UNITED STATES
                   SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.  20549
                                    
                               FORM 10-Q/A
                                    
(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, 1997

                            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 November 12, 1997 there were outstanding 6,098,514 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
                                    
                                          Sept. 30, 1997   Mar. 31, 1997
                                             (Unaudited)                
Assets                                                                  
Current assets:                                                         
Cash and cash equivalents                    $ 5,436,013     $ 2,244,265
Accounts receivable, less allowance                                     
for doubtful accounts of $325,400                                       
and $313,800, respectively                    23,036,151      15,246,309
Inventories                                   32,384,557      29,995,215
Deferred income tax charges                    2,199,638       2,132,156
Prepaid expenses and other assets              1,784,363         883,137
                                              ----------      ----------
                                              64,840,722      50,501,082
                                              ----------      ----------
Fixed assets                                  11,656,505      11,248,171
                                                                        
Deferred income taxes                          3,046,200       3,046,200
Goodwill and other intangibles                 4,949,281       2,942,626
Other assets                                     957,357         537,772
                                              ----------      ----------
  Total Assets                               $85,450,065     $68,275,851
                                              ==========      ==========
Liabilities & Shareholders' Equity                                      
Current liabilities:                                                    
Current portion of long term debt            $ 2,486,868     $   953,648
Current portion of capital lease obligation                              
                                                  52,188         147,574
Short term borrowings                            715,277               0
Accounts payable                              13,813,365      12,259,380
Accrued payroll and benefits                   2,948,001       2,818,487
Other accrued liabilities                      2,316,308       3,254,593
                                              ----------      ----------
                                              22,332,007      19,433,682
                                                                        
Obligations under capital leases                  25,750          54,125
Other long term liabilities                    3,206,947       2,924,975
Long term debt                                15,365,890      28,031,802
                                                                        

Shareholders' equity:                                                   
Common stock, par value $.05 per                                        
 share; Authorized - 12,000,000                                         
 shares; Issued - 6,098,927 shares                                      
 at September 30, 1997, and 4,478,993                                   
 shares at March 31, 1997                        293,296         223,950
Capital in excess of par value                34,641,098       9,448,917
Retained earnings                             10,104,935       8,594,306
                                              ----------      ----------
                                              45,039,329      18,267,173
Less - Treasury stock, at cost                   (49,672)        (52,553)
  Notes receivable for stock purchases          (320,780)       (378,373)
  Cumulative translation adjustment             (149,406)         (4,980)
                                              ----------      ----------
                                              44,519,471      17,831,267
                                              ----------      ----------
Total liabilities and shareholders' equity   $85,450,065     $68,275,851
                                              ==========      ==========
       
             (See accompanying notes to financial statements)
<PAGE>

                DETECTION SYSTEMS, INC. AND SUBSIDIARIES
       Consolidated Statement of Operations and Retained Earnings
                               (Unaudited)
                                                                        
                                         Sept. 30, 1997   Sept. 30, 1996
For the Three Months Ended:               (Current Year) (Preceding Year)
                                             ----------      -----------
Net sales                                   $34,463,093      $24,865,642
                                                                        
Costs and expenses:                                                     
 Production                                  23,535,399       16,577,368
 Research and development                     2,202,994        1,997,484
 Marketing, administrative and general        7,418,684        4,778,247
                                             ----------       ----------
Total costs and expenses                     33,157,077       23,353,099
                                                                        
Operating income                              1,306,016        1,512,543

Interest income                                   2,376            8,784
Interest expense                               (816,831)        (512,838)
Other income                                     23,050           23,643
                                             ----------       ----------
Income before taxes                           $ 514,611      $ 1,032,132

Provision for taxes                             149,200          238,000
                                             ----------       ----------
Net income                                      365,411          794,132
                                             ==========       ==========
Retained earnings at beginning of                                       
  period                                      9,739,524        5,493,305
                                                                        
Retained earnings at end of period          $10,104,935      $ 6,287,437
                                             ==========       ==========
Earnings per share                                                       
  Basic                                            $0.08            $0.19
  Diluted                                          $0.07            $0.17
                                                    ====             ====
                                    
            (See accompanying notes to financial information)
<PAGE>
                                    
                DETECTION SYSTEMS, INC. AND SUBSIDIARIES
       Consolidated Statement of Operations and Retained Earnings
                               (Unaudited)

For the Six Months Ended:                Sept. 30, 1997   Sept. 30, 1996
                                         (Current Year)       (Preceding
                                                                   Year)
                                           ------------     -------------
Net Sales                                   $62,670,881      $48,043,965
Costs and expenses:                                                     
 Production                                  41,091,331       31,943,190
 Research and development                     4,287,952        3,757,415
 Marketing, admin. and general               13,805,241        9,469,901
                                             ----------       ----------
Total costs and expenses                     59,184,524       45,170,506
                                                                        
Operating income                              3,486,357        2,873,459
Interest income                                   6,030           28,126
Interest expense                             (1,454,300)        (867,813)
Other income                                    238,758           23,643
                                             ----------       ----------
Income before taxes                           2,276,845        2,057,415
Provision for taxes                             778,200          639,000
                                             ----------       ----------
Net income                                   $1,498,645      $ 1,418,415
                                             ----------       ----------
Retained earnings at beginning of                                       
  period                                      8,594,306        4,869,022
Amortization of redeemable common                                       
 stock                                           11,984
Retained earnings at end of period          $10,104,935      $ 6,287,437
                                             ==========        =========
Earnings per share                                                       
  Basic                                            $0.32            $0.33
  Diluted                                          $0.28            $0.30
                                                    ====             ====

            (See accompanying notes to financial information)
<PAGE>
                                    
                                    
                DETECTION SYSTEMS, INC. AND SUBSIDIARIES
            Consolidated Statement of Cash Flows (Unaudited)

For the Six Months Ended September 30,               1997           1996
Cash Flows from Operating Activities:                ----           ----
Net income                                     $1,498,645     $1,418,415
                                                ---------     ----------
Adjustments to reconcile net income to net                               
  cash provided by operating activities:
  Depreciation and amortization                 2,270,984      1,361,051
  Gain on sale of land                           (205,000)               
  Stock based compensation                         85,975       (107,000)
Deferred compensation                             457,415        143,925
Changes in oper. assets and liabilities:                                
  Accounts receivable                          (1,428,534)    (2,721,258)
  Inventories                                   3,772,698     (3,363,358)
  Income tax receivable                        (1,140,989)      (251,009)
  Prepaid expenses and other assets            (1,042,635)    (1,086,466)
  Accounts payable                             (2,795,786)     2,827,413
  Accrued payroll and benefits                    (10,569)       753,866
Other accrued liabilities                      (2,921,989)       (56,835)
                                                ---------      ---------
  Total adjustments                            (2,958,430)    (2,499,671)
                                                ---------      ---------
 Net cash used in operating activities         (1,459,785)    (1,081,256)
                                                                        
Cash Flows from Investing Activities:                                   
Proceeds from sale of land                        312,000               
Capital expenditures                           (1,319,246)    (1,025,943)
Purchase of companies, net of cash                                      
  acquired                                     (6,816,052)
                                                ---------     ----------
Net cash used in investing activities          (7,823,298)    (1,025,943)
                                                                        
Cash Flows from Financing Activities:                                   
Proceeds from borrowings                        6,718,198      2,573,700
Proceeds from issuance of common stock         24,258,745               
Principal payments on long-term debt and                                 
 capital lease obligations                    (18,844,028)      (497,544)
Common stock transactions                         474,358        410,380
Amortization of redeemable common stock            11,984               
                                                ---------     ----------
Net cash provided by financing activities      12,619,257      2,486,536
Effect of exchange rate changes                  (144,426)               
                                                ---------     ----------
Net increase in cash and cash equivalents       3,191,748        379,337

Cash and cash equiv. at beginning of period     2,244,265        913,716
Cash and cash equivalents at end of period     $5,436,013     $1,293,053
                                                =========      =========
Cash paid during the year for:                                          
Interest                                       $1,113,000       $484,400
Income taxes                                   $1,576,600       $567,300
                                    
            (See accompanying notes to financial information)
<PAGE>

                                    
                DETECTION SYSTEMS, INC. AND SUBSIDIARIES
                     NOTES TO FINANCIAL INFORMATION
                    THREE AND SIX MONTH PERIODS ENDED
                           September 30, 1997
                               (Unaudited)

NOTE 1. GENERAL

The accompanying unaudited interim consolidated financial information
has been prepared in accordance with the rules and regulations of the
Securities and Exchange Commission (SEC).  The unaudited interim
consolidated financial information include the consolidated accounts of
Detection Systems, Inc. and its majority-owned subsidiaries
(collectively, "the Company") with all intercompany transactions
eliminated.  In the opinion of management, all 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
footnote disclosures normally included in financial information prepared
in accordance with generally accepted accounting principles (GAAP) have
been condensed or omitted pursuant to such SEC rules and regulations.
The financial information should be read in conjunction with the
Company's Annual Report on Form 10-K for the year ended March 31, 1997.

CASH FLOW STATEMENT - During the first quarter of fiscal 1998, the
Company issued 221,738 and 34,121 shares of common stock in connection
with the acquisitions of DA Systems and Seriee S.A., respectively.  The
Company repurchased the 221,738 shares issued in connection with the
acquisition of DA Systems during the second quarter of fiscal 1998 (see
note 3).

EARNINGS PER SHARE - The Company adopted Statement of Financial
Accounting Standards (SFAS) No. 128, "Earnings Per Sharem" during the
quarter ended December 31, 1997.  As required by this Statement,
earnings per share of prior periods are presented in accordance with the
provisions of SFAS No. 128.   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 only to deferred compensation plans, options and warrants,
as follows:

                              Three months ending    Six months ending
                                    Sep. 30,              Sep. 30,
                                   1997       1996       1997       1996
Weighted average number of                                              
 shares outstanding           4,831,166  4,271,790  4,723,909  4,255,155
Shares associated with                                                  
 deferred compensation,                                                 
 option and warrant plans       604,520    366,372    581,804    412,624

NOTE 2.  INVENTORIES

Major classifications of inventory follow:

                               Sept. 30, 1997  March 31, 1997
                                -------------  --------------
Component Parts                   $15,364,767     $19,457,368
Work In Process                       948,519       2,697,459
Finished Products                  16,071,271       7,840,388
                                   ----------      ----------
                                  $32,384,557     $29,995,215
                                   ==========      ==========

NOTE 3.  ACQUISITIONS

In May 1997, the Company acquired all of the outstanding stock of DA
Systems, in exchange for 221,738 shares of its common stock.  The shares
were callable at the Company's option at $17 per share plus interest at
8.25% until June 30, 1998, and could be put to the Company at that price
after that date.  The Company exercised its call option to repurchase
these shares in connection with the issuance of common stock in
September 1997.  The cost of this acquisition was approximately $4.0
million.  DA Systems is a leading British manufacturer of security
control equipment with annual net sales of approximately $10.8 million.

In June 1997, the Company acquired 99.5% of the outstanding stock of
Seriee S.A. of France, in exchange for 34,121 shares of its common
stock, valued at approximately $0.6 million.  Seriee is a leading
manufacturer of electronic control and communication equipment with
annual net sales of approximately $6.3 million.

In June 1997, the Company acquired 98.7% of the outstanding stock of
Radio-Active Systems N.V.("RAS") of Belgium for approximately $3.6
million in cash.  RAS has a security equipment distribution network
throughout Belgium with annual net sales of approximately $10 million.

These transactions have been accounted for as purchases and,
accordingly, the results of DA Systems, Seriee and RAS are included in
the consolidated financial information as of the date of acquisition.
The financial information reflects the preliminary allocation of
purchase price as the purchase price allocation has not been finalized.
Unallocated excess of purchase price over net assets acquired as of
September 30, 1997 is $2.2 million and is included with goodwill and
other intangibles.

                                    
Note 4.  ISSUANCE OF COMMON STOCK

In September 1997, the Company sold 1,325,000 shares of common stock at
$20 per share in a public offering. The Company had granted the
underwriters a 30-day option to purchase up to 231,750 additional shares
of common stock under the same terms and conditions as the public
offering to cover over-allotments, and this option was exercised in
October 1997.  Expenses associated with this offering as of September
30, 1997, of approximately $2.3 million were net against proceeds.

                                    
NOTE 5.  RESTATEMENT

The Company discovered an incorrect posting in the Ssecond qQuarter of
fiscal 1998 accounts payable of approximately $950,000.  This error
occurred in the conversion of its China manufacturing facility's
existing information system to the corporate system.  The Company is
restating the financial statements included in its second quarter fiscal
1998 Form 10-Q, which were filed on November 14, 1997, in this Form 10-
Q/A.  As a result, restated net income for the second quarter was $0.4
million ($0.08 per basic share and $0.07 per diluted share) compared to
previously reported net income of $1.1 million ($0.22 per basic share
and $0.20 per diluted share).

The second quarter of fiscal 1998 and year to date results of operations
and Management's Discussion and Analysis included in this report reflect
the restated results of operations for the quarter ended September 30,
1997.

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

Overview

   The Company is a leading 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 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 niche provider of  intrusion detection devices for the
domestic market.  In 1995, the Company adopted a strategy designed to
substantially expand its product offerings, establish an international
sales presence, increase its manufacturing capacity and improve its
manufacturing cost structure.  The Company has since made five
acquisitions, opened sales offices in six countries and successfully
established a manufacturing facility in China.

   The Company's significant acquisitions during the current fiscal year
were: (i) purchase in May 1997 of DA Systems in the U.K., with annual
net sales of approximately $10.8 million, (ii) purchase in June 1997 of
Seriee in France, with annual net sales of approximately $6.3 million,
and (iii) purchase in June 1997 of RAS in Belgium, with annual net sales
of approximately $10.0 million. Previous significant acquisitions were
Radionics (February 1996) and Senses International, Inc. (July 1996).
These acquisitions have a significant impact on the comparative
financial information for the three and six month periods ending
September 30, 1997 and 1996.  The acquisitions were funded by borrowings
under a commercial credit facility and/or issuance of the Company's
common stock.

     Since the opening of the China manufacturing facility in late
fiscal 1996 and throughout fiscal 1997, a portion of the Company's
manufacturing was moved from domestic plants to the China facility.
While production of the Company's highest volume products were moved to
China during this period, such products were limited in number relative
to the Company's entire product line. During the first and second
quarters of fiscal 1998, a far greater number of products that continued
to be manufactured at the Company's Radionics subsidiary were moved to
the China facility.  Manufacturing efficiencies consistent with previous
product transfers are anticipated, but the short term impact of this
rapid shift in production location resulted in unexpected
inefficiencies, exacerbated by the Company's multiple manufacturing
information systems, which created difficulties in effectively
coordinating overall materials procurement, production and scheduling.
Consequently, production quantities, yields and efficiency of the China
facility declined during this period while production related overhead
expenses, such as freight, remained constant or increased. To help
assure timely customer deliveries, the Company restarted manufacturing
some of its products at its Radionics facility. These factors resulted
in higher average unit costs for much of the product sold by the Company
during the second quarter of fiscal 1998.

     Recently, the Company assigned a senior executive, George E.
Behlke, Vice President of Engineering, to manage and improve
manufacturing operations worldwide.  In addition, the Company has added
key personnel to both the financial and management information systems
departments.  This team is leading the modification of the Company's
inventory and manufacturing information systems, allowing the Company to
improve all aspects of the supply chain process.


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:

                            Three Months     Six Months     Fiscal Year
                               Ended           Ended           Ended
                              Sept. 30        Sept. 30       March 31
                             1997     1996   1997    1996   1997     1996
                                                                         
Net sales                   100.0%   100.0% 100.0%  100.0% %100.0   100.0%
Costs and expenses:                                                      
 Production                  68.3     66.7   65.6    66.5   64.2     66.9
 Research and                                                            
  development                 6.4      8.0    6.8     7.8    8.0     11.2
 Marketing, admin.                                                       
  and general                21.5     19.2   22.0    19.7   21.1     25.1
 Purchased in-process                                                    
research and                                                         22.3
  development
                             ----     ----   ----    ----   ----     ----
Operating income (loss)       3.8      6.1    5.5     6.0    6.7    (25.5)
Interest income               0.0      0.0    0.0     0.0    0.2      0.8
Interest expense              2.3      1.9    2.3     1.7    1.7      0.8
Other Income                  0.0      0.0    0.4     0.0    0.0      0.0
                             ----     ----   ----    ----   ----     ----
Income (loss) before                                                     
income taxes                  1.5      4.2    3.6     4.3    5.2    (25.5)
Provision (benefit) for                                                  
  income taxes                0.4      1.0    1.2     1.3    1.5     (6.7)
                             ----     ----   ----    ----   ----     ----
 Net income (loss)            1.1%     3.2%   2.4%    3.0%   3.7%   (18.8)%
                             ====     ====   ====    ====   ====     ====


THREE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO THREE MONTHS ENDED
SEPTEMBER 30, 1996.

   The Company's net sales increased 38.6% to $34.5 million in the
fiscal 1998 period from $24.9 million in the comparable period in fiscal
1997.  The net sales of DA Systems, RAS and Seriee, which were acquired
in the first quarter of fiscal 1997, accounted for $6.8 million of this
increase.  The remaining $2.8 million increase represents sales growth
from existing operations.

   Gross margins decreased to 31.7% in the fiscal 1998 period from 33.3%
reported in the comparable year ago period.  Gross margins were
negatively impacted by the results of the three companies acquired in
the first fiscal quarter of 1998.

   Production expenses increased 42.0% to $23.5 million in the fiscal
1998 period from $16.6 million in the comparable period in 1997.  As a
percentage of net sales, production expenses increased to 68.3% in the
fiscal 1998 period from 66.7% in the comparable period in fiscal 1997.
The increase in production expenses was primarily due to a corresponding
increase in the Company's net sales.  The increase in production
expenses as a percentage of net sales was impacted by inefficiencies in
the Company's management information ("MIS") system and associated
production planning, purchasing and traffic management systems, which
made it difficult for the Company to control worldwide part, inventory
and freight given increasing demand for its products.  To correct this
problem, the Company has implemented an integrated MIS system for all
manufacturing locations.  The benefits associated with this change may
not be fully appreciated immediately as there may be a transition period
before the benefits of this change are fully realized.  The increase in
production expenses was also impacted by the addition of lower margin
sales from the three recent acquisitions.

   Research and development expenses increased 10.3% to $2.2 million in
the fiscal 1998 period from $2.0 million in the comparable period in
fiscal 1997.  As a percentage of net sales, research and development
expenses decreased to 6.4% in the fiscal 1998 period from 8.0% in the
comparable period in fiscal 1997.  The increase in research and
development expenses was primarily due to the addition of DA Systems and
Seriee research and development expenses.  The decrease in research and
development expenses as a percentage of net sales was primarily due to
savings achieved from the continued consolidation of certain research
and development efforts of Radionics and the Company.

   Marketing, administrative and general expenses increased 55.3% to
$7.4 million in the fiscal 1998 period from $4.8 million in the
comparable period in fiscal 1997.  As a percentage of net sales,
marketing, administrative and general expenses increased to 21.5% in the
fiscal 1998 period from 19.2% in the comparable period in fiscal 1997.
This increase was primarily due to additional marketing related to
acquisitions and international marketing efforts which, in turn,
increased marketing, administrative and general expenses as a percentage
of net sales.

   Interest expense increased to $0.8 million in the fiscal 1998 period
from $0.5 million in the comparable period in fiscal 1997.  This
increase was primarily due to additional borrowings required to finance
the Company's international expansion and increased inventory levels
necessary during the transition of manufacturing operations to the China
facility.

   The Company's effective income tax rate for the fiscal 1998 period
was 29.0% compared to 23.1% for the comparable period in fiscal 1997.
The higher effective rate is due to the source of pretax income among
domestic and international entities.


SIX MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO SIX MONTHS ENDED
SEPTEMBER 30, 1996

   The Company's net sales increased 30.4% to $62.7 million in the
fiscal 1998 period from $48.0 million in the comparable period in fiscal
1997.  The net sales of DA Systems, RAS and Seriee which were acquired
in the first fiscal quarter of fiscal 1998, accounted for $9.1 million
of this increase.  The remaining $5.5 million increase represents sales
growth from existing operations.

   Gross margins improved to 34.4% in the fiscal 1998 period from 33.5%
reported in the comparable year ago period.  Gross margins were
negatively impacted by the results of the three companies acquired in
the first fiscal quarter of 1998.

   Production expenses increased 28.6% to $41.1 million in the fiscal
1998 period from $31.9 million in the comparable period in fiscal 1997.
As a percentage of net sales, production expenses decreased to 65.6% in
the fiscal 1998 period from 66.5% in the comparable period in fiscal
1997.  The increase in production expenses was primarily due to a
corresponding increase in the Company's net sales. The decrease in
production expenses as a percentage of net sales was primarily due to
the Company's China facility offset, in part, by manufacturing
inefficiencies previously discussed. The benefits associated with this
change may not be fully appreciated immediately as there may be a
transition period before the benefits of this change are fully realized.

   Research and development expenses increased 14.1% to $4.3 million in
the fiscal 1998 period from $3.8 million in the comparable period in
fiscal 1997.  As a percentage of net sales, research and development
expenses decreased to 6.8% in the fiscal 1998 period from 7.8% in the
comparable period in fiscal 1997.  The increase in research and
development expenses was primarily due to the addition of DA Systems'
and Seriee's research and development expenses.  The decrease in
research and development expenses as a percentage of net sales was
primarily due to savings achieved from the continued consolidation of
certain research and development efforts of Radionics and the Company.

   Marketing, administrative and general expenses increased 45.8% to
$13.8 million in the fiscal 1998 period from $9.5 million in the
comparable period in fiscal 1997.  As a percentage of net sales,
marketing, administrative and general expenses increased to 22.0% in the
fiscal 1998 period from 19.7% in the comparable period in 1996. This
increase was primarily due to additional marketing related to
acquisitions and international marketing efforts which, in turn,
increased marketing, administrative and general expenses as a percentage
of net sales.

   Interest expense increased to $1.5 million in the fiscal 1998 period
from $0.9 million in the comparable period in fiscal 1997.  This
increase was primarily due to additional borrowings required to finance
the Company's international expansion and increased inventory levels
necessary during the transition of a portion of the Company's
manufacturing operations to the China facility.

   The Company's effective income tax rate for the fiscal 1998 period
was 34.2% compared to 31.1% for the comparable period in fiscal 1997.
The higher effective rate reflects a shift in the source of pretax
income between domestic and international entities.

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 from the Company's operating
activities and cash reserves.  Since the 1995 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 China facility, the Company has
required external sources of financing to satisfy its liquidity needs.

   SIX MONTHS ENDED SEPTEMBER 30, 1997.  During the six months ended
September 30, 1997, the Company's operating activities used $1.5 million
of operating cash flow.  Net income, depreciation and amortization
provided $3.8 million, a decrease in inventories, excluding the impact
of acquisitions, provided $3.8 million and a decrease in accounts
payable, excluding the impact of acquisitions, used $2.8 million.
Increases in prepaid expenses and other assets, accounts receivable and
income taxes receivable used $1.0 million, $1.4 million and $1.1 million
of operating cash flow, respectively, and other account changes used
$2.8 million of operating cash flow.

   During the six months ended September 30, 1997, cash used for
investing activities was $7.8 million and was utilized for the
acquisition of RAS, DA Systems and capital expenditures, primarily for
tooling of fixtures for both new products as well as moving existing
products to lower cost, offshore suppliers.

   During the six months ended September 30, 1997, cash flows provided
by financing activities were $12.6 million, primarily representing
proceeds from issuance of common stock.

   CAPITAL RESOURCES.  On September 30, 1997, the Company had cash
balances of $5.4 million.  On that date, the Company had $17.0 million
available under a revolving credit facility.  This credit facility bears
interest based on the prime rate or the London Interbank Offered Rate,
plus applicable points based on the Company's degree of financial
leverage, and matures on July 31, 1998.

     During September 1997, the Company sold 1,325,000 shares of common
stock at $20 per share.  Expenses of approximately $2,333,500 were net
against proceeds.  The Company granted the underwriters a 30-day option
to purchase up to 231,750 additional shares of common stock under the
same terms and conditions as the public offering to cover over-
allotments.  This option was exercised in October 1997.

   The Company expects to continue its pursuit of acquisitions and the
development of new products and markets.  The Company has budgeted $3.0
million for capital expenditures during fiscal 1998, excluding any
amounts required for acquisitions.  These expenditures will include
continued investment in facilities and equipment necessary to produce
and market its security detection, fire detection, security, fire and
access control products as well as certain new products.  The Company
also plans to continue its efforts to market its products
internationally.

   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 1998.

   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.

   YEAR 2000 ISSUES.  The Company does not believe that Year 2000 issues
will significantly affect future financial results.

FORWARD-LOOKING STATEMENTS

   The foregoing discussion and analysis contain certain
"forward-looking statements" within the meaning of Section 27A of the
Securities Act, which represent the Company's expectations or beliefs,
including, but not limited to, statements concerning 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 therein that are not statements
of historical fact may be deemed to be 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 presented under "Risk Factors" included in the
Company's Prospectus dated September 19, 1997.
                                    
                                    
                               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:  March 3, 1998          /s/ Karl H. Kostusiak
                              Karl H. Kostusiak, President



                              /s/ Frank J. Ryan
                              Frank J. Ryan, Vice President,
                              Secretary and Treasurer
                              (Chief Financial Officer)
<PAGE>
                                    
                        PART II OTHER INFORMATION
                                    
                                    
Item 1.  Legal Proceedings

       Not applicable


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

       At the Annual Meeting of Shareholders held on August 20, 1997,
       the following individuals were elected to the Board of Directors:
       
        Nominated Director                 FOR      WITHHELD     ABSTAINED
        ------------------          ----------    ----------    ----------
        Donald R Adair               4,158,034        28,181             0
        Mortimer B Fuller III        4,162,865        23,350             0
        Karl H Kostusiak             4,162,902        23,313             0
        David B Lederer              4,162,902        23,313             0
        Edward C McIrvine            4,162,452        23,763             0
       
       The following proposals were also approved:
       
                                              FOR    WITHHELD    ABSTAINED
                                        ---------    --------    ---------
        Ratify the appointment                                            
        of Price Waterhouse as                                            
        independent auditors for                                          
        the fiscal year ending                                            
        March 31, 1998.                 4,163,337       9,218       13,660
       
                                               FOR    WITHHELD   ABSTAINED
                                         ---------    --------   ---------
        Approval of the 1997                                              
        Stock Option Plan                                                 
        effective August 20, 1997.       2,792,663     214,752   1,178,800
       
       
          
Item 5.  Other matters
       
       In September 1997, the Company sold 1,325,000 shares of common
       stock at $20 per share in a public offering. Expenses associated
       with this offering of approximately $2,333,500 were net against
       proceeds and reflected as a reduction of capital in excess of par
       value. The Company granted the underwriters a 30-day option to
       purchase up to 231,750 additional shares of common stock under
       the same terms and conditions as the public offering to cover
       over-allotments.  This option was exercised in October 1997.
       

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

       A. Exhibits

          See Exhibit Index

       B.   Reports on Form 8-K
       
         On May 21, 1997, a Form 8-K was filed under Item 5, related to
          the Registrant's acquisition of all of the outstanding stock
          of DA Systems from Numerex Corp. on May 7, 1997.  No financial
          reports were included with this report.
<PAGE>
                                    
                              EXHIBIT INDEX
     
3 (a)     Detection Systems, Inc. Certification of Incorporation, as amended,
          are incorporated by reference to Exhibit 3(a) to the Company's 1997
          Annual Report on Form 10-K.
          
3 (b)     Detection Systems, Inc. By-laws, as amended, are incorporated by
          reference to Exhibit 3(b) to the Company's 1997 Annual Report on
          Form 10-K.
          
10 (a)    Executive Employment Agreement with Karl H. Kostusiak is
          incorporated by reference to Exhibit 10(a) of the Company's
          Quarterly Report on Form 10-Q for the quarter ended 6/30/97.
          
10 (b)    Executive Employment Agreements with David B. Lederer are
          incorporated by reference to Exhibit 10(b) of the Company's
          Quarterly Report on Form 10-Q for the quarter ended 6/30/97.
          
(11)      Statement regarding computation of per share earnings is included as
          Exhibit 11 of this Quarterly Report on Form 10-Q.
          
(27)      Financial data schedule is included as Exhibit 27 to the electronic
          Edgar filing of this Interim Report on Form 10-Q.
                                    
<PAGE>
                                    
                               Exhibit 11

                DETECTION SYSTEMS, INC. AND SUBSIDIARIES
                                    
             Consolidated Computation of Earnings Per Common
                       And Common Equivalent Share


For the Three Months Ended:                               September 30, 1997
                                                              --------------
Net Income                                                          $365,411
Weighted average number of shares                                  4,831,166
Common Stock equivalent due to assumed exercise of stock                    
 options and warrants and deferred compensation plan                        
 shares                                                              604,520
                                                                            
Earnings per share                                                          
   Basic                                                               $0.08
   Diluted                                                             $0.07
                                                                            
For the Six Months Ended:                                 September 30, 1997
                                                          ------------------
Net Income                                                        $1,498,645
 Plus:  amortization of redeemable stock                              11,984
                                                                   ---------
Adjusted net income applicable to common stock                     1,510,629
                                                                   =========
Weighted average number of shares                                  4,723,909
Common Stock equivalent due to assumed exercise of stock                    
 options and warrants and deferred compensation plan                        
 shares                                                              581,804
                                                                   ---------
Earnings per share                                                          
   Basic                                                               $0.32
   Diluted                                                             $0.28