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 September 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 incorporation  (IRS Employer Identification No.)
                 or organization)

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

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


(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 November 15, 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. & SUBSIDIARY
                      (FORMERLY TELEBYTE TECHNOLOGY, INC.)

                                      INDEX

Part I    Financial Information

       Item 1. Consolidated Financial Statements

                    Consolidated Balance Sheet
                    September 30, 1999 (Unaudited)

                    Consolidated Statements of Earnings
                    Three and nine months ended
                    September 30, 1999 and 1999 (Unaudited)

                    Consolidated Statements of Cash Flows
                    Nine months ended
                    September 30, 1999 and 1998 (Unaudited)

                    Notes to Condensed Consolidated Financial
                    Statements (Unaudited)

       Item 2. Management's Discussion and

                    Analysis or Plan of Operation


Part II   Other Information

















<PAGE>


                          TELEBYTE, INC. & SUBSIDIARY
                      (FORMERLY TELEBYTE TECHNOLOGY, INC.)
                           CONSOLIDATED BALANCE SHEET
                               SEPTEMBER 30,1999
                                  (Unaudited)


ASSETS
CURRENT ASSETS
          Cash and cash equivalent                               $    214,479
          Accounts receivable, less
            allowance for doubtful accounts                           672,079
          Inventory                                                 1,593,908
          Prepaid expenses                                             60,401
          Deferred income taxes                                        50,000
                                                                       ------
          TOTAL CURRENT ASSETS                                      2,590,867

PROPERTY, PLANT AND EQUIPMENT, less
  accumulated depreciation and amortization                         1,055,645

OTHER ASSETS                                                          304,497
                                                                      -------
                                                                    3,951,009
                                                                    =========

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABLITIES
          Accounts payable                                       $   290,051
          Accrued expenses                                           180,774
          Accrued taxes payable                                      148,767
          Current maturities of long-term debt                        68,909
                                                                      ------
          TOTAL CURRENT LIABILITIES                                  688,501

LONG-TERM BORROWOINGS UNDER LINE-OF CREDIT                           217,178

LONG-TERM DEBT, less current maturities                              811,650

SHAREHOLDERS' EQUITY
          Common stock - $.01 par value; 9,000,000 shares
            authorized; 1,248,631 shares issued and outstanding       12,486
          Capital in excess of par value                           1,740,472
          Retained earnings                                          480,722
                                                                     -------
                                                                   2,233,680
                                                                   =========
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                         3,951,009

    The accompanying notes are an integral part of these financial statements

<PAGE>


                          TELEBYTE, INC. & SUBSIDIARY
                      (FORMERLY TELEBYTE TECHNOLOGY, INC.)
                       CONSOLIDATED STATEMENTS OF EARNINGS
                               SEPTEMBER 30,1999
                                  (Unaudited)
<TABLE>
<CAPTION>

                                                           Three Months                       Nine Months
                                                        Ended September 30,               Ended September 30,
                                                        -------------------               -------------------
<S>                                                     <C>             <C>              <C>              <C>
                                                        1999            1998             1999             1998
                                                        ----            ----             ----             ----

NET SALES                                         $   1,415,555    $  1,551,228     $   4,143,801    $  4,178,147

COST OF SALES                                           665,086         731,736         1,964,494       1,967,492
                                                        -------         -------         ---------       ---------
GROSS PROFIT                                            750,469         819,492         2,179,307       2,210,655
                                                        -------         -------         ---------       ---------


OPERATING EXPENSES
     Selling, general administrative                    406,062         519,301         1,341,702       1,541,389
     Research and development                           124,652         131,849           403,539         360,281
                                                        -------         -------           -------         -------
                                                        530,714         651,150         1,745,241       1,901,670
                                                        -------         -------         ---------       ---------

Operating Income                                        219,755         168,342           434,066         308,985
                                                        -------         -------           -------         -------

OTHER INCOME (EXPENSE)
     Rental Income                                       12,048          12,048            36,146          36,146
     Interest Income                                        873           5,663             5,868          17,542
     Interest Expense                                   (26,761)        (23,537)          (87,650)        (76,653)
                                                        -------         -------           -------         -------

       Earnings before income taxes                     205,915         162,516           388,430         286,020

Provision for income taxes                               77,602           2,500           147,602           4,500
                                                         ------           -----           -------           -----

NET EARNINGS                                      $     128,313    $    160,016     $     240,828    $    281,520
                                                  =============    ============     =============    ============


Earnings per common share:
     Basic                                        $        0.10    $       0.11     $        0.19    $       0.19
                                                  =============    ============     =============    ============
     Diluted                                      $        0.10    $       0.10     $        0.19    $       0.18
                                                  =============    ============     =============    ============


Shares used in computing earnings per
  common share:
     Basic                                        $   1,248,631    $  1,505,016     $   1,248,631    $  1,500,673
                                                  =============    ============     =============    ============
     Diluted                                      $   1,264,035    $  1,543,316     $   1,282,122    $  1,552,216
                                                  =============    ============     =============    ============
</TABLE>

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

<PAGE>


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

<TABLE>
<CAPTION>
                                                                         Nine Months
                                                                      Ended September 30,
                                                                      -------------------
<S>                                                                   <C>                 <C>

                                                                     1999                1998
                                                                     ----                ----


CASH FLOWS FROM OPERATING ACTIVITIES

     Net earnings                                                $   240,828         $   281,520
     Adjustments to reconcile net earnings to
       net cash provided by operating activities:
          Depreciation and amortization                              113,082              78,848
          Decrease (increase) in assets:
            Accounts receivable                                      (23,612)            (10,082)
            Inventories                                             (171,934)           (142,774)
            Prepaid expenses and other                                28,274              15,845
            Increase (decrease) in liabilities:
            Accounts pyaable                                         (61,958)           (126,330)
            Accrued expenses and taxes                               192,869              (5,580)
                                                                     -------              ------

          Net cash provided by operating activities                  317,549              91,447
                                                                     -------              ------

CASH FLOWS FROM INVESTING ACTIVITIES
     Additions to property and equipment                             (66,499)            (38,441)
     Cost of non-compete agreement                                  (203,124)
                                                                    --------             -------

          Net cash used in investing activities                     (269,623)            (38,441)
                                                                    --------             -------

CASH FLOWS FROM FINANCING ACTIVITIES
     Principal payments under mortgage obligation                    (46,775)            (34,332)
     Purchase of treasury stock                                     (927,430)
     Net borrowings under line-of credit agreement                   217,178
     Proceeds from exercise of stock options                           3,950               8,322
                                                                       -----               -----

          Net cash used in financing activities                     (753,077)            (26,010)
                                                                    --------             -------

          Net (decrease) increase in cash and cash equivalents      (705,151)             26,996

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

Cash and cash equivalents at end of period                       $   214,479         $   757,280
                                                                 ===========         ===========
</TABLE>

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

<PAGE>

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

1.       CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The  consolidated  balance  sheet as of  September  30, 1999,  the  consolidated
statement  of  earnings  for the  three  and  nine  months  then  ended  and the
consolidated  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, 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  September 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 third  quarter  ended  September  30,  1999  decreased  9% to
$1,415,555  compared to sales of $1,551,228  for the same period in 1998.  Sales
during the nine months  ended  September  30, 1999  decreased  1% to  $4,143,801
compared to sales of $4,178,147 for the same period in 1998. Management believes
that the  decrease  in sales was  primarily  due to the  decline in sales of the
Company's  existing  Digital  Subscriber  Line Test  Equipment  products and the
delayed  development and introduction of the Company new Digital Subscriber Line
Test Equipment products.

Cost of sales  for the  third  quarter  of  $665,086  or 47% of sales  decreased
compared to the $731,736 or 47.1% of sales during the same period in 1998.  Cost
of sales for the nine months ended  September 30, 1999 of $1,964,494 or 47.4% of
sales  increased  compared  to the  $1,967,492  or 47% of sales  during the same
period in 1998. The profit margin percentage for the three and nine months ended
September 30, 1999 was in line with the same periods in 1998.

Selling,  general  and  administrative  costs for the third  quarter of $406,062
decreased  as compared to $519,301  during the third  quarter of 1998.  Selling,
general and  administrative  costs of $ 1,341,702  during the nine months  ended
September 30, 1999  decreased as compared to  $1,541,389  for the same period in
1998.  The  decrease of $113,239  during the third  quarter and the  decrease of
$199,687 for the nine months ended  September  30, 1999 were due  primarily to a
reduction  in the  Company's  sales staff and other cost cutting  measures  that
began earlier this year.  These  decreases  reflect  management's  commitment to
moving  the  Company  from  selling on a  telephone  basis to a  combination  of
telephone and automated,  Internet based,  Electronic Commerce.  These decreases
helped to enable the Company to invest the necessary  financial resources in the
development of an Electronic  Commerce  order  fulfillment  system.  The Company
believes this Electronic Commerce system will enhance its future growth.  During
the end of the third quarter of 1999 the Company began operations of a separate,
wholly owned, subsidiary, DeliverNextDay.com, Inc., to focus on generating sales
through Electronic Commerce.  DeliverNextDay.com,  Inc. will be selling products
manufactured  by the Company and it will be reselling  products  manufactured by
other suppliers.

Research and  development  expenses for the third quarter of $124,652  decreased
5%,  compared  to  $131,849  during the same  quarter in 1998.  During the third
quarter,   the  Company   continued   development   of  several   advanced  data
communications  products.  Products under  development  during the third quarter
included an advanced  fiber optic modem,  the Company's  first USB based product
and several improvements to the Company's DSL test equipment product line.

Interest  income  decreased to $873 during the third quarter of 1999 compared to
$5,663 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 third
quarter of 1999 the Company had rental income of $12,048, which was in line with
the comparable quarter of 1998.

The effective tax rate in third quarter of 1999 was 37.6 percent,  compared with
1.5 percent in the same quarter in 1998.  The increase in the effective tax rate
is primarily due to the Company's  utilization  of its net operating  loss carry
forward.

The net  earnings of  $128,313  or $.10 per share for the third  quarter of 1999
decreased compared to the net earnings of $160,016 or $.10 per share in the same
quarter in 1998. The decrease in  profitability is due primarily to the increase
in the Company's effective tax rate during 1999.




LIQUIDITY AND CAPITAL RESOURCES

Net cash provided by operating  activities  for the nine months ended  September
30,  1999 was  $317,549  compared  to net cash  provided  of $91,447 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 September  30, 1999 by $655,514 to  $1,902,366
compared with  $2,557,880 from December 31, 1998. The current ratio at September
30,  1999  decreased  to 3.8:1  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 the  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 Company has no amount  outstanding  under the line of credit
as of September 30, 1999.

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 $217,178
at September 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 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 during the fourth 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.

         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 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  commit.  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 any 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.









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.

         a.    Exhibits

                  27.1   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:    November 15, 1999






<PAGE>