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.



                            PART I FINANCIAL INFORMATION
                      DETECTION SYSTEMS, INC. AND SUBSIDIARIES
                             Consolidated Balance Sheet

                                               Sept. 30, 1997  March 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           23,036,151      15,246,309
   $313,800, respectively
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                                          832,058         537,772
                                                   ----------      ----------
  Total Assets                                    $85,324,766     $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                                13,381,365      12,259,380
   Accrued payroll and benefits                     2,948,001       2,818,487
   Other accrued liabilities                        2,316,308       3,254,593
                                                   ----------      ----------
                                                   21,900,007      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                                  10,411,636       8,594,306
                                                   ----------      ----------
                                                   45,346,030      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)
                                                   ----------      ----------
                                                   44,826,172      17,831,267
                                                   ----------      ----------
Total liabilities and shareholders' equity        $85,324,766     $68,275,851
                                                   ==========      ==========
               (See accompanying notes to financial statements)


                   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                                       23,033,399         16,577,368
 Research and development                          2,202,994          1,997,484
 Marketing, administrative and general             7,488,684          4,778,247
                                                  ----------         ----------
Total costs and expenses                          32,725,077         23,353,099

Operating income                                   1,738,016          1,512,543

Interest income                                        2,376              8,784
Interest expense                                    (816,831)          (512,838)
Other income                                          23,050             23,643
                                                  ----------         ----------
Income before taxes                                  946,611          1,032,132

Provision for taxes                                  274,499            238,000
                                                  ----------         ----------
Net income                                         $ 672,122         $  794,132
                                                  ==========         ==========

Retained earnings at beginning of period           9,739,524          5,493,305

Retained earnings at end of period               $10,411,636          6,287,437
                                                  ==========         ==========
Earnings per share
  Basic                                                $0.14              $0.19
                                                        ====               ====
  Diluted                                              $0.12              $0.17
                                                        ====               ====
              (See accompanying notes to financial information)


                   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                                     40,589,331      31,943,190
   Research and development                        4,287,952       3,757,415
   Marketing, administrative and general          13,875,241       9,469,901
                                                  ----------      ----------
Total costs and expenses                          58,752,524      45,170,506

Operating income                                   3,918,357       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                                2,708,845       2,057,415

Provision for taxes                                  903,499         639,000
                                                  ----------      ----------
Net income                                        $1,805,346     $ 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               $10,411,636     $ 6,287,437
                                                  ==========       =========
Earnings per share
  Basic                                                $0.21           $0.33
                                                        ====            ====
  Diluted                                              $0.20           $0.30
                                                        ====            ====

              (See accompanying notes to financial information)


                   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                                            $1,805,346   $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 operating assets and liabilities:
  Accounts receivable                                 (1,428,534)  (2,721,258)
  Inventories                                          3,772,698   (3,363,358)
  Income tax receivable                               (1,015,690)    (251,009)
  Prepaid expenses and other assets                   (1,042,635)  (1,086,466)
  Accounts payable                                    (3,227,786)   2,827,413
  Accrued payroll and benefits                           (10,569)     753,866
   Other accrued liabilities                          (2,921,989)     (56,835)
                                                       ---------    ---------
  Total adjustments                                   (3,265,131)  (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 equivalents 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)


                   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 Share," 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 second quarter 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 restated the financial statements
included in its second quarter fiscal 1998 Form 10-Q, which were filed on
November 14, 1997, in a Form 10-Q/A.  In connection with the fiscal 1998 year
end close, the Company discovered offsetting errors of approximately
$432,000, also relating primarily to accounts payable and resulting from the
conversion of its information systems.  The Company is restating the
financial statements included in the second quarter Form 10-Q/A in this Form
10-Q/A.  As a result, restated net income for the second quarter was $0.7
million ($0.14 per basic share and $0.12 per diluted share) compared to
previously reported net income of $0.4 million ($0.08 per basic share and
$0.07 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 Sept. 30    Ended 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                   66.8     66.7     64.8    66.5     64.2   66.9
 Research and development      6.4      8.0      6.8     7.8      8.0   11.2
 Marketing, administrative
  and general                 21.8     19.2     22.1    19.7     21.1   25.1
 Purchased in-process                                                   
  research and development                                              22.3
                              ----     ----     ----    ----     ----   ----
Operating income (loss)        5.0      6.1      6.3     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      0.3     0.0      0.0    0.0
                              ----     ----     ----    ----     ----   ----
Income (loss) before    
  income taxes                 2.7      4.2      4.3     4.3      5.2  (25.5)
Provision (benefit) for              
  income taxes                 0.8      1.0      1.4     1.3      1.5   (6.7)
                              ----     ----     ----    ----     ----   ----
 Net income (loss)             2.0%     3.2%     2.9%    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 33.2% 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 38.9% to $23.0 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 66.8% 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 56.7% to
$7.5 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 21.8% 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 35.2% 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 27.1% to $40.6 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 64.8% 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 46.5% to
$13.9 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
33.3% 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
$4.1 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 $3.2 million.  Increases in
prepaid expenses and other assets, accounts receivable and income taxes
receivable used $1.0 million, $1.4 million and $1.0 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:  August 11, 1998              /s/ Karl H. Kostusiak
                                    Karl H. Kostusiak, President


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

 
                                    /s/ Christopher P. Gerace
                                    Christopher P. Gerace
                                    Chief Accounting Officer
                                    (Principal Accounting Officer)


                          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.


                                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.