UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D. C. 20549

                                    FORM 10-Q

               QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the Quarterly Period Ended September 30, 1999

                          Commission File Number I-4383

                         ESPEY MFG. & ELECTRONICS CORP.
               --------------------------------------------------
               (Exact name of registrant as specified in charter)

        NEW YORK                                14-1387171
------------------------          --------------------------------------
(State of Incorporation)          (I.R.S. Employer's Identification No.)

 233 Ballston  Avenue,  Saratoga  Springs,  New York             12866
--------------------------------------------------------------------------------
(Address of principal executive offices)                       (Zip Code)

Registrant's telephone number, including area code          518-584-4100
                                                     ---------------------------

Number of shares  outstanding  of issuer's  class of common  stock  $.33-1/3 par
value as of November 15, 1999: 1,048,631.

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 such filing
requirements for the past 90 days.

                  YES    X                NO
                     ---------              ----------
<PAGE>
                         ESPEY MFG. & ELECTRONICS CORP.

                                    I N D E X

PART I   FINANCIAL INFORMATION                                              PAGE

         Item 1   Financial Statements:

                           Consolidated Balance Sheets -
                           September 30, 1999 and June 30, 1999               1


                           Consolidated Statements of Income -
                           Three Months Ended September 30, 1999 and 1998     3

                           Consolidated Statements of Cash Flows -
                           Three Months September 30, 1999 and 1998           4


                           Notes to Consolidated Financial Statements         5

         Item 2            Management's Discussion and Analysis of            7
                           Financial Condition and Results of
                           Operations.

PART II  OTHER INFORMATION                                                    10

                  SIGNATURES                                                  11
<PAGE>
                         ESPEY MFG. & ELECTRONICS CORP.

                           Consolidated Balance Sheets

                      September 30, 1999 and June 30, 1999
                      ------------------------------------
                                   A S S E T S

<TABLE>
<CAPTION>
                                                        Unaudited
                                                          1999             1999
                                                       September 30      June 30
                                                       -----------     -----------
<S>                                                    <C>             <C>
CURRENT ASSETS:

         Cash and cash equivalents                     $ 6,158,245     $ 2,364,335

         Investments securities                            707,008       3,674,169

         Trade accounts receivable net of
            $3,000 allowance at September 30, 1999
            and June 30, 1999                            3,259,003       4,440,177
         Other receivables                                  10,175          10,941
                                                       -----------     -----------
         Total Receivables                               3,269,178       4,451,118
                                                       -----------     -----------
         Inventories:

            Raw materials and supplies                     528,578         546,007
            Work-in-process                              2,558,044       2,639,330
            Costs relating to contracts in
            process                                      8,572,608       7,856,607
                                                       -----------     -----------

                           Total Inventories            11,659,230      11,041,944
                                                       -----------     -----------

         Deferred income taxes                             346,217         327,497
         Prepaid expenses and other current assets          84,313         232,051
                                                       -----------     -----------

                           Total Current Assets         22,224,191      22,091,114
                                                       -----------     -----------

Deferred Income Taxes                                       42,367          42,367

Net Property, Plant and Equipment                        3,410,037       3,261,631
                                                       -----------     -----------

                           Total Assets                $25,676,595     $25,394,712
                                                       ===========     ===========
</TABLE>
See accompanying notes to the financial statements
                                                                     (Continued)

                                      - 1 -
<PAGE>
                         ESPEY MFG. & ELECTRONICS CORP.

                     Consolidated Balance Sheets, Continued

                      September 30, 1999 and June 30, 1999
                      ------------------------------------
                      LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
                                                                                      Unaudited
                                                                                        1999              1999
                                                                                     September 30        June 30
                                                                                     ------------      ------------
<S>                                                                                  <C>               <C>
CURRENT LIABILITIES:
         Accounts Payable                                                            $    840,282      $    285,281
         Accrued expenses:
            Salaries, wages and commissions                                               380,453           498,695
            Employees' insurance costs                                                     57,149            58,539
            Vacation                                                                      189,712           211,162
            ESOP payable                                                                  138,352                 -
            Other                                                                          13,015            41,251
            Payroll and other taxes withheld
                  and accrued                                                              93,793           116,211
            Income taxes payable                                                           82,595            62,987
                                                                                     ------------      ------------
                           TOTAL CURRENT LIABILITIES                                    1,795,351         1,274,126
STOCKHOLDERS' EQUITY:

         Common stock, par value .33-1/3 per
         share.  Authorized 2,250,000 shares;
         issued 1,514,937 shares September 30, 1999
         and June 30, 1999. Outstanding 1,048,631 and
         1,063,658 on September 30, 1999 and June 30, 1999,
         respectively                                                                     504,979           504,979

         Accumulated  other  comprehensive  income net of income tax  benefit of
         $18,720 and $25,557 at September 30,1999 and June 30,1999,
         respectively                                                                     (71,455)          (38,175)

         Capital in excess of par value                                                10,496,287        10,496,287

         Retained earnings                                                             23,180,458        23,193,297
                                                                                     ------------      ------------
                                                                                       34,110,269        34,156,388

         Less:  Common stock subscribed                                                (2,793,312)       (2,793,312)

                Cost of 466,306 shares and 451,279
                on September 30, 1999 and June 30,
                1999 respectively of common stock
                in treasury                                                            (7,435,713)       (7,242,490)
                                                                                     ------------      ------------
                  TOTAL STOCKHOLDERS' EQUITY                                           23,881,244        24,120,586
                                                                                     ------------      ------------
                                    TOTAL LIABILITIES AND
                                    STOCKHOLDERS' EQUITY                             $ 25,676,595      $ 25,394,712
                                                                                     ============      ============
</TABLE>
See accompanying notes to the financial statements

                                     - 2 -
<PAGE>
                         ESPEY MFG. & ELECTRONICS CORP.

                        Consolidated Statements of Income

                 Three Months Ended September 30, 1999 and 1998
                 ----------------------------------------------

<TABLE>
<CAPTION>
                                                                      Unaudited
                                                                    Three Months
                                                          September 1999   September 1998
                                                           -----------      -----------
<S>                                                        <C>              <C>
Net Sales                                                  $ 3,298,980      $ 2,523,984

Cost of sales                                                2,884,391        2,125,279
                                                           -----------      -----------
                              GROSS PROFIT                     414,589          398,705
Selling, general and administrative
         expenses                                              493,600          416,781
                                                           -----------      -----------
                              OPERATING LOSS                   (79,011)         (18,076)
                                                           -----------      -----------
Other Income:

         Interest and dividend income                           90,666          149,103
         Other                                                  52,941               15
                                                           -----------      -----------
                              TOTAL OTHER INCOME               143,607          149,118
                                                           -----------      -----------
Income before income taxes                                      64,596          131,042

Provision for income taxes                                      25,000           47,000
                                                           -----------      -----------
                              NET INCOME                   $    39,596      $    84,042
                                                           -----------      -----------
Income per Share:

Basic and diluted income per share                               $ .04           $ .08
                                                                 =====           =====
Weighted average number of
shares outstanding                                           1,052,884        1,110,474
                                                             =========        =========
</TABLE>
See accompanying notes to the financial statements

                                      - 3 -
<PAGE>
                         ESPEY MFG. & ELECTRONICS CORP.
                      Consolidated Statements of Cash Flows
                 Three Months Ended September 30, 1999 and 1998

<TABLE>
<CAPTION>
                                                                                              Unaudited
                                                                                             September 30
                                                                                        1999             1998
                                                                                     -----------      -----------
<S>                                                                                  <C>              <C>
Cash Flows From Operating Activities:

         Net income                                                                  $    39,596      $    84,042

         Adjustments  to reconcile  net income to net
         cash provided by operating activities:

         Depreciation                                                                    111,751          106,295
         Changes in assets and liabilities:
                  Decrease (increase) in receivables                                   1,181,939         (107,589)
                  Increase in inventories                                               (617,286)        (376,074)
                  Decrease in prepaid expenses and other
                   current assets                                                        147,738          109,563
                  Increase in accounts payable                                           555,001           38,284
                  (Decrease)increase in accrued salaries,
                   wages and commissions                                                (118,242)           8,885
                  (Decrease)increase in accrued employee insurance costs                  (1,391)           9,205
                  (Decrease)increase in other accrued expenses                           (28,235)           5,415
                  Decrease in vacation accrual                                           (21,450)               -
                  (Decrease)increase in payroll & other taxes withheld
                   and accrued                                                           (22,418)          39,231
                  Decrease in deferred income taxes                                            -           10,800
                  Increase in income taxes payable                                        19,608                -
                  Increase in ESOP contributions                                         138,352          139,666
                                                                                     -----------      -----------

                                            Net cash provided by
                                            operating activities                       1,384,963           67,723
                                                                                     -----------      -----------
Cash Flows From Investing Activities:

         Proceeds from muturity of investment securities                               2,915,161                -
         Additions to property, plant & equipment                                       (260,559)         (46,231)
                                                                                     -----------      -----------
                                            Net cash provided by (used in)
                                            investing activities                       2,654,602          (46,231)
                                                                                     -----------      -----------
Cash Flows From Financing Activities:

         Dividends on common stock                                                       (52,432)               -
         Purchase of treasury stock                                                     (193,223)         (87,402)
                                                                                     -----------      -----------
                                            Net cash used in
                                            financing activities                        (245,655)         (87,402)
                                                                                     -----------      -----------
Increase (decrease) in cash and cash equivalents                                       3,793,910          (65,910)

Cash and cash equivalents, beginning of period                                         2,364,335        2,591,739
                                                                                     -----------      -----------
Cash and cash equivalents, end of period                                             $ 6,158,245      $ 2,525,829
                                                                                     -----------      -----------

Income Taxes Paid                                                                    $    -           $    -
                                                                                     ===========      ===========

</TABLE>
See accompanying notes to the financial statements

                                      - 4 -
<PAGE>
                         ESPEY MFG. & ELECTRONICS CORP.

                          Notes to Financial Statements

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

1.   In the  opinion  of  management  the  accompanying  unaudited  consolidated
     financial  statements  contain all  adjustments  (consisting of only normal
     recurring  adjustments)  necessary for a fair  presentation for results for
     such  periods.  The  results  for any  interim  period are not  necessarily
     indicative of the results to be expected for the full fiscal year.  Certain
     information  and  footnote   disclosures  normally  included  in  financial
     statements  prepared  in  accordance  with  generally  accepted  accounting
     principles  have been  condensed  or omitted.  These  financial  statements
     should  be read in  conjunction  with the  Company's  most  recent  audited
     financial statements included in its 1999 Form 10-K.

2.   The earnings per share  computations  for  September 30, 1999 were based on
     1,052,884  shares and on 1,110,474  shares for  September  30, 1998.  These
     represent  the average  number of shares  outstanding  for each  respective
     period.

3.   Other income  consists  principally of interest on Certificates of Deposit,
     Treasury Bills, money market accounts and dividend on equity securities.

4.   For purposes of the  statements  of cash flows,  the Company  considers all
     liquid debt instruments with original maturities of three months or less to
     be cash equivalents.

5.   In fiscal 1989 the Company  established  an Employee  Stock  Ownership Plan
     (ESOP) for eligible  non-union  employees.  The ESOP used the proceeds of a
     loan from the Company to purchase  316,224  shares of the Company's  common
     stock  for   approximately   $8.4  million  and  the  Company   contributed
     approximately  $400,000  to the ESOP which was used by the ESOP to purchase
     an additional 15,000 shares of the Company's common stock.

     The loan from the Company to the ESOP is repayable in annual

                                     - 5 -
<PAGE>
         installments of $1,039,605,  including interest,  through June 30,2004.
         Interest is payable at a rate of 9% per annum. The Company's receivable
         from  the  ESOP  is  recorded  as  common  stock   subscribed   in  the
         accompanying balance sheets.

         Each year, the Company will make  contributions  to the ESOP which will
         be used to make loan  interest and principal  payments.  With each loan
         and interest  payment,  a portion of the common stock will be allocated
         to participating employees. As of September 30, 1999 there were 165,139
         shares allocated to participants.

6.   Total comprehensive income consists of:
<TABLE>
<CAPTION>
                                                 Three Months Ended
                                                    September 30,
                                                 1999          1998
                                               --------      --------
<S>                                           <C>             <C>
Net income                                    $ 39,596        84,042

Accumulated other comprehensive income:

Unrealized gain (loss) on
available for sale securities                  (33,280)        7,260
                                               --------      --------

Total comprehensive income (loss)                6,316        91,302
                                               ========      ========
</TABLE>
                                      - 6 -
<PAGE>
Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations
--------------------------------------------------------------------------------
Results of Operations
---------------------

Net sales for the three  months  ended  September  30, 1999 were  $3,298,980  as
compared to $2,523,984 for the same period in 1998. The $774,996 increase in net
sales for the three month  period is mainly due to  increased  commercial  power
supply sales and radar test equipment.  Due to successful marketing efforts with
new and existing  customers  the Company  should  continue to see  increased net
sales levels as backlog orders are completed and shipped.

During the first  quarter of fiscal 2000 gross  profits as a percentage of sales
decreased approximately 3% as compared with the first quarter of fiscal 1999.

Net income for the three months ended September 30, 1999 was $39,596 or $.04 per
share compared to $84,042 or $.08 per share for the  corresponding  period ended
September 30, 1998.

The primary  reason for the  decrease in gross  profit and net income was higher
employee  related  expenses  and an overall  increase  in  selling,  general and
administrative expenses.  Management continues to expand the Company's workforce
to insure that production and overall execution of the large increase in backlog
orders and additional  anticipated  orders are successfully  performed.  Present
employment  has exceeded  200 people as compared to September  30, 1998 when 163
people were  employed.  Several of these  employees  require on the job training
prior to working at maximum  efficiency.  The benefits of this  training  should
begin to positively impact operations in the fourth quarter of fiscal 2000.

The Company  continues to  diversify  its customer  base and product  line.  The
backlog at  September  30, 1999 was  approximately  $27,871,000,  as compared to
approximately  $14,632,000  at  September  30,  1998.  The Company  continues to
increase the backlog while increasing current sales levels. Management presently
anticipates  that the Company  will  realize  both an  increase in revenues  and
income  in  fiscal  2000,  however,  there  can  be no  assurance  since  such a
forward-looking statement is subject to future events.

Selling,  general and administrative expenses were $493,600 for the three months
ended  September 30, 1999, an increase of $76,819,  or 18.4%, as compared to the
three months ended September 30, 1998. This increase was expected as the Company
continues to add employees to increase and manage the continued  growth in sales
and order backlog.

Total other  income for the three  months  ended  September  30,  1999  remained
relatively  the same as compared to the three months ended  September  30, 1998.
The Company does not feel that there is any risk  associated with its investment
policy,  since the majority of its  investments are represented by United States
Government Treasury  Securities,  preferred equity securities and a money market
account. -7-
<PAGE>
Liquidity and Capital Resources
-------------------------------

As of  September  30,  1999,  the Company had working  capital of $20.4  million
compared to $20.8  million at June 30, 1999.  The Company  meets its  short-term
financing  needs  through  cash from  operations  and when  necessary,  from its
existing cash and short term investments.

The table below presents the summary of cash flow for the periods indicated:
<TABLE>
<CAPTION>
                                                     Three Months Ended September 30,
                                                           1999           1998
                                                           ----           ----
<S>                                                     <C>             <C>
Net cash provided by  operating activities              $1,384,963      $  67,723
Net cash provided by (used in) investing activities     $2,654,602      $(46, 231)
Net cash used in financing activities                   $  245,655      $  87,402
</TABLE>
Net cash provided by operating  activities  fluctuates between periods primarily
as a result of  differences  in net  income,  the  timing of the  collection  of
accounts  receivable,  purchase  of  inventory,  level of sales and  payment  of
accounts  payable.  The  increase in net cash  provided  by (used in)  investing
activities  is due to the maturity of investment  securities  with no offsetting
purchase  of new  investments.  The  increase  in net  cash  used  in  financing
activities is due to the quarterly dividend payment and increased treasury stock
purchases.

The Company currently  believes that the cash generated from operations and when
necessary,  from  cash  and cash  equivalents,  will be  sufficient  to meet its
long-term funding requirements. Management is currently analyzing the need for a
line of credit to help fund further growth. For the first quarter of fiscal 2000
capital expenditures were approximately $261,000.

Since the debt of the Company's  ESOP is not to an outside party the Company has
eliminated from the  Consolidated  Statements of Income the offsetting  items of
interest  income  and  interest  expenses  relating  to ESOP.  The  Company  has
eliminated the offsetting accruals from the Consolidated Balance Sheets.

During the three months ended September 30, 1999 the Company  repurchased 15,027
shares  of  its  common  stock  from  the   Company's   ESOP  and  other  public
transactions.  Under existing  authorizations,  as of September 30, 1999, 57,473
shares could be repurchased at a price not to exceed $13.50.

Year 2000 Issues

The Company's year 2000 team has the responsibility of identifying and resolving
significant  Year  2000  issues  in a timely  manner.  In  addition,  management
continues to monitor the status of the Company's Year 2000 remediation.

                                      -8-
<PAGE>
The process has included an assessment of issues and  development of remediation
plans,  where  necessary,  as they relate to internally used software,  computer
hardware  and  use  of  computer  applications  in the  Company's  manufacturing
processes  and  products.  In addition,  the Company is engaged in assessing the
Year 2000 issue with significant  suppliers and large customers to determine the
extent to which the Company is  vulnerable  to those third  parties'  failure to
remediate  their own Year 2000 issues.  To date no significant  issues have been
identified as to internally used software, computer hardware and use of computer
applications in the Company's manufacturing processes and products. In addition,
no  issues  have  been  identified  regarding  significant  suppliers  and large
customers.

The Company is utilizing both internal and external  resources to reprogram,  or
replace and test,  the software it currently  uses for Year 2000  modifications.
The  Company  has   substantially   completed  its  Year  2000   assessment  and
remediation.  The total  project  costs to date  related to the  assessment  and
remediation of its Year 2000 issues are less than $25,000.

With  regard to its  internal  Year 2000  compliance  program,  the  Company has
completed  approximately  99%  of  its  review  and,  when  necessary,  100%  of
remediation.  With regard to its Year 2000  compliance  program  addressing  the
status of the  Company's  suppliers  and  customers,  the Company has  completed
approximately 98% of its review. No problems have been identified.

The Company has  determined  that  contingencies  related to the Year 2000 issue
will not have a  material  adverse  effect.  Accordingly,  the  Company  has not
established a contingency plan and does not anticipate creating such a plan.

Due to the general uncertainty inherent in Year 2000 problem,  resulting in part
from the  uncertainty of the Year 2000  readiness of  third-party  suppliers and
customers,  the Company  despite its efforts as described in this  section,  can
give no assurance as to whether the consequences of Year 2000 failures will have
a material impact on the Company's result of operations,  liquidity or financial
condition.

CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995

It  should  be  noted  that in this  Management's  Discussion  and  Analysis  of
Financial Condition and Results of Operations are  "forward-looking  statements"
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the  Securities  Exchange Act of 1934,  as amended,  and are made
pursuant to the safe harbor  provisions  of the  Private  Securities  Litigation
Reform  Act of  1995.  The  terms  "believe,"  "anticipate,"  "intend,"  "goal,"
"expect," and similar expressions may identify forward-looking statements. These
forward-looking  statements  represent the  Company's  current  expectations  or
beliefs  concerning  future events.  The matters covered by these statements are
subject to certain risks and  uncertainties  that could cause actual  results to
differ  materially  from  those  set  forth in the  forward-looking  statements,
including  the  Company's  dependence on timely  development,  introduction  and
customer  acceptance  of new  products,  the  impact  of  competition  and price
erosion,  as well as supply and  manufacturing  constraints  and other risks and
uncertainties. The foregoing list should not be construed as exhaustive, and the
Company  disclaims any  obligation  subsequently  to revise any  forward-looking
statements to reflect events or circumstances  after the date of such statements
or to reflect the occurrence of anticipated or unanticipated events. The Company
wishes  to  caution   readers   not  to  place   undue   reliance  on  any  such
forward-looking statements, which speak only as of the date made.

                                      -9-
<PAGE>
                         ESPEY MFG. & ELECTRONICS CORP.

                    PART II: Other Information and Signatures

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

          None during the quarter.

Item-5.   Other Information
          -----------------

          Effective  October 29, 1999 Mr.  Alvin  Sabo,  an attorney  and senior
          partner of the law firm of Donohue, Sabo, Varley & Armstrong P.C. in
          Albany,  NY and Mr. Carl Helmetag  President and CEO of UVEX Inc. in
          Providence, RI were named to  the Board of Directors.

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

          None during the quarter.

                                     - 10 -
<PAGE>
                               S I G N A T U R E S
                               -------------------

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.

                                           ESPEY MFG. & ELECTRONICS CORP.




                                       /s/ Howard Pinsley,President
                                           -------------------------------
                                           Howard Pinsley, President
                                           Chief Executive Officer and Treasurer








                                       /s/ David O'Neil,Assistant Treasurer
                                           --------------------------------
                                           David O'Neil,Assistant Treasurer
                                            and Controller
                                           Principal Financial Officer
 15 November 1999
 ----------------
     Date

                                     - 11 -