhibit 11 of this
        of Per Share Earnings                  Quarterly Report on Form 10-Q

27      Financial Data Schedule                Included as Exhibit 27 of this
                                               Quarterly Report on Form 10-Q