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 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 (Unaudited)
                                
Assets                               Sept. 30, 1997   March 31, 1997
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         1,498,563          883,137
                                         ----------       ----------
                                         64,554,922       50,501,082
                                         ----------       ----------
Fixed assets                             11,656,505       11,248,171
                                                                    
Deferred income taxes                     3,046,200        3,046,200
Unallocated excess of purchase                                       
price over net assets acquired            2,219,535
Goodwill and other intangibles            2,729,746        2,942,626
Other assets                                957,357          537,772
                                         ----------       ----------
  Total Assets                          $85,164,265      $68,275,851
                                         ==========       ==========
Liabilities                                                         
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                         12,828,086       12,259,380
Accrued payroll and benefits              2,948,001        2,818,487
Other accrued liabilities                 2,316,308        3,254,593
                                         ----------       ----------
                                         21,346,728       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                        10,804,414        8,594,306
                                         ----------       ----------
                                         45,738,808       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)
                                         ----------       ----------
                                         45,218,950       17,831,267
                                         ----------       ----------
Total liabilities and                                                
shareholders' equity                    $85,164,265      $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                             23,108,374        16,577,368
 Research and development                2,202,994         1,997,484
 Marketing, administrative and           6,860,470         4,778,247
general
                                        ----------        ----------
Total costs and expenses                32,171,838        23,353,099
                                                                    
Operating income                         2,291,255         1,512,543
Interest income                              2,376             8,784
Interest expense                          (816,831)         (512,838)
Other income                                23,090            23,643
                                        ----------        ----------
Income before taxes                    $ 1,499,890       $ 1,032,132
Provision for taxes                        435,000           238,000
                                        ----------        ----------
Net income                               1,064,890           794,132
                                        ==========        ==========
                                                                    
Retained earnings at beginning of                                   
  period                                 9,739,524         5,493,305
                                                                    
Retained earnings at end of                                         
  period                               $10,804,414       $ 6,287,437
                                        ==========        ==========
Earnings per common and common                                       
equivalent share                             $0.20             $0.17
                                              ====              ====
                                
        (See accompanying notes to financial information)
                                
                                
            DETECTION SYSTEMS, INC. AND SUBSIDIARIES
            Consolidated Income Statement(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                             40,664,306        31,943,190
 Research and development                4,287,952         3,757,415
  Marketing, administrative and                                       
general                                 13,247,027         9,469,901
                                        ----------        ----------
                                                                    
Total costs and expenses                58,199,285        45,170,506
                                                                    
Operating income                         4,471,596         2,873,459
Interest income                              6,030            28,126
Interest expense                        (1,454,300)         (867,813)
Other income                               238,798            23,643
                                        ----------        ----------

Income before taxes                      3,262,124         2,057,415
                                                                    
Provision for taxes                      1,064,000           639,000
                                        ----------        ----------
                                                                     
Net income                             $ 2,198,124       $ 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     $10,804,414       $ 6,287,437
                                        ==========         =========
                                                                     
Earnings per common and common                                       
equivalent share                             $0.42             $0.31
                                              ====              ====
                                                                     
                                
        (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                                    $2,198,124   $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                         (855,189)    (251,009)
  Prepaid expenses and other assets           (1,042,635)  (1,086,466)
  Accounts payable                            (3,781,065)   2,827,413
  Accrued payroll and benefits                   (10,569)     753,866
Other accrued liabilities                     (2,921,989)     (56,835)
                                               ---------    ---------
  Total adjustments                           (3,657,909)  (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
                                                                     
Noncash transactions:
 The Company considers all highly liquid investments with a maturity
 of three months or less to be cash equivalents.
                                
        (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 (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 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).

New accounting standards - In February 1997, SFAS No. 128,
"Earnings Per Share," was issued by the Financial Accounting
Standards Board.  SFAS No. 128 specified modifications to the
calculation of earnings per share from that currently used by the
Company.  Under SFAS No. 128, "basic earnings per share" is
calculated based upon the weighted average number of common
shares actually outstanding, and "diluted earnings per share" is
calculated based upon the weighted average number of common
shares outstanding and other potential common shares (e.g. stock
options and warrants) if they are dilutive.  SFAS No. 128 is
effective for periods ending after December 15, 1997 and will be
adopted at that time.  Had the Company calculated earnings per
share in accordance with SFAS No. 128 for the three and six
months ended September 30, 1997 and 1996, such earnings per share
data would not have been significantly different from the
Company's current earnings per share disclosures.


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 of its common stock.  The
shares are 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 the largest security equipment
distribution network in 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 since the date
of acquisition.  The financial information reflects the
preliminary allocation of purchase price as the purchase price
allocation has not been finalized.

                                
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. 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.
                                
            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 impact that the implementation of these
strategies has had on the Company is demonstrated by an increase
in the Company's net sales of 30.4% to $62.7 million in the six
months ended September 30, 1997 from $48.0 million in the
comparable period in fiscal 1997 and a corresponding increase in
the Company's net income of 55.0% to $2.2 million from $1.4
million for the same periods.

   The Company's acquisitions consisted of: (i) the purchase in
February 1996 of Radionics which had annual net sales of
approximately $43.1 million, (ii) the purchase in July 1996 of
certain assets of Senses International, Inc. which had annual net
sales of approximately $2.0 million, (iii) the purchase in May
1997 of DA Systems which had annual net sales of approximately
$10.8 million, (iv) the purchase in June 1997 of Seriee which had
annual net sales of approximately $6.3 million and (v) the
purchase in June 1997 of RAS which had annual net sales of
approximately $10.0 million.  These acquisitions had 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 the issuance of the Company's
common stock.

   In April 1995, the Company commenced development of a
manufacturing facility in China which became operational in
October 1995. This facility has significantly increased the
manufacturing capacity of the Company.  The Company has realized
manufacturing efficiencies by transitioning to its China facility
a portion of its domestic manufacturing operations, including
substantially all of the manufacturing operations previously
conducted by Radionics.  The Company believes that these
efficiencies, coupled with the volume generated by its expanded
product catalog and sales network, may further enable it to
reduce its unit manufacturing costs.

   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.

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:

                      Fiscal Year Ended    Three Months      Six Months
                              March 31,     Ended Sept.  Ended Sept. 30,
                                                    30,                
                           1997    1996    1997    1996    1997    1996
                                                                       
Net sales               100.0%   100.0%  100.0%  100.0%  100.0%  100.0%
Costs and expenses:                                                    
 Production              64.2     66.9    67.1    66.7    64.9    66.5
 Research and                                                          
  development             8.0     11.2     6.4     8.0     6.8     7.8
 Marketing,                                                            
  administrative                                                       
  and general            21.1     25.1    19.9    19.2    21.1    19.7
 Purchased in-process                                                  
research and                           
  development                     22.3
                         ----     ----    ----    ----    ----    ----
Operating income (loss)   6.7    (25.5)    6.6     6.1     7.1     6.0
Interest income           0.2      0.8     0.0     0.0     0.0     0.0
Interest expense          1.7      0.8     2.2     1.9     2.3     1.7
Other Income              0.0      0.0     0.0     0.0     0.4     0.0
                         ----     ----    ----    ----    ----    ----
Income (loss) before                                                   
income taxes              5.2    (25.5)    4.4     4.2     5.2     4.3
Provision (benefit) for                                                
  income taxes            1.5     (6.7)    1.3     1.0     1.7     1.3
                         ----     ----    ----    ----    ----    ----
 Net income (loss)        3.7%   (18.8)%   3.1%    3.2%    3.5%    3.0%
                         ====    =====    ====    ====    ====    ====


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 32.9% 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 39.4% to $23.1 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 67.1% 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. The Company
still believes that there is a long term opportunity to achieve
40% gross margin after all operations are achieving their
individual operating efficiency objectives since a significant
portion of the Company's catalog is proprietary with unique
performance features.

   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 43.6%
to $6.9 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 19.9%
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.

   Income before taxes increased 45.3% to $1.5 million in the
fiscal 1998 period from $1.0 million in the comparable period in
fiscal 1997.  This improvement was due to the factors described
above.

   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 and is
consistent with the annual rate of 29.0% for fiscal 1997.


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 35.1% 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 27.3% to $40.7 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 64.9% 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 manufacturing
efficiencies achieved by further transitioning of domestic
manufacturing to the Company's China facility and inefficiencies
associated with 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
Company still believes that there is a long term opportunity to
achieve 40% gross margin after all operations are achieving their
individual operating efficiency objectives since a significant
portion of the Company's catalog is proprietary with unique
performance features.

   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 39.9%
to $13.2 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 21.1%
in the fiscal 1998 period from 19.7% in the comparable period in
1996.

   Interest expense increased to $1.5 million in the fiscal 1998
period from $0.8 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.

   Income before taxes increased 58.6% to $3.3 million in the
fiscal 1998 period from $2.1 million in the comparable period in
fiscal 1997.  This improvement was due to the factors described
above.

   The Company's effective income tax rate for the fiscal 1998
period was 32.6% 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 $4.5 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 $3.8 million.  Increases in prepaid expenses and other assets, 
accountsreceivable and income taxes receivable used $1.0 million, $1.4
million and $0.9 million of operating cash flow, respectively, and other
account changes used $2.6 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.

                           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:  November 14, 1997      /s/ Karl H. Kostusiak
                              Karl H. Kostusiak, President



                              /s/ Frank J. Ryan
                              Frank J. Ryan, Vice President,
                              Secretary and Treasurer
                              (Chief Financial 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   ABSTAINE
                                                                D
                                   ---------  --------   --------
                                                                -
        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   ABSTAINE
                                                                D
                                   ---------  --------   --------
                                                                -
        Approval of the 1997                                     
        Stock Option Plan                                        
        effective August 20,       2,792,663   214,752   1,178,80
        1997.                                                   0
       
       
          
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.
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                           Exhibit 11

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


For the Three Months Ended:                            Sept. 30, 1997
                                                       --------------
                                                                     
Net Income                                                 $1,064,890
                                                            =========
                                                                     
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                                    604,521
                                                            ---------
                                                            5,435,687
                                                            =========
                                                                     
Earnings per common and common equivalent share                 $0.20
                                                                 ====
                                                                     
                                                                     
For the Six Months Ended:                              Sept. 30, 1997
                                                      ---------------
                                                                  ---
                                                                     
Net Income                                                 $2,198,124
 Plus:  amortization of redeemable stock                       11,984
                                                            ---------
Adjusted net income applicable to common stock              2,210,108
                                                            =========
                                                                     
                                                                     
Weighted average number of shares                           4,723,320
Common Stock equivalent due to assumed exercise                      
  of stock options and warrants and deferred                         
  compensation plan shares                                    594,897
                                                            ---------
                                                            5,318,217
                                                            =========
                                                                     
Earnings per common and common equivalent share                 $0.42
                                                                 ====