United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   FORM 10-QSB

[X] Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934
For the quarter ended March 31, 1997

[ ] Transition  Report Under Section 13 or 15(d) of the Securities  Exchange Act
of 1934

For the transition period from                        to

Commission File Number:             0-11883

                           TELEBYTE TECHNOLOGY, INC.
         (Exact name of registrant as specified in its charter)

Nevada                                                             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)                              (Zip Code)

Registrant's Telephone Number, including Area Code:           (516) 423-3232

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Securities  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 May 8, 1997 there were outstanding  1,481,766 shares of Common Stock, $.01
par value.

Transitional Small Business Disclosure Format (check one);

                           Yes                       No       X


<PAGE>




                            TELEBYTE TECHNOLOGY, INC.

                                      INDEX

Part I            Financial Information

         Item 1.  Financial Statements

                           Balance Sheets
                           March 31, 1997 (Unaudited)

                           Statements of Operations
                           Three months ended
                           March 31, 1997 and 1996 (Unaudited)

                           Statements of Cash Flows
                           Three months ended
                           March 31, 1997 and 1996 (Unaudited)

                           Condensed Notes to Financial
                           Statements (Unaudited)

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

Part II

         Other Information


<PAGE>



Part I   Financial Information
Item 1. Financial Statements

                            TELEBYTE TECHNOLOGY, INC.
                                  BALANCE SHEET

                                                           MARCH 31, 1997
                                                             (unaudited)
ASSETS

CURRENT ASSETS
             Cash & cash equivalents                     $       418,365
             Accounts receivable, less
                 allowances for doubtful accounts                526,204
             Inventory                                         1,134,050
             Prepaid expenses                                    143,753
             Deferred income taxes                                80,000
                                                    --------------------
             TOTAL CURRENT ASSETS                              2,302,372

PROPERTY, PLANT AND EQUIPMENT, less
  accumulated depreciation and amortization                    1,164,600

OTHER ASSETS                                                      42,302
                                                    --------------------
                                                          $    3,509,274
                                                    ====================

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
             Accounts payable                            $       359,674
             Accrued expenses                                    112,716
             Current maturities of long-term debt                 66,023
                                                    --------------------
             TOTAL CURRENT LIABILITIES                           538,413

LONG-TERM DEBT, less current maturities                          962,626

SHAREHOLDERS' EQUITY
             Common stock, par value $.01 per share
               1,636,566 issued and 1,481,766 outstanding         16,366
             Capital in excess of par value                    2,751,988
             Accumulated deficit                                (659,026)
             Less treasury stock, at cost,
               (154,800 shares)                                 (101,093)
                                                     --------------------
                                                               2,008,235
                                                     --------------------
TOTAL LIABILITIES AND SHAREHOLDER'S' EQUITY               $    3,509,274
                                                     ====================
         The accompanying notes are an integral part of these financial
                                  statements.

<PAGE>


                            TELEBYTE TECHNOLOGY, INC.
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

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

                                               1997                  1996
                                       -----------------    --------------------

NET SALES                                  $1,031,083         $       939,401

COST OF SALES                                 464,970                 436,686
                                       -----------------    --------------------
GROSS PROFIT                                  566,113                 502,715
                                       -----------------    --------------------

OPERATING EXPENSES
      Research and development                 59,428                  59,403
      Selling, general and administrative     593,546                 455,088
                                       -----------------    --------------------
                                              652,974                 514,491
                                       -----------------    --------------------

Operating Loss                                (86,861)                (11,776)
                                       -----------------    --------------------

OTHER INCOME (EXPENSE)
    Rental Income                              12,049                  12,049
    Interest Income                             3,342                   3,229
    Interest Expense                          (27,125)                (29,399)
                                       -----------------    --------------------

       Income (Loss) before income taxes      (98,595)                (25,897)

Provision for income taxes                        0                       0
                                       -----------------    --------------------

      NET LOSS                            $    (98,595)       $        (25,897)
                                       =================    ====================

      NET LOSS PER SHARE                  $     (0.07)        $        (0.02)
                                       =================    ====================

Average number of shares                     1,481,766               1,491,566
                                       =================    ====================

             The  accompanying  notes are an  integral  part of these  financial
statements.

<PAGE>


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

                                                    Three Months
                                                   Ended March 31,
                                      

                                               1997                  1996
                                       -----------------    --------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income                                $    (98,595)       $        (25,897)
Adjustments to reconcile net income to
  net cash used in operating activities:
             Depreciation and amortization      20,883                  21,825
             Decrease (increase) in assets:
               Accounts receivable            (112,251)                (95,009)
               Inventories                     (55,939)                (88,552)
               Prepaid expenses and other      (63,620)                (43,936)
               Increase in liabilities:
               Accounts payable                161,651                 119,905
               Accrued expenses                 17,973                (37,418)
                                       -----------------    --------------------
Net cash used in operating activities         (129,898)               (149,082)

CASH FLOWS FROM INVESTING ACTIVITIES
  Cash was paid for:
             Property and equipment             15,448                   6,251
                                       -----------------    --------------------

Net cash used in investing activities          (15,448)                 (6,251)
                                       -----------------    --------------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Cash was used for:
  Puchase of treasury stock                          0                   8,288
      Principal payments of long-term debt      20,010                  13,991
                                       -----------------    --------------------
Net cash used in financing activities          (20,010)                (22,279)
                                       -----------------    --------------------
Net decrease in cash and cash equivalents     (165,356)               (177,612)
Cash and cash equivalents at
beginning of period                          583,721                 609,466
                                       -----------------    --------------------
Cash and cash equivalents at
  end of period                            $   418,365         $       431,854
                                       =================    ====================

         The accompanying notes are an integral part of these financial
                                  statements.


<PAGE>



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

1.       CONDENSED FINANCIAL STATEMENTS

The balance sheet as of March 31, 1997,  the statement of earnings for the three
months then ended and the  statements  of cash flows for the three month  period
then ended have been prepared by the Company  without  audit.  In the opinion of
management,  all adjustments  (which include only normal recurring  adjustments)
necessary to present  fairly the financial  position,  results of operations and
cash flows at March 31, 1997 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
be 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, 1996. The results of operations for the period ended March 31, 1997
are not necessarily indicative of the operating results for the full year.


2.       NEW ACCOUNTING PRONOUNCEMENT

In February,  1997, the Financial Accounting Standards Board issued Statement of
Financial  Accounting  Standards No. 128. Earnings per share, which is effective
for  financial  statements  for both  interim and annual  periods  ending  after
December 15, 1997.  Early  adoption of the new  standard is not  permitted.  The
standard  eliminates  primary and fully diluted  earnings per share and requires
presentation of basic and diluted earnings per share together with disclosure of
how the per share  amounts were  computed.  The adoption of this new standard is
not expected to have a material  impact on the  disclosure of earnings per share
in the financial statements.

<PAGE>


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

(Statements in this Form 10-QSB that are not descriptions of historical fact are
forward-looking  statements that are subject to risks and uncertainties.  Actual
results could differ materially from those currently anticipated due to a number
of factors, including risks relating to competition; and other factors impacting
the data communications industry.)


RESULTS OF OPERATIONS
Sales during the first quarter ended March 31, 1997 increased 9.8% to $1,031,083
compared to sales of $939,401 for the same period in 1996.  The increased  sales
can be primarily attributed to the increased promotional  activities which began
during the first quarter of 1996 and has continued  through the first quarter of
1997.

Cost of sales for the first  quarter of $464,970 or 45.1% of sales  increased in
terms of dollars,  but  decreased as a  percentage,  compared to the $436,686 or
46.5% of sales  during the same  period in 1996.  The  increased  profit  margin
during the first quarter of 1997 is due primarily to product mix.

Selling,  general and administrative  costs of $593,546 increased as compared to
$455,088  during the first quarter of 1996. The increase of $138,458  during the
first  quarter  reflects  the  Company's  decision  to  continue  expanding  its
marketing efforts which began during the first quarter of 1996. During the first
quarter of 1997 the  Company  distributed  over  200,000  product  catalogs  and
expects to mail an  additional  200,000  by the end of 1997.  In  addition,  the
Company  initiated an aggressive  sales program during the first quarter of 1997
which  included  several  visits to major  customers in the United  States in an
attempt to increase OEM (original equipment manufacturer) business.

Research and  development  expenses of $59,428  increased  slightly  compared to
$59,403  during the same quarter in 1996.  Engineering  efforts during the first
quarter  focused on the  development of several new products in the area of opto
isolation. The first supports synchronous data between a personal computer and a
satellite receiver.  Opto isolation places an optical barrier between interfaces
to prevent ground loops,  high frequency  interference  and surges from damaging
sensitive equipment.  Another Opto Isolator design does not require any external
power sources and provides  4000 VAC of isolation.  This product was designed to
work in a medical environment where ground loops and surges can damage equipment
or  harm  patients.  These  designs  were  initiated  due to  anticipated  large
potential demand for these products.

Interest income increased  marginally to $3,342 during the first quarter of 1997
compared to $3,229 for the same period in 1996. During the first quarter of 1997
the Company had rental income of $12,049  which was in line with the  comparable
quarter of 1996.

The net loss of  $98,595  or $.07 per  share for the  first  quarter  of 1997 is
compared  to the net loss of  $25,897  or $.02 per share in the same  quarter in
1996.  The net loss is due primarily to the increased  expenditures  directed at
selling and marketing efforts as discussed above.




LIQUIDITY AND CAPITAL RESOURCES
Net cash  used in  operating  activities  decreased  to  $129,898  for the first
quarter of 1997 from  $149,082  for the same period of 1996.  This change is due
primarily to higher levels of inventory and the increase in accounts receivable.
Working  capital  decreased  to  $1,763,959  at March 31,  1997,  a decrease  of
$112,591 from December 31, 1996.  The current ratio at March 31, 1997  decreased
to 4.3:1  compared to 6.2:1 at December  31,  1996.  The Company has a revolving
line of credit of $1,000,000  with Merrill Lynch that expires June 30, 1997. The
Company  expects  to renew the  credit  facility  in July of 1997.  The  Company
considers it's working capital to be adequate to fund its presently  foreseeable
working capital requirements.





<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 - None

                           (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 TECHNOLOGY, INC.



By:      __________\s\_________________
         Joel A. Kramer, President and
         Chairman of the Board
         (Principal Executive Officer)


By:      ___________\s\________________
         Michael Breneisen, Vice President of Finance
         (Principal Financial and Accounting Officer)


Date:    May 8, 1997