SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-QSB

[x]       QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                                        March 31, 1998
For the quarterly period ended .................................................

                                       or

[ ]       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM  .................. TO ..........................

                             1-11109

Commission File Number .........................................................

                           Lukens Medical Corporation
 ...............................................................................
             (Exact name of registrant as specified in its charter.)

                Delaware                          22-2429965

 ...............................................................................
(State or other jurisdiction of                                 (I.R.S. Employer
 incorporation or organization)                              Identification No.)

     3820 Academy Parkway North NE, Albuquerque, NM          87109
 ...............................................................................
         (Address of principal executive offices)            (Zip Code)

                                                     (505) 342-9638
Issuer's telephone number, including area code .................................

Indicate by check mark whether the registrant has (1) 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 __

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.

          Class                                   Outstanding at March 31, 1998
 .............................                     ------------------------------
 Common Stock, $.01 Par Value                           3,093,359 Shares



                                       1

<PAGE>




                   LUKENS MEDICAL CORPORATION AND SUBSIDIARIES

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
PART I    FINANCIAL INFORMATION

          Item 1.   Financial Statements

                    Consolidated Balance Sheets                              3

                    Consolidated Statements of Operations                    4

                    Consolidated Statements of Cash Flows                    5

                    Notes to Consolidated Financial Statements             6-7

          Item 2.   Management's Discussion and Analysis of
                    Financial Condition and Results of Operations          8-9

PART II   OTHER INFORMATION

          Item 2.        Changes in Securities                               9

          Item 3.        Defaults Upon Senior Securities                     9

          Item 5.        Other Matters                                       9

          Item 6.        Exhibits and Report on Form 8-K                    10

SIGNATURES                                                                  11

                                       2

<PAGE>

                           LUKENS MEDICAL CORPORATION
                           --------------------------
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                                      (UNAUDITED)           AUDITED
                                                                                       MARCH 31,          DECEMBER 31,          
                                   ASSETS                                                1998                1997              
                                   ------                                            -------------       ------------          
<S>                                                                                 <C>                <C>
      CURRENT ASSETS:                                                                                                         
           Cash and cash equivalents                                                        $53,882            $74,048        
           Accounts Receivable, net of allowance for doubtful                            $2,262,518         $1,836,542        
                accounts of $40,000 as of December 31,1997 and                                                                
                $40,00 as of March 31,1998                                                                                    
           Inventory                                                                     $5,333,559         $5,105,900        
           Prepaid Expenses                                                                $138,846           $127,080        
                                                                                    ----------------   ----------------
              TOTAL CURRENT ASSETS                                                       $7,788,805         $7,143,570        
                                                                                                                              
           Land, building and equipment, net of accumulated                              $3,542,600         $3,599,150        
                depreciation  of $1,963,377as of December 31,1997                                                             
                 and depreciation  of $2,069,927 as of March 31,1998                                                           
                                                                                                                              
            Intangible assets and Investments in Joint Ventures,                         $2,899,224         $3,001,139        
                net of amortization  of $1,283,569 as of December 31,1997                                                     
                 and net of amortization  of $1,385,484 as of March 31,1998                                                    
           Other assets                                                                     $85,754            $85,754        
                                                                                    ================   ================       
              TOTAL ASSETS                                                              $14,316,383        $13,829,613        
                                                                                    ================   ================       
                                                                                                                              
                                                                                                                              
                                                                                                                              
                    LIABILITIES AND STOCKHOLDERS' EQUITY                                                                      
                    ------------------------------------                                                                      
      CURRENT LIABILITIES:                                                                                                    
        Accounts payable                                                                 $1,953,128         $1,864,832        
        Accrued liabilities                                                                $134,783           $138,016        
        Current maturities of long term debt                                             $5,065,341         $5,146,950        
        Current maturities of obligations under capital leases                             $146,893           $146,893        
                                                                                    ----------------   ----------------
              TOTAL CURRENT LIABILITIES                                                  $7,300,145         $7,296,691        
                                                                                                                              
        Long-term debt, excluding current maturities                                        $58,483            $73,483        
        Stockholder Payable                                                              $2,315,991         $2,290,991        
        Obligations under cap leases, excl current maturities                              $223,027           $266,256
                                                                                    ----------------   ----------------
              TOTAL LIABILITIES                                                          $9,897,646         $9,927,421        

        Minority interest                                                                  $129,531           $129,531        
                                                                                                                              

      STOCKHOLDERS' EQUITY:                                                                                                   
        Common stock, $.01 par value, authorized                                            $30,934            $30,434
             20,000,000 shares: issued and outstanding                                                                        
             3,093,359 shares as of December 31,1997and 3,300,130
             as of March 31, 1998.
        Additional paid-in capital                                                      $18,725,535        $18,525,035
        Accumulated Deficit + foreign Currency Adjustment                              $(14,467,283)      ($14,783,808)
                                                                                    ----------------   ----------------
           Total stockholders' equity                                                    $4,289,206         $3,772,661
                                                                                    ----------------   ----------------

           Total liabilities and stockholders' equity                                   $14,316,383        $13,829,613
                                                                                    ================   ================
</TABLE>


                                       3


<PAGE>


                           LUKENS MEDICAL CORPORATION
                           --------------------------
                      CONSOLIDATED STATEMENT OF OPERATIONS
                      ------------------------------------
                                    UNAUDITED
                                    ---------
<TABLE>
<CAPTION>
                                                    THREE MONTHS ENDED     
                                                         MARCH 31,         
                                                                           
                                                    1998             1997
                                              --------------    --------------     
<S>                                              <C>               <C>             
 SALES                                           $2,658,933        $2,403,939      
 Cost of sales                                   $1,624,062        $1,638,284      
                                              --------------    --------------     
      GROSS PROFIT                               $1,034,871          $765,655      
                                              --------------    --------------     
                                                                                   
 Selling expenses                                  $227,004          $228,374      
 General and administrative expenses               $351,808          $218,758      
 Research and development expenses                  $17,098           $12,020      
                                              --------------    --------------     
           TOTAL OPERATING EXPENSES                $595,910          $459,152      
                                              --------------    --------------  
      EARNINGS FROM OPERATIONS                     $438,961          $306,503   
                                              --------------    --------------  
                                                                                
 OTHER (EXPENSE) INCOME:                                                        
      Interest income                                  ($50)          ($1,860)  
      Interest expense                             $122,466           $53,466   
      Other, net                                         $0            $1,500   
                                              --------------    --------------  
           TOTAL OTHER (EXPENSE) INCOME            $122,416           $53,106   
                                              -------------     --------------  
           EARNINGS (LOSS) BEFORE                  $316,545          $253,397   
            EXTRAORDINARY ITEMS                                                 
 Income tax expense                                      $0                $0   
                                                                                
                                              --------------    --------------  
           NET EARNINGS (LOSS)                     $316,545          $253,397   
                                              ==============    ==============  
                                                                                
                                                                                
 Weighted average number of common and common                                   
      equivalent shares outstanding               3,300,130         3,315,737   
                                              ==============    ==============  
                                                                                
 Income (loss) per common and common                  $0.10             $0.08   
      equivalent shares outstanding                                             
                                               ==============    ============== 
                                                                                
</TABLE>


                                        4

                                                                                
<PAGE>

                                  LUKENS MEDICAL CORPORATION                    
                                  --------------------------                    
                             CONSOLIDATED STATEMENT OF CASH FLOWS               
                                          UNAUDITED                             
<TABLE>
<CAPTION>
                                                                                
                                                                    THREE MONTHS ENDED            
                                                                        MARCH 31,                 
                                                                  1998               1997         
                                                             ----------------    -------------    
 Cash flows from operations:                                                                      
<S>                                                                 <C>              <C>          
    Net earnings (loss)                                             $316,545          $253,397     
    Adjustments to reconcile net earnings (loss) to cash                                          
         provided (used) by operating activities:                                                  
         Depreciation                                               $106,550           $82,309     
         Amortization of intangible assets                          $101,915           $37,049     
    Changes in current assets and liabilities:                                                    
         Accounts receivable                                       ($425,976)        ($218,117)     
         Inventory                                                 ($227,659)          $38,337     
         Prepaids                                                   ($11,766)         ($74,849)     
         Accounts payable                                           $113,296          ($13,786)     
         Accrued liabilities                                         ($3,233)         $165,534     
    Change in other assets                                                $0          ($83,606)     
                                                             ----------------    -------------    
                                                                                                  
           Net cash provided (used) by operating activities         ($30,328)         $186,268     
                                                             ----------------    -------------    
                                                                                                  
 Cash flows from investing activities:                                                            
    Purchase of plant and equipment                                 ($50,000)        ($31,547)     
    Investment in Joint ventures                                          $0         ($22,913)     
    Purchase of intangible assets                                         $0        ($583,689)     
                                                             ----------------    -------------    

           Net cash used in investing activities                    ($50,000)       ($638,149)     
                                                             ----------------    -------------    
                                                                                                  
 Cash flows from financing activities:                                                            
    Borrowings on long term debt & obligations under                    
     capital leases                                                       $0        ($239,470)  
    Principal payments on long term debt & obligations                  
     under capital leases                                          ($139,838)        ($25,783)                                   
    Proceeds from the issuance of common stock and                      
     equivalents                                                    $200,000          $13,154                               
                                                             ----------------    -------------    

           Net cash provided by financing activities                 $60,162        ($252,099)     
                                                             ----------------    -------------    
                                                                                                  
           Net increase (decrease) in cash and cash                      
             equivalents                                            ($20,166)       ($703,980)                                      
                                                                                                  
 Cash and cash equivalents at beginning of period                    $74,048         $878,090     
                                                             ================    =============    
                                                                                                  
 Cash and cash equivalents at end of period                          $53,882         $174,110   
                                                             ================    =============  
                                                                                                  
</TABLE>


                                        5

<PAGE>
                           LUKENS MEDICAL CORPORATION

                   Notes to Consolidated Financial Statements
                                 March 31, 1998
                                   (unaudited)

(1)  Summary of Significant Accounting Policies
     ------------------------------------------

     The Company's  principal  business  activity is the manufacture and sale of
     disposable surgical products. The Company's main product lines are surgical
     sutures,   lancets,   sharps  containers,   and  diagnostic  products.  The
     accompanying   unaudited   financial   statements  have  been  prepared  in
     accordance  with the  instructions  to Form  10-QSB  and  therefore  do not
     include  all  information  and  footnote  disclosure  necessary  for a full
     presentation of financial position,  results of operations, and cash flows.
     The  information  furnished,  in the opinion of  management,  reflects  all
     adjustments  necessary to present  fairly the results of  operations of the
     Company for the  three-month  period  ended  March 31,  1998 and 1997.  The
     accounting  policies  followed  by the Company are set forth in note (1) of
     Notes to the Company's  Consolidated  Financial Statements in the Company's
     Annual  Report on Form  10-KSB for the year ended  December  31,  1997 (the
     "1997 Form 10-K") filed with the  Securities and Exchange  Commission.  The
     results of operations of interim periods are not necessarily  indicative of
     results which may be expected for any other interim  period or for the year
     as a whole.

(2)  Inventory
     ---------

     Inventory consists of the following components at:

                                March 31         December 31
                                 1998               1997
                              ----------      ---------------
     Raw Materials            $2,127,718        $1,938,343
     Work-in-Process           1,950,637         1,972,124
     Finished Goods            1,255,204         1,195,433
                              ----------        ----------
                              $5,335,559        $5,105,900
                              ==========        ==========



                                       6

<PAGE>

(3)  Income Taxes

The  net  operating   loss  and  credit  for  increasing   research   activities
carryforwards as of December 31, 1997, expire as follows:

              Approximate                         Increasing Research
             Net Operating                        Activities Book/Tax
          Loss Carryforward                              Credits
          -----------------                              -------

        State Loss    Federal Loss

          Amount         Amount                Tax Effect     Tax Effect   
          ------         ------                ----------     ----------   
                                                                           
1999    $2,537,000    $    ---                $  122,000     $     3,800   
2000        ---        1,930,000                 656,000          37,200   
2001     2,400,000     1,835,000                 739,000          37,500   
2002        ---        1,132,000                 385,000           1,400   
2003     1,480,000     2,086,000                 780,000          25,100   
2004       315,000       390,000                 148,000            ---    
2005       161,000       278,000                 102,000            ---    
2006        ---           50,000                  17,000            ---    
2007        ---           26,000                   9,000            ---    
2008        ---           88,000                  30,000            ---    
2009        ---        2,760,000                 938,000                   
2017        ---        2,400,000                 816,000            ---    
                                                                           
-------------------------------------------------------------------------- 
        $6,893,000   $12,975,000              $4,742,000        $105,000   
        ==========   ===========              ==========        =========  
                                             

The  capital  loss  carryforwards  of  approximately  $271,000,  tax  effect  of
$105,000, expire in 1998.

The  deduction  of  federal  net  operating  loss  carryforwards  is  limited to
approximately $3,962,000 as of December 31, 1997. This limitation is based on an
annual  limitation of $460,000 plus  available  carryover of $654,000 and losses
incurred subsequent to 1992 of $5,248,000.  In addition,  should the sale of the
Company occur (See "Liquidity and Capital  Resources"),  there may be additional
limitations.




                                       7

<PAGE>

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

                             Results of Operations
                             ---------------------

Three Months Ended March 31, 1998
---------------------------------

Sales  increased  approximately  $255,000 or 11% for the quarter ended March 31,
1998,  compared  to the  quarter  ended  March 31,  1997 due  mainly to  revenue
generated from the product lines acquired with Pro-Tec  Containers,  Inc. in May
1997 (the "Acquisition"), and due to increases in lancet sales.

The gross margin percentage  increased due to cost reductions resulting from the
manufacture of certain raw materials in India,  and the generally higher margins
in the Pro-Tec  line.  The first quarter  generated 39% margins  compared to 32%
last year.

General and Administrative  expenses increased $134,000 to $352,000 for the 1998
quarter, versus $228,000 for the 1997 quarter. The majority of this increase was
a result of increased amortization expenses relating to the various acquisitions
in 1997, and the addition of staff in Brazil.  Sales and Marketing expenses were
approximately the same for the 1998 and 1997 quarters,  and R&D increased $5,000
to $17,000  for the 1998  quarter,  versus  $12,000  for the 1997  quarter.  The
increase in R&D expenses  reflects the cost of the Company's  focus on obtaining
ISO Certification in 1998.

As a  result  of the  foregoing,  Income  from  Operations  increased  142%,  or
$132,000,  to $439,000 for the 1998 quarter  versus  Income from  Operations  of
$307,000 for the same quarter in 1997.

Interest expense  increased $69,000 from $53,500 in 1997 to $122,000 in 1998 due
to an increase in net borrowings to finance the Acquisition in May 1997, and the
investment in the Brazil joint venture in September 1997.

As a result of the foregoing,  the Company achieved a net profit for the quarter
of $316,000,  or $.10 per share, for 1998, compared to a net profit of $253,000,
or $.08 per share, in 1997.

                         Liquidity and Capital Resources
                         -------------------------------

At March 31,  1998,  the  Company had cash and cash  equivalents  of $53,882 and
working capital of $488,660.

In August 1997,  the Company's  lines of credit were renewed  through August 31,
1998. As part of this renewal, the balance on the working capital line of credit
was increased from $1,000,000 to $1,750,000,  and the letter-of-credit  line was
decreased from  $1,500,000 to $1,250,000.  As of March 31, 1998, the Company had
fully drawn the working capital line, and there were  approximately  $360,000 in
letters-of-credit  outstanding  relating to raw  material  purchases,  and other
general  purposes,  under the letter of credit  line.




                                       8

<PAGE>

During the quarter ended March 31, 1998, the Company was in technical default of
certain  financial  covenants  and in payment  default under certain of its term
loans with its lending  bank as more fully  described  in the  Company's  Annual
Report on Form 10- KSB for the year ended  December 31, 1997. In April 1998, the
Company  cured its payment  default  under the term loans and its  lending  bank
amended  certain of the financial  covenants so that the Company is no longer in
default under any of its lines of credit.

On April 29, 1998, the Company announced that on April 28, 1998, it entered into
an  Agreement  and Plan of Merger with  London-based  Medisys  PLC  ("Medisys"),
pursuant to which Medisys would acquire the Company, and the stockholders of the
Company  would  receive  $4.00,  in cash,  for each share of Common Stock of the
Company.  The  consummation  of the merger is subject to a number of conditions,
including  without  limitation,  approval by the  stockholders  of the  Company,
satisfactory  completion  of due  diligence and securing of financing by Medisys
sufficient to consummate the merger and the transactions contemplated thereby.
The merger is expected to close this summer.

PART II - OTHER INFORMATION

Item 2.   Changes in Securities
          ---------------------

(c)(i) During the most recently completed  quarter,  the Company issued and sold
the following equity securities:

      1. On March 24, 1998,  the Company issued 50,000 shares of Common Stock to
Medisys  at a price of $4.00  per  share.  The  Company  subsequently  issued an
additional  25,000 shares of Common Stock to Medisys in April 1998 at a price of
$4.00 per share.

           (ii) The  transactions  described in this Item 2(c) were  effected in
reliance upon the exemption from the registration requirements of the Securities
Act  contained  in  Section  4(2) of the  Securities  Act on the basis that such
transactions did not involve a public offering.

Item 3.   Defaults Upon Senior Securities
          -------------------------------

See Part 1, Item 2 above for a discussion  of the Company's  defaults  under its
line of credit with its lending bank, which defaults have been cured.

Item 5.   Other Matters.
          --------------

As discussed in Part I, Item 2 above,  on April 28,  1998,  the Company  entered
into a merger agreement with Medisys pursuant to which Medisys would acquire the
Company,  and the  stockholders of the Company would receive $4.00, in cash, for
each share of Common Stock of the Company.


                                       9


<PAGE>


Item 6.   Exhibits and Reports on Form 8-K

          (a)    Exhibits

                 (i)   Exhibit 27 - Financial Data Schedule

          (b)    Reports on Form 8-K

On March 6, 1998,  the Company filed a Current  Report on Form 8-K to report the
receipt of an offer to purchase  the  Company by an unnamed  party for $4.00 per
share.




                                       10

<PAGE>


                                   SIGNATURES

In accordance with the requirements of the Securities  Exchange Act of 1934, the
registrant  caused  this  report to be signed on its behalf by the  undersigned,
thereunto duly authorized.

                                   LUKENS MEDICAL CORPORATION


Date:  May 14, 1998                By:  /s/ Robert S. Huffstodt 
                                      ------------------------------------------
                                        Robert S. Huffstodt
                                        President and Chief Executive Officer



Date:  May 14, 1998                By:  /s/ Michael E. Sobieski
                                      ------------------------------------------
                                        Michael E. Sobieski
                                        Chief Financial Officer


                                       11