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       September 30,1999

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.

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 October28, 1999, there were 1,807,419 shares of common stock outstanding.


<PAGE>


PART 1

ITEM #1 - FORM 10-QSB

                               CLARY CORPORATION
                            (Statement of Operations)

<TABLE>
<CAPTION>
PROFIT AND LOSS INFORMATION           Three  Months Period Ended September 30,
                                             1999              1998
-----------------------------------       ---------------------------------
<S>                                            <C>                 <C>

Sales and other revenue                   $ 1,100,000         $  837,000

 Cost and Expenses:
  Cost of products sold                       783,000            580,000
  Engineering and Product Development          98,000             97,000
  Selling and Service                         208,000            191,000
  General and Administrative                   76,000             81,000
  Interest Expense                             37,000             35,000
                                            ---------           ----------
                                            1,202,000            984,000
                                            ---------           ---------
Net(loss)                                  (  102,000)         ( 147,000)
                                           ===========         ===========
Earnings (loss) per common share           $     (.06)         $    (.08)
                                           ===========         ===========

Average number of shares                     1,807,419          1,807,419

Dividends per share                              None               None

<PAGE>

PART 1

ITEM#1-FORM 10QSB

                                                   CLARY CORPORATION
                                                 (Statement of Operation)

</TABLE>
<TABLE>
<CAPTION>

                                        NINE MONTHS PERIOD ENDED SEPTEMBER 30,
PROFIT AND LOSS INFORMATION                     1999              1998
-----------------------------               ------------------------------
<S>                                             <C>                <C>
Net Sales and other Revenues                 $4,476,000         $2,792,000
Cost and Expenses:
  Cost of Products Sold                       2,957,000          1,968,000
  Engineering and Products Development          302,000            288,000
  Selling and Service                           747,000            569,000
  General and Administrative                    246,000            238,000
  Interest Expenses                             134,000            106,000
                                             -----------       -----------
                                              4,386,000          3,169,000
                                             -----------        -----------
Net Earnings (Loss) before income taxes          90,000        (   377,000)
Income Tax Expense                                1,000              1,000
                                            ------------       ------------
    Net Earnings (loss)                    $     89,000        (   378,000)
                                           =============      ==============
    Net Earnings (loss) per common Share   $       .05         $      (.21)
                                           =============      ==============

Average number of shares                       1,807,419          1,807,419

Dividends per share                            None                 None



<PAGE>


</TABLE>
<TABLE>

<CAPTION>

                             CLARY CORPORATION
                       CONSOLIDATED BALANCE SHEETS
                      -----------------------------
   ASSETS                               Sep. 30, 1999      Dec. 31, 1998
----------------------------------      --------------    -------------
<S>                                         <C>                 <C>
CURRENT ASSETS
--------------
<S>
   Cash                                  $   334,000        $   160,000
   Notes and accounts receivable less
    allowance for doubtful amounts
    of $20,000 in 1999 and $13,000 in
    1998.                                    582,000            556,000
   Inventories, principally finished
    goods and work-in-process              1,805,000          1,685,000
   Prepaid expenses and other assets          62,000             34,000
                                           ---------          ---------
          Total Current Assets           $ 2,783,000        $ 2,435,000

PROPERTY, PLANT AND EQUIPMENT
-----------------------------
   Machinery and equipment                 1,423,000          1,392,000
   Dies, jigs and fixtures                    31,000             31,000
   Leasehold improvements                     71,000             71,000
                                           ---------          ---------
                                           1,525,000          1,494,000
   Less:  Accumulated Depreciation
          and Amortization                 1,399,000          1,392,000
                                           ---------          ---------
                                             126,000            102,000
OTHER ASSETS
------------
   Miscellaneous                              77,000             67,000
                                           ---------          ---------
   TOTAL ASSETS                          $ 2,986,000        $ 2,604,000
                                          ==========        ===========
<PAGE>

PART I
ITEM #1 - FORM 10-QSB

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


</TABLE>
<TABLE>
<CAPTION>

LIABILITIES AND STOCKHOLDERS' EQUITY       Sep. 30, 1999       Dec. 31, 1998
------------------------------------      --------------       -------------
<S>                                           <C>                <C>
CURRENT LIABILITIES
-------------------
 Notes Payable                             $   850,000         $   750,000
 Accounts Payable and Accrued Expenses         521,000             297,000
 Accrued Payroll and Related Expenses           60,000              95,000
 Customer Deposits                              30,000              26,000
                                           -----------         ------------
          Total Current Liabilities        $ 1,461,000         $ 1,168,000

9-1/2% Convertible Subordinated Notes
  due October 17, 2000 and convertible
  into common stock at $1.00 per share          600,000             600,000

9% Convertible Subordinated Notes due
   January 15,2000                                 -0-              550,000

STOCKHOLDERS' EQUITY
--------------------
 Preferred Stock-Class "A"                       55,000              55,000
 Preferred Stock-Class "B"                      550,000                 -0-
 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                         89,000               -0-
                                            -----------         ------------
          Total Equity                          925,000             286,000
                                            -----------         ------------

 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY  $  2,986,000         $  2,604,000
                                           ============          ============
</TABLE>

<PAGE>



                             CLARY CORPORATION
                         STATEMENTS OF CASH FLOWS
                         ------------------------

<TABLE>
<CAPTION>                                   For the Nine Months Period Ended
                                            --------------------------------
                                                      September 30,
                                                      -------------
                                                 1999             1998
                                                 ----             ----
<S>                                               <C>              <C>

Cash Flows from Operating Activities:
Operating profit  (loss)                       $  89,000     $( 378,000)
Adjustments to reconcile net earnings
(loss) to net cash (used for)
Operating Activities:
  Depreciation and Amortization                      7,000       23,000
  Provisionfor (used for) for losses on
  accts. receivable.                                 7,000    (   1,000)
Change in assets and liabilities:
  (Increase) decrease in accts. receivable         (33,000)      265,000
  (Increase) decrease in inventory                (120,000)    ( 268,000)
  (Increase) in prepaid expenses                  ( 28,000)    (  19,000)
  (Increase) in other assets                      ( 10,000)    (   6,000)
  Increase (decrease) in accts. payable
  and accrued  expenses                            189,000         1,000
  Increase in customer deposits                      4,000        12,000
                                               -----------     ----------
  Net cash provided by (used for)
  Operating Activities:                            105,000     (  71,000)


Cash Flows from Investing Activities:
  Capital expenditures                             (31,000)    (  36,000)
                                                ------------    ----------
  Net Cash (used for) Investing Acitivities        (31,000)     ( 36,000)

Cash Flows from Financing Activities:

  Net borrowings (repayment)
   under line-of-credit                            100,000       ( 30,000)
                                               ------------      -----------
  Net Cash provided by (used for)
  Financing Activities                             100,000         30,000

  Net Increase (Decrease) in cash and cash
  equivalents                                      174,000       ( 137,000)

Cash and cash equivalents at beginning of year     160,000          321,000
                                                ----------       ----------
Cash and cash equivalents at end of quarter    $   334,000        $ 184,000
                                                ==========       ===========
</TABLE>



<PAGE>



PART I
ITEM #2 - FORM 10-QSB

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

Results of Operation
--------------------
   Sales and other revenues for the third  quarter of 1999 increased
$263,000 or 31.4% from the third quarter of 1998. This increase was due
primarily through the increase of orders by the U.S. Navy for shipboard power
supplies.

   Cost of sales increased $203,000 or 35.% over the two periods. This cost
increase was due to the sales increase. Selling and administrative increased
$12,000 due to commissions on the sales increase.  Engineering and development
cost increased $1,000. This increase was not significant. Interest cost
increased $2,000 due to bank financing to support the higher accounts
receivable level.

   The registrant showed a loss for the quarter of $102,000 compared to loss
of $147,000 for the third quarter of1998. The $45,000 improvement was due to
the sales increase.


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

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

   The registrant's short term secured borrowing with the bank was renewed on
May 1,1999.


<PAGE>

PART I

ITEM #2
YEAR 2000 COMPLIANCE
--------------------
   Clary Corporation manufactures Uninterrumpible Power Systmes that provide
clean continuous power for commercial, medical, industrial and military
applications. Questions concerning issued related to the processing of dates are
not applicable to our equipment. The millenium or century change will not impact
the operation of a Clary UPS and will not result in any loss of power to equip-
ment being supplied power by a Clary UPS through internal unit fault.

  Most Clary equipment manufactured to date does not have microprocessors.
Of the equipment that does have a microprocessors and electronically store a
date; this date is for customer reference only and is not a factor in the
actual operation.

  Clary Corporation has no plans to modify any prior models with regard to the
way they handle dates.

  Internally, Clary Corporation has obtained and installed Y2K compliant
versions of our Accounting and Manufacturing software programs.

  Some of our customers use third party software installed in a  host computer
to communicate with our equipment. Clary has supplied its customers the names,
addresses and phone numbers of software supplier to contact regarding the host
software.



ITEM #3 - FORM 10-QSB

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

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


NOTE 1. As of September 30, 1999, the Registrant has 12,688 shares of
common stock reserved for conversion of the Series "A" preferred stock,
440,000 shares reserved for the conversion of the Series "B" preferred stock
and 600,000 shares reserved for tha conversion of the  9-1/2% convertible
subordinated notes. In addition, the Registrant has reserved 100,000 shares
of common stock 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 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>

SIGNATURES
----------

    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:November 4,1999

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

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

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


<PAGE>

</TABLE>