United States
                       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, 1999

[ ]      TRANSITON REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934
               For the transition period from     to

         Commission File Number:            0-11883

                                 TELEBYTE, INC.

        (Exact name of small business issuer as specified in its charter)

Delaware                                              11-2510138
(State or other jurisdiction of                      (IRS Employer
incorporation or organization)                        Identification No.)

270 Pulaski Road, Greenlawn, New York                        11740
---------------------------------------------------------------------
                    (Address of principal executive offices)

_____________________________(516) 423-3232_______________________________
                           (Issuer's telephone number)

_____________________________Telebyte Technology, Inc._________________________
                          (Former name, former address
              and former fiscal year, if changed since last report)

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

                           Yes      X                No

As of August 16, 1999 there were  outstanding  1,248,631 shares of Common Stock,
$.01 par value.

Transitional Small Business Disclosure Format (check one);

                           Yes                       No       X



<PAGE>





                                 TELEBYTE, INC.
                      (FORMERLY TELEBYTE TECHNOLOGY, INC.)

                                      INDEX

Part I            Financial Information

         Item 1.           Financial Statements

                           Balance Sheet
                           June 30, 1999 (Unaudited)

                           Statements of Earnings
                           Three and six months ended
                           June 30, 1999 and 1998 (Unaudited)

                           Statements of Cash Flows
                           Six months ended
                           June 30, 1999 and 1998 (Unaudited)

                           Condensed Notes to Financial
                           Statements (Unaudited)

         Item 2.           Management's Discussion and
                           Analysis or Plan of Operation.


Part II           Other Information


<PAGE>

Part I        Financial Information
Item 1.       Financial Statements


                                 TELEBYTE, INC.
                      (FORMERLY TELEBYTE TECHNOLOGY, INC.)
                                  BALANCE SHEET
                                  June 30, 1999
                                   (Unaudited)
<TABLE>
<CAPTION>

ASSETS

<S>                                                                                    <C>
CURRENT ASSETS
  Cash and cash equivalents                                                      $    119,300
  Accounts receivable, less
    allowance for doubtful accounts                                                   765,662
  Inventory                                                                         1,616,187
  Prepaid expenses                                                                     90,439
  Deferred income taxes                                                                50,000
                                                                                 --------------
TOTAL CURRENT ASSETS                                                                2,641,588

PROPERTY, PLANT AND EQUIPMENT, less
  accumulated depreciation and amortization                                         1,056,437

OTHER ASSETS                                                                          322,863
                                                                                 --------------
                                                                                 $  4,020,888
                                                                                 ==============

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
  Accounts payable                                                               $    397,931
  Accrued expenses                                                                    233,399
  Borrowings under line-of credit                                                     174,234
  Current maturities of long-term debt                                                 69,359
                                                                                 --------------
TOTAL CURRENT LIABILITIES                                                             874,923

LONG-TERM BORROWINGS UNDER LINE-OF CREDIT                                             212,749


LONG-TERM DEBT, less current maturities                                               827,849

SHAREHOLDERS' EQUITY
  Common stock - $.01 par value; 9,000,000 shares
    authorized; 1,666,066 shares issued and 1,248,631 shares
    outstanding                                                                        16,660
  Capital in excess of par value                                                    2,764,821
  Retained earnings                                                                   352,409
  Treasury stock - 417,435 shares at cost                                          (1,028,523)
                                                                                 --------------
                                                                                    2,105,367
                                                                                 --------------
TOTAL LIABILITIES AND SHAREHOLDERS'EQUITY                                        $  4,020,888
                                                                                 ==============

    The accompanying notes are an integral part of this financial statement.
</TABLE>

<PAGE>





                                 TELEBYTE, INC.
                      (FORMERLY TELEBYTE TECHNOLOGY, INC.)
                             STATEMENTS OF EARNINGS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                         Three Months                    Six Months
                                                        Ended June 30,                 Ended June 30,

                                                     1999           1998              1999            1998
                                               ------------- ---------------- ---------------  --------------

<S>                                                   <C>                      <C>                <C>                   <C>
NET SALES                                       $  1,362,966  $    1,406,103     $  2,728,246     $ 2,626,919
COST OF SALES                                        620,941         673,450        1,299,408       1,235,756
                                               ------------- ---------------- ---------------  --------------
GROSS PROFIT                                         742,025         732,653        1,428,838       1,391,163
                                               ------------- ---------------- ---------------  --------------
OPERATING EXPENSES
  Selling, general and
  administrative                                     504,955         622,437          935,640       1,022,088

  Research and development                           149,768         132,580          278,887         228,432
                                               -------------  ---------------  --------------   --------------
                                                     654,723         755,017        1,214,527       1,250,520
                                               -------------  ---------------  --------------   --------------

Operating Income (Loss)                               87,302         (22,364)         214,311         140,643
                                               -------------  ---------------  --------------   --------------

OTHER INCOME (EXPENSE)
  Rental Income                                       12,049          12,049           24,098          24,098
  Interest Income                                        313           5,409            4,995          11,879
  Interest Expense                                   (30,525         (24,610)         (60,889         (53,116)
                                               -------------  ---------------  --------------   --------------
   Earnings before income taxes                       69,139         (29,516)         182,515         123,504

  Provision for income taxes                          25,000               0           70,000           2,000
                                               -------------  ---------------  --------------   --------------
NET EARNINGS (LOSS)                             $     44,139  $      (29,516)    $    112,515     $   121,504
                                               =============  ===============  ==============   ==============
Earnings (Loss) per common share:
  Basic                                         $       0.04  $        (0.02)    $       0.09     $      0.08
                                               =============  ===============  ==============   ==============
  Diluted                                       $       0.03  $        (0.02)    $       0.09     $      0.08
                                               =============  ===============  ==============   ==============

Shares used in computing earnings per common
share:
  Basic                                            1,248,631       1,504,438        1,275,911       1,498,333
                                               =============  ===============  ==============   ==============
  Diluted                                          1,276,061       1,504,438        1,303,342       1,549,983
                                               =============  ===============  ==============   ==============

</TABLE>
     The accompanying notes are an integral part of this financial statement


<PAGE>

                                 TELEBYTE, INC.
                      (FORMERLY TELEBYTE TECHNOLOGY, INC.)
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                          Six Months
                                                                                        Ended June 30,

                                                                                1999                    1998
                                                                        ---------------------   ---------------------
<S>                                                                             <C>                      <C>
CASH FLOWS FROM OPERATING ACTIVITIES

  Net earnings                                                             $    112,515            $    121,504
  Adjustments to reconcile net earnings to
    net cash provided by operating activities:
      Depreciation and amortization                                              75,388                  52,565
      Decrease (increase) in assets:
        Accounts receivable                                                    (117,195)                106,790
        Inventories                                                            (194,213)               (263,381)
        Prepaid expenses and other                                               (7,436)                (64,381)
        Increase (decrease) in liabilities:
        Accounts payable                                                         45,922                 (18,121)
        Accrued expenses                                                         96,728                   1,512
                                                                        ---------------------   ---------------------
      Net cash provided by (used in) operating activities                        11,709                 (63,512)
                                                                        ---------------------   ---------------------

CASH FLOWS FROM INVESTING ACTIVITIES
    Additions to property and equipment                                         (42,292)                (25,846)
    Purchase of non-compete agreement                                          (203,124)
                                                                        ---------------------   ---------------------
      Net cash used in investing activities                                    (245,416)                (25,846)
                                                                        ---------------------   ---------------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Principal payments under mortgage obligation                                  (30,126)                (24,686)
  Purchase of treasury stock                                                   (927,430)
  Net borrowings under line-of credit agreement                                 386,983
  Proceeds from exercise of stock options                                         3,950                   8,322
                                                                        ---------------------   ---------------------
      Net cash used in financing activities                                    (566,623)                (16,364)
                                                                        ---------------------   ---------------------

      Net decrease in cash and cash equivalents                                (800,330)               (105,722)

Cash and cash equivalents at beginning of period                                919,630                 730,284
                                                                        ---------------------   ---------------------

Cash and cash equivalents at end of period                                 $    119,300            $    624,562
                                                                        =====================   =====================
</TABLE>

    The accompanying notes are an integral part of this financial statement.


<PAGE>



                                 TELEBYTE, INC.
                      (FORMERLY TELEBYTE TECHNOLOGY, INC.)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

1.      CONDENSED FINANCIAL STATEMENTS

The balance  sheet as of June 30, 1999,  the statement of earnings for the three
and six  months  then ended and the  statements  of cash flows for the six month
period  then ended have been  prepared  by the  Company  without  audit.  In the
opinion of management,  all  adjustments  (which  include only normal  recurring
accrual adjustments) necessary to present fairly the financial position, results
of operations and cash flows at June 30, 1999 have been made.

Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with generally accepted accounting  principles
have been condensed or omitted. It is suggested that these financial  statements
are read in conjunction with the financial statements and notes thereto included
in the  Company's  annual  report to  shareholders  for the  fiscal  year  ended
December 31, 1998.  The results of operations for the period ended June 30, 1999
are not necessarily indicative of the operating results for the full year.

2.      RELATED PARTY TRANSACTIONS

Effective  January 20, 1999,  then  Chairman of the Board,  President  and Chief
Executive Officer of the Company (the "Former Chairman")  resigned his positions
with the Company. However, the Former Chairman will serve as a consultant to the
Company through January 19, 2002 for an aggregate consideration of $165,000 plus
reimbursement  for certain expenses.  In addition,  the Company purchased all of
the shares of common stock of the Company  owned by the Former  Chairman and the
Former  Chairman  agreed to cancel  options to purchase  10,000 shares of common
stock of the Company  for an  aggregate  consideration  of  $1,149,455  of which
$927,430 was for such shares,  $18,901 was for the  cancellation of such options
and $203,124 was for the Former Chairman's  restrictive  covenant.  In addition,
the Former  Chairman  has agreed not to compete with the business of the Company
until  January 19, 2003 and has  released  the Company  from  certain  potential
claims relative to his previous  employment.  Further, the Company transferred a
life insurance policy maintained under the Company's deferred compensation plan,
to the Former Chairman, having a cash value of approximately $80,000.




<PAGE>



Item 2. Management's Discussion and  Analysis  or  Plan of Operation.

When used herein,  the words "believe,"  "anticipate,"  "think," "intend," "will
be," "expect" and similar expressions identify forward-looking statements within
the  meaning of the  Private  Securities  Litigation  Reform  Act of 1995.  Such
statements are not guarantees of future  performance  and involve  certain risks
and uncertainties  discussed herein,  which could cause actual results to differ
materially from those in the forward-looking  statements.  Readers are cautioned
not to place undue reliance on the forward-looking statements,  which speak only
as of the date hereof.  Readers are also urged  carefully to review and consider
the various  disclosures made by the Company which attempt to advise  interested
parties of the factors which affect the Company's business,  including,  without
limitation,  the disclosures made under the caption "Management's Discussion and
Analysis  or Plan of  Operation."  All  references  to a fiscal  year are to the
Company's fiscal year, which ends December 31.

RESULTS OF OPERATIONS

Sales during the second  quarter ended June 30, 1999  decreased 3% to $1,362,966
compared to sales of  $1,406,103  for the same period in 1998.  Sales during the
six months ended June 30, 1999  increased 4% to $2,728,246  compared to sales of
$2,626,919 for the same period in 1998.

Cost of sales for the second  quarter of  $620,941  or 45.6% of sales  decreased
compared to the $673,450 or 47.9% of sales  during the same period in 1998.  The
increased  profit margin during the second quarter of 1999 is due primarily to a
higher percent of higher profit margin products  dominating  sales in the second
quarter of 1999 as compared with the second quarter of 1998.

Selling,  general and  administrative  costs for the second  quarter of $504,955
decreased  as  compared  to  $622,437  during  the second  quarter of 1998.  The
decrease of $117,482  during the second quarter was due primarily to a reduction
in the distribution of the Company's  catalog to  approximately  75,000 catalogs
during the second quarter of 1999 compared to  approximately  200,000 during the
same period in 1998. The Company  continued its program to enhance the Company's
Internet presence during the second quarter and expects to implement the planned
enhancements during the third quarter of 1999. The decrease was also affected by
a decrease in the  Company's  sales staff  which was  implemented  at the end of
January.  This  decrease  reflects  management's  commitment  toward  moving the
Company from selling on a telephone basis to an automated Internet basis.

Research and development  expenses for the second quarter of $149,768  increased
13%,  compared to $132,580 during the same quarter in 1998. The increase was due
to the completion of the  development of the Company's  Digital  Subscriber Line
(DSL)  wireline  and loop  interference  simulators  and fiber  optic  signaling
products.

Interest income  decreased to $313 during the second quarter of 1999 compared to
$5,409 for the same period in 1998.  The  decrease  in  interest  income was due
primarily to lower levels of cash on deposit at Merrill Lynch. During the second
quarter of 1999 the Company had rental  income of $12,049 which was in line with
the comparable quarter of 1998.



<PAGE>



The effective tax rate in second  quarter of 1999 was 36 percent,  compared with
1.6 percent in same quarter in 1998.  The increase in the  effective tax rate is
primarily  due  to  the  Company's   utilization   of  its  net  operating  loss
carryforward.

The net  income of  $44,139  or $.03 per share for the  second  quarter  of 1999
increased  compared  to the net loss of  $29,516  or $.02 per  share in the same
quarter in 1998. The increase in profitability is due primarily to the decreased
selling, general and administrative expenditures.

LIQUIDITY AND CAPITAL RESOURCES

Net cash provided by operating activities for the six months ended June 30, 1999
was  $11,709  compared  to net cash used of $63,512 in the same  period of 1998.
This change is due  primarily  to an  increase  in accounts  payable and accrued
expenses.

Working capital decreased as of June 30, 1999 by $791,215 to $1,766,665 compared
with  $2,557,880  from  December  31, 1998.  The current  ratio at June 30, 1999
decreased to 3:1 compared to 5.6:1 at December 31, 1998. These decreases reflect
the use of working  capital by the Company in the purchase of treasury stock and
related  non-compete  agreement  with the former  Chairman  and Chief  Executive
Officer.

The Company has an agreement  with a financial  institution,  expiring  June 30,
2000,  which  provides  the  Company  with a line of  credit  facility  of up to
$500,000  ("Original  Facility")  based  on  eligible  accounts  receivable  and
purchased  components  and  materials  and  finished  goods  inventories  of the
Company,  as defined in the agreement.  Further,  the agreement contains certain
financial  covenants  which  require the Company to maintain a minimum  level of
tangible net worth and places  limitations  on the ratio of the Company's  total
debt to Company's  tangible net worth,  as defined in the agreement.  Borrowings
under the line of credit bear interest at the bank's  specified  prime rate plus
 .75%. The balance against this line at June 30, 1999 was $174,234.

In January 1999, the Company  secured an additional  Reducing  Revolving line of
credit  from this  institution  that  provides  for initial  borrowings  up to a
maximum of $1,000,000.  Availability under the Reducing Revolving line of credit
will  decrease  approximately  $11,900 per month and will expire  January  2006.
Borrowings  under this loan  agreement  bear  interest at the 30 Day  Commercial
Paper Rate plus 2.90%. Net borrowings under this line of credit totaled $212,749
at June 30, 1999.

The Company  believes that cash generated by the Company's  operations,  current
cash and  cash  equivalents,  and the  line of  credit  should  supply  the cash
resources to meet its cash needs for the next twelve months.

Preparation for Year 2000 Problems

The Year 2000 ("Y2K")  problem is the result of computer  programs being written
using two digits  (rather than four) to define the  applicable  year. Any of the
Company's programs that have


<PAGE>



time-sensitive  software may recognize a date using "00" as the year 1900 rather
than the Year 2000,  which could result in  miscalculations  or system failures.
The Company has instituted a Y2K compliance  program,  the objective of which is
to  determine  and  assess the risks of the Y2K  issue,  and plan and  institute
mitigating   actions  to  minimize  those  risks.  The  Company's  standard  for
compliance  requires  that for a computer  system or business  process to be Y2K
compliant, it must be designed to operate without error in date and date-related
data prior to, on and after January 1, 2000. The Company expects to be fully Y2K
compliant with respect to all significant business systems prior to December 31,
1999.

The Company's Y2K plan consists of four phases:  (1)  assessment and analysis of
"mission  critical"  systems  and  equipment;  (2)  correction  of  systems  and
equipment,  through  strategies that include the enhancement of new and existing
systems, upgrades to operating systems already covered by maintenance agreements
and modifications to existing systems; (3) testing of systems and equipment; and
(4) contingency  planning which will address possible adverse  scenarios and the
potential financial impact to the Company's results of operations,  liquidity or
financial position.


         Information Technology (IT) Systems

Information  technology systems ("IT Systems") account for much of the Year 2000
work and include all computer  systems and technology  used by the Company.  All
core  systems  have  been  assessed,  plans  are in  place,  and  work is  being
undertaken to implement  changes where  required.  The  appropriate  vendors and
suppliers  have been  contacted  as to their  Year 2000  compliance.  Management
believes  that  all  of  the  Company's  IT  systems  and  equipment  have  been
identified,  and that  approximately  80% of the  work  necessary  to make  such
systems and equipment Y2K- compliant has been finished.

The third phase of the plan, testing of the Company's IT systems, is expected to
be  completed  by the end of the third  quarter of 1999.  Testing  will  consist
largely of the purchase and use of Y2K compliance test software.  All aspects of
the  Company's  Y2K  compliance  plan  have  been and will be  performed  by the
Company's  staff, at a cost that is not believed by the Company's  management to
be material.  Management  estimates  that Y2K costs  incurred to date,  plus Y2K
costs  yet to be  incurred,  will  total  approximately  $15,000.  Y2K costs are
expensed as incurred.


         Non-IT Systems

An inventory and  assessment of all non-IT systems  (items  containing  embedded
chips, such as electronic door locks, telephones, etc.) is being undertaken. The
majority of these non-IT  systems are not  believed to be  potential  sources of
significant  disruption,  although the contingency  plans (described below) will
address non-IT Y2K failure as well as IT systems failure.


         Products

The Company has  evaluated its  currently  available  products and believes that
they are Year 2000


<PAGE>

compliant.  The Company's  currently  available  products are generally not date
sensitive,  although  the  environment  in which they operate may have Year 2000
issues not associated with the Company's  products.  The inability of any of the
Company's  products  to  operate  properly  in the Year  2000  could  result  in
increased warranty costs,  customer  satisfaction issues,  litigation,  or other
material costs and  liabilities,  which could have a material  adverse affect on
the Company, its results of operations and financial condition.

         Contingency Plans

The Company's management is in the process of developing a "worst-case scenario"
with respect to Y2K non-compliance and to develop  contingency plans designed to
minimize the effects of such scenario.  Although  management believes that it is
very unlikely that the worst-case scenario will occur, contingency plans will be
developed and will address both IT system and non-IT system failure.

In the event of Y2K- related IT system  failure,  the Company would be unable to
ship orders  because its power system would not be  functioning.  In such event,
the Company plans to use its own generators as a back-up power source.

In terms of non-IT and third-party Y2K  non-compliance,  the worst-case scenario
for the Company  would  involve the loss of supply of  component  parts or other
materials from one or more of its major suppliers. The Company has made plans to
have a 100-day supply of finished goods available if such contingency arises.

There is still  uncertainty about the broader scope of the Year 2000 issue as it
may affect the Company and third  parties that are  critical to our  operations.
For example,  lack of readiness by  electrical  and water  utilities,  financial
institutions, governmental agencies or other providers of general infrastructure
could  pose  significant  impediments  to our  ability  to carry  on our  normal
operations.  The Company intends to request assurances of Y2K readiness from its
telephone and utilities  suppliers.  However,  management has been informed that
some suppliers have either declined to provide the requested assurances, or have
limited  the  scope of  assurances  to which  they are  willing  to  permit.  If
suppliers of services  that are  critical to the  Company's  operations  were to
experience  business  disruptions  as a result of their  lack of Y2K  readiness,
their  problems could have a material  adverse affect on the financial  position
and results of operations  of the Company.  The impact of a failure of readiness
by critical suppliers cannot be estimated with confidence, and the effectiveness
of  contingency  plans to  mitigate  the  effect of any such  failure is largely
untested.  Management cannot provide an assurance that there will be no material
adverse  effects to the  financial  condition  or results of  operations  of the
Company as a result of Y2K issues.

<PAGE>


PART II -- OTHER INFORMATION


Item 1.  Legal Proceedings

         Not applicable.

Item 2.  Changes in Securities

         Not applicable.

Item 3.  Defaults Upon Senior Securities

         Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders

         Not applicable.

Item 5.  Other Information

         Not applicable.

Item 6.  Exhibits and Reports on Form 8-K

         (a)   Exhibits

               27.  Financial Data Schedule

         (b)   Reports on Form 8-K

               None


<PAGE>

                                   SIGNATURES

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

TELEBYTE, INC.



By:      \s\Kenneth S. Schneider
         -----------------------
         Kenneth S. Schneider
         Chairman of the Board
         (Principal Executive Officer)


By:      \s\Michael Breneisen
         --------------------
         Michael Breneisen, President
         (Principal Financial and Accounting Officer)


Date:    August 16, 1999

<PAGE>