SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549

                                  FORM 10-Q

(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
  EXCHANGE ACT OF 1934

  For the quarterly period ended December 29, 1996

                                      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 No. 0-12942

                             PARLEX CORPORATION
           (Exact Name of Registrant As Specified in its Charter)

           Massachusetts                             04-2464749
  (State or other jurisdiction of       (IRS Employer Identification Number)
   incorporation or organization)

145 Milk Street, Methuen, Massachusetts                01844
(Address of principal executive offices)             (Zip Code)

                                508-685-4341
            (Registrant's telephone number, including area code)

      Indicate by check mark whether the registrant (1) has filed all 
reports required to be filed by Section 13 or 15(d) of the Securities 
Exchange Act of 1934 during the preceding 12 months (or for such shorter 
period that the registrant was required to file such reports), and (2) has 
been subject to such filing requirements for the past 90 days.

                        YES   X             NO  ___

      The number of shares of the Registrant's Common Stock, par value $.10 
per share, outstanding at January 31, 1997 was 2,382,245 shares.

<PAGE>  -1-


                             PARLEX CORPORATION

                                    INDEX

Financial Statements:

  Consolidated Balance Sheets - December 29, 1996 and June 30, 1996......3

  Consolidated Statements of Income - For the Three Months
   and Six Months Ended December 29, 1996 and December 31, 1995..........4

  Consolidated Statements of Cash Flows - For the Six Months
   Ended December 29, 1996 and December 31, 1995.........................5

Notes to Unaudited Consolidated Financial Statements.....................6

Management's Discussion and Analysis of Financial Condition
 and Results of Operations...............................................8

Part II - Other Information......................... ...................10

Signatures..............................................................11

<PAGE>  -2-


                     PARLEX CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                     DECEMBER 29, 1996 AND JUNE 30, 1996
                                 (Unaudited)

<TABLE>
<CAPTION>
                                               December 29, 1996    June 30, 1996
                                               -----------------    -------------

                              ASSETS
<S>                                            <C>                  <C>
Current assets:
  Cash and cash equivalents                    $   107,997          $   386,608
  Accounts receivable - net                      9,415,696            7,453,333 
  Inventories:
    Raw material                                 2,553,377            2,419,744
    Work in process                              4,390,431            5,333,680
  Refundable income taxes                                -               17,794
  Deferred income taxes                            314,743              314,743
  Other current assets                             817,663              699,386
                                               --------------------------------  
      Total current assets                      17,599,907           16,625,288
                                               --------------------------------
Property, plant and equipment:
  Land                                             468,864              468,864
  Buildings                                      6,928,820            6,838,391
  Machinery and equipment                       22,972,277           22,321,826
  Leasehold improvements and other               2,610,067            2,422,084
                                               --------------------------------
      Total                                     32,980,028           32,051,165
  Less accumulated depreciation and 
   amortization                                (20,287,262)         (19,396,046)
                                               --------------------------------
      Property, plant and equipment - net       12,692,766           12,655,119
                                               --------------------------------
Other assets                                       449,297              381,649
                                               --------------------------------
      Total                                    $30,741,970          $29,662,056
                                               ================================

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Current portion of long-term debt            $         -          $   100,000
  Bank loan                                        500,000              400,668 
  Accounts payable                               4,697,919            5,179,769
  Income taxes payable                             331,934                    -
  Accrued liabilities                            1,953,995            1,797,223
                                               --------------------------------
      Total current liabilities                  7,483,848            7,477,660
                                               --------------------------------

Long-term debt                                   4,025,000            3,650,000
                                               --------------------------------

Other non-current liabilities                    1,882,608            1,846,260
                                               --------------------------------

Minority interest in Parlex (Shanghai)           1,147,010            1,232,691
                                               --------------------------------

Stockholders' equity
  Preferred stock                                      -0-                  -0-
  Common stock                                     258,303              258,266
  Additional paid-in capital                     3,245,235            3,243,491
  Retained earnings                             13,737,591           12,991,313
  Less treasury stock at cost                   (1,037,625)          (1,037,625)
                                               --------------------------------
      Total Stockholders' equity                16,203,504           15,455,445
                                               --------------------------------
      Total                                    $30,741,970          $29,662,056
                                               ================================
</TABLE>

See Notes to Unaudited Consolidated Financial Statements

<PAGE>  -3-


                     PARLEX CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF INCOME
                  For the Three Months and Six Months Ended
                   December 29, 1996 and December 31, 1995
                                 (Unaudited)

<TABLE>
<CAPTION>
                                             Three Months Ended              Six Months Ended
                                        -----------------------------   -----------------------------
                                        Dec. 29, 1996   Dec. 31, 1995   Dec. 29, 1996   Dec. 31, 1995
                                        -------------   -------------   -------------   -------------

<S>                                     <C>             <C>             <C>             <C>
Product sales                           $14,031,241     $11,684,568     $26,804,712     $23,295,978
License fees and royalties                   37,099               -          70,757               -
                                        -----------------------------------------------------------
Total Revenues                           14,068,340      11,684,568      26,875,469      23,295,978 
                                        -----------------------------------------------------------

Costs and Expenses:

  Cost of products sold                  11,472,916      10,145,160      22,384,959      20,440,296

  Selling, general and administrative
   expenses                               1,737,174       1,330,537       3,324,489       2,582,868
                                        -----------------------------------------------------------

  Operating costs and expenses           13,210,090      11,475,697      25,709,448      23,023,164
                                        -----------------------------------------------------------

Operating income                            858,250         208,871       1,166,021         272,814

Other income - (Note 2)                      10,713          22,088         123,108          66,540

Interest expense                           (115,603)        (83,596)       (220,533)       (153,218)
                                        -----------------------------------------------------------

Income before income taxes                  753,360         147,363       1,068,596         186,136

Provision for income taxes                 (286,900)        (60,500)       (406,900)        (75,200)
                                        -----------------------------------------------------------

Net income - before minority
 interest (Note 3)                          466,460          86,863         661,696         110,936

Minority interest                            91,405           3,690          84,581           3,690
                                        -----------------------------------------------------------

Net income                              $   557,865     $    90,553     $   746,277     $   114,626
                                        ===========================================================

Net income per common share             $       .23     $       .04     $       .30     $       .05
                                        ===========================================================

Weighted average number of common and
 common stock equivalent shares
 outstanding                              2,446,371       2,450,799       2,450,553       2,449,064
                                        ===========================================================
</TABLE>

See Notes to Unaudited Consolidated Financial Statements

<PAGE>  -4-


                     PARLEX CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
      For the Six Months Ended December 29, 1996 and December 31, 1995
                                 (Unaudited)

<TABLE>
<CAPTION>
                                                 December 29, 1996      December 31, 1995
                                                 -----------------      -----------------  

<S>                                              <C>                    <C>
Cash Flows Provided by Operating Activities:

Net income                                       $   746,277            $   114,626
                                                 ----------------------------------

Adjustments to reconcile net income to net
 cash provided by (used for)operating
 activities:
  Depreciation and amortization                    1,001,954                836,232
  Refundable income taxes                             17,794                    -0-
  Deferred compensation                               36,348                 35,285
  Loss (gain) on sale of equipment                      (250)                13,652
  Increase (decrease) in cash from
   minority interest                                 (85,681)                (3,690)
    Accounts receivable - net                     (1,962,363)                44,194
    Inventories                                      809,616                492,991
    Other current assets                            (118,277)              (180,870)
    Accounts payable                                (481,850)               665,528
    Accrued liabilities                              156,772               (817,317) 
    Income taxes payable                             331,934                 69,658
                                                 ----------------------------------
Total adjustments                                   (294,003)             1,155,363
                                                 ----------------------------------

Net cash provided (used) by operating
 activities                                          452,274              1,270,289
                                                 ----------------------------------

Investment Activities:
Additions to property, plant and equipment        (1,039,600)            (1,467,674)
Increase in other assets                             (67,648)              (519,891)
Proceeds from the sale of equipment                      250                 32,295
                                                 ----------------------------------
Net cash used for investment activities           (1,106,998)            (1,955,270)
                                                 ----------------------------------

Financing Activities:
Borrowings under revolving credit agreement          375,000                700,000
Loan payable - joint venture                          99,332                208,020
Capital contributions to joint venture
 - minority interests                                      -                 28,330
Decrease in long-term debt                          (100,000)              (100,000)
Exercise of stock options                              1,781                  9,063
                                                 ----------------------------------
Net cash from financing activities                   376,113                845,413
                                                 ----------------------------------

Net Decrease (Increase) in Cash and Cash
 Equivalents                                        (278,611)               160,432

Cash and Cash Equivalents at Beginning
 of Period                                           386,608                161,392
                                                 ----------------------------------

Cash and Cash Equivalents at End of Period       $   107,997            $   321,824
                                                 ==================================
</TABLE>

See Notes to Unaudited Consolidated Financial Statements

<PAGE>  -5-


                     PARLEX CORPORATION AND SUBSIDIARIES

            Notes to Unaudited Consolidated Financial Statements

1.  Management Statement

      The financial statements as reported in Form 10-Q reflect all 
adjustments which are, in the opinion of management, necessary to present 
fairly the financial position as of December 29,1996 and the results of 
operations and cash flows for the six months ended December 29, 1996 and 
December 31, 1995.  All adjustments made to the interim financial statements 
were of a normal recurring nature.

      The Company followed the same accounting policies in the preparation 
of this interim financial statement as described in the Company's annual 
filing on Form 10-K for the year ended June 30, 1996 and this filing should 
be read in conjunction with that annual report.

2.  Other Income

      Other income of $10,713 and $22,088 in the second quarter this year 
and last year, respectively, was comprised of items of a miscellaneous 
nature.  For the first six months this year, other income was $123,108; last 
year, other income totaled $66,540.  Other income this year included the 
gain on sale of some equipment.

3.  Joint Venture

      In May 1995, the Company entered into an agreement to establish a 
limited liability company in the form of a joint venture in the People's 
Republic of China.  The Company owns 50.1% of the joint venture.  The joint 
venture manufactures flexible printed circuits and commenced operations in 
September 1995.  The Company reports the financial results of this venture 
on a three month time lag. 

4.  New Accounting Standards

      In March 1995, the Financial Accounting Standards Board ("FASB") 
issued SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and 
for Long-Lived Assets to Be Disposed Of."  This statement established 
accounting standards for the impairment of long-lived assets, certain 
identifiable intangibles, and goodwill when events or changes in 
circumstances indicate that the carrying amount of the assets may not be 
recoverable.  The Company adopted SFAS No. 121 in the first quarter of 1997.  
This statement had no effect on the consolidated financial position and 
results of operations of the Company.

<PAGE>  -6-

      In October 1995, the FASB issued SFAS No. 123, "Accounting for Stock-
Based Compensation," which will be effective for the Company beginning July 
1, 1996.  SFAS No. 123 requires expanded disclosures of stock-based 
compensation arrangements with employees and encourages (but does not 
require) compensation cost to be measured based on the fair value of the 
equity instrument awarded.  Companies are permitted, however, to continue to 
apply APB Opinion No. 25, which recognized compensation cost based on the 
intrinsic value of the equity instrument awarded.  The Company will continue 
to apply APB Opinion No. 25 to its stock-based compensation awards to 
employees and directors, and will disclose the required pro forma effect on 
net income and net income per share in its June 30, 1997 consolidated 
financial statements.

<PAGE>  -7-

                   Management's Discussion and Analysis of
                Financial Condition and Results of Operations

Operations

      Total revenues in the second quarter of the current fiscal year were 
$14,068,340, an increase of approximately 20% from the $11,684,568 reported 
in the comparable period last year.  Revenues were generated primarily from 
product sales, while the remainder was derived from licensing and royalty 
fees.  The additional sales resulted from increased shipments across several 
product lines in the Flexible Circuit Products and Laminated Cable 
Divisions.  These sales have been driven by the introduction of new 
technologies to the market, as well as a ramp-up of production on a major 
telecommunication project.  For the first six months, revenues were 
$26,875,469, or 15% higher than the $23,295,978 recorded last year.  The 
same factors, as just noted, were the primary reasons contributing to the 
increase for the six month period.

      The cost of products sold as a percentage of revenue was 82%, a 
reduction from the 87% reported in the second quarter last year.  During the 
current quarter there was considerable improvement in operational 
efficiency.  Additionally, the Company was able to generate the additional 
sales without incurring a commensurate increase in manufacturing overhead 
costs.  Last year, the Flexible Circuit Products Division was also involved 
in a major contract involving new technology and equipment that had an 
impact on the cost of products sold.  The technical issues involving this 
contract have since been overcome and this program now contributes to 
income.  For the first six months, the cost of products sold as a percentage 
of revenue was 83% versus 88% last year.

      Selling, general, and administrative expenses as a percentage of 
revenue were 12% in both the second quarter and first six months this year 
as compared to 11% for the same periods last year.  The slight increase is 
associated primarily with additional expenses due to increased sales 
efforts.

      Other income of $10,713 and $22,088 in the second quarter this year 
and last year, respectively, was comprised of items of a miscellaneous 
nature.  For the first six months this year, other income was $123,108; last 
year, other income totaled $66,540.  Other income this year included the 
gain on sale of some equipment.

      Interest expense was $115,603 this quarter as compared to $83,596 last 
year.  For the first six months, interest expense was $220,533 versus 
$153,218 last year.  Additional borrowings were required to facilitate the 
Company's growth.  These monies were used to purchase equipment, to 
partially finance its investment in Parlex (Shanghai), a chinese joint 
venture, and to finance its additional working capital requirements.

      The above factors resulted in income before income taxes of $753,360 
and $1,068,596 for the second quarter and first six months, respectively.  
This compares to $147,363 in the second quarter and $186,136 for the first 
six months last year.

<PAGE>  -8-

      The Company's effective tax rate was 38% for both the second quarter 
and first six months.  This compares to 41% and 40% for the second quarter 
and first six months, respectively, last year.

      After providing for taxes and recognizing the minority interest in the 
chinese joint venture, the Company's net income was $557,865 and $746,277 
for the current quarter and first six months, respectively.  This compares 
to $90,553 and $114,626 to the respective time periods last year.

Liquidity and Capital Resources

      The Company is expecting further growth.  The anticipated internally 
generated cash flow, together with the lines of credit described below, 
should be sufficient to accommodate the Company's immediate needs.

      In December 1995, the Company negotiated a $5,000,000 unsecured line 
of credit under its revolving credit facility that expires December 31, 
1997,  At December 29, 1996 the unused commitment amounted to $475,000, 
inclusive of the Company's guarantee of $500,000 borrowed by the chinese 
joint venture.

      In October 1996, the Company received an additional unsecured line of 
credit of $2,000,000 to be used exclusively for the purchase of capital 
equipment.  The Company may borrow monies up to $2,000,000 under a revolving 
credit facility through October 1997.  In December 1997, the line converts 
to a term loan arrangement.  As of December 29, 1996, no monies were owed 
under this line.

      Deferred compensation payments cannot presently be determined.  
Amounts, if any, which may be paid within one year are not material and 
should have little impact upon the Company's cash position.

"Safe Harbor" Statement Under the Private Securities
 Litigation Reform Act of 1995

      This report contains certain forward-looking statements.  The 
Company's actual results of operations may differ significantly from those 
contemplated by such forward-looking statements as a result of various 
factors beyond its control, including, but not limited to, economic 
conditions in the electronics industry, particularly in the principal 
industry sectors served by the Company, changes in customer requirements and 
in the volume of sales to principal customers, competition and technological 
change.

<PAGE>  -9-


                         PART II - OTHER INFORMATION

      Items 4  Submission of Matters to a Vote of Security Holders

      (a)    The registrant's Annual Meeting of Shareholders was held
             December 3, 1996.

      (b)    At the Annual Meeting, shareholders elected the following
             Class II directors whose terms expire in 1999:

<TABLE>
<CAPTION>
                                                         Withheld
                                         For             Authority
                                         ---             ---------

             <S>                         <C>             <C>
             M. Joel Kosheff             2,042,450       8,900
             Peter J. Murphy             2,042,515       8,835
</TABLE>

             The following other directors' respective terms of office 
             continued in effect after the meeting:

                        Continuing Class I Directors
                       Continuing in Office until 1998

                               Richard W. Hale
                               Lester Pollack
                           Benjamin M. Rabinovici

                       Continuing Class III Directors
                       Continuing in Office until 1997

                             Herbert W. Pollack
                             Sheldon A. Buckler

      (c)    No other votes were submitted to the security holders.

<PAGE>  -10-


                                 SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, 
the Registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.


                                       PARLEX CORPORATION

                                       /s/ PETER J. MURPHY
                                           Peter J. Murphy
                                           President

                                       /s/ STEVEN M. MILLSTEIN
                                           Steven M. Millstein
                                           Vice President of Finance

                                       February 12, 1997
                                       Date

<PAGE>  -11-