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  September 30, 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 November 11, 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 Sheet
                           September 30, 1997 (Unaudited)

                           Statements of Earnings
                           Three and nine months ended
                           September 30, 1997 and 1996 (Unaudited)

                           Statements of Cash Flows
                           Nine months ended
                           September 30, 1997 and 1996 (Unaudited)

                           Notes to Condensed 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 SHEET

                                SEPTEMBER 30,1997
                                   (unaudited)

ASSETS

CURRENT ASSETS
             Cash & cash equivalents                               $    337,228
             Accounts receivable, less
               allowance for doubtful accounts                          766,442
             Inventory                                                1,157,126
             Prepaid expenses                                           112,441
             Deferred income taxes                                       80,000
                                                              ------------------
             TOTAL CURRENT ASSETS                                     2,453,237

             PROPERTY, PLANT AND EQUIPMENT, less
               accumulated depreciation and amortization              1,129,634

             OTHER ASSETS                                               176,122
                                                              ------------------
                                                                    $ 3,758,993
                                                              ==================

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
             Accounts payable                                      $    384,843
             Accrued expenses                                           120,667
             Current maturities of long-term debt                        59,013
                                                              ------------------
             TOTAL CURRENT LIABILITIES                                  564,523

LONG-TERM DEBT, less current maturities                                 939,857

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                                       (412,648)
             Less treasury stock, at cost, (154,800 shares)            (101,093)
                                                              ------------------
                                                                      2,254,613
                                                              ------------------
TOTAL LIABILITIES AND SHAREHOLDER'S' EQUITY                         $ 3,758,993
                                                              ==================
The  accompanying  notes are an  integral  part of these financial statements.



<PAGE>




                            TELEBYTE TECHNOLOGY, INC.
                             STATEMENTS OF EARNINGS
                                   (Unaudited)

                                  
                                                          
                                                  
                                 Three Months                 Nine Months  
                              Ended September 30,          Ended September 30,
                                                
                         -------------------------      ------------------------

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

NET SALES                 $  1,480,196  $ 1,265,191   $ 3,739,257   $ 3,169,648

COST OF SALES                  683,967      601,538     1,713,642     1,462,684
                         -------------  -----------   -----------   ------------
GROSS PROFIT                   796,229      663,653     2,025,615     1,706,964
                         -------------  -----------   -----------   ------------

OPERATING EXPENSES
  Research and development      90,433       53,213       234,464       177,625
  Selling, G&A                 532,028      419,524     1,601,610     1,333,726
                         -------------  -----------   -----------   ------------
                               622,461      472,737     1,836,074     1,511,351
                         -------------  -----------   -----------   ------------

Operating Income               173,768      190,916       189,541       195,613
                         -------------  -----------   -----------   ------------

OTHER INCOME (EXPENSE)
    Rental Income               12,048       12,048        36,146        36,146
    Interest Income              2,924        3,088         9,119         9,207
    Interest Expense           (29,911)     (28,444)      (84,523)      (86,178)
                         --------------  -----------   -----------  ------------

 Income before income taxes    158,829      177,608       150,283       154,788

Provision for income taxes       2,500        2,500         2,500         2,500
                         --------------  -----------   ----------   ------------

      NET INCOME         $     156,329    $ 175,108     $ 147,783    $  152,288
                        ===============  ===========   ===========  ============

      NET INCOME PER SHARE   $    0.11    $    0.12     $     .10    $     0.10
                                                                          
                        ===============  ===========   ===========  ============

Average number of shares     1,481,766    1,489,932     1,481,766     1,492,688
                        ===============  ===========   ===========  ============

     The accompanying notes are an integral part of this financial statement



<PAGE>


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


                                                    Nine Months
  
                                                  Ended September 30,
                                          ----------------------------------

                                                 1997               1996
                                          --------------      ---------------
CASH FLOWS FROM OPERATING ACTIVITIES

Net Income                                 $    147,783          $    152,288
Adjustments to reconcile net income to
  net cash used in operating activities:
             Depreciation and amortization       67,450                65,475
             Increase in assets:
               Accounts receivable             (352,489)             (200,525)
               Inventories                      (79,015)             (117,207)
               Prepaid expenses and other      (166,128)              (28,454)
               Increase (decrease)  in liabilities:
               Accounts payable                 186,820                82,780
               Accrued expenses                  25,924               (28,168)
                                           --------------      ---------------
Net cash used in operating activities          (169,655)              (73,811)
                                           --------------      ---------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Cash was paid for:
             Property and equipment             (27,049)              (36,616)
                                           --------------      ---------------
Net cash used in investing activities           (27,049)              (36,616)
                                           --------------      ---------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Cash was used for:
         Purchase Treasury Stock                       0              (15,148)
         Principal payments of long-term debt    (49,789)             (37,787)
                                           --------------      ---------------
Net cash used in financing activities            (49,789)             (52,935)
                                           --------------      ---------------
Net decrease in cash and cash equivalents       (246,493)            (163,362)
Cash and cash equivalents at
  beginning of period                             583,721             609,467
                                          ---------------      ---------------
Cash and cash equivalents at
  end of period                              $    337,228      $      446,105
                                          ===============      ===============

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



<PAGE>



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

1.       CONDENSED FINANCIAL STATEMENTS

The balance  sheet as of September  30, 1997,  the statement of earnings for the
three and nine months then ended and the  statements  of cash flows for the nine
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 September 30, 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  September 30,
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 and Results
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.

SIGNIFICANT EVENTS

During the third quarter,  the Company  announced that it was the recipient of a
contract  for  $288,000  for  custom  lightning  protection  equipment  from its
distributor,  Graybar  Electric.  This  order  emanated  from  Motorola,  who is
building systems for the U.S. Air Force. This order is expected to be shipped in
its entirety in the fourth  quarter.  It is believed that this is the first of a
multi-year procurement for this equipment.

In addition,  the Company has  announced  that orders for the third quarter were
the best for any  quarter  in the  Company's  history.  New orders for the third
quarter ended September 30, 1997 were $2,029,000,  as compared to $1,260,000 for
the comparable  period of 1996. In addition to the $288,000  Graybar order,  the
quarter also  included  orders for custom  products from Intel,  IBM,  Hill-Rom,
Lucent and Acuson,  and orders for standard  products from GTE Supply,  Alcatel,
Pair Gain, So. California Edison, Sprint, U.S. Robotics and others.

RESULTS OF OPERATIONS

Sales for the third quarter ended September 30, 1997 increased 17% to $1,480,196
compared to sales of $1,265,191 for the comparable  period in 1996, and sales of
$1,227,978  for the  second  quarter  of 1997.  The  higher  sales  level can be
attributed to continued success of the Company's  decision to expand promotional
activities, which began during the first quarter of 1996.

Cost of sales for the third  quarter  of  $683,967  or 46.2% of sales  decreased
compared  to  $601,538  or 47.5% of sales  during the same  period in 1996.  The
increase  in the  Company's  gross  profit  margin was  primarily  a function of
product mix.

Selling,  general and administrative  expenses of $532,028 for the third quarter
ended September 30, 1997 increased 27% compared to $419,524 for the same quarter
in 1996 and increased  12% compared to $476,036 for the second  quarter of 1997.
Such  increases  are a  result  of the  Company's  increase  in its  promotional
activities in an effort to boost sales.  During the third  quarter of 1997,  the
Company  distributed over 100,000 product  catalogs,  this is in addition to the
200,000 catalogs sent during the first half of 1997.

Research and development  expenses  increased to $90,433 in the third quarter of
1997,  as compared  to $53,213 for the third  quarter of 1996 and $84,603 in the
second  quarter  of  1997,  due to  increased  demand  for  specialty  products.
Engineering  efforts  during the third quarter  focused on the  development of a
T1/E1 to Fiber Optic  converter.  Also under  development  were  several  custom
products  including  a  lightning  protection  subsystem  for  use  in  a  field
deployable  computer system being developed by Motorola for the Air Force. Other
custom  products  included  a  switching  device  for  Intel  Corporation  and a
communication controller device for Hill-Rom and Arial Systems Corp.


<PAGE>


Interest  income  decreased to $2,924 and $9,119 for three and nine months ended
September  30, 1997,  compared to $3,088 and $9,207 for the  comparable  periods
ended  September  30,  1996.  The  slight  decrease  reflects  lower  levels  of
short-term investments of cash equivalents.

Net income of  $156,329  for the third  quarter of 1997  decreased  compared  to
$175,108 for the third quarter of 1996. The decrease can be primarily attributed
to higher selling and engineering expenses during the third quarter. However the
Company views these expenses as an investment in future growth.


LIQUIDITY AND CAPITAL RESOURCES

Net cash used in operating  activities  of $169,655  was used  primarily to fund
increased  levels of inventory and accounts  receivable  due to increased  sales
revenues.  Working  capital  decreased to  $1,888,714  at September  30, 1997, a
decrease of $346,154 from  December 31 1996.  The current ratio at September 30,
1997  decreased  to 4.3 to 1 compared  to 6.2 to 1 at  December  31,  1996.  The
Company renewed its $1,000,000 line of credit with Merrill Lynch, effective July
1, 1997, for two years. The Company has no amounts outstanding under the line of
credit at this time. The Company considers its 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)      Exhibit No. 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 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:    November 11, 1997