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, 1999                                           

[   ]    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 14, 1998 there were outstanding 1,248,631 shares of Common Stock, $.01
 par value.

Transitional Small Business Disclosure Format (check one);

                           Yes                       No       X        


<PAGE>1




                            TELEBYTE TECHNOLOGY, INC.

                                      INDEX

Part I            Financial Information

         Item 1.  Financial Statements

                           Balance Sheet
                           March 31, 1999 (Unaudited)

                           Statements of Earnings
                           Three months ended
                           March 31, 1999 and 1998 (Unaudited)

                           Statements of Cash Flows
                           Three months ended
                           March 31, 1999 and 1998 (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>2



                            TELEBYTE TECHNOLOGY, INC.
                                  BALANCE SHEET
                                  MARCH 31, 1999
                                   (unaudited)
ASSETS

CURRENT ASSETS
              Cash & cash equivalents                       $  155,493
              Accounts receivable, less
                  allowance for doubtful accounts              732,907
              Inventory                                      1,591,872
              Prepaid expenses                                  49,490
              Deferred income taxes                             50,000
                                                          -------------   
             TOTAL CURRENT ASSETS                            2,579,762

PROPERTY, PLANT AND EQUIPMENT, less
  accumulated depreciation and amortization                  1,062,088

OTHER ASSETS                                                   341,227
                                                         --------------  
                                                           $ 3,983,077
                                                         ==============
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
              Accounts payable                              $  525,623
              Accrued expenses                                 225,372
              Borrowings under line-of credit                   50,415
              Current maturities of long-term debt              69,358
                                                         ---------------   
              TOTAL CURRENT LIABILITIES                        870,768

LONG-TERM BORROWINGS UNDER LINE OF CREDIT                      208,630

LONG-TERM DEBT, less current maturities                        842,451

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                                              308,270
Treasury stock - 417,435 shares at cost                     (1,028,523)
                                                         --------------   
                                                             2,061,228
                                                         --------------   
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                 $ 3,983,077
                                                         ==============   

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


<PAGE>3





                            TELEBYTE TECHNOLOGY, INC.
                             STATEMENTS OF EARNINGS
                                   (Unaudited)

                                                        Three Months
                                                       Ended March 31,

                                                  1999                 1998
                                              ----------             ----------
NET SALES                                     $1,365,280             $1,220,816

COST OF SALES                                    678,467                562,306
                                              ----------             ----------
GROSS PROFIT                                     686,813                658,510
                                              ----------             ----------
      Research and development                   129,119                 95,852
      Selling, general and administrative        430,685                399,651
                                              ----------             ---------- 
                                                 559,804                495,503

Operating Income                                 127,009                163,007
                                              ----------             ----------
OTHER INCOME (EXPENSE)
    Rental Income                                 12,049                 12,049
    Interest Income                                4,682                  6,470
    Interest Expense                             (30,364)               (28,506)
                                              -----------             ----------
       Earnings before income taxes              113,376                153,020

Provision for income taxes                        45,000                  2,000
                                              -----------             ----------
      NET EARNINGS                              $ 68,376             $  151,020
                                              ===========            ===========
Earnings per common share:
      Basic                                        $0.05                  $0.10
                                                   =====                  =====
      Diluted                                      $0.05                  $0.10
                                                   =====                  =====
Shares used in computing earnings per common share:
      Basic                                    1,303,494              1,492,616
                                               =========              =========
      Diluted                                  1,310,256              1,543,516
                                               =========              =========
         The accompanying notes are an integral part of these financial
                                  statements.


<PAGE>4


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

                                                            Three Months
                                                            Ended March 31,

                                                            1999          1998
                                                         ---------   ----------
CASH FLOWS FROM OPERATING ACTIVITIES

     Net earnings                                         $ 68,376   $  151,020
     Adjustments to reconcile net earnings to
        net cash provided by operating activities:
              Depreciation and amortization                 37,695       26,283
              Decrease (increase) in assets:
                Accounts receivable                        (84,440)     188,045
                Inventories                               (169,898)    (176,453)
                Prepaid expenses and other                  27,844      (27,151)
                Increase (decrease) in liabilities:
                Accounts payable                           173,614      (40,340)
                Accrued expenses                            88,700       (7,463)
                                                          ---------     --------
              Net cash provided by operating activities    141,891      113,941

CASH FLOWS FROM INVESTING ACTIVITIES
     Additions to property and equipment                   (22,944)     (15,797)
     Purchase of non-compete agreement                    (203,124)        -
                                                          ---------     --------
              Net cash used in investing activities       (226,068)     (15,797)
                                        
CASH FLOWS FROM FINANCING ACTIVITIES
     Principal payments under mortgage obligation          (15,525)     (10,412)
     Purchase of treasury stock                           (927,430)        -
     Net borrowings under line-of credit agreement         259,045         -
     Proceeds from exercise of stock options                 3,950        7,072
                                                         ----------     --------
              Net cash used in financing activities      (679,960)       (3,340)
                                                         ----------     --------
              Net (decrease) increase in cash            (764,137)       94,804
                    and cash equivalents                 

Cash and cash equivalents at beginning of period          919,630       730,284
                                                        ----------     ---------
Cash and cash equivalents at end of period              $ 155,493    $  825,088
                                                        ==========    ==========
         The accompanying notes are an integral part of these financial
                                  statements.



<PAGE>5




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

1.       CONDENSED FINANCIAL STATEMENTS

The balance sheet as of March 31, 1999,  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, 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
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, 1998. The results of operations for the period ended March 31, 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>6


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,  1999  increased  11.8% to
$1,365,280  compared  to  sales  of  $1,220,816  for the  same  period  in 1998.
Management  believes  that the  increased  sales can be primarily  attributed to
aggressive  marketing over the Internet using the Company's Web page and greater
acceptance and penetration of the Company's products in the data  communications
marketplace.

Cost of sales for the first  quarter  of  $678,467  or 49.6% of sales  increased
compared to the $562,306 or 46.1% of sales  during the same period in 1998.  The
decreased  profit  margin during the first quarter of 1999 is due primarily to a
higher  percent of lower profit margin  products  dominating  sales in the first
quarter of 1999 as compared with the first quarter of 1998.

Selling,  general and administrative  costs of $430,685 increased as compared to
$399,651  during the first quarter of 1998.  The increase of $31,034  during the
first quarter was due primarily to costs  incurred in connection  with the stock
repurchase and consulting agreements dated January 20, 1999 with Joel A. Kramer.
These costs included  consulting  fees,  other  compensation and amortization of
non-compete  costs.  Expenditures  related to the  enhancement  of the Company's
Internet presence were significantly  increased during the first quarter of 1999
as compared to the first quarter of 1998. The planned  enhancements are expected
to be implemented during the third quarter of 1999.

Research  and  development  expenses of $129,119  increased  34.7%,  compared to
$95,852  during the same  quarter in 1998.  This was due to an  increase  in the
staffing level of the Company's  Engineering  Department in the first quarter of
1999 as compared  with the same  quarter in 1998.  It was also due to  increased
expenditures in order to accelerate the development of several  products,  which
had  begun  in 1998.  During  the  first  quarter,  the  Company  continued  the
development of its new Digital Subscriber Line test equipment. The first product
is expected to be introduced  in the  marketplace  during the second  quarter of
1999. Others are expected to be introduced in the third quarter of 1999.

Interest income decreased to $4,682 during the first quarter of 1999 compared to
$6,470 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 first
quarter of 1999 the Company had rental  income of $12,049 which was in line with
the comparable quarter of 1998.

The effective  tax rate in first  quarter of 1999 was 40 percent,  compared with
1.3 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  $68,376  or $.05 per share  for the  first  quarter  of 1999
decreased  compared  to the net income of $151,020 or $.10 per share in the same
quarter in 1998. The decrease in profitability is due primarily to the increased
selling expenditures and research and development as discussed above.


<PAGE>7


LIQUIDITY AND CAPITAL RESOURCES

Net cash provided by operating  activities was $141,891 for the first quarter of
1999  compared to $113,941 in the same period of 1998.  This change is primarily
due to the increases in accounts  payable and accrued  expenses during the first
quarter of 1999.

Working  capital  decreased  as of March  31,  1999 by  $848,886  to  $1,708,994
compared with  $2,557,880 from December 31, 1998. The current ratio at March 31,
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 July 1999,
which  provides the Company with a line of credit  facility of up to  $1,000,000
("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 March 31, 1999 was $50,415.

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. In
conjunction  with obtaining this additional line of credit financing the Company
reduced  availability under its Original Facility to $500,000.  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  $208,630 at March 31,
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 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.

<PAGE>8

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  60% 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 second  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 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.


<PAGE>9

         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>10



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) Event dated January 20, 1999--Item 5.


<PAGE>11



                                   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\_________________
         Kenneth S. Schneider
         Chairman of the Board
         (Principal Executive Officer)


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


Date:    May 14, 1999