UNITED STATES  
  
               SECURITIES AND EXCHANGE COMMISSION  
  
                     Washington, D.C. 20549  
  
                            FORM 10-QSB  
  
  
Quarterly Report Pursuant to Section 13 or 15(d) of the   
Securities Exchange Act of 1934  
  
For the Quarter Ended       March 31,1999  
  
Commission file Number   1-3489
  
                     
                         CLARY CORPORATION
----------------------------------------------------------------------------
            (Exact name of Registrant as specified in its charter)

          California                                           95-0630196
----------------------------------------------------------------------------
(State or other jurisdiction of                         (I.R.S. Employer
 incororation or organization)                           Identification No.

1960 So. Walker Avenue     Monrovia, California                    91016
------------------------------------------------------------------------
(Address of principal executive offices)                       (Zip Code)

Registrant's telephone number, including area code   (626) 359-4486
                                  

                                     N/A
----------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.

Securities registered under Section 12(b) of Exchange Act:

Title of each class: Common Stock, $1.00 par value

Name of each exchange on which registered: Pacific Exchange

Indicated by check 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 
                                   -----     -----
                                   
As of April 29, 1999, there were 1,807,419 shares of common stock outstanding.
 
              Transitional Small Business Disclosure Format

                                Yes   X   No
                                    -----    -----

<PAGE>


PART 1

ITEM #1 - FORM 10-QSB

                               CLARY CORPORATION
                            (Statement of Operations)

<TABLE>
<CAPTION>
PROFIT AND LOSS INFORMATION              Three Months Period Ended March 31,
                                             1999              1998
-----------------------------------       ---------------------------------  
<S>                                            <C>               <C>

Sales and other revenue                   $ 2,025,000         $  935,000

Cost and expenses:
  Cost of products sold                     1,247,000             651,000
  Engineering and product development         109,000              98,000
  Selling and service                         349,000             202,000
  General and administrative                   82,000              76,000  
  Interest expense                             48,000              35,000
                                            ---------           ---------
                                            1,835,000           1,062,000
                                            ---------           ---------

Earning (loss) before income taxes and
  extraordinary item                      $   190,000          $( 127,000)
Income taxes                                   60,000                0
                                           ----------          -----------     
Earnings (loss) before extraordinary item $   130,000          $( 127,000) 
Extraordinary item-utlization of net
  operating loss carryforward                  60,000                0
                                          -----------          -----------
Net earnings (loss)                       $   190,000          $( 127,000)
                                          ===========          ===========
Earnings (loss) per common share:
  Earnings (loss) before extraordinary
    item                                  $       .07          $     (.07)
  Extraordinary item                              .04                  0
                                          -----------          -----------
Net earnings (loss) per common share      $       .11          $     (.07)
                                          ===========          ===========
    
Average number of shares                     1,807,419          1,807,319  

Dividends per share                              None               None      
   



<PAGE>


</TABLE>
<TABLE>

<CAPTION>

                             CLARY CORPORATION
                       CONSOLIDATED BALANCE SHEETS
                      -----------------------------
   ASSETS                               Mar 31, 1999      Dec. 31, 1998
----------------------------------      --------------    -------------
<S>                                         <C>                 <C>
CURRENT ASSETS
--------------
<S>
   Cash                                  $   153,000        $   160,000   
   Notes and accounts receivable less
    allowance for doubtful amounts
    of $21,000 in 1999 and $11,000 in 
    1998.                                  1,544,000            556,000 
   Inventories, principally finished
    goods and work-in-process              1,561,000          1,685,000
   Prepaid expenses and other assets          36,000             34,000
                                           ---------          ---------
          Total Current Assets           $ 3,294,000        $ 2,435,000

PROPERTY, PLANT AND EQUIPMENT
-----------------------------
   Machinery and equipment                 1,407,000          1,392,000
   Dies, jigs and fixtures                    31,000             31,000
   Leasehold improvements                     71,000             71,000
                                           ---------          ---------
                                           1,509,000          1,494,000
   Less:  Accumulated depreciation
          and amortization                 1,394,000          1,392,000
                                           ---------          ---------
                                             115,000            102,000
OTHER ASSETS
------------
   Miscellaneous                              85,000             67,000
                                           ---------          ---------
   TOTAL ASSETS                          $ 3,494,000        $ 2,604,000
                                           =========          =========
<PAGE>

PART I
ITEM #1 - FORM 10-QSB

                              CLARY CORPORATION
                     CONSOLIDATED BALANCE SHEETS (Continued)
                     ---------------------------------------


</TABLE>
<TABLE>
<CAPTION>

LIABILITIES AND STOCKHOLDERS' EQUITY       Mar. 31, 1999       Dec. 31, 1998
------------------------------------      --------------       -------------
<S>                                           <C>                <C>

CURRENT LIABILITIES
-------------------
 Notes payable                             $   950,000         $   750,000
 Accounts payable and accrued expenses         688,000             297,000
 Accrued payroll and related expenses          215,000              95,000
 Customer deposits                              15,000              26,000
                                               -------             -------
          Total Current Liabilities        $ 1,868,000         $ 1,168,000 

9-1/2% Convertible Subordinated Notes
  due October 17, 2000                         600,000             600,000
9% Convertible Subordinated Notes due
  May 31,2000                                  550,000             550,000

STOCKHOLDERS' EQUITY
--------------------
 Preferred stock                                55,000              55,000
 Common stock and additional stated 
   value arising from conversion of 
   preferred stock                           2,509,000           2,509,000
 Additional paid-in capital                  5,099,000           5,099,000
 Accumulated  deficit                       (7,377,000)         (7,377,000)
 Current years' earnings                       190,000               0
                                            -----------         ------------
          Total Equity                         476,000             286,000
                                            -----------         ------------

 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY  $ 3,494,000         $ 2,604,000
                                           ===========          ============
</TABLE>

<PAGE>



                             CLARY CORPORATION
                         STATEMENTS OF CASH FLOWS
                         ------------------------
                                     
<TABLE>
<CAPTION>                                   For the Three Month Period Ended  
                                            --------------------------------
                                                       March  31,
                                                      ------------
                                                1999             1998
                                                ----             ----
<S>                                              <C>              <C>

Cash flows from operating activities:
  Net earnings (loss)                       $  190,000    $    (127,000)
 Adjustments to reconcile net earnings
 (loss) to net cash (used for)
 operating activities:

    Depreciation and amortization                2,000            8,000
    Provision for losses on accts. rec.         10,000              0 
    Change in assets and liabilities:
    (Increase) decrease in accts. receivable   (998,000)         177,000
    Decrease (increase)  in inventory           124,000          (53,000)
    (Increase) in prepaid expenses               (2,000)         (20,000)
    (Increase) in other assets                  (18,000)             0
    Increase (decrease) in accts. payable
     and accrued  expenses                       511,000         (86,000)
     (Decrease) in customer deposits             (11,000)         (6,000)
                                               ----------       ----------
    Net cash (used for) Operating Activities:   (192,000)        (95,000)
         

Cash Flows from Investing Activities:

     Capital expenditures                        (15,000)        (31,000)
                                               ----------       ---------
     Net Cash (used for) Investing
         Activities:                             (15,000)        (31,000)

Cash Flows from Financing Activities:

     Net  borrowings under line-of-credit        200,000            0
                                               ----------       ----------
     Net Cash provided by
       Financing Activities                      200,000            0        
                                               -----------      -----------
Net (decrease) increase in cash and cash
   equivalents                                    (7,000)         (126,000)

Cash and cash equivalents at beginning of year   160,000           321,000
                                                ----------       ----------
Cash and cash equivalents at end of quarter   $  153,000        $  195,000
                                                ==========       ===========
</TABLE>



<PAGE>



PART I
ITEM #2 - FORM 10-QSB 

MANAGEMENT DISCUSSION AND ANALYSIS
----------------------------------

Results of Operation
--------------------
   Sales and other revenues for the first quarter of 1999 increased
$1,090,000 or 116.6% from the first quarter of 1998. This increase was due
primarily  through the delivery of one large order to Celera Genomics Corp.
Although there may be follow-on orders on this program, there is no assurance
the volume will compare to this first quarter deliveries.

   Cost of sales increased $596,000 or 91.6% over the two periods. This cost
increase was due to the sales increase. Selling and administrative increased
$153,000 due to commissions on the sales increase.  Engineering and development
cost increased $11,000 or 11.2%. This increase was not significant. Interest
cost increased $13,000 due to bank financing to support the higher accounts
receivable level.

   The registrant returned to profitability due to the increased sales volume.
Operating loss carryforwards are available for quite some time to offset current
and future potential earnings


Liquidity and Capital Requirements 
----------------------------------

   The registrant believes funds provided from operations,short-term lines of
credit and short as well as long-term financials through an Affiliate Company
will be sufficient to fund its immediate needs for working capital. Capital
expenditures will be minimal and funded from working capital or placed on short-
term leases.

   The registrant's short term secured borrowing with the bank is subject to .
renewal on May 1,1999.


<PAGE>

PART I
ITEM #3 - FORM 10-QSB

                          CLARY CORPORATION
                          -----------------

                     NOTES TO PART I OF THIS REPORT
                     ------------------------------


NOTE 1.     As of March 31, 1999, the Registrant has 12,688 shares of
common stock reserved for conversion of preferred stock and 600,000 shares
reserved for the conversion of the 9-1/2% convertible subordinated notes.
In addition, the Registrant has reserved 26,000 shares of common stock for
purchase by officers or employees under its 1984 Incentive Stock Option
Plan and an additional 100,000 shares reserved for purchase by officers
and key employees under its 1996 Employee Incentive Stock Option Plan.
Also, the Company has 40,000 shares of common stock for purchase by its
Executive Vice President under a non-qualified stock option plan.

NOTE 2.    This report reflects all adjustments which are, in the 
opinion of management, necessary to present a fair statement of the
results for the interim period. This  report has not been reviewed by
our independent public accountants and is, therefore, unaudited.




<PAGE>

FORM 10-QSB

                            CLARY CORPORATION
                                PART II
                            OTHER INFORMATION
                            -----------------

Item 1   Legal Proceedings - None of any significance

Item 2   Change in Securities - Inapplicable

Item 3   Defaults Upon Senior Securities - Inapplicable

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

Item 5   Other Information - Inapplicable

Item 6   Exhibits and Reports on Form 8K - None

<PAGE>
    Pursuant to the requirements of the Securities and Exchange Act of 1934,
Registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.
 
                                       CLARY CORPORATION
                                          (Registrant)
<TABLE>
<CAPTION>

Date: April 30,1999

         SIGNATURE                           TITLE
         =========                           =====

<S>                                          <C>
/s/ John G. Clary                  Chairman of the Board and 
-----------------                  Chief Executive Officer
John G. Clary

/s/ Donald G. Ash                  Treasurer, Chief Financial Officer,
-----------------                  Assistant Secretary and Director
Donald G. Ash


<PAGE>

</TABLE>