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


For the quarterly period ended    June 30, 1998
                                  -------------

                                       or

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

For the transition period from   ________ to   _______

                                                    

Commission File Number      1-11109
                            --------

                           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)


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

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 June 30, 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           6-8

         Item 2.    Management's Discussion and Analysis of
                    Financial Condition and Results of Operations       9-10

PART II  OTHER  INFORMATION

         Item 1.    Legal Proceedings                                     11

         Item 2.    Changes in Securities                                 11

         Item 3.    Defaults Upon Senior Securities                       11

         Item 5.    Other Matters                                         11

         Item 6.    Exhibits and Report on Form 8-K                       11

SIGNATURES                                                                12

                                       2
<PAGE>
LUKENS MEDICAL CORPORATION
CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                             UNAUDITED              AUDITED
                                                                              JUNE 30,           DECEMBER 31,
                                                                                 1998                 1997
                                                                           ----------------     -----------------
                           ASSETS
<S>                                                                             <C>                  <C>    
CURRENT ASSETS:
     Cash and cash equivalents                                                      $6,583               $74,048
     Accounts Receivable, net of allowance for doubtful                         $2,504,342            $1,836,542
          accounts of $40,000 as of December 31,1997
          and $40,00 as of June 30,1998
     Inventory                                                                  $5,822,224            $5,105,900
     Prepaid Expenses                                                             $265,518              $127,080
                                                                           ----------------     -----------------
        TOTAL CURRENT ASSETS                                                    $8,598,667            $7,143,570

     Land, building and equipment, net of accumulated                           $3,446,871            $3,599,150
          depreciation  of $1,963,377as of December 31,1997
          and $2,161,643 as of June 30,1998

     Intangible assets and Investments in Joint Ventures,                       $2,796,551            $3,001,139
          net of amortization  of $1,283,569 as of December 31,1997
          and $1,488,157 as of June 30,1998
     Other assets                                                                  $78,533               $85,754
                                                                           ----------------     -----------------
        TOTAL ASSETS                                                           $14,920,622           $13,829,613
                                                                          ================     =================

               LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts payable                                                              $2,376,924            $1,864,832
  Accrued liabilities                                                             $106,958              $138,016
  Current maturities of long term debt                                          $4,618,840            $5,146,950
  Current maturities of obligations under capital leases                          $139,672              $146,893
        TOTAL CURRENT LIABILITIES                                               $7,242,394            $7,296,691

  Long-term debt, excluding current maturities                                  $1,477,226               $73,483
  Long Term Stockholder Payable                                                 $1,233,075            $2,290,991
  Obligations under cap leases, excl current maturities                           $211,062              $266,256
                                                                           ----------------     -----------------
        TOTAL LIABILITIES                                                      $10,163,757            $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
       3,043,359 shares as of December 31, 1997
       and 3,093,359 as of June 30,1998.
  Additional paid-in capital                                                   $18,725,535           $18,526,035
  Accumulated Deficit                                                        ($14,066,520)         ($14,730,760)
  Foreign Currency Adjustment                                                    ($62,615)             ($53,048)
                                                                           ----------------     -----------------
        TOTAL STOCKHOLDERS' EQUITY                                              $4,757,334            $3,772,661
                                                                           ----------------     -----------------
         TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                            $14,920,622           $13,829,613
                                                                          ================     =================
</TABLE>

                                       3
<PAGE>



                           LUKENS MEDICAL CORPORATION
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                    UNAUDITED

<TABLE>
<CAPTION>
                                                             THREE MONTHS ENDED                    SIX MONTHS ENDED
                                                                June 30,1998                         JUNE 30,1998
                                                          1998                1997                   1998                1997
                                                          ----                ----                   ----                ----
<S>                                                     <C>                  <C>                  <C>                <C>       
Sales                                                   $2,839,069           $2,329,859           $5,498,002         $4,733,798
Cost of sales                                           $1,696,981           $1,524,609           $3,321,043         $3,162,893
                                                  ----------------    -----------------    -----------------    ---------------
     Gross profit                                       $1,142,088             $805,250           $2,176,959         $1,570,905
                                                  ----------------    -----------------    -----------------    ---------------

Selling expenses                                          $220,371             $200,656             $447,375           $429,030
General and administrative expenses                       $395,946             $254,880             $747,754           $473,638
Research and development expenses                          $15,898              $12,881              $32,996            $24,901
                                                  ----------------    -----------------    -----------------    ---------------
          Total operating expenses                        $632,215             $468,417           $1,228,125           $927,569
                                                  ----------------    -----------------    -----------------    ---------------
     Earnings from operations                             $509,873             $336,833             $948,834           $643,336
                                                  ----------------    -----------------    -----------------    ---------------

Other (expense) income:
     Interest income                                            $0             ($2,011)                ($50)           ($3,871)
     Interest expense                                     $167,731              $68,941             $290,197           $122,407
     Other, net                                                 $0             ($5,888)                   $0           ($4,388)
                                                  ----------------    -----------------    -----------------    ---------------
          Total other (expense) income                    $167,731              $61,042             $290,147           $114,148
                                                  ----------------    -----------------    -----------------    ---------------
          Earnings (loss) before extraordinary            $342,142             $275,791             $658,687           $529,188
items

Income tax expense                                              $0                   $0                   $0                 $0
                                                  ----------------    -----------------    -----------------    ---------------
          Net earnings (loss)                             $342,142             $275,791             $658,687           $529,188
                                                  ================    =================    =================    ===============

Basic net earnings (loss) per share                          $0.11                $0.09                $0.21              $0.18
                                                  ================    =================    =================    ===============

Dilutive net earnings (loss) per share                       $0.10                $0.08                $0.19              $0.16
                                                  ================    =================    =================    ===============

Weighted average number of common
    shares outstanding - basic                           3,093,359            2,998,571            3,171,745          2,865,280
                                                  ================    =================    =================    ===============

Weighted average number of common
    and common equivalent shares
    outstanding - dilutive                               3,591,551            3,354,795            3,445,841          3,335,296
                                                  ================    =================    =================    ===============
</TABLE>



                                       4
<PAGE>
LUKENS MEDICAL CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
UNAUDITED


<TABLE>
<CAPTION>
                                                                   SIX MONTHS             SIX MONTHS
                                                                      ENDED                  ENDED
                                                                    JUNE 30,               JUNE 30,
                                                                      1998                   1997
                                                                  -----------------      ----------------
<S>                                                                        <C>                   <C>     
CASH FLOWS FROM OPERATIONS:
   NET EARNINGS (LOSS)                                                     $658,687              $529,188
   ADJUSTMENTS TO  RECONCILE  NET  EARNINGS 
       (LOSS) TO CASH  PROVIDED  (USED) BY
       OPERATING ACTIVITIES:
        Depreciation                                                       $207,832              $209,910
        Amortization of intangible assets                                  $204,588               $82,202
   CHANGES IN CURRENT ASSETS AND LIABILITIES:
        Accounts receivable                                              ($667,800)            ($739,756)
        Inventory                                                        ($716,324)            ($229,153)
        Prepaids                                                         ($138,438)             ($14,310)
        Accounts payable                                                   $512,092              $209,891
        Accrued liabilities                                               ($31,058)               $40,776
   Change in other assets                                                     $7221             ($22,448)
                                                                  -----------------      ----------------
          NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES                ($36,800)               $66,300
                                                                  -----------------      ----------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of plant and equipment                                        ($50,000)          ($1,244,228)
   Investment in Joint ventures                                                  $0            ($943,941)
   Purchase of intangible assets                                                 $0            ($435,401)
                                                                  -----------------      ----------------
          NET CASH USED IN INVESTING ACTIVITIES
                                                                          ($50,000)          ($2,623,570)
                                                                  -----------------      ----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Borrowings on long term debt & obligations under capital                      $0            $1,611,477
leases
   Principal payments on long term debt & obligations under              ($254,265)            $1,175,303
capital leases
   Proceeds from the issuance of common stock and equivalents              $200,000          ($1,000,098)
                                                                  -----------------      ----------------
          NET CASH PROVIDED BY FINANCING ACTIVITIES
                                                                          ($54,265)            $1,786,682
                                                                  -----------------      ----------------
          NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
                                                                          ($67,465)            ($770,588)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
                                                                            $74,048              $878,090
                                                                  =================      ================
CASH AND CASH EQUIVALENTS AT END OF PERIOD
                                                                             $6,583              $107,502
                                                                  =================      ================
</TABLE>


                                       5

<PAGE>



                           LUKENS MEDICAL CORPORATION

                   Notes to Consolidated Financial Statements
                                  June 30, 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  six-month  period ended June 30, 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:

                                        June 30,           December 31
                                         1998                 1997
                                         ----                 ----

         Raw Materials               $2,154,812            $1,938,343
         Work-in-Process              1,972,124             1,972,124
         Finished Goods               1,428,105             1,261,603
         Inventory Reserve              (66,170)              (66,170)
                                    ------------          -------------
                                     $5,822,224            $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>
(4)      Pending Litigation

Owen Mumford Ltd. ("Owen Mumford"),  one of the Company's  competitors,  filed a
complaint  in the United  States  District  Court for the  Eastern  District  of
Virginia, Richmond Division on April 29, 1998 and served a summons and complaint
on the Company on June 1, 1998, alleging that one of the Company's products, the
"Gentle-Let 1" infringes on a patent owned by Owen Mumford.  The complaint seeks
damages adequate to compensate Owen Mumford for the alleged patent infringement,
as well as costs and expenses.  The Company intends to vigorously  defend itself
in this proceeding. The matter is currently in the discovery phase.

(5)      Status of Default Under Credit Facility

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.  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.













                                       8

<PAGE>




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

                              Results of Operations

Three Months Ended June 30, 1998

Sales  increased  approximately  $509,000 or 22% for the quarter  ended June 30,
1998,  compared  to the  quarter  ended  June 30,  1997 due  mainly  to  revenue
generated from the product lines acquired with Pro-Tec  Containers,  Inc. in May
1997 (the "Acquisition"), increases in lancet sales, and increased dental suture
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 40% margins  compared to 35%
last year.

General and Administrative  expenses increased $141,000 to $396,000 for the 1998
quarter, versus $255,000 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 $3,000
to $16,000  for the 1998  quarter,  versus  $13,000  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 51%, or $173,000,
to $510,000 for the 1998 quarter  versus Income from  Operations of $337,000 for
the same quarter in 1997.

Interest expense  increased $99,000 from $69,000 in 1997 to $168,000 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 $342,000 or $.10 per share,  for 1998,  compared to a net profit of $276,000,
or $.08 per share, in 1997.

Six Months Ended June 30, 1998

Sales increased  approximately $764,000 or 16% for the six months ended June 30,
1998  compared  to the six  months  ended  June 30,  1997 due  mainly to revenue
generated from the product lines acquired from Pro-Tec and Techsynt acquisitions
in May 1997, increases in Lancet sales and increased dental suture sales.

Gross  margins  increased  to 39% from 33% due to  shifts  in the  product  mix,
yielding  gross  profits of  $2,176,959  for the six months ended June 30, 1998,
compared to $1,570,905 for the six months ended June 30, 1997.  Total  operating
expenses  increased  $300,000 or 32% for the six months ended June 30, 1998 due,
again, to increases in Sales and Administrative Staff resulting from the PRO-TEC
and Ulster acquisitions due to amortization,  selling expenses increased $18,000
or 4% and G&A expenses increased $274,000 or 58%. R&D increased by $8,000 or 33%
due to the successful  completion of the Company's  synthetic  absorbable suture
project.

Interest expense increased $168,000 due to higher levels of borrowing related to
its joint venture in India and the PRO-TEC and Techsynt acquisitions.

                                       9
<PAGE>
As a result of the foregoing,  the Company  incurred a net profit of $658,000 or
$.19 per share,  for the six months ended June 30, 1998 compared to a net profit
of $529,000 or $.16 per share during the same period in 1997.

                         Liquidity and Capital Resources

At June 30,  1998,  the  Company  had cash and cash  equivalents  of $6,583  and
working capital of $1,479,052.

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 June 30, 1998, the Company had
fully drawn the working  capital line, and there was  approximately  $111,000 in
stand-by  letters  of  credit  and  $553,000  in  letters-of-credit  outstanding
relating to raw material purchases, and other general purposes, under the letter
of credit line.

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.  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.  The Company's  credit facility expires and needs to be renewed
prior to the end of August  1998.  There can be no  assurance  that such  credit
facility  will be so renewed,  or that it will be renewed on terms  favorable to
the Company. In the event that such credit facility is not so renewed, there can
be no assurance that the Company will be able to obtain alternate financing.

During the quarter ended June 30, 1998, the Company  experienced lower levels of
productivity  at its primary suture  manufacturing  facility in Juarez,  Mexico.
This was caused by unusually  high turnover of staff.  As a result,  the Company
fell short of its  produciton  goals which in turn  created  incresed  levels of
inventory. The Company's decreased ability to convert its inventory into cash or
accounts receivable has resulted in a working capital shortfall.  The Company is
currently  working to remedy its  production  problems,  but no assurance can be
given that a remedy will be forthcoming in the immediate future.

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.  The
merger is expected to close by the end of September the Company has set a record
date of August 14, 1998 for shareholders entitled to vote at the Special Meeting
being held to approve the merger.

Year 2000  Disclosure.  The Company  believes  that its  operations  will not be
materially  disrupted by any problems  associated  with the "Year 2000" syndrome
after January 1, 2000; however there can be no assurances in this regard.

Other than  statements of historical  fact,  this  Management's  Discussion  and
Analysis  of  Financial  Condition  and  Results  of  Operations  as well as the
accompanying  Form 10-QSB  contains  forward  looking  statements  that  involve
certain  risks and  uncertainties.  Such  risks and  uncertainties  include  the
continued  ability of the Company to obtain  financing for its  activities,  the
impact of competition, the ability of joint venture partners and distributors to
sell the  Company's  products,  changes in customer  preferences  and trends and
other  risks  detailed  in the  Company's  Securities  and  Exchange  Commission
filings.
 

                                       10
<PAGE>




PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

Owen Mumford Ltd. ("Owen Mumford"),  one of the Company's  competitors,  filed a
complaint  in the United  States  District  Court for the  Eastern  District  of
Virginia, Richmond Division on April 29, 1998 and served a summons and complaint
on the Company on June 1, 1998, alleging that one of the Company's products, the
"Gentle-Let 1" infringes on a patent owned by Owen Mumford.  The complaint seeks
damages adequate to compensate Owen Mumford for the alleged patent infringement,
as well as costs and expenses.  The Company intends to vigorously  defend itself
in this proceeding. The matter is currently in the discovery phase.

Item 2.   Changes in Securities

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

         1. The Company issued 25,000 shares of Common Stock to Medisys in April
1998 at a price of $4.00 per share.  The  Company  issued an  additional  57,500
shares in July 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.

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.  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.

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.

Item 6.    Exhibits and Reports on Form 8-K

           (a)    Exhibits

                  (i)      Exhibit 27 - Financial Data Schedule

           (b)    Reports on Form 8-K

                  (i) On May 5, 1998, the Company filed a Current Report on Form
                  8-K to report  the  execution  of the  merger  agreement  with
                  Medisys.




                                       11
<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:  August 12, 1998                    By:      /s/ Robert S. Huffstodt
                                             -----------------------------
                                                   Robert S. Huffstodt
                                                   President and Chief Executive

Officer

Date:  August 12, 1998                    By:      /s/ Michael E. Sobieski
                                             -----------------------------
                                                   Michael E. Sobieski
                                                   Chief Financial Officer