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 June 30, 1996

[   ]    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 August 14, 1996 there were  outstanding  1,491,566 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
                           June 30, 1996 (Unaudited)

                           Statements of Earnings
                           Three and six months ended
                           June 30, 1996 and 1995 (Unaudited)

                           Statements of Cash Flows
                           Six months ended
                           June 30, 1996 and 1995 (Unaudited)

                           Condensed Notes to Financial
                           Statements (Unaudited)

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



Part II                      Other Information


<PAGE>



                                     Part I
                              Financial Information

Item 1.      Financial Statements

                            TELEBYTE TECHNOLOGY, INC.
                                 BALANCE SHEETS
                                                       June 30, 1996
                                                     --------------------
ASSETS                                                  (unaudited)

CURRENT ASSETS
             Cash & cash equivalents                    $       414,287
             Accounts receivable, less
               allowances for doubtful accounts                 525,377
             Inventory                                        1,151,469
             Prepaid expenses                                   109,024
             Deferred Income Taxes                               80,000
                                                      --------------------
             TOTAL CURRENT ASSETS                             2,280,157

             PROPERTY, PLANT AND EQUIPMENT, less
               accumulated depreciation and amortization      1,180,085

             OTHER ASSETS                                        45,452
                                                       --------------------
                                                         $    3,505,694
                                                       ====================

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
             Accounts payable                           $       286,834
             Accrued expenses                                    94,499
             Current maturities of long-term debt                46,252
                                                                               
             TOTAL CURRENT LIABILITIES                          427,585

LONG-TERM DEBT, less current maturities                       1,017,694

SHAREHOLDERS' EQUITY
             Common stock, par value $.01 per share
               1,636,566 issued and 1,491,566 outstanding        16,366
             Capital in excess of par value                   2,751,988
             Accumulated deficit                               (613,706)
             Less treasury stock, at cost,
               (145,000 shares)                                 (94,233)
                                                        --------------------
                                                              2,060,415
                                                        --------------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY               $    3,505,694
                                                        ====================
    
    The accompanying notes are an integral part of this financial statement.


<PAGE>



                            TELEBYTE TECHNOLOGY, INC.
                             STATEMENTS OF EARNINGS
                                   (Unaudited)

                         
                           Three Months                    Six Months
                           Ended June 30,                Ended June 30,        
                      -------------------------  -------------------------------
                          1996           1995           1996             1995
                      ----------    -----------   -------------  ---------------

NET SALES            $   965,056    $ 1,010,590   $   1,904,457   $    1,895,522

COST OF SALES            424,460        437,033         861,146          818,696
                      ----------   ------------   -------------   --------------
GROSS PROFIT             540,596        573,557       1,043,311        1,076,826
                      ----------   ------------   -------------   --------------

OPERATING EXPENSES
Research & development    65,009         76,021         124,412          144,059
Selling, G & A           459,114        443,568         914,202          841,813
                      ----------   ------------   -------------   --------------
                         524,123        519,589       1,038,614          985,872
                     -----------   ------------   -------------   --------------

Operating Income          16,473         53,968           4,697           90,954
                     -----------   ------------   -------------   --------------

OTHER INCOME (EXPENSE)
    Rental Income         12,049         12,049          24,098           24,098
    Interest Income        2,890          4,562           6,119            9,562
    Interest Expense     (28,335)       (28,980)        (57,734)        (56,901)
                     ------------  -------------  --------------   -------------

Income before taxes        3,077         41,599         (22,820)          67,713

Provision for taxes            0          1,300               0            2,300
                     ------------  --------------  -------------   -------------

NET INCOME (LOSS)       $  3,077      $  40,299      $  (22,820)       $  65,413
                     ============  ==============  =============   =============

NET INCOME (LOSS)
PER SHARE               $   --        $    0.03      $   (0.015)       $    0.04
                     ============  ==============  =============   =============
          
Average number 
of shares              1,491,566      1,511,566       1,491,566        1,511,566
                     ============  ==============  =============   =============

     The accompanying notes are an integral part of this financial statement



<PAGE>


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


                                                          Six Months
                                                         Ended June 30,
                                                  ------------------------------
                                                     1996               1995
                                                  ------------       -----------
CASH FLOWS FROM OPERATING ACTIVITIES

Net (Loss) Income                                  $  (22,820)       $   65,413
Adjustments to reconcile net income (loss) to
  net cash used in operating activities:
             Depreciation and amortization             43,650            25,650
             Decrease (increase) in assets:
               Accounts receivable                    (60,389)          (98,736)
               Inventories                           (187,565)           53,542
               Prepaid expenses and other             (19,870)           51,334
               Increase in liabilities:
               Accounts payable                       166,550            55,813
               Accrued expenses                       (53,707)           15,440
                                                    ----------       -----------
Net cash (used in) provided in
  operating activities                               (134,151)          168,456
                                                    ----------       -----------

CASH FLOWS FROM INVESTING ACTIVITIES
  Cash was paid for:
             Property and equipment                    25,273            60,605
                                                    ----------       -----------

Net cash used in investing activities                 (25,273)          (60,605)
                                                    ----------       -----------

CASH FLOWS FROM FINANCING ACTIVITIES
  Cash received from:
            Financing capital assets
                                                                         26,257 
Cash was used for:
             Principal payments of long-term debt      27,467            26,786
             Purchase treasury stock                    8,288
                                                    ----------       -----------
Net cash used in financing activitiese                (35,755)             (529)
                                                   -----------       -----------
Net increase (decrease) in cash and
  cash equivalents                                   (195,179)          107,322
Cash and cash equivalents at
  beginning of period                                 609,466           439,377
                                                    ----------        ----------
Cash and cash equivalents at
  end of period                                    $  414,287        $  546,699
                                                   ===========       ===========

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



<PAGE>


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

1.     CONDENSED FINANCIAL STATEMENTS

The balance  sheet as of June 30, 1996,  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, 1996 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, 1995.  The results of operations for the period ended June 30, 1996
are not necessarily indicative of the operating results for the full year.

<PAGE>


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

RESULTS OF OPERATIONS

Sales for the second  quarter  ended June 30,  1996  decreased  4.5% to $965,056
compared to sales of $1,010,590  for the same period in 1995.  Sales for the six
months  ended  June 30,  1996 was  $1,904,457  compared  to  $1,895,522  for the
comparable period of 1995.

Cost of sales for the  second  quarter  of  $424,460  or 44% of sales  increased
compared  to  $437,033  or 43.2% of sales  during the same  period in 1995.  The
slight decrease in the Company's gross profit margin was primarily a function of
product mix.

Selling,  general and administrative expenses of $459,114 for the second quarter
ended June 30, 1996  increased  compared to $443,568 for the same period in 1995
and  $455,088  in the first  quarter of 1996.  During the  second  quarter,  the
Company  continued its aggressive  marketing  campaign in an effort to stimulate
sales.  Activities  included  attendance  at three  (3)  major  trade  shows and
increased levels of print media advertisement.

Research and development  expenses  decreased to $65,009 compared to $76,021 for
the second quarter of 1995. During the second quarter, the Company continued its
development  of several  advanced  data  communications  products.  The first of
these,  an  HDSL  (High  Datarate  Subscriber  Line)  modem  is  expected  to be
introduced  in the fourth  quarter  of 1996.  In  addition,  the  Company  began
development  of a new  G.703  interface  converter,  which  it also  expects  to
introduce in the fourth quarter of 1996. The G.703 protocol  operates at a speed
of 64Kbps.  It is very  popular in Europe  and is  starting  to be used in other
countries of the world.

Interest  income  decreased to $2,890 during the second quarter of 1996 compared
to $4,562 for the same period of 1995 and $3,229 for the first  quarter of 1996.
The  decrease is due  primarily to the lower cash on deposit and lower yields at
Merrill Lynch.  During the second quarter of 1996, the Company had rental income
of $12,049,  which was in line with the comparable quarter in 1995 and the first
quarter of 1996. Net income  decreased to $3,077 for the three months ended June
30,  1996,  compared  to $41,427  for the same  period in 1995.  The net loss of
$22,820 for the six month ended June 30, 1996,  contrast  with the net income of
$67,713  during  the same  period  in 1995.  The  decline  in net  income is due
primarily  to  higher  selling  expenditures  which  the  Company  believes  are
necessary to develop future sales and be competitive.

LIQUIDITY AND CAPITAL RESOURCES

Net cash used in operating activities for the six months ended June 30, 1996 was
$134,151  compared to net cash  provided  by of $168,456  for the same period in
1995.  This change is due  primarily to higher  levels of inventory and accounts
receivable. Working capital decreased to $1,852,572 at June 30, 1996, a decrease
of $39,262 from December 31 1995.  The current ratio at June 30, 1996  decreased
to 5.3 to 1 compared to 7.0 to 1 at December 31, 1995.  The Company  renewed its
$1,000,000  line of credit with  Merrill  Lynch  effective  July 1, 1996 for one
year.  The Company has no amounts  outstanding  under the line of credit at this
time.  The  Company  considers  it's  working  capital  to be  adequate  to fund
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.
                                             (Registrant)

Dated:    August 14, 1996                    By:
                                             Joel A. Kramer
                                             President, Chief Executive Officer
                                             and Chief Financial Officer